Texas Instruments (TXN) shares have seen strong recent gains but are trading around values that appear overvalued according to both a common narrative valuation and a DCF model. The article suggests that future growth may already be priced in, prompting investors to consider whether a buying opportunity still exists or if caution is warranted. Key risks include potential pressures on margins and free cash flow from higher in-house manufacturing spend or geopolitical/tariff shocks.
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Assessing Whether Texas Instruments (TXN) Shares Still Justify Their Valuation After Strong Recent Gains
Texas Instruments (TXN) shares have seen strong recent gains but are trading around values that appear overvalued according to both a common narrative valuation and a DCF model. The article suggests that future growth may already be priced in, prompting investors to consider whether a buying opportunity still exists or if caution is warranted. Key risks include potential pressures on margins and free cash flow from higher in-house manufacturing spend or geopolitical/tariff shocks.