Texas Instruments (TXN) has been downgraded by Barclays from Equal Weight to Underweight, with a revised price target of $125. The downgrade is rooted in concerns over a weakening demand outlook and a valuation that no longer appears justified amid sector-wide headwinds.
Barclays is flagging softness in key segments such as industrial and automotive, which together make up a large portion of TXN’s revenue base. With the broader semiconductor market facing cyclical pressure and end-market inventories still adjusting, near-term revenue growth for TXN is expected to be muted. Combine that with a stock price that continues to reflect optimism, and it’s clear why analysts are taking a more cautious stance.
💵 Dividend Snapshot:
📌 Quarterly Dividend: $1.36 per share
📌 Annual Dividend: $5.44
📌 Yield: ~3.66%
📌 Dividend Growth: 21 consecutive years
📌 Next Pay Date: May 13, 2025
Despite the downgrade, TXN continues to be a standout when it comes to shareholder returns. Its 21-year streak of dividend increases and generous yield make it a favorite among income investors. However, if earnings take a further hit, the high payout may come under closer scrutiny.
Investors eyeing TXN for its dividend stability will want to watch how the company navigates the near-term earnings cycle and whether its defensive characteristics hold up in a slowing demand environment.