On Wednesday, Texas Instruments Incorporated (NASDAQ: NASDAQ:TXN) maintained its Overweight rating and a price target of $250.00, as confirmed by KeyBanc. The semiconductor company recently conducted its second capital markets event of the year, where it updated its capital expenditure (capex) spending projections.
During the event, Texas Instruments provided a revised capex spending forecast, suggesting a potential decrease to less than $5 billion in 2026, depending on market conditions. The company offered a flexible capex range of $2 billion to $5 billion, linked to revenue outcomes between $20 billion and $26 billion.
Texas Instruments also detailed its capex plans for the years 2024-2025, with an anticipated $5 billion annual spend. This investment is expected to support the company's modular capacity expansion in its manufacturing sites and contribute to improved gross margins.
Furthermore, the company outlined its strategy for free cash flow (FCF) per share growth, aiming to reach its trendline by the year 2026. The updated capex strategy and financial goals were positively received, leading to the reaffirmation of the Overweight rating on the company's stock.
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