Freedom Broker Upgrades Texas Instruments to Buy, $330 Price Target

Freedom Broker analyst Egor Tolmachev upgraded Texas Instruments (NASDAQ: TXN) from Hold to Buy with a price target of $330 (from $260).

“Q3’26 was TXN’s third consecutive beat-and-raise print, and this time margins rather than revenue did the heavy lifting.

Revenue came in only modestly ahead of consensus, but incremental fallthrough well above management’s long-term framework drove a sharp step-up in gross margin and took EPS above the top of guidance again.

Demand keeps broadening — industrial is back at its prior peak, data center keeps compounding and automotive is accelerating — and a flat Q4’26 guide in a seasonally weak quarter suggests TI’s inventory and capacity readiness is turning tighter industry supply into volume now and, via 2027 contract talks, firmer pricing.

Free cash flow near half of revenue with almost no CHIPS Act support underlines the quality of the upturn. We raise our estimates as higher volumes flow through an already-built cost base.

Back-end tool deliveries, data center durability and the pending Silicon Labs deal are the key watch items. We upgrade TXN to Buy and raise our PT to $330.”

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