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    How Investors Are Reacting To Texas Instruments (TXN) Deepening Its US Chip Supply Role With GE Appliances

    Simply Wall St·08/09/2026 12:24:27
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    • In early August 2026, GE Appliances, a Haier company, announced it will nearly double its spending with Texas Instruments by integrating US-manufactured TI microcontrollers, Wi-Fi solutions, and analog components into next-generation connected laundry products, sourcing about one-third of the chips for its new Louisville, Kentucky plant from TI starting in 2027.
    • This agreement underscores TI’s role as one of the few high-volume US semiconductor manufacturers, aligning closely with GE Appliances’ “Zero Distance” domestic supply chain strategy and opening the door to AI-capable appliance controls using TI’s intelligent microcontroller platform.
    • Next, we’ll examine how this expanded GE Appliances partnership, rooted in TI’s US manufacturing footprint, could influence Texas Instruments’ investment narrative.

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    Texas Instruments Investment Narrative Recap

    To own Texas Instruments, you generally need to believe its focus on long-life analog and embedded chips, backed by heavy US manufacturing investment, can support resilient earnings and returns. The GE Appliances deal reinforces TI’s US fab footprint and supply chain appeal, but on its own it does not materially change the near term picture, where the key catalyst is utilization of new 300mm fabs and the biggest risk is underused capacity if demand weakens.

    Among recent developments, TI’s July 2026 guidance for Q3 revenue of US$5.65 billion to US$6.15 billion and EPS of US$2.23 to US$2.57 is most relevant. It sets the earnings bar that investors will measure contracts like the GE Appliances partnership against, especially given concerns about capital intensity, free cash flow coverage of the dividend, and how quickly new US fabs translate into higher returns.

    Yet investors should also weigh how heavy US fab spending could backfire if demand softens and utilization stays lower than many expect...

    Read the full narrative on Texas Instruments (it's free!)

    Texas Instruments' narrative projects $26.4 billion revenue and $10.4 billion earnings by 2029.

    Uncover how Texas Instruments' forecasts yield a $298.00 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    TXN 1-Year Stock Price Chart
    TXN 1-Year Stock Price Chart

    Some of the most optimistic analysts were already assuming revenue could reach about US$30.8 billion and earnings US$12.6 billion by 2029, which is a far more upbeat story than consensus, but the GE Appliances news and broader onshoring trend might either support that view or highlight how uncertain such confident forecasts really are.

    Explore 5 other fair value estimates on Texas Instruments - why the stock might be worth as much as 52% more than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.