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    GE Appliances’ Bigger Chip Order Could Be A Game Changer For Texas Instruments (TXN)

    Simply Wall St·08/18/2026 01:20:35
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    • In August 2026, GE Appliances, a Haier company, announced it would nearly double its semiconductor spending with Texas Instruments by integrating U.S.-manufactured TI microcontrollers, Wi-Fi solutions, and analog components into its next generation of connected laundry appliances made at its Louisville, Kentucky plant from 2027.
    • This expanded relationship underscores how TI’s U.S. manufacturing footprint and broad analog and embedded portfolio can support home-appliance makers seeking resilient, domestically sourced chips for smarter, AI-capable products.
    • We'll now examine how GE Appliances’ decision to source one-third of its new laundry plant chips from TI could influence Texas Instruments’ investment narrative.

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    Texas Instruments Investment Narrative Recap

    To own Texas Instruments, you need to believe its focus on long-life analog and embedded chips, backed by heavy U.S. fab investment, can keep margins attractive even as competition and cycles bite. The GE Appliances deal highlights TI’s U.S. manufacturing and connected-appliance capabilities, but it does not fundamentally change the key near term catalyst: efficient utilization of new 300mm fabs. It also leaves the main risk intact: large capital spending that could strain returns if demand disappoints.

    The GE Appliances announcement lines up most closely with TI’s earlier emphasis on U.S. manufacturing expansion and localization. By supplying one-third of the chips for GE Appliances’ new Louisville laundry plant, TI is putting those fabs to work in exactly the kind of domestic, connectivity focused applications its U.S. footprint targets. This supports the idea that onshoring and supply chain resilience could help TI win more high value, long duration contracts if similar deals emerge.

    But while this sounds reassuring, investors should still understand how TI’s heavy fab spending could become a problem if...

    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 5% 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 modeling TI’s revenue reaching about US$30.8 billion and earnings of roughly US$12.6 billion, and saw U.S. fabs as a clear win, yet the GE Appliances deal also highlights the flip side of that bullish story: if TI’s slower pivot into fast changing AI and advanced wireless persists, those aggressive forecasts could prove too rich, reminding you that even among professionals, views on TI’s upside and its risks can differ sharply.

    Explore 6 other fair value estimates on Texas Instruments - why the stock might be worth 15% less than the current price!

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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.