Wall Street Analysts Tout Texas Instruments Incorporated (TXN) Growth Prospects amid Weak Guidance

Texas Instruments Incorporated (NASDAQ:TXN) is one of the best augmented reality stocks to buy right now. On November 24, Citi Analyst Christopher Danely reiterated that Texas Instruments Inc. (NASDAQ:TXN) is a Buy and settled on a $235 price target.

Wall Street Analysts Tout Texas Instruments Incorporated (TXN) Growth Prospects amid Weak Guidance

The positive stance came on the heels of Bernstein reiterating that Texas Instruments Inc. is one of the companies well-positioned to benefit from major trends reshaping the global semiconductor sector. The growing demand for discrete chips in the automotive industry presents tremendous opportunities for the company to capitalize on.

Meanwhile, on November 19, Mizuho analysts cut the stock’s price target to $145 from $150 and reiterated an Underperform rating. The price target cut follows the research firm’s “weak guidance.” Texas Instruments said it expects fourth-quarter revenue to come in at $4.40 billion, down 7% from the third quarter’s $4.74 billion.

Nevertheless, Mizuho has touted growth in the company’s automotive revenue, up 10% despite light vehicle production declining 1% and industrial segment revenue growing at low single digits quarter over quarter in Q3.

Texas Instruments Incorporated (NASDAQ:TXN) is an AR enabler, providing critical components that power augmented reality devices. Its DLP Pico technology enables AR head-up displays in vehicles and wearable AR systems, while its analog, embedded processing, power management, connectivity, and vision processors support the real-time operation of AR applications. By supplying both core device processing and specialized components for low-power displays and edge AI, TI helps deliver bright, high-contrast, and wide-field-of-view AR experiences. AR is just one part of its broad semiconductor business, which spans automotive, industrial, and consumer electronics, making TI a key contributor to the AR ecosystem rather than a dedicated AR company.

While we acknowledge the potential of TXN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TXN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.