Can TXN's Embedded Business Extend Its Double-Digit Growth Run? - TradingView

Texas Instruments' (TXN) embedded processing business returned to healthy growth in Q1 2026, with revenues up 12% year-over-year to $723 million and operating profit more than tripling to $122 million... Read original →

TI’s embedded rebound stems from structural demand surges in industrial automation and automotive electrification. Its internal 300mm wafer strategy cuts costs by over 15% and insulates supply chains from geopolitical volatility—unlike rivals reliant on foundries in Taiwan, China. Technologically, high-integration MCUs are forcing redesigns of PLCs and ADAS domain controllers, cascading upgrades across EDA tools and firmware ecosystems. With Microchip leveraging RISC-V for mid-range dominance and NXP fortifying premium auto segments via safety certifications, TI must accelerate sub-8nm embedded SoCs. Over the next 18 months, as smart factory CapEx rebounds and L2+ ADAS penetration exceeds 40%, embedded chips will shift from optional to foundational—but sustained global manufacturing weakness could undermine its rich 37.4x forward P/E.