TXN vs ADI Stock Comparison: AI Score, Valuation, Performance and Upside
TI and ADI are the two largest pure-play analog semiconductor companies, competing across industrial and automotive markets. TI emphasizes manufacturing scale, diversification, and capital returns from 300mm CMOS fabs; ADI emphasizes performance, signal processing IP, and premium applications where precise measurement matters more than cost. Both are in an industrial inventory correction recovery phase, but TI's fab investment has compressed near-term free cash flow while ADI carries acquisition leverage from Maxim.
TXN vs ADI is a choice between the lowest-cost high-volume analog manufacturer (TI) and the highest-performance signal chain specialist (ADI) — TI wins on cost and diversification for commodity analog markets, while ADI wins on performance and precision for demanding industrial and scientific applications that tolerate higher prices.
ADI holds the edge across 3 of 5 key metrics in this comparison. ADI leads on both 1-year return (+53.15%) and forward P/E quality (23.17x vs 24.30x for TXN), a relatively favorable combination of momentum and valuation. On fundamentals, ADI is growing revenue faster (39.60%), while TXN maintains the higher operating margin (42.58%) — a classic growth-versus-profitability split. Analyst consensus implies similar upside for both: +25.55% for TXN and +24.27% for ADI.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- prefer the world's largest analog IC manufacturer with 20+ years of consecutive dividend growth
- value maximum customer diversification (100,000+ customers) eliminating concentration risk
- want a capital-efficient analog compounder with the lowest manufacturing cost in the industry from 300mm fabs
- are comfortable with near-term free cash flow compression from the multi-year fab capacity expansion investment
- prefer high-performance precision analog and signal chain leadership in demanding industrial and scientific markets
- value Maxim integration expanding ADI's power management and interface IC content-per-system
- want a premium analog specialist with strong pricing power in accuracy-sensitive applications
- are comfortable with acquisition-related leverage and deeper industrial inventory correction exposure near-term
| Metric | TXN | ADI |
|---|---|---|
| AI scorei | 54.9 | 65.0 |
| AI ranki | #284 | #81 |
| Latest closei | $266.64 | $375.72 |
| 1M returni | +0.86% | +0.70% |
| 6M returni | +42.44% | +21.42% |
| 1Y returni | +48.65% | +53.15% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TXN | ADI |
|---|---|---|
| 1Y ago | $14.84K (+48.4%) started 2025-09-22 | $15.19K (+51.9%) started 2025-09-22 |
| 5Y ago | $17K (+70.0%) started 2021-09-22 | $24.54K (+145.4%) started 2021-09-22 |
| 10Y ago | $63.71K (+537.1%) started 2016-09-22 | $83.02K (+730.2%) started 2016-09-22 |
Hypothetical — past performance does not guarantee future results.
| Metric | TXN | ADI |
|---|---|---|
| Market capi | $236.2B | $183.54B |
| Trailing P/Ei | 39.37 | 45.04 |
| Forward P/Ei | 24.30 | 23.17 |
| Price/Salesi | 10.89 | 11.23 |
| EV/Revenuei | 12.51 | 13.71 |
| Analyst targeti | $324.71 | $470.72 |
| Target upsidei | +25.55% | +24.27% |
| Metric | TXN | ADI |
|---|---|---|
| Revenue growthi | 22.80% | 39.60% |
| Earnings growthi | 51.80% | 163.50% |
| EPS growthi | +51.80% | +163.50% |
| FCF margini | +18.22% | +29.88% |
| Operating margini | 42.58% | 39.50% |
| Profit margini | 31.11% | 29.79% |
| ROIC proxyi | 35.18% | 12.23% |
| Return on equityi | 35.18% | 12.23% |
| Dividend yieldi | 2.20% | 1.16% |
| Payout ratioi | 85.41% | 49.64% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.32 | 1.21 |
| Debt/equityi | 78.04 | 27.31 |
| Current ratioi | 4.86 | 1.25 |
| Quick ratioi | 3.25 | 0.83 |
Over the past year, TXN and ADI have moved strongly in the same direction (correlation of 0.81), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | TXN | ADI |
|---|---|---|---|
| 1Y | Growthi | +48.45% | +51.90% |
| CAGRi | +48.70% | +52.18% | |
| Volatilityi | 42.54% | 36.16% | |
| Sharpe ratioi | 1.04 | 1.22 | |
| Sortino ratioi | 1.77 | 1.83 | |
| Max drawdowni | 23.76% | 20.68% | |
| Current drawdowni | 19.75% | 15.66% | |
| Avg drawdowni | 8.35% | 6.73% | |
| Ulcer Indexi | 10.83% | 9.21% | |
| Max daily dropi | 8.46% | 8.58% | |
| Max wkly dropi | 14.08% | 12.05% | |
| 5Y | Growthi | +51.75% | +130.08% |
| CAGRi | +8.70% | +18.14% | |
| Volatilityi | 33.70% | 34.08% | |
| Sharpe ratioi | 0.28 | 0.53 | |
| Sortino ratioi | 0.42 | 0.79 | |
| Max drawdowni | 33.41% | 32.20% | |
| Current drawdowni | 19.75% | 15.66% | |
| Avg drawdowni | 11.63% | 8.66% | |
| Ulcer Indexi | 13.48% | 10.73% | |
| Max daily dropi | 13.34% | 9.37% | |
| Max wkly dropi | 17.97% | 18.34% | |
| 10Y | Growthi | +386.16% | +594.92% |
| CAGRi | +17.14% | +21.40% | |
| Volatilityi | 31.78% | 33.20% | |
| Sharpe ratioi | 0.52 | 0.62 | |
| Sortino ratioi | 0.76 | 0.90 | |
| Max drawdowni | 33.41% | 33.62% | |
| Current drawdowni | 19.75% | 15.66% | |
| Avg drawdowni | 8.56% | 7.22% | |
| Ulcer Indexi | 11.05% | 9.45% | |
| Max daily dropi | 13.34% | 16.61% | |
| Max wkly dropi | 17.97% | 18.34% |
| Category | TXN | ADI |
|---|---|---|
| Company | Texas Instruments Incorporated | Analog Devices, Inc. |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| Core business | Texas Instruments (TI) is the world's largest analog and embedded processor semiconductor company, serving over 100,000 customers across industrial, automotive, personal electronics, communications, and enterprise markets. TI's strategy centers on owning its manufacturing through 300mm CMOS fabs, maintaining the most diverse customer base in analog semiconductors, and operating direct-to-customer distribution that maximizes margins. The company is in a multi-year $15B+ capacity expansion to serve the secular growth of analog content in vehicles and industrial equipment. | Analog Devices (ADI) designs high-performance analog, mixed-signal, and digital signal processing (DSP) ICs for industrial automation, communications infrastructure, healthcare, and automotive markets. Following the $21B acquisition of Maxim Integrated in 2021, ADI became the #2 analog semiconductor company globally. ADI's differentiation is in high-performance signal chain solutions — precision data converters, RF ICs, and power management — for demanding industrial and scientific applications where performance matters more than cost. |
| Investor focus | Investors track TI's free cash flow per share growth, manufacturing utilization as the inventory correction cycle resolves, automotive and industrial revenue mix (target end-markets), and capital allocation through the company's long-standing commitment to returning all free cash flow to shareholders via dividends and buybacks. | Investors track ADI's industrial and automotive revenue recovery from the prolonged inventory correction, gross margin sustainability above 60%, the Maxim integration benefits (cross-selling and cost synergies), and free cash flow conversion relative to the dividend and buyback program. |
- Largest 300mm analog manufacturing capacity in the world gives TI the lowest cost analog chip production advantage
- Extremely diversified customer base (100,000+ customers, no customer >10% of revenue) eliminates customer concentration risk
- Longest-running capital return commitment in semiconductors — over 20 consecutive years of dividend growth
- Leading market share in high-performance precision analog (data converters, amplifiers) used in industrial, medical, and defense applications
- Maxim acquisition expanded ADI's power management and interface IC portfolio, increasing content-per-system opportunities
- Strong R&D moat in signal processing IP developed over decades, enabling premium pricing in performance-sensitive applications
- Multi-year fab expansion investment is compressing near-term free cash flow and ROIC, which some investors view as misallocated capital
- Inventory correction in industrial and automotive channels has significantly reduced utilization and revenue since 2022
- ADI and Infineon are both investing in similar analog IC markets, creating competitive pricing pressure during industry downturns
- Industrial automation market downturn has been deeper and more prolonged than anticipated, pressuring revenue and margins
- Maxim integration added financial leverage that reduces flexibility during downturns versus TI's debt-light balance sheet
- TI's growing 300mm capacity advantage creates a long-term cost competitive threat in commodity analog market segments
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