TXN Data‑Center Sales Jump 70% as Stock Falls 8%
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- Texas Instruments is the world's largest maker of analog semiconductor chips.
- Data center sales grew 70% year over year, according to CEO Haviv Ilan on the fourth‑quarter earnings call.
- Dividend has increased for 22 consecutive years, with a 4% raise in 2025 and a current yield of 2.9%, representing a 273% boost over the past decade.
- 300‑mm fab in Sherman Oaks, Texas, began production in December after a $30 billion investment, focusing on mature‑process chips for automotive, industrial and consumer electronics.
- Capex spending slowed to $2‑$5 billion per year from a $5 billion peak, while free cash flow rose 96% to $2.9 billion in 2025.
- Revenue reached $17.7 billion in 2025, up 13%, and earnings per share rose 4.8% to $5.45.
- Vertical integration aims for 95% internal wafer production by decade's end, leveraging 300‑mm wafers that yield 40% more chips per wafer than the industry‑standard 200‑mm.
Why it matters: Investors gain a lower entry point into a dividend‑rich chipmaker whose 70% data‑center sales jump and 96% free‑cash‑flow rise signal stronger cash generation, while the domestic fab reduces reliance on foreign foundries, mitigates tariff risk, and its 2.9% dividend yield adds income.
