Texas Instruments Incorporated TXN

Competitive advantage analysis · technology

Corporate Default
Overall moat score
72/100
Moderate

About Texas Instruments Incorporated

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and … Full TXN analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.82), demonstrating pricing resilience across cycles.
  • ROIC Sustainably Above Peers ROIC at 85.9th percentile exceeds peers and WACC, demonstrating superior capital allocation.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
81

Where TXN ranks in Semiconductors

Texas Instruments Incorporated ranks #12 of 66 scored companies in Semiconductors by moat score — the top 18%. The widest moat in the group is NVE Corporation (NVEC) at 86/100.

Moat scores for companies ranked near TXN in Semiconductors
# Company Moat score Rating
8 Arm Holdings plc ARM 75/100 Strong
9 Monolithic Power Systems, Inc. MPWR 75/100 Strong
10 Credo Technology Group Holding CRDO 73/100 Moderate
11 QUALCOMM Incorporated QCOM 72/100 Moderate
12 Texas Instruments Incorporated TXN 72/100 Moderate
13 Analog Devices, Inc. ADI 71/100 Moderate
14 NXP Semiconductors N.V. NXPI 71/100 Moderate
15 United Microelectronics Corpora UMC 68/100 Moderate
16 Astera Labs, Inc. ALAB 68/100 Moderate

See every General Corporate company ranked by moat score →

How TXN scores on the Corporate Default defenses

Pricing Power

Score 81 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 78 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 72 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 59 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 63 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding TXN's moat

What is Texas Instruments Incorporated's moat score?

Texas Instruments Incorporated (TXN) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #12 of 66 scored companies in Semiconductors, the top 18%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 65 companies in Semiconductors. Its strongest defense is Pricing Power (81/100) and its weakest is Resilience (59/100).

How does Texas Instruments Incorporated compare with other Semiconductors companies?

Texas Instruments Incorporated ranks #12 of 66 scored companies in Semiconductors by moat score. The widest moat in Semiconductors is NVE Corporation (NVEC) at 86/100. The companies ranked closest are QUALCOMM Incorporated (QCOM) at 72 just above it and Analog Devices, Inc. (ADI) at 71 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 65 companies in Semiconductors. The defenses are then weighted to produce the overall score out of 100.

Why is Texas Instruments Incorporated scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Texas Instruments Incorporated?

The Corporate Default template measures 6 defenses, and TXN scores: Pricing Power (81), Cost Advantage (78), Customer Stickiness (72), Capital Efficiency (76), Resilience (59), Scale & Market Position (63). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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