Which Is a Better Investment, Broadcom Inc or Texas Instruments Incorporated Stock?

By AAII Staff
September 03, 2026
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Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Texas Instruments Incorporated or Broadcom Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Texas Instruments Incorporated and Broadcom Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Texas Instruments Incorporated and Broadcom Inc.

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 isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Latest Semiconductors & Semiconductor Equipment and Texas Instruments Incorporated, Broadcom Inc. Stock News

As of September 2, 2026, Texas Instruments Incorporated had a $232.7 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $4.7 million. Texas Instruments Incorporated’s stock is up 44.3% in 2026, down 6.1% in the previous five trading days and up 27.52% in the past year.

Currently, Texas Instruments Incorporated’s price-earnings ratio is 38.7. Texas Instruments Incorporated’s trailing 12-month revenue is $19.5 billion with a 31.1% net profit margin. Year-over-year quarterly sales growth most recently was 22.8%. Analysts expect adjusted earnings to reach $8.486 per share for the current fiscal year. Texas Instruments Incorporated currently has a 2.2% dividend yield.

As of September 2, 2026, Broadcom Inc. had a $1.7 trillion market cap, putting it in the 100th percentile of all stocks. Broadcom Inc.’s stock is down 0.8% in 2026, down 7.6% in the previous five trading days and up 23.14% in the past year.

Currently, Broadcom Inc.’s price-earnings ratio is 61.1. Broadcom Inc.’s trailing 12-month revenue is $75.5 billion with a 38.8% net profit margin. Year-over-year quarterly sales growth most recently was 47.9%. Analysts expect adjusted earnings to reach $11.631 per share for the current fiscal year. Broadcom Inc. currently has a 0.7% dividend yield.

How We Compare Texas Instruments Incorporated and Broadcom Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Texas Instruments Incorporated and Broadcom Inc.’s stock grades to see how they measure up against one another.

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Texas Instruments Incorporated and Broadcom Inc. Stock Value Grades

Company Ticker Value
Texas Instruments Incorporated TXN F
Broadcom Inc. AVGO F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Texas Instruments Incorporated has a Value Score of 8, which is Ultra Expensive. Broadcom Inc. has a Value Score of 4, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Texas Instruments Incorporated or Broadcom Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Texas Instruments Incorporated or Broadcom Inc. is the better investment when it comes to value.

Texas Instruments Incorporated and Broadcom Inc.’s Quality Grades

Company Ticker Quality
Texas Instruments Incorporated TXN A
Broadcom Inc. AVGO A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Texas Instruments Incorporated has a Quality Score of 97, which is Very Strong. Broadcom Inc. has a Quality Score of 90, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Texas Instruments Incorporated and Broadcom Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Texas Instruments Incorporated and Broadcom Inc.’s Momentum Grades

Company Ticker Momentum
Texas Instruments Incorporated TXN C
Broadcom Inc. AVGO C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Texas Instruments Incorporated has a Momentum Score of 53, which is Average. Broadcom Inc. has a Momentum Score of 46, which is Average.

The Momentum Stock Winner: No Clear Winner

Neither Texas Instruments Incorporated or Broadcom Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Texas Instruments Incorporated or Broadcom Inc. is the better investment when it comes to momentum.

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Other Texas Instruments Incorporated and Broadcom Inc. Grades

In addition to Quality, Momentum and Value, A+ Investor also provides grades for Growth and Estimate Revisions.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Texas Instruments Incorporated and Broadcom Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Texas Instruments Incorporated or Broadcom Inc. Stock?

Overall, Texas Instruments Incorporated stock has a Value Score of 8, Momentum Score of 53 and Quality Score of 97.

Broadcom Inc. stock has a Value Score of 4, Momentum Score of 46 and Quality Score of 90.

Comparing Texas Instruments Incorporated and Broadcom Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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