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 Semtech Corporation 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 Semtech Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Texas Instruments Incorporated and Semtech Corporation

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.

Semtech Corporation provides semiconductor, Internet of Things systems, and cloud connectivity service solutions in the Asia- Pacific, North America, and Europe. The company operates in three segments: Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity. It provides signal integrity products, including a portfolio of optical and copper data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers analog mixed signal and wireless products; protection devices, such as filter and termination devices which protect electronic systems from voltage spikes; and designs, develops, manufactures, and markets radio frequency products used in industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, the company offers a portfolio of IoT systems and connectivity solutions, such as modules, gateways, routers, and connected services, including wireless connectivity and cloud-based services for industrial, medical, and communications applications. It serves original equipment manufacturers, solution providers, commercial applications, infrastructure, high-end consumer, and industrial end markets. The company sells its products through direct sales personnel, independent sales representative firms, and independent distributors. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.

Latest Semiconductors & Semiconductor Equipment and Texas Instruments Incorporated, Semtech Corporation Stock News

As of June 5, 2026, Texas Instruments Incorporated had a $259.4 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $5.2 million. Texas Instruments Incorporated’s stock is up 64.3% in 2026, down 6.7% in the previous five trading days and up 49.47% in the past year.

Currently, Texas Instruments Incorporated’s price-earnings ratio is 48.7. Texas Instruments Incorporated’s trailing 12-month revenue is $18.4 billion with a 29.1% net profit margin. Year-over-year quarterly sales growth most recently was 18.6%. Analysts expect adjusted earnings to reach $7.774 per share for the current fiscal year. Texas Instruments Incorporated currently has a 2.0% dividend yield.

As of June 5, 2026, Semtech Corporation had a $14.1 billion market cap, putting it in the 82nd percentile of all stocks. Semtech Corporation’s stock is up 104.9% in 2026, down 1% in the previous five trading days and up 293.79% in the past year.

Currently, Semtech Corporation does not have a price-earnings ratio. Semtech Corporation’s trailing 12-month revenue is $1.1 billion with a -3.0% net profit margin. Year-over-year quarterly sales growth most recently was 15.9%. Analysts expect adjusted earnings to reach $2.658 per share for the current fiscal year. Semtech Corporation does not currently pay a dividend.

How We Compare Texas Instruments Incorporated and Semtech Corporation 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 Semtech Corporation’s stock grades to see how they measure up against one another.

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Texas Instruments Incorporated and Semtech Corporation Growth Grades

Company	Ticker	Growth
Texas Instruments Incorporated	TXN	C
Semtech Corporation	SMTC	C

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Texas Instruments Incorporated has a Growth Score of 56, which is Average. Semtech Corporation has a Growth Score of 60, which is Average.

The Growth Stock Winner: No Clear Winner

Neither Texas Instruments Incorporated or Semtech Corporation has a high enough Growth 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 portfolios. It’s important to look at a wide range of financial metrics in order to determine if Texas Instruments Incorporated or Semtech Corporation is the better investment when it comes to sustainable growth.

Texas Instruments Incorporated and Semtech Corporation’s Quality Grades

Company	Ticker	Quality
Texas Instruments Incorporated	TXN	A
Semtech Corporation	SMTC	B

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 96, which is Very Strong. Semtech Corporation has a Quality Score of 74, which is Strong.

The Quality Grade Winner: Texas Instruments Incorporated

As you can clearly see from the Quality Grade breakdown above, Texas Instruments Incorporated has a better overall quality grade than Semtech Corporation. For investors who are looking for companies with higher quality than others in the same industry, Texas Instruments Incorporated could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Texas Instruments Incorporated and Semtech Corporation’s Momentum Grades

Company	Ticker	Momentum
Texas Instruments Incorporated	TXN	A
Semtech Corporation	SMTC	A

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 84, which is Very Strong. Semtech Corporation has a Momentum Score of 97, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Texas Instruments Incorporated and Semtech Corporation have a grade of A. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Other Texas Instruments Incorporated and Semtech Corporation Grades

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

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).

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.

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 Semtech Corporation 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 Semtech Corporation Stock?

Overall, Texas Instruments Incorporated stock has a Growth Score of 56, Momentum Score of 84 and Quality Score of 96.

Semtech Corporation stock has a Growth Score of 60, Momentum Score of 97 and Quality Score of 74.

Comparing Texas Instruments Incorporated and Semtech Corporation’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.

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.