In the ever-evolving semiconductor industry, Texas Instruments Incorporated (TXN) and CEVA, Inc. (CEVA) represent two distinct yet complementary approaches to innovation and market presence. While TXN focuses on designing and manufacturing a broad array of semiconductor products for various applications, CEVA specializes in licensing cutting-edge wireless connectivity and smart sensing technologies. In this analysis, I will explore their strategies, market overlaps, and growth potential to help you determine which company might be the most compelling investment opportunity.
Table of contents
Company Overview
Texas Instruments Incorporated Overview
Texas Instruments (TXN) operates as a leading designer and manufacturer of semiconductors, targeting a diverse range of markets from industrial to automotive. Founded in 1930 and headquartered in Dallas, Texas, the company has established itself as a cornerstone in the semiconductor industry. TXN focuses on two primary segments: Analog and Embedded Processing. The Analog segment is essential for power management solutions, while the Embedded Processing segment develops microcontrollers and digital signal processors that power various electronic devices. With a market capitalization of approximately $153B, TXN is committed to innovation and sustainability, delivering high-quality semiconductor solutions that enhance electronic performance globally.
CEVA, Inc. Overview
CEVA, Inc. (CEVA) specializes in licensing wireless connectivity and smart sensing technologies, serving the semiconductor and original equipment manufacturer (OEM) sectors. Founded in 1999 and based in Rockville, Maryland, CEVA has carved out a niche in the semiconductor landscape by offering a range of digital signal processors and AI processors for diverse applications, from 5G connectivity to smart devices. With a market cap of around $519M, CEVA’s technology is pivotal for companies developing cutting-edge solutions in mobile, IoT, and beyond. The company emphasizes partnerships, allowing OEMs to leverage its proprietary technologies for enhanced product performance.
Key similarities and differences
Both Texas Instruments and CEVA operate within the semiconductor industry, yet they occupy different niches. Texas Instruments focuses on designing and manufacturing semiconductors across a broad spectrum, while CEVA primarily licenses advanced DSP and AI technologies for specific applications. This distinction highlights Texas Instruments’ extensive product range compared to CEVA’s targeted licensing approach, catering to diverse client needs in the tech landscape.
Income Statement Comparison
The following table presents a comparison of key income metrics for Texas Instruments Incorporated (TXN) and CEVA, Inc. (CEVA) for the most recent fiscal year.
| Metric | TXN | CEVA |
|---|---|---|
| Market Cap | 153B | 519M |
| Revenue | 15.64B | 107M |
| EBITDA | 7.54B | -3.41M |
| EBIT | 5.96B | -7.55M |
| Net Income | 4.80B | -8.79M |
| EPS | 5.24 | -0.37 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In analyzing the income statements, Texas Instruments demonstrated a robust performance with a revenue of 15.64B and a net income of 4.80B, reflecting a stable operational environment despite a slight decline from the previous year. In contrast, CEVA recorded a modest revenue growth to 107M, yet it faced significant challenges, resulting in a net loss of 8.79M. The stark difference in profitability highlights that while Texas Instruments maintains healthy margins, CEVA’s negative margins indicate underlying operational inefficiencies. Overall, Texas Instruments remains a strong candidate for investment, while CEVA’s ongoing losses warrant caution.
Financial Ratios Comparison
The following table presents a comparison of the most recent financial ratios for Texas Instruments (TXN) and CEVA, Inc. (CEVA). This data will help you evaluate the relative financial health and performance of these companies.
| Metric | TXN | CEVA |
|---|---|---|
| ROE | 28.39% | -3.30% |
| ROIC | 14.75% | -8.56% |
| P/E | 35.63 | -44.90 |
| P/B | 10.12 | 2.79 |
| Current Ratio | 4.12 | 7.09 |
| Quick Ratio | 2.88 | 7.08 |
| D/E | 0.80 | 0.02 |
| Debt-to-Assets | 38.29% | 2.19% |
| Interest Coverage | 10.76 | 0.00 |
| Asset Turnover | 0.44 | 0.32 |
| Fixed Asset Turnover | 1.38 | 8.43 |
| Payout ratio | 99.92% | 0.00% |
| Dividend yield | 2.80% | 0.00% |
Interpretation of Financial Ratios
Texas Instruments shows strong performance with a solid ROE and ROIC, indicating effective use of equity and capital. However, CEVA struggles with negative profitability metrics, suggesting financial distress. Its high current and quick ratios imply good liquidity, but the lack of profitability raises concerns about sustainability. Investors should be cautious with CEVA due to its negative earnings and weak financial health.
Dividend and Shareholder Returns
Texas Instruments (TXN) has a strong dividend policy with a payout ratio of 99.9%, yielding 2.8% annually. The company has engaged in share buybacks, which further enhances shareholder value. However, such high payouts may pose risks if cash flows decline. In contrast, CEVA, Inc. does not pay dividends, opting instead to reinvest in growth and development. They also engage in share buybacks, which indicates a commitment to shareholder returns. Overall, TXN’s approach supports sustainable value creation, while CEVA’s strategy, though risky, could yield substantial long-term benefits.
Strategic Positioning
Texas Instruments (TXN) holds a significant market share within the semiconductor industry, particularly in analog and embedded processing segments. With a market cap of $152.8B, it faces moderate competitive pressure from smaller players like CEVA (market cap: $519M), which specializes in wireless connectivity and smart sensing technologies. Both companies are impacted by technological disruptions, particularly in AI and IoT, necessitating continuous innovation to maintain their market positions.
Stock Comparison
Over the past year, both Texas Instruments Incorporated (TXN) and CEVA, Inc. (CEVA) have experienced notable price movements, reflecting the dynamic nature of their trading environments.
Trend Analysis
For Texas Instruments (TXN), the price has changed by +1.92% over the past year, indicating a bullish trend. However, it is important to note that the trend is currently in a state of deceleration, with a standard deviation of 16.88, which suggests notable volatility. The highest price reached during this period was 221.25, while the lowest price was 147.6.
In a more recent context, from September 14, 2025, to November 30, 2025, TXN saw a price decrease of -7.85%, with a trend slope of -2.28. This further emphasizes the bearish momentum observed in this short timeframe, alongside a standard deviation of 9.08.
Regarding CEVA, the overall price change is +2.37%, which also shows a bullish trend, though it is experiencing deceleration with a lower standard deviation of 4.47. CEVA’s stock reached a high of 34.67 and a low of 17.39 during the past year.
Looking at the recent trend for CEVA from September 14, 2025, to November 30, 2025, the stock has declined by -8.56% with a trend slope of -0.38, indicating a bearish trend in this short period. The standard deviation here is 2.63, reflecting lower volatility compared to TXN.
In summary, while both stocks display a bullish trend over the longer term, recent performance suggests caution, particularly for short-term investors.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for Texas Instruments (TXN) and CEVA, Inc. (CEVA). For TXN, analysts have rated it a “B,” suggesting a buy, with strong scores in return on equity and assets, reflecting its solid financial health. Analysts recommend holding CEVA with a “C+” rating due to lower scores in profitability metrics and a higher debt-to-equity ratio. Overall, the consensus for TXN is a buy, while CEVA leans towards a hold, advising caution for potential investors.
Stock Grades
In the current market landscape, it’s essential to evaluate stock ratings from reliable sources to make informed investment decisions. Here’s a breakdown of the recent grades for Texas Instruments Incorporated and CEVA, Inc.
Texas Instruments Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | maintain | Positive | 2025-10-22 |
| Wells Fargo | maintain | Equal Weight | 2025-10-22 |
| Truist Securities | maintain | Hold | 2025-10-22 |
| Rosenblatt | maintain | Buy | 2025-10-22 |
| Goldman Sachs | maintain | Buy | 2025-10-22 |
| JP Morgan | maintain | Overweight | 2025-10-22 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-22 |
| Stifel | maintain | Hold | 2025-10-22 |
| TD Cowen | maintain | Buy | 2025-10-22 |
| Mizuho | downgrade | Underperform | 2025-10-20 |
CEVA, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2025-11-12 |
| Rosenblatt | maintain | Buy | 2025-11-11 |
| Rosenblatt | maintain | Buy | 2025-08-14 |
| Oppenheimer | maintain | Outperform | 2025-05-09 |
| Rosenblatt | maintain | Buy | 2025-05-08 |
| Barclays | maintain | Overweight | 2025-05-08 |
| Rosenblatt | maintain | Buy | 2025-04-23 |
| Rosenblatt | maintain | Buy | 2025-02-14 |
| Barclays | maintain | Overweight | 2025-02-14 |
| Rosenblatt | maintain | Buy | 2025-02-11 |
Overall, both Texas Instruments and CEVA have received a majority of maintain ratings, indicating stability in their current positions. However, Texas Instruments did experience a downgrade from Mizuho, suggesting some caution is warranted. On the other hand, CEVA continues to enjoy strong support from multiple analysts, reflecting positive sentiment in the market.
Target Prices
For Texas Instruments Incorporated (TXN), there is reliable target price data available from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Texas Instruments Incorporated | 245 | 145 | 190.45 |
Analysts expect a consensus target price of 190.45 for TXN, which suggests some upside potential compared to its current price of 168.15. This reflects a generally positive outlook, though caution is warranted given the inherent risks in the semiconductor sector.
For CEVA, Inc. (CEVA), no verified target price data is available from recognized analysts. The stock’s market sentiment appears mixed based on its current trading range and volatility.
Strengths and Weaknesses
The table below outlines the strengths and weaknesses of Texas Instruments Incorporated (TXN) and CEVA, Inc. (CEVA), based on recent data.
| Criterion | TXN | CEVA |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong | Negative |
| Innovation | High | Moderate |
| Global presence | Extensive | Limited |
| Market Share | 19% in sector | 1% in sector |
| Debt level | 38% debt to assets | 2% debt to assets |
Key takeaways indicate that Texas Instruments excels in profitability and global presence, positioning itself as a leader in the semiconductor industry. Conversely, CEVA shows potential in innovation but struggles with profitability and market share, presenting higher risk to investors.
Risk Analysis
In the following table, I summarize the key risks associated with Texas Instruments Incorporated (TXN) and CEVA, Inc. (CEVA) to help you evaluate potential investment decisions.
| Metric | TXN | CEVA |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Moderate | Moderate |
| Geopolitical Risk | Moderate | High |
In my analysis, market and operational risks are particularly significant for CEVA, given its high exposure to the semiconductor industry’s volatility and ongoing operational challenges. Recent fluctuations in technology demand and geopolitical tensions could impact both companies significantly.
Which one to choose?
In comparing Texas Instruments (TXN) and CEVA, Inc. (CEVA), Texas Instruments emerges as the more robust investment choice. TXN boasts a higher gross profit margin of 58.14% compared to CEVA’s 88.06%, but CEVA struggles with negative profitability metrics. TXN’s price-to-earnings ratio stands at 35.63, indicating a premium valuation, yet its strong margins and solid dividend yield of 2.8% present potential for steady returns. Analysts generally rate TXN with a grade of B, reflecting favorable fundamentals and a positive outlook. CEVA, rated C+, faces challenges like negative operating margins and a high debt-to-equity ratio.
Investors focused on growth may prefer TXN for its established market presence and profitability, while those willing to take higher risks for potential upside might consider CEVA, although its current financial struggles warrant caution.
Specific risks include competitive pressures and market dependence, particularly in tech sectors.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Texas Instruments Incorporated and CEVA, Inc. to enhance your investment decisions:
