On July 23, Texas Instruments fell 3.46% in pre-market trading, trading at $280.53/share, with turnover of $1.7165 million. The decline came despite the company reporting Q2 results that significantly exceeded expectations across all key metrics.

Texas Instruments posted Q2 revenue of $5.463 billion, up 23% year-over-year and above the consensus estimate of $5.248 billion. Adjusted EPS came in at $2.14, surging 51.77% year-over-year and beating the $1.92 estimate by 11.46%. Gross margin expanded to 61.36%, while net income attributable to the parent grew 53%. Management noted broad-based growth across all end markets, with automotive business accelerating in Q2. The Q3 revenue guidance also topped expectations.

Despite the strong beat, the stock faced heavy selling pressure as shares had already rallied approximately 70% year-to-date and recently hit all-time highs. Multiple brokerages had aggressively raised price targets ahead of earnings — KeyBanc to $390, TD Cowen to $360, UBS to $350 — suggesting elevated expectations were already priced in. JPMorgan raised its target to $340 post-results, while Morgan Stanley maintained an underweight rating with a $230 target, reflecting divergent views on valuation.

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