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MU vs. TXN: Which Semiconductor Stock Is the Better Buy Today?
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Key Takeaways
Micron's fiscal 2025 EPS is projected to rise 497.7%, with 46.5% revenue growth year over year.
High-bandwidth memory and AI-linked demand are key growth drivers for Micron.
Texas Instruments' growth is steadier but slower, with 2025 EPS growth estimated at just 6.7%.
Micron Technology, Inc. (MU - Free Report) and Texas Instruments Incorporated (TXN - Free Report) are both well-established U.S. semiconductor companies, but they operate in distinct parts of the chip market. Micron is focused on memory and storage solutions, with a growing footprint in artificial intelligence (AI) infrastructure. Meanwhile, Texas Instruments specializes in analog and embedded processing chips, with a strong presence in the industrial and automotive sectors.
Investors seeking exposure to the semiconductor rally driven by AI, automation and edge computing are wondering which company offers a better investment opportunity right now. Let’s see.
Micron: Riding the AI Memory Wave
Micron sits at the heart of several transformative tech trends. Its exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron’s investments in next-gen DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing.
The company’s diversification strategy is also bearing fruit. Micron has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns. In the third quarter of fiscal 2025, its revenues and non-GAAP EPS soared 37% and 208%, respectively, year over year.
Micron is also riding a strong wave of high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest due to their superior energy efficiency and bandwidth, which are ideal for AI workloads.
In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, its newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with further expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.
The continuously evolving new tech trends and diversification strategy are likely to aid Micron’s growth over the long run. The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues indicates year-over-year growth of 46.5% and 33%, respectively. The consensus mark for EPS suggests a robust year-over-year improvement of 497.7% for fiscal 2025 and 57.3% for fiscal 2026.
Image Source: Zacks Investment Research
Texas Instruments: A Steady Business but Slower Recovery
Texas Instruments focuses on analog and embedded chips, which are essential but not high-growth. These chips are widely used in industrial systems, cars and consumer electronics. Its biggest strength lies in its deep exposure to the industrial and automotive markets, which together made up 70% of first-quarter 2025 revenues.
The company sees long-term growth opportunities in areas like robotics, electric vehicles and infrastructure automation. Its embedded processors and analog chips are key components in these systems. In the first quarter, industrial revenues grew at an upper-single-digit pace, while automotive continued to recover, growing modestly. With customer inventory levels still low, Texas Instruments sees room for more improvement in the coming quarters.
However, the personal electronics segment remains a drag. Revenues in this segment fell by mid-teens sequentially in the first quarter, driven by weak consumer demand, excess inventory and typical seasonal slowdowns. Management doesn’t expect a quick recovery here, citing ongoing caution among customers.
On the financial front, Texas Instruments’ 11% revenue growth and 6.7% rise in EPS are respectable, but they lag significantly behind Micron’s pace. While the business is stable and profitable, it lacks a strong growth engine in the near term.
Revenue and EPS expected growth rates for Texas Instruments’ current year and next year are also way lower than Micron’s. The Zacks Consensus Estimate for 2025 and 2026 revenues indicates year-over-year growth of 10.6% and 8.7%, respectively. The consensus mark for EPS suggests a year-over-year improvement of 6.7% for 2025 and 12.8% for 2026.
Image Source: Zacks Investment Research
MU vs. TXN: Price Performance and Valuation
Year to date, Micron shares have jumped 45.3%, higher than the 15.2% rise in Texas Instruments shares.
Image Source: Zacks Investment Research
On the valuation front, MU looks more attractive than TXN. Micron trades at a forward 12-month P/S multiple of 2.91X, significantly lower than Texas Instruments’ 10.86X.
Image Source: Zacks Investment Research
Final Thoughts: Buy MU Stock for Now
While both Micron and Texas Instruments play important roles in the chip industry, MU stands out as the better stock to own right now. Micron’s fundamentals remain strong, and its position in the AI-driven memory market is well-established. The company offers compelling long-term growth potential, maintains a disciplined approach to innovation and has a more favorable valuation.
Micron carries a Zacks Rank #2 (Buy), making it a clear winner over Texas Instruments, which has a Zacks Rank #4 (Sell) at present.
Image: Shutterstock
MU vs. TXN: Which Semiconductor Stock Is the Better Buy Today?
Key Takeaways
Micron Technology, Inc. (MU - Free Report) and Texas Instruments Incorporated (TXN - Free Report) are both well-established U.S. semiconductor companies, but they operate in distinct parts of the chip market. Micron is focused on memory and storage solutions, with a growing footprint in artificial intelligence (AI) infrastructure. Meanwhile, Texas Instruments specializes in analog and embedded processing chips, with a strong presence in the industrial and automotive sectors.
Investors seeking exposure to the semiconductor rally driven by AI, automation and edge computing are wondering which company offers a better investment opportunity right now. Let’s see.
Micron: Riding the AI Memory Wave
Micron sits at the heart of several transformative tech trends. Its exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron’s investments in next-gen DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing.
The company’s diversification strategy is also bearing fruit. Micron has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns. In the third quarter of fiscal 2025, its revenues and non-GAAP EPS soared 37% and 208%, respectively, year over year.
Micron is also riding a strong wave of high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest due to their superior energy efficiency and bandwidth, which are ideal for AI workloads.
In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, its newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with further expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.
The continuously evolving new tech trends and diversification strategy are likely to aid Micron’s growth over the long run. The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues indicates year-over-year growth of 46.5% and 33%, respectively. The consensus mark for EPS suggests a robust year-over-year improvement of 497.7% for fiscal 2025 and 57.3% for fiscal 2026.
Image Source: Zacks Investment Research
Texas Instruments: A Steady Business but Slower Recovery
Texas Instruments focuses on analog and embedded chips, which are essential but not high-growth. These chips are widely used in industrial systems, cars and consumer electronics. Its biggest strength lies in its deep exposure to the industrial and automotive markets, which together made up 70% of first-quarter 2025 revenues.
The company sees long-term growth opportunities in areas like robotics, electric vehicles and infrastructure automation. Its embedded processors and analog chips are key components in these systems. In the first quarter, industrial revenues grew at an upper-single-digit pace, while automotive continued to recover, growing modestly. With customer inventory levels still low, Texas Instruments sees room for more improvement in the coming quarters.
However, the personal electronics segment remains a drag. Revenues in this segment fell by mid-teens sequentially in the first quarter, driven by weak consumer demand, excess inventory and typical seasonal slowdowns. Management doesn’t expect a quick recovery here, citing ongoing caution among customers.
On the financial front, Texas Instruments’ 11% revenue growth and 6.7% rise in EPS are respectable, but they lag significantly behind Micron’s pace. While the business is stable and profitable, it lacks a strong growth engine in the near term.
Revenue and EPS expected growth rates for Texas Instruments’ current year and next year are also way lower than Micron’s. The Zacks Consensus Estimate for 2025 and 2026 revenues indicates year-over-year growth of 10.6% and 8.7%, respectively. The consensus mark for EPS suggests a year-over-year improvement of 6.7% for 2025 and 12.8% for 2026.
Image Source: Zacks Investment Research
MU vs. TXN: Price Performance and Valuation
Year to date, Micron shares have jumped 45.3%, higher than the 15.2% rise in Texas Instruments shares.
Image Source: Zacks Investment Research
On the valuation front, MU looks more attractive than TXN. Micron trades at a forward 12-month P/S multiple of 2.91X, significantly lower than Texas Instruments’ 10.86X.
Image Source: Zacks Investment Research
Final Thoughts: Buy MU Stock for Now
While both Micron and Texas Instruments play important roles in the chip industry, MU stands out as the better stock to own right now. Micron’s fundamentals remain strong, and its position in the AI-driven memory market is well-established. The company offers compelling long-term growth potential, maintains a disciplined approach to innovation and has a more favorable valuation.
Micron carries a Zacks Rank #2 (Buy), making it a clear winner over Texas Instruments, which has a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.