Micron Technology, Inc. (MU) and Texas Instruments Incorporated (TXN) are two prominent U.S. semiconductor companies, each with a distinct focus in the chip market. Micron specializes in memory and storage solutions, with growing involvement in AI infrastructure, while Texas Instruments focuses on analog and embedded processing chips, with a strong presence in industrial and automotive sectors.
Micron is well-positioned for long-term growth, benefiting from trends in AI, high-performance data centers, autonomous vehicles, and industrial IoT. The company’s strategic shift away from consumer electronics towards more stable sectors like automotive and enterprise IT has strengthened its revenue base. Recent financial results show significant growth, with revenues and non-GAAP EPS increasing by 37% and 208% year-over-year, respectively, in the third quarter of fiscal 2025. Micron’s HBM3E products are in high demand for AI workloads, and its partnership with NVIDIA highlights its key role in the AI supply chain.
On the other hand, Texas Instruments, with its focus on analog and embedded chips, sees opportunities in robotics, electric vehicles, and infrastructure automation. However, its growth has been slower, with a modest rise in industrial and automotive revenues, while the personal electronics segment struggles. Financially, the company reported 11% revenue growth and a 6.7% rise in EPS, but these figures are lower compared to Micron’s performance.
In terms of stock performance, Micron shares have risen by 45.3% year-to-date, compared to a 15.2% increase for Texas Instruments. Micron also appears more attractively valued, trading at a lower forward 12-month P/S multiple than Texas Instruments.
Overall, Micron is currently the more compelling investment, given its robust fundamentals and strategic positioning in the AI-driven memory market. It holds a Zacks Rank #2 (Buy), compared to Texas Instruments’ Zacks Rank #4 (Sell).
