BofA Securities downgraded Texas Instruments (NASDAQ: TXN) from Neutral to Underperform and lowered its price target to $190.00 from $208.00, warning that global tariffs and limited participation in the AI investment cycle could constrain near-term growth.

The firm said that while it continued to recognize the company's strong execution and asset quality, ongoing trade-related disruptions could hinder demand recovery in the industrial economy. Unlike peers such as Infineon (IFX), Texas Instruments had minimal exposure to AI-related capital expenditures, according to BofA.

Analysts noted that the stock's valuation appeared stretched, trading at 25x consensus and 31x BofA's calendar year 2026 earnings estimates—higher than Analog Devices (ADI) despite weaker free cash flow generation.

BofA trimmed its 2026 and 2027 earnings estimates by 3% each, to $6.05 and $6.91 per share, representing 8% and 13% below Street consensus, respectively.