Texas Instruments Approaches Death Cross Ahead Of Q4 Earnings - Should Investors Brace For Impact?

Texas Instruments Inc TXN is reporting its fourth quarter earnings on Thursday after the market close with a looming technical red flag—a Death Cross in the making.

Chart created using Benzinga Pro

With the stock trading just below its 50-day and 200-day moving averages, the semiconductor giant finds itself at a crossroads amid bullish sector trends and growing macroeconomic concerns.

Read Also: China ‘Increasingly A Risk’: Analyst Previews Semiconductor Stocks Ahead Of Earnings

Death Cross Watch: A Warning For TXN Stock Bulls?

A Death Cross—where the 50-day moving average falls below the 200-day moving average—is often viewed as a bearish signal, hinting at potential downside. TXN stock, at $195.23, just shy of its 50-day SMA of $196.34 and its 200-day SMA of $195.40.

While the stock has shown slight buying pressure, its MACD indicator at a negative 0.32 suggests weakening momentum. If the technicals align post-earnings, the Death Cross could confirm a longer-term downtrend.

Q4 Earnings: A Make-Or-Break Moment

Wall Street expects fourth quarter EPS of $1.20 on revenue of $3.87 billion, per Benzinga Pro data.

With semiconductor peers showing mixed results, investors will be watching closely for any forward guidance that might sway sentiment.

A strong report could invalidate bearish technical signals, but any disappointment may reinforce the downward trajectory.

Strategic Strength Vs. Market Weakness

Despite near-term uncertainty, Texas Instruments's long-term fundamentals remain solid. The company's push into 300mm manufacturing expansion aims to drive efficiency and cost competitiveness.

Meanwhile, strength in its automotive segment, particularly in China's EV market, has helped cushion industrial sector weakness. But with peak-to-trough industrial declines exceeding 30%, the earnings call must address whether automotive strength is enough to offset broader demand concerns.

Investor Outlook: Volatility Ahead?

For now, TXN stock remains at a technical tipping point. If earnings surprise to the upside, the stock could shake off Death Cross fears.

But if guidance disappoints, the bearish setup could accelerate selling pressure. Traders may find opportunities in the volatility, while long-term investors might wait for a clearer technical confirmation before making a move.

Read Next:

• Taiwan Semi Chief To Skip Trump Inauguration, Calls US Semiconductor Sanctions ‘Manageable’

Photo: Shutterstock