After it completed a 5-wave resurgence from the April 2025 blue box, TXN is about to correct this bullish cycle to a zone where it could attract fresh bids it would need to launch a new bullish cycle.
Texas Instruments (TXN) is a global semiconductor company known for designing and manufacturing analog and embedded processing chips. With products used in everything from industrial equipment to personal electronics, TXN plays a critical role in powering modern technology. Its consistent innovation and strong market presence make it a closely watched stock in the tech sector.
TXN completed its long-term grand supercycle degree wave ((II)) in October 2002, bottoming near $13. From that point, the stock began an extraordinary two-decade rally as grand supercycle degree wave ((III)) unfolded. Wave (I) of ((III)) ended in August 2007 at $39.6, followed by a sharp correction in wave (II), which took prices back down to about $13.4 in December 2008. Wave (III) then started in December 2008, and the stock turned strongly bullish after surpassing its prior all-time high of $99.8 from March 2000. It went on to reach a new peak of $202.2 in October 2021. That high marked the completion of wave III of (III) of ((III)). Afterward, TXN entered a corrective wave IV that extended until October 2023. From there, it resumed its advance and went on to register a fresh high of $220.38 in November 2024.
From the peak of November 2024 the stock fell to complete a 7-swing pullback for wave ((2)). The wave ((2)) pullback ended in the blue box where buyers were waiting to buy the stock again. Thus, from the blue box, it rallied sharply in a clear 5-wave structure to complete wave (1) of ((3)) in 7/11/2025 as we mentioned in the 7/21/2025 update. In that update, we mentioned the 5-wave recovery was close to completion and traders/investors should expect a deep pullback. It happened as expected. Wace A of (2) pullback ended with a 5-wave impulse on 8/01/2025 and then followed by a 3-wave correction for wave B. The chart below shows the recent forecast and what should expected for this stock.
TXN Elliott Wave Analysis – 9/01/2025
As the chart above shows, another 5-wave down could follow soon. Unless the top of wave (1) is breached, this is very likely. Thus, buyers should be waiting at the extreme of wave (2) for new entries. However, if the top of wave (1) is breached with the rally from 8/01/2025, then we can call wave (2) completed and anticipate wave (3) toward $310. Why looking forward to that target, traders can continue to buy at the extreme of 3/7/11 swing pullbacks in the shorter cycles.
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