Texas Instruments (TXN) has bounced back after completing a zigzag correction from its July 2025 peak. This correction finished in the blue-box support area, which led to renewed buying enthusiasm and a rally. As a leader in the semiconductor industry, Texas Instruments designs and produces chips that are vital to many technologies. The company completed its major supercycle wave ((II)) in 2002, starting a multi-decade wave ((III)) phase. Wave (I) of ((III)) peaked in 2007, followed by a downturn in wave (II) that hit lows in December 2008. TXN’s strong bull phase, wave (III), began after this downturn. It broke above the 2000 high and peaked at $202.2 in 2021. After a wave IV correction, the stock reached a new high of $220.38 in 2024. A pullback created a 7-swing sequence that formed wave ((2)), ending in the blue-box before rallying and completing wave (1) of ((3)) in July 2025. After a pullback in wave (2), a clear 5-wave decline marked wave C of (2) within the blue-box. The expected rebound led to partial profit-taking at $180.8, while wave (3) is projected to reach the target range of $253–$284, offering further potential gains. The rebound that began in the fall of 2025 reinforces our positive outlook for Texas Instruments. The stock found strong support between $165 and $138 and has since risen steadily. As of early December 2025, this upward movement seems to mark the start of a new, powerful impulse wave. This technical strength is backed by positive developments in the semiconductor industry. Recent data shows global semiconductor sales jumped by 12% year-over-year in October 2025, fueled by strong demand in the automotive and industrial sectors. This directly benefits TXN and supports the current stock rally. For derivative traders, any small dips or consolidations in the coming weeks should be considered buying opportunities. This setup is ideal for strategies such as purchasing long-dated call options or implementing bull call spreads to take advantage of the expected rise. The initial part of the rally is complete, and we are now preparing for the main move. The next key milestone for the stock is to break decisively above the high of $220.38, set in November 2024. A sustained move above this level would indicate acceleration toward our main target zone of $253 to $284. Traders with existing long positions should consider using a trailing stop to secure profits while aiming for these higher targets. This price action mirrors the significant rally that began after the market bottomed in October 2023. That prior move also followed a major correction and led to a strong, sustained advance. The current wave structure suggests a rally of similar, if not greater, magnitude is now beginning.

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