Texas Instruments Incorporated continues showing strong long-term momentum after recovering decisively from its major corrective phase, setting up what may now be the early stages of a powerful Wave 3 advance.

Currently trading around 295, TXN has already reclaimed significant ground following its Wave 2 correction and appears increasingly positioned for a larger impulsive breakout cycle if momentum continues building across the semiconductor sector.

The broader Elliott Wave structure began with a massive Wave 1 rally from approximately 15 up to 205.

That extraordinary advance established the long-term bullish trend before the stock entered a meaningful corrective phase. The subsequent Wave 2 retracement carried TXN from 205 down to roughly 141, creating substantial fear and uncertainty after the prior explosive rally.

At the time, many traders likely believed the broader uptrend had peaked.

But in Elliott Wave theory, second-wave corrections are often designed specifically to create that emotional reaction. Wave 2 retracements frequently become deep and psychologically damaging because they reset sentiment, remove speculative excess, and shake out weaker positioning before the strongest portion of the trend begins.

That appears increasingly consistent with TXN’s current setup.

Importantly, the correction from 205 to 141 held well above the stock’s larger long-term structural lows, preserving the integrity of the broader bullish cycle. Once TXN stabilized and began rebuilding momentum, the technical picture gradually improved as buyers reclaimed control of the trend.

Now with the stock trading near 295, traders are increasingly focused on the next major Fibonacci extension targets associated with a developing Wave 3 structure.

Using standard Elliott Wave calculations, the primary 1.618 Wave 3 projection targets approximately 448.

448

If the current structure evolves into a larger extended third-wave advance, the more aggressive 2.618 extension target expands dramatically toward approximately 638.

638

Those upside projections may initially appear aggressive relative to TXN’s current price, but historically, third waves often become the strongest and most sustained portion of the Elliott Wave cycle.

Once institutional participation broadens and sentiment shifts decisively bullish, momentum can accelerate much faster than conventional expectations anticipate.

Texas Instruments also occupies an important position within the semiconductor ecosystem. Unlike some high-beta AI-focused names, TXN maintains broad exposure across industrial electronics, automotive systems, embedded processing, analog semiconductors, and infrastructure applications.

That diversification gives the company exposure to several major secular growth trends simultaneously.

Automotive electrification, industrial automation, smart infrastructure systems, connected devices, factory digitization, and advanced electronics demand continue supporting long-term semiconductor consumption globally. As those themes expand over time, established chip leaders like TXN may continue benefiting from sustained institutional capital flows.

Another bullish factor is the stock’s recovery behavior following the Wave 2 correction.

Instead of remaining trapped beneath prior highs after falling to 141, buyers steadily rebuilt momentum and eventually pushed TXN into significantly higher territory. That type of recovery structure often signals accumulation rather than temporary oversold bouncing.

Technically, momentum characteristics also continue improving.

Breakouts are sustaining more effectively. Pullbacks are becoming shallower. Buyers are defending support zones more aggressively. Those are classic signs associated with developing impulsive advances rather than fading countertrend rallies.

Psychology also becomes increasingly important during potential Wave 3 environments.

During the decline from 205 to 141, bearish sentiment likely dominated expectations as traders questioned whether the previous bull cycle had ended. But once stocks begin reclaiming prior losses and pushing toward new highs, skepticism gradually transforms into performance chasing.

That process can amplify upside momentum significantly.

Short sellers become trapped as resistance fails. Underinvested portfolio managers increase exposure to avoid lagging benchmarks. Retail traders re-enter positions after initially missing the recovery. Those combined forces frequently fuel the strongest stage of the Elliott Wave cycle.

The 448 region now becomes the next major technical battleground for TXN.

If the stock can continue sustaining momentum and approach that target while maintaining constructive price action, traders may begin shifting focus toward the larger 638 extension projection over the longer term.

Historically, semiconductor leaders have repeatedly produced extended Wave 3 advances during periods of major technological transformation and industrial expansion. Current AI, infrastructure, automation, and digitalization trends could potentially provide a similar macro backdrop again.

Of course, volatility should still be expected along the way. Even strong long-term uptrends experience corrections, consolidation phases, and temporary profit-taking events. But structurally, TXN currently continues showing far more evidence of bullish continuation than exhaustion.

The stock survived a meaningful Wave 2 reset from 205 to 141. It reclaimed momentum aggressively afterward. It now trades near 295 with improving technical strength. And the broader Elliott Wave framework continues pointing materially higher if the developing Wave 3 structure fully unfolds in the months ahead.