Is Texas Instruments (TXN) stock Halal?

Texas Instruments is a prominent player in the semiconductor and electronics industry, primarily known for designing and manufacturing analog and embedded processing chips. The company's products are integral to an array of electronics, enabling efficient power management, signal processing, and other essential functions. Texas Instruments provides critical components across various sectors, including automotive, industrial, electronics, and communications, reflecting its broad market reach and influence. For Muslim investors, though, the most pressing question is simpler: is Texas Instruments a Halal investment?

Is Texas Instruments Shariah compliant?

Yes. In the October 2026 screening Texas Instruments (TXN) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. Technology companies rarely fail AAOIFI screening on what they sell. Software, hardware and digital services are permissible business activities, so for a company like Texas Instruments the Shariah question moves to the balance sheet: how much of its market value sits in interest bearing debt, how much of its cash earns Riba in conventional deposits, and whether incidental income from impermissible sources creeps past 5% of revenue. These are exactly the ratios AAOIFI Shariah Standard No. 21 polices, and they move every month with the share price.

Does Texas Instruments pass the business activity test?

Yes. In the October 2026 screening Texas Instruments holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Texas Instruments' income Halal?

Yes, within AAOIFI's tolerance. Texas Instruments' income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 100% tells holders of TXN what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around 2.03%, the purification amount is modest but real.

Does Texas Instruments meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation, measured against a market capitalisation of $256B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has TXN re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Texas Instruments?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read Why a Halal Stock Screener Matters for Halal Investing