PresentationMike BeckmanVP & Head of Investor Relations Good morning, and welcome to the Texas Instruments 2026 Capital Management Call. I'm Mike Beckman, Head of Investor Relations, and I'm joined by our Chairman, President and Chief Executive Officer, Haviv Ilan; and our Chief Financial Officer, Rafael Lizardi. This call is being broadcast live over the web and can be accessed through our website at ti.com/ir. In addition, today's call is being recorded and will be available via replay on our website, al ...

Texas Instruments 2026 Capital Management Call Summary Company Overview - **Company**: Texas Instruments (NasdaqGS:TXN) - **Date of Call**: February 24, 2026 - **Speakers**: Mike Beckman (Head of Investor Relations), Haviv Ilan (Chairman, President, and CEO), Rafael Lizardi (CFO) Key Industry Insights - **Market Recovery**: The semiconductor market is recovering, but at a more modest pace compared to previous cycles, with unit shipments still below historical trends [12][26] - **End Markets Focus**: Texas Instruments emphasizes growth in industrial, automotive, and data center markets, which collectively accounted for approximately 75% of revenue in 2025 [13][25] - **Automotive Sector**: There is a growing opportunity in the automotive sector due to increased content in vehicles, including battery electric, hybrid, and internal combustion engines [13][14] - **Industrial Sector**: The industrial market is expected to see continued growth driven by automation, sensing requirements, and energy efficiency [14] - **Data Center Market**: The data center market is characterized by ongoing investment and growth, with TI's products supporting various infrastructure needs [15][16] Financial Performance and Projections - **2025 Financials**: - Operating cash flow was $7.2 billion, a 13% increase from the previous year [26] - Capital expenditures (CapEx) were approximately $4.6 billion, representing 26% of revenue [26] - Free cash flow per share was $3.23, a 97% increase from 2024 [27] - **2026 Projections**: - Expected CapEx for 2026 is projected to be between $2 billion and $3 billion [9][10] - Anticipated free cash flow per share is expected to exceed $8, with potential for higher based on revenue growth [27][35] - **Dividend Policy**: Texas Instruments has consistently increased its dividend for 22 consecutive years, with a 4% increase in Q4 2025 [28] Capital Allocation Strategy - **Long-term Focus**: The company aims to maximize long-term growth of free cash flow per share, which is viewed as the primary driver of long-term value [4][32] - **Investment in Growth**: Over the past decade, TI has allocated approximately $109 billion in capital, with a significant portion directed towards R&D, sales, marketing, and manufacturing capacity [10][11] - **Acquisition Strategy**: The recent acquisition of Silicon Labs is expected to enhance TI's position in embedded wireless connectivity solutions, with a focus on strategic and financial alignment [10][58] Competitive Advantages - **Manufacturing and Technology**: TI's competitive advantages include a strong manufacturing base, a broad product portfolio, extensive market reach, and long-lived positions in various markets [5][6] - **Internal Supply Chain Control**: More than 90% of TI's wafers and assembly are manufactured internally, providing cost advantages and greater control over the supply chain [18][19] - **300mm Wafer Production**: Investments in 300mm wafer production are expected to lower costs and enhance capacity, with a goal of producing over 95% of wafers internally by 2030 [23][22] Additional Insights - **R&D Investments**: R&D investments are focused on growth opportunities in industrial, automotive, and data center markets, reflecting the belief in their long-term potential [24] - **Inventory Management**: TI aims to maintain high levels of customer service and minimize obsolescence, with inventory days targeted between 150-250 days [9][72] - **Market Signals**: The company is monitoring market conditions closely, with expectations for continued growth in key sectors, particularly automotive and data centers [78] This summary encapsulates the key points discussed during the Texas Instruments 2026 Capital Management Call, highlighting the company's strategic focus, financial performance, and market outlook.

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now. Texas Instruments (TXN) Targets Wireless Growth with Silicon Laboratories Acquisition On February 4, Texas Instruments Incorporated (NASDAQ:TXN) announced that it has agreed to acquire Silicon Laboratories in a $7.5 billion deal. This marks its largest acquisition since it bought National Semiconductor in 2011. The goal is to expand its presence in wireless connectivity chips, which are widely use ...

Core Insights - The article highlights the performance and outlook of several companies, including Applied Materials, McDonald's, Texas Instruments, and Lulu's Fashion Lounge Holdings, based on recent research reports from Zacks Equity Research. Group 1: Applied Materials, Inc. (AMAT) - Shares have outperformed the Zacks Electronics - Semiconductors industry over the past six months, increasing by 126.3% compared to the industry's 22.1% [4] - The company benefits from a rebound in the semiconductor industry, particularly in the foundry and logic sectors, along with consistent progress in its services and strength in various business segments [5] - Concerns include increasing U.S.-China tensions, export restrictions on semiconductor manufacturing equipment, slow memory market recovery, and rising operating costs [6] Group 2: McDonald's Corp. (MCD) - Shares have outperformed the Zacks Retail - Restaurants industry over the past six months, with a growth of 7.2% compared to 2.9% for the industry [7] - The company reported fourth-quarter 2025 results that exceeded Zacks Consensus Estimates, with year-over-year increases in both earnings and revenues [8] - McDonald's is focusing on aggressive unit expansion, targeting 50,000 restaurants worldwide by 2027, despite facing financial pressures and declining earnings estimates for fiscal 2026 [9] Group 3: Texas Instruments Inc. (TXN) - Shares have outperformed the Zacks Semiconductor - General industry over the past six months, increasing by 17.7% compared to 2.9% for the industry [10] - The company is experiencing solid demand in data centers, which enhances its prospects in the enterprise systems market, supported by a focus on expanding its product portfolio [11] - Growth may be hindered by a slow recovery in the industrial market, rising manufacturing costs, and ongoing U.S.-China tech tensions [12] Group 4: Lulu's Fashion Lounge Holdings, Inc. (LVLU) - Shares have significantly outperformed the Zacks Retail - Apparel and Shoes industry, with a remarkable increase of 250.1% compared to 18.6% for the industry [13] - The company is expanding its multi-channel growth strategy, including a full entry into all Nordstrom stores by February 2026, following a 143% year-over-year growth in wholesale revenue [14] - Despite the growth, liquidity is constrained, with only $6.8 million in credit headroom and $1.9 million in cash, alongside persistent net losses and declining active customers [15]

公众号记得加星标⭐️，第一时间看推送不会错过。 在最近的财报会上，模拟芯片巨头 Microchip 披露：其 10BASE-T1S 方案已在现代汽车下一代平台 完成验证。与此同时，像TI、ADI、英飞凌、恩智浦等汽车芯片巨头也已经有关于10BASE-T1S的接 口产品。这让笔者产生了浓厚的兴趣，10BASE-T1S是什么？它为何会在最近两年频频出现。 过去二十年，无论是汽车电子还是工业自动化，网络架构基本遵循清晰分层：骨干层采用以太网，控 制层依赖 CAN/CAN FD，设备层则使用 LIN、RS-485、RS-232 等现场总线。这种多协议并存的体 系在分布式架构时代运行良好，但在软件定义汽车（SDV）、Zonal 架构以及工业4.0背景下，开始 逐渐暴露出系统复杂度高、维护成本高、协议碎片化严重等问题。 这背后体现了一个网络层面的范式迁移：以太网（Ethernet）正从"骨干网"渗透进"边缘设备层"。传 统的 CAN、RS-485、LIN 等协议，正面临一场由以太网发起的降维打击。 10 BASE-T1S的诞生背景与产业契机 10BASE-T1S 是一种面向汽车与工业控制场景的新型车载以太网物理层标准。它 ...

Company Developments - Texas Instruments announced a $7.5 billion all-cash acquisition of Silicon Labs on February 4, 2026, aimed at integrating IoT wireless connectivity technology to strengthen its position in industrial automation and automotive electronics. The deal is expected to close in the first half of 2027, with market attention on its long-term synergistic effects on the company's embedded solutions market position [1] Recent Events - A capital management conference call is scheduled for February 24, 2026, at 10:00 AM Central Time, where the company will discuss financial updates, future outlook, and capital allocation strategies. Investors are encouraged to pay attention to management's comments on demand recovery and capacity planning [2] Performance and Business Situation - The company has provided revenue guidance for Q1 2026 in the range of $4.32 billion to $4.68 billion, exceeding market expectations and indicating the potential for the first quarter-on-quarter growth in 16 years. The data center business is a key driver, with a 64% year-over-year revenue increase in 2025. Actual performance will be validated after the earnings release, typically in April or May [3] - Morgan Stanley and other institutions have noted that the data center business has become a new growth engine for Texas Instruments, with revenue reaching $1.5 billion in 2025, a 70% year-over-year increase. The demand for analog chips is expected to support performance in 2026 due to the expansion of AI infrastructure [4] Company Status - The company anticipates capital expenditures of $2 billion to $3 billion in 2026, focusing on expanding manufacturing capacity to support strategic areas such as industrial, automotive, and data centers [5] Stock Performance - On February 11, 2026, the stock price increased by 2.54%, closing at $226.54, driven by acquisition news and optimistic earnings guidance [6]

Recent Events - Texas Instruments announced a cash acquisition of Silicon Labs for $7.5 billion, with a purchase price of $231 per share, aimed at integrating Silicon Labs' technology in the IoT wireless connectivity sector, expected to be completed in the first half of 2027 [1] - Following this announcement, Silicon Labs' stock surged by 48.89% on February 4, with trading volume reaching $1.716 billion [1] Financial Performance - Silicon Labs is set to release its Q4 2025 earnings report on February 10, 2026, with analysts predicting revenue of $207.6 million, representing a year-over-year growth of 25.27%, which could further impact the stock price if expectations are met [2] Stock Performance - After the acquisition announcement, the stock exhibited volatility; as of February 11, 2026, the stock closed at $206.51, reflecting a year-to-date increase of 58.00% [3] - Benchmark downgraded its rating to "Hold," with a target price of $215.00 [3]

Core Viewpoint - The semiconductor industry is expected to recover in 2025, with significant revenue growth driven by rising storage prices and increasing demand from data centers, leading to improved performance for major chip manufacturers [3][4]. Group 1: Semiconductor Sales and Growth - Global semiconductor sales are projected to reach $791.7 billion in 2025, a 25.6% increase from $630.5 billion in 2024, with further growth expected towards $1 trillion in 2026 [3]. - The recovery is attributed to strong demand from emerging technologies such as AI, IoT, 6G, and autonomous driving [3]. Group 2: Chip Design and IDM - Texas Instruments (TI) is expected to achieve approximately $17.68 billion in revenue for 2025, reflecting a 13% year-over-year growth, with significant contributions from industrial and automotive sectors [6]. - STMicroelectronics (ST) anticipates a revenue decline of 11% to around $11.8 billion, with Q4 showing slight improvement driven by personal electronics [8]. - NXP's revenue is projected at $12.27 billion, down 3%, with automotive and industrial sectors remaining stable [10]. - Renesas reported a revenue drop of 2% to 1.3212 trillion yen, marking its first loss in six years due to significant impairment losses [12]. - Microchip Technology expects growth in both year-over-year and quarter-over-quarter sales, with a projected revenue of $1.186 billion for Q3 2026 [12]. - Qorvo's revenue exceeded expectations at $993 million, with an 8.4% year-over-year increase [12]. - Infineon's revenue is projected at €14.662 billion, down 2%, but with strong demand in AI driving growth [14]. Group 3: Memory Chips - Samsung's revenue is expected to reach 333.6059 trillion won (approximately $233.8 billion), a 10.9% increase, with the semiconductor division achieving 130.1 trillion won in revenue [29]. - SK Hynix anticipates a record revenue of 97.15 trillion won (approximately $681.6 billion), a 47% increase year-over-year [31]. - Micron's revenue is projected to rise from $25.11 billion to $37.38 billion, with HBM chip capacity sold out for 2026 [33]. - GigaDevice expects a revenue increase of approximately 25% to 9.203 billion yuan [35]. Group 4: Wafer Foundry - TSMC's revenue is projected to reach approximately 3.8 trillion new Taiwan dollars (around $122.42 billion), a 31.6% increase, with advanced processes contributing significantly [47]. - UMC expects a slight revenue increase of 2.3% to 237.55 billion new Taiwan dollars, with a focus on mature process technologies [49]. - SMIC anticipates a record revenue of $9.3268 billion, a 16.2% increase, with improved profitability driven by increased wafer sales [51]. Group 5: Testing and Packaging - ASE Group's revenue is expected to reach 645.388 billion new Taiwan dollars, an 8.4% increase, with advanced packaging services contributing significantly [57]. - Amkor's revenue is projected at $6.71 billion, a 6% increase, with strong performance in advanced packaging and computing business [59]. Group 6: Equipment - ASML's total net sales are expected to reach €32.667 billion, a 15.6% increase, with a record order backlog reflecting strong demand for AI-related technologies [61]. - Lam Research anticipates a record year with significant growth driven by advanced process technologies [63]. Group 7: Distribution - WPG Holdings expects a revenue of 999.12 billion new Taiwan dollars, a 13.4% increase, driven by AI and high-performance computing demand [66]. - WPG's revenue is projected to exceed 1 trillion new Taiwan dollars, marking a significant milestone [68].

Investment Rating - The semiconductor industry is rated as "stable improvement" for the next 12 to 18 months, with potential for upward adjustments based on demand growth from automotive electronics and artificial intelligence [5][7]. Core Insights - The semiconductor industry in China is expected to benefit from effective industrial support policies, accelerating domestic substitution processes, and a stable upward trend in credit quality [5][8]. - The competition in the semiconductor industry remains a key national focus, with ongoing support for high-end breakthroughs and supply chain management [7][9]. - The recovery of the semiconductor industry is driven by the mild recovery in consumer electronics and rapid development in automotive electronics and artificial intelligence [19][24]. - The global semiconductor sales reached approximately $697.18 billion in 2025, with a year-on-year growth of 11.22%, indicating a new recovery cycle after a previous downturn [20][24]. - The domestic semiconductor market in China is projected to reach $210.88 billion in 2025, growing by 14.68% year-on-year, driven by AI and automotive electronics [24]. Industry Fundamentals Analysis - The semiconductor industry is supported by a comprehensive policy framework that includes national and local government initiatives aimed at enhancing self-sufficiency and technological breakthroughs [9][10]. - The production of integrated circuits in China reached 484.3 billion units in 2025, a year-on-year increase of 87.28%, with exports also showing significant growth [11][24]. - The industry is characterized by a high degree of concentration, with the top ten chip design companies holding over 65% of the market share globally, predominantly led by U.S. firms [30][31]. Credit Performance of Industry Enterprises - The overall financial performance of the semiconductor industry has improved, with revenue, profit, and operating cash flow showing growth, while debt levels remain manageable [29]. - The industry has not experienced any bond extensions or defaults, indicating a stable credit environment [29]. - The chip design sector has seen rapid growth, particularly in AI chip manufacturers, which have outperformed other segments [31].

Core Viewpoint - Texas Instruments (TXN) has provided an optimistic financial outlook for Q1 2026, indicating a recovery in demand across sectors such as data centers and industrial applications [2]. Group 1: Recent Financial Guidance - The company expects revenue for Q1 2026 to be in the range of $4.32 billion to $4.68 billion, with earnings per share projected between $1.22 and $1.48 [2]. - This guidance represents a significant increase compared to the same period last year, highlighting a positive trend in demand recovery [2]. Group 2: Upcoming Events - Texas Instruments is scheduled to hold its annual Capital Management Day on February 24, 2026, where it will share long-term strategic outlooks, capacity planning, and capital allocation strategies [3]. - The event will typically involve discussions from management regarding free cash flow, profit margin targets, and shareholder return plans [3].