Texas Instruments Incorporated (NASDAQ:TXN) Bank of America Global Technology Conference June 4, 2025 2:20 PM ET Company Participants Dave Pahl - Head of Investor Relations & VP Rafael R. Lizardi - Senior VP & CFO Conference Call Participants Vivek Arya - BofA Securities, Research Division Vivek Arya Good morning. Welcome back. Really happy to have the management team from Texas Instruments join us today, Rafael Lizardi, Chief Financial Officer; and Dave Pahl, Head of Investor Relations. I'm Vivek Arya from ...

Texas Instruments (TXN) 2025 Conference June 04, 2025 02:20 PM ET Speaker0 Good morning. Welcome back. Really happy to have the management team from Texas Instruments join us today. Rafael Lazardi, Chief Financial Officer and Dave Wall, Head of Investor Relations. I'm Vivek Arya from the BFA Semiconductor team. Typical fireside session, I'll have my questions, but please feel free to raise your hand if you would like to bring up anything. But really delighted to see you, Rafael and Dave. Thank you. Joining ...

New integration connects Derivita's all-in-one math support, assessment, and analytics platform with the TI-Nspire™ CX II graphing calculator—enhancing engagement, minimizing distractions, and powering real-time, high-quality math instruction at scale.SALT LAKE CITY, Utah, June 4, 2025 /PRNewswire/ -- Derivita, the only all-in-one math platform for grades 6 through Calculus III—today announced a new partnership with Texas Instruments (TI). This collaboration aims to transform math classrooms into dynamic, t ...

Group 1 - The article discusses Texas Instruments (NASDAQ: TXN) and mentions a previous sell rating given in April 2021, with a total return of 8.2% since then [1] - The author has a long position in shares of TXN, AVGO, QCOM, and TSM, indicating a vested interest in these companies [1] - The focus of the analysis is on dividend growth investing and value, reflecting a strategy aimed at achieving financial freedom [1] Group 2 - The article does not provide any specific financial metrics or performance indicators for Texas Instruments or the semiconductor industry [2]

Company Overview - Texas Instruments (TI) has historically been perceived as a "boring" semiconductor company, a label the company embraced [3] - Recently, TI has initiated a significant capacity expansion program in the US, which has temporarily impacted cash flow and returns [3] Investment Strategy - The company is focused on long-term growth, believing that the investments made will lead to increased cash flow in the future [4] - TI's strategic positioning is expected to provide advantages in a world that is becoming increasingly decoupled [4]

Financial Data and Key Metrics Changes - The company is nearing the end of a six-year capital expenditure (CapEx) cycle, which began in 2021, with significant investments aimed at expanding capacity in the U.S. [7][12] - The company reported a 13% growth in the first half of Q2, with expectations for continued acceleration in revenue growth [34][40] - The revenue opportunity supported by new investments could exceed $40 billion by 2030, depending on market demand [25][26] Business Line Data and Key Metrics Changes - The company has increased its exposure to high-growth markets, particularly industrial and automotive, from 40% in 2013 to around 70% in 2022 [10][11] - The company is focusing on embedded business, with new fabs designed to support high-speed analog and embedded products [15][23] Market Data and Key Metrics Changes - The industrial sector is showing broad recovery across all geographies and channels, with significant growth expected [40][41] - Automotive markets are recovering, particularly in China, driven by increased electric vehicle (EV) adoption [42][66] Company Strategy and Development Direction - The company is strategically investing in U.S. manufacturing to ensure geopolitical reliability and to better support customers [12][12] - The focus is on transitioning from older fabs to more efficient 300mm wafer fabs, which will significantly reduce costs and improve margins [102][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the semiconductor market, particularly in industrial and automotive sectors, and emphasized the importance of being prepared for demand surges [34][39] - The company is well-positioned to navigate geopolitical tensions and potential decoupling from China, viewing it as an opportunity rather than a risk [72][74] Other Important Information - The company is actively working on requalifying parts for different manufacturing locations to mitigate potential tariff impacts [91][92] - Management highlighted the importance of maintaining a diverse manufacturing footprint to support customer needs and market demands [12][66] Q&A Session Summary Question: What is the current state of the semiconductor market recovery? - Management noted a broad recovery in the industrial sector and a positive outlook for automotive markets, particularly in China, where EV adoption is increasing [39][42] Question: How is the company managing inventory levels? - The company is deliberately holding higher inventory levels to prepare for demand fluctuations and to avoid capacity constraints experienced in previous cycles [46][52] Question: What are the implications of tariffs and geopolitical tensions? - Management indicated that current tariffs have not significantly impacted operations, and the company is prepared for potential changes in the geopolitical landscape [62][64]

Group 1 - The article discusses Texas Instruments (NASDAQ: TXN) and highlights a previous analysis from May 2024, which suggested that the price-to-earnings (P/E) ratio can be misleading for cyclical stocks [1] - The investment style promoted by the company focuses on providing actionable and clear investment ideas based on independent research [1] Group 2 - The company claims to have assisted its members in outperforming the S&P 500 while avoiding significant losses during periods of high volatility in both equity and bond markets [2] - A trial membership is offered to potential members to evaluate the effectiveness of the company's investment methods [2]

Core Viewpoint - Texas Instruments (TXN) shares have increased by approximately 11.2% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Group 1: Earnings Report and Market Reaction - The consensus estimate for Texas Instruments has shifted upward by 7.38% over the past month, indicating positive revisions in earnings expectations [2] - The stock has shown a mixed performance in terms of VGM scores, with an average Growth Score of C, a Momentum Score of B, and a Value Score of D, placing it in the bottom 40% for value investment strategy [3] Group 2: Future Outlook - The upward trend in estimates suggests a promising outlook for Texas Instruments, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4]

Company Overview - Texas Instruments Incorporated (TI) is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips for various markets including industrial, automotive, personal electronics, enterprise systems, and communications equipment [5]. Financial Offering - TI announced the pricing of two series of senior unsecured notes totaling an aggregate principal amount of $1.2 billion, which includes $550 million of 4.500% senior unsecured notes due May 23, 2030, and $650 million of 5.100% senior unsecured notes due May 23, 2035 [1][6]. - The net proceeds from this offering are expected to be used for general corporate purposes, with the offering anticipated to close on May 23, 2025 [1]. Underwriters - Barclays Capital Inc., Morgan Stanley & Co. LLC, and MUFG Securities Americas Inc. are serving as joint book-running managers for the offering [2].

Core Insights - Texas Instruments (TXN) reported total revenue of $4.07 billion for the quarter ending March 2025, reflecting an increase of 11.1% [4] - The analysis of TXN's international operations is crucial for understanding its financial strength and growth potential [1][2] International Revenue Breakdown - Europe, Middle East and Africa contributed $936 million, accounting for 23.00% of total revenue, with a surprise increase of +6.05% compared to expectations [5] - Japan generated $275 million, representing 6.76% of total revenue, but fell short of expectations by -9.45% [6] - Rest of Asia brought in $438 million, making up 10.76% of total revenue, exceeding projections by +4.26% [7] - Rest of World accounted for $76 million, or 1.87% of total revenue, with a surprise increase of +16.91% [8] - China contributed $826 million, representing 20.30% of total revenue, surpassing expectations by +10.12% [9] Future Revenue Projections - Analysts project TXN's total revenue to reach $4.31 billion in the current fiscal quarter, indicating a 12.8% increase year-over-year [10] - For the full year, total revenue is expected to be $17.29 billion, a rise of 10.6% from the previous year [11] Conclusion - The reliance on international markets presents both opportunities and challenges for Texas Instruments, making the tracking of international revenue trends essential for future projections [12][13]