Core Insights - Texas Instruments (TI) has launched new power-management chips to address the increasing power demands of modern data centers, particularly driven by high-performance computing and artificial intelligence (AI) [1][3] - The TPS1685 is introduced as the industry's first 48V integrated hot-swap eFuse with power-path protection, aimed at enhancing efficiency and scalability in data center designs [1][4] - TI also unveiled a new family of integrated GaN power stages, which are designed to improve power density and efficiency while simplifying the design process for data center hardware [1][5] Product Innovations - The TPS1685 hot-swap eFuse supports power levels beyond 6kW and is designed to simplify data center designs while reducing solution size by half compared to existing hot-swap controllers [4][7] - The new GaN power stages (LMG3650R035, LMG3650R070, LMG3650R025) achieve over 98% efficiency and high power density exceeding 100W/in³, integrating advanced protection features [6][7] - These innovations are showcased at the 2025 Applied Power Electronics Conference (APEC), highlighting TI's commitment to enhancing power management solutions [1][7] Industry Impact - The shift to 48V power architectures in data centers is becoming more prevalent as designers seek enhanced efficiency and scalability for components like CPUs and AI hardware accelerators [4][6] - TI's advancements in power-management technology are positioned to help data centers reduce their environmental footprint while meeting the growing energy demands of the digital world [3][4] - Collaborations with companies like Dell and Vertiv demonstrate the practical applications of TI's GaN technology in high-efficiency power supply units [8][9]

Core Insights - Texas Instruments (TI) has introduced the world's smallest microcontroller (MCU), the MSPM0C1104, which measures only 1.38mm², making it suitable for space-constrained applications like medical wearables and personal electronics [2][8] - The new MCU is 38% smaller than the current smallest MCU in the industry, allowing designers to optimize board space without sacrificing performance [4][8] - TI's MSPM0 MCU portfolio includes over 100 cost-effective MCUs that offer scalable configurations and enhance the sensing and control capabilities of embedded designs [3][6] Product Features - The MSPM0C1104 MCU features 16KB of memory, a 12-bit analog-to-digital converter with three channels, six general-purpose input/output pins, and compatibility with standard communication interfaces such as UART, SPI, and I2C [5] - The MCU leverages wafer chip-scale package (WCSP) technology, which allows for compact integration of high-speed analog components, maintaining computing performance without increasing board size [5][4] Market Positioning - The introduction of the MSPM0C1104 aligns with consumer demand for compact electronic devices that offer more features at a lower cost, prompting engineers to seek integrated components that maximize functionality while minimizing space [4] - TI's MSPM0 MCU portfolio is designed to accelerate time to market with pin-to-pin compatible package options and feature sets that cater to various applications, including personal electronics, industrial, and automotive sectors [6][8] Pricing and Availability - The MSPM0C1104 MCU is priced starting at US$0.20 in 1,000-unit quantities, with the overall portfolio beginning at US$0.16 [6][12] - Preproduction quantities of the MSPM0C1104 MCU are available for order on TI's website [11]

2024 Annual Investor Call 5 March 2025 THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITY OF TETRAGON. 2024 Annual Report Investor Presentation | 1 THIS INFORMATION IS CURRENT ONLY AS OF 31 DECEMBER 2024, UNLESS OTHERWISE STATED. TETRAGON UNDERTAKES NO OBLIGATION TO UPDATE ANY INFORMATION CONTAINED IN THIS PRESENTATION. PLEASE REFER TO THE ACCOMPANYING LEGAL DISCLAIMER. Contents | Key Performance Metrics | 3 | | --- | --- | | NAV Prog ...

Company Performance - Texas Instruments (TXN) closed at $198.24, reflecting a -0.87% change from the previous trading day, underperforming the S&P 500's gain of 0.01% [1] - Over the past month, TXN shares have increased by 10.75%, contrasting with the Computer and Technology sector's decline of 5.51% and the S&P 500's loss of 2.26% [1] Upcoming Financial Results - Texas Instruments is expected to report an EPS of $1.06, indicating an 11.67% decrease from the same quarter last year [2] - The projected revenue for the upcoming report is $3.91 billion, which represents a 6.74% increase from the previous year [2] Full Year Projections - For the full year, earnings are estimated at $5.35 per share and revenue at $17.05 billion, reflecting increases of +2.88% and +9% respectively from the prior year [3] Analyst Estimates and Ratings - Recent changes in analyst estimates for Texas Instruments are crucial as they reflect current business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Texas Instruments as 3 (Hold) [6] Valuation Metrics - Texas Instruments has a Forward P/E ratio of 37.4, which is higher than the industry average of 30.95, indicating a premium valuation [7] - The company also has a PEG ratio of 3.23, compared to the Semiconductor - General industry's average PEG ratio of 2.17 [8] Industry Context - The Semiconductor - General industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 52, placing it in the top 21% of over 250 industries [9]

Group 1 - The article discusses Texas Instruments (NASDAQ: TXN) and previously rated it a hold due to high multiples compared to the sector median [1] - The author has extensive experience in investment analysis, focusing on deep-discount value plays and underappreciated companies [1] - The analysis aims to identify potential investment opportunities that can return value to investors [1] Group 2 - There is no current stock, option, or similar derivative position in Texas Instruments, but a long position may be initiated within 72 hours [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not reflect the platform as a whole [3]

Core Viewpoint - Texas Instruments (TXN) has faced a 7.3% stock decline over the past three months, underperforming the semiconductor industry due to weaker demand in key markets and margin pressures [1][20]. Financial Performance - TXN's fourth-quarter 2024 revenues were $4.01 billion, slightly above expectations but reflecting a 1.72% year-over-year decline [4]. - The earnings per share (EPS) of $1.30 exceeded estimates, but demand remains weak, particularly in industrial and automotive markets, which account for 70% of total revenues [4]. - Management's guidance for first-quarter 2025 revenues is between $3.74 billion and $4.06 billion, indicating a potential 3% sequential decline [5]. Market Position and Future Outlook - Despite current challenges, TXN is well-positioned for long-term growth due to its dominance in analog and embedded processing, and its focus on industrial and automotive markets [3][10]. - The company sees growth opportunities in factory automation, robotics, and energy infrastructure, which rely on high-performance chips [11]. - TXN is expected to benefit from the next semiconductor upcycle anticipated in late 2025 or early 2026 [12]. Capital Expenditure and Competitive Edge - TXN is nearing the end of a six-year capital expenditure cycle aimed at expanding low-cost 300mm wafer fabrication capacity [13]. - New facilities in Texas and Utah will enhance production capabilities and reduce costs, although high CapEx spending is negatively impacting margins in the short term [14]. - The company has secured $1.6 billion in CHIPS Act grants, with total funding expected to reach $7.5 billion to $9.5 billion, which will help offset capital expenses [15]. Shareholder Returns - TXN has increased its dividend by 5% for the 21st consecutive year, returning $5.7 billion to shareholders in 2024 through dividends and stock buybacks [16][17]. - The company generated $6.32 billion in operating cash flow, providing a solid foundation for sustaining its capital return programs [17]. Valuation - TXN currently trades at a forward 12-month price-to-earnings (P/E) ratio of 33.93, slightly below the industry average of 35.54, making it more attractive relative to its historical valuation [18]. Conclusion - Despite short-term challenges, TXN's strong long-term fundamentals and strategic positioning make it a solid hold for investors [20][21].

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, communications equipment, and enterprise systems [3]. Upcoming Event - Rafael Lizardi, Senior Vice President and Chief Financial Officer of TI, will speak at the Morgan Stanley Technology, Media & Telecom Conference on March 5, 2025, at 2:35 p.m. Pacific time [1]. - The conference will include a Q&A session with analysts and investors, focusing on TI's business outlook and strategies for key markets [1]. Business Strategy - TI aims to address key markets for its analog and embedded processing technologies, positioning the company for growth [1]. - The company emphasizes its commitment to making electronics more affordable through innovative semiconductor solutions [3].

Financial Performance - Revenue for 2024 was $15.64 billion, a decrease of $1.88 billion or 10.7% compared to 2023[110] - Gross profit for 2024 was $9.09 billion, down $1.93 billion or 17.5%, with a gross profit margin of 58.1% compared to 62.9% in 2023[110] - Net income for 2024 was $4.80 billion, down from $6.51 billion in 2023, with EPS decreasing from $7.07 to $5.20[114] - Operating profit for 2024 was $5.47 billion, or 34.9% of revenue, compared to $7.33 billion or 41.8% in 2023[112] - The Embedded Processing segment saw a revenue decline of 25% to $2.53 billion, with operating profit down 65% to $352 million[116] Cash Flow and Liquidity - Cash flow from operations was $6.32 billion, representing 40.4% of revenue, a decrease of $102 million from 2023[119][126] - Free cash flow for 2024 was $1.50 billion, or 9.6% of revenue, compared to $1.35 billion or 7.7% in 2023[109][126] - Total cash at the end of 2024 was $7.58 billion, a decrease of $995 million from the end of 2023[118] Capital Expenditures and Investments - Capital expenditures for 2024 were $4.82 billion, down from $5.07 billion in 2023, primarily for semiconductor manufacturing[120] - The company expects to receive between $7.5 billion to $9.5 billion from the CHIPS Act through 2034, including $1.6 billion for large-scale wafer fabs[121] Interest Rate Impact - As of December 31, 2024, a hypothetical 100 basis point increase in interest rates would decrease the fair value of cash equivalents and short-term investments by approximately $22 million[136] - A 100 basis point increase in interest rates would decrease the fair value of long-term debt by $952 million[136] - Changes in interest rates do not affect cash flows associated with long-term debt as the interest rates are fixed[136] - The company has potential exposure to changes in interest rates affecting both investments and debt[135]

Core Viewpoint - Texas Instruments Incorporated (TXN) reported mixed fourth-quarter 2024 results, exceeding earnings and revenue expectations but facing year-over-year declines, particularly in its Embedded Processing segment, which is crucial for growth [1][2]. Financial Performance - Earnings per share for Q4 were $1.30, surpassing the Zacks Consensus Estimate by $0.11, but reflecting a 12.8% decline from the previous year [2]. - Revenues reached $4.01 billion, exceeding consensus expectations by $136 million, yet showing a 1.7% year-over-year decrease [2]. Segment Analysis - The Embedded Processing segment generated revenues of $613 million, beating estimates of $576 million, but experienced an 18% decline year-over-year, indicating weak demand [3][4]. - This segment accounted for 15.3% of total revenues, highlighting its significance to overall performance [3]. Operational Challenges - The decline in the Embedded Processing segment was attributed to cyclical downturns and weakened demand in key markets, especially industrial applications [4][6]. - Underutilization of the Lehi factory, which supports a significant portion of the Embedded Processing business, negatively impacted revenues and margins [5]. - Broader macroeconomic challenges further contributed to reduced customer demand, particularly in industrial automation and energy infrastructure markets [6]. Positive Aspects - The Analog segment, which constitutes 79.2% of total revenues, grew by 2% year-over-year, marking a recovery after eight consecutive quarters of declines [8]. Margin and Guidance - Gross profit for Q4 was $2.31 billion, representing 58% of revenues, with a contraction of 200 basis points in gross margin year-over-year due to lower factory utilization and higher depreciation costs [9]. - For Q1 2025, Texas Instruments expects revenues between $3.74 billion and $4.06 billion and earnings per share between $0.94 and $1.16, indicating ongoing challenges in the industrial and automotive markets [10]. Market Sentiment - Following the earnings announcement, the Zacks Consensus Estimate for Q1 and full year 2025 saw downward revisions, with Q1 earnings revised down by $0.08 to $1.08 per share [11]. - The stock price dropped 7.5% after the results, underperforming the Zacks Semiconductor – General industry, which gained 97.4% over the past year [12]. Conclusion - The fourth-quarter results highlight a challenging environment for Texas Instruments, particularly due to the struggles in the Embedded Processing segment, while the Analog segment shows some resilience [14]. - Given the cautious guidance and ongoing market weaknesses, it is advisable for investors to refrain from investing in TXN until clearer recovery signs emerge [15].

Group 1 - Texas Instruments (TXN) shares fell over 7% to close at $185.52, making it the worst-performing stock in the S&P 500, following a disappointing profit forecast that raised concerns about a slower recovery in the analog chip market [1][6] - Other analog chipmakers such as Microchip Technology (MCHP), Analog Devices (ADI), Onsemi (ON), and NXP Semiconductors (NXPI) also experienced losses, contributing to a decline in the tech sector and the S&P 500 index, which was down 0.3% [2][6] - Jefferies analysts indicated that Texas Instruments' outlook suggested the analog chip market may not have reached a bottom, with over 70% of its products sold into the auto and industrial markets, which are still facing challenges [3][6] Group 2 - Analysts believe that while a recovery for the analog segment could occur later this year or next, Texas Instruments' increasing spending and inventory levels may pose significant headwinds, impacting margins [4] - Morningstar's Brian Colello raised his price target for Texas Instruments to $185 from $175, describing the situation as a "near-term reckoning" but expressed confidence in the company's long-term trajectory due to investments in higher-margin chips [5] - Among analysts polled, seven out of twelve gave Texas Instruments a "hold" rating, with a consensus price target of approximately $205, suggesting an upside of nearly 11% [6]