Core Viewpoint - Texas Instruments (TXN) has experienced a 12.3% decline in share price over the past month, underperforming the semiconductor industry, technology sector, and S&P 500 index, which declined by 4.8%, 5%, and 2.1% respectively [1][3] Group 1: Reasons for Underperformance - The decline in TXN's stock is attributed to broader market weakness and company-specific concerns, including a sell-off in tech stocks due to fears of rising trade tensions and slowing economic growth [3] - Concerns regarding the U.S. government's stance toward China are significant, as approximately 20% of TXN's total revenues for 2024 are expected to come from the Chinese market, raising fears of sanctions and tariffs [4] - Investor apprehensions about softness in TXN's industrial, automotive, and enterprise systems end markets have also contributed to the stock's decline, with these markets accounting for about 70% of TXN's revenues and reporting a sequential decline in Q4 2024 [5] Group 2: Strategic Moves for Recovery - TXN is strategically building its inventory, currently at $4.5 billion, to meet customer demand once the market rebounds, avoiding sudden production ramp-ups [6] - The company is investing in a second factory to scale up its Lehi facility in Utah, enhancing production capacity for Analog and Embedded semiconductor products [7] - TXN has secured $1.6 billion in funding from the U.S. government under the CHIPS Act, which will support new 300mm wafer fabs in Texas and Utah, strengthening its position as a supplier of analog and embedded chips [8] Group 3: Partner Base and Growth Potential - TXN has established a strong partner base, including collaborations with Micron Technology, Apple Inc., and LeddarTech Holdings Inc., which aid in its growth in consumer and automotive markets [9][10] - The Zacks Consensus Estimate for TXN's 2025 revenues is projected at $17.1 billion, indicating a year-over-year growth of 9%, with earnings estimated at $5.35 per share, suggesting a 2.9% year-over-year increase [11] Group 4: Conclusion - Despite the challenging macroeconomic environment and market softness, TXN's business remains stable due to new production facilities, healthy inventory levels, and a robust partner base, suggesting that investors should consider holding the stock [12]

Company Performance - Texas Instruments (TXN) closed at $184.55, reflecting a +0.32% change from the previous trading day's closing, outperforming the S&P 500's daily loss of 1.12% [1] - In the past month, shares of Texas Instruments have decreased by 8.01%, while the Computer and Technology sector lost 4.05% and the S&P 500 lost 2.91% [1] Earnings Forecast - Texas Instruments is expected to report an EPS of $1.06, indicating an 11.67% decline compared to the same quarter last year, with a projected quarterly revenue of $3.91 billion, up 6.74% from the year-ago period [2] - For the annual period, earnings are anticipated to be $5.35 per share and revenue is expected to reach $17.05 billion, reflecting increases of +2.88% and +9% respectively from the previous year [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Texas Instruments indicate evolving short-term business trends, with positive revisions reflecting optimism about the company's business and profitability [3] - Texas Instruments currently has a Forward P/E ratio of 34.4, which is a premium compared to the industry's average Forward P/E of 28.37, and a PEG ratio of 2.98, higher than the Semiconductor - General industry's average PEG ratio of 2.03 [6] Industry Context - The Semiconductor - General industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 81, placing it in the top 33% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - Texas Instruments Incorporated (TI) will hold its annual meeting of stockholders on April 17, 2025, at 8:30 a.m. Central time in Dallas [1] - The audio webcast of the meeting will be available live through the Investor Relations section of the company's website [1] Group 2 - Texas Instruments is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips [2] - The company serves various markets, including industrial, automotive, personal electronics, enterprise systems, and communications equipment [2] - Texas Instruments aims to make electronics more affordable through its semiconductor innovations, focusing on reliability, affordability, and lower power consumption [2]

Core Viewpoint - Texas Instruments (TXN) has experienced a significant decline in stock performance, dropping 10.9% over the past six months, underperforming both the Zacks Computer and Technology sector and the S&P 500 index [1][3] Group 1: Underperformance Factors - TXN's underperformance is attributed to challenges in its industrial, automotive, and enterprise systems markets, which together account for 70% of its revenues, showing modest sequential declines in Q4 2024 [3][6] - The Embedded Processing segment, contributing over 15% to total revenues in the past five years, is facing cyclicity leading to decreased sales [4][5] - Geopolitical tensions and potential trade restrictions between the U.S. and China pose risks, as approximately 20% of TXN's 2024 revenues are derived from the Chinese market [6] Group 2: Recovery Strategies - TXN is strategically building its inventory to $4.5 billion, allowing for quick response to customer demand when the market rebounds [9] - The company has received $1.6 billion in CHIPS Act funding to support new 300mm wafer fabs in Texas and Utah, enhancing its position as a reliable supplier of analog and embedded chips [10] - TXN is entering the edge AI market with the launch of the TMS320F28P55x Series, which includes an integrated Neural Processing Unit, capitalizing on the projected growth of the global edge AI market to $269.82 billion by 2032, with a CAGR of 33.3% from 2024 to 2032 [11] Group 3: Financial Outlook - The Zacks Consensus Estimate for TXN's 2025 revenues is $17.1 billion, indicating a year-over-year growth of 9%, with earnings estimated at $5.35 per share, suggesting a 2.9% year-over-year increase [12] - TXN has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 8.9% [12] Group 4: Conclusion - Despite current challenges, TXN is maintaining healthy inventory levels and establishing new manufacturing units, positioning itself for a rebound once the cyclical downturn subsides [13][14]

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].