Core Viewpoint - Texas Instruments announced layoffs at its Lehi, Utah plant as part of a restructuring plan to support long-term operational efficiency, including new factory construction and capacity expansion [1] Group 1: Layoff Details - The layoffs are aimed at enhancing operational efficiency and are directly related to the company's expansion plans [1] - The company did not disclose the exact number of affected employees but indicated that it is below the WARN notification threshold, suggesting the layoffs involve less than 33% of the workforce, likely in the hundreds [1] Group 2: Expansion Plans - Texas Instruments has secured $1.61 billion in funding from the U.S. government under the CHIPS Act to build a second 300mm wafer fabrication plant [1] - The layoffs may be a strategic move to consolidate resources and ensure efficient operations once the new factory is operational [1]

Company Overview - Analog Devices (ADI) has experienced an 8.5% decline in stock price over the past month, underperforming the Zacks Computer and Technology sector, Zacks Semiconductor - Analog and Mixed industry, and the S&P 500 index, which declined by 2.7%, 7%, and 2.4% respectively [1] - The company is highly exposed to the Chinese market, which accounted for approximately 22% of ADI's 2024 top line [1] Regulatory Environment - Recent U.S. tariff policies, including a 25% additional tariff on imports from Mexico and Canada and a 10% additional tariff on imports from China, have raised investor concerns [2] - A proposed 25% tariff on semiconductor products has further weakened investor confidence in semiconductor companies, including ADI [2] Competitive Landscape - ADI competes with Texas Instruments (TXN), Microchip Technologies (MCHP), and NXP Semiconductors (NXPI) in the analog, mixed, and digital signal processing semiconductor markets [3] - Texas Instruments generated $12.2 billion in revenues from the analog semiconductor segment in 2024, significantly surpassing ADI's total revenues of $9.43 billion, highlighting Texas Instruments' dominant position [4] - Microchip Technologies and NXP Semiconductors also compete with ADI in various semiconductor solutions, including analog and mixed-signal products [5][6] - Texas Instruments and Microchip Technologies received significant grants from the U.S. government's CHIPS Act, potentially giving them a competitive edge over ADI [7] Market Recovery - Despite competitive and regulatory challenges, ADI's segments are showing signs of recovery [9] - The industrial segment, the largest contributor to ADI's top line, is recovering from a cyclical downturn, driven by trends toward decentralized intelligence and modular manufacturing [10] - The consumer segment is benefiting from the rapid growth of the electronics wearables market, increasing demand for high-performance sensors and signal chains [11] - The proliferation of AI-based data centers is driving demand for ADI's high-precision electro-optical controllers and high-voltage power protection systems [12] Financial Outlook - The Zacks Consensus Estimate for ADI's fiscal 2025 revenues is $10.27 billion, indicating year-over-year growth of 8.97% [13] - The Zacks Consensus Estimate for ADI's fiscal 2025 earnings is $7.11, suggesting year-over-year growth of 11.4% [13]

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]

Summary of Conference Call on Semiconductor Industry and TI Industry Overview - The analog IC market is showing a gradual recovery in demand starting from Q2 2024 after being at a low point before 2023 [2][3] - The consumer electronics sector is expected to recover first in March-April 2024, while the automotive market is anticipated to rebound significantly in Q3 2024, driven by the increase in electric vehicle (EV) adoption in China [2][3] - The industrial market is stabilizing after hitting a low in 2023, with expectations of growth by late 2024 to early 2025 [2][3] Key Points on TI (Texas Instruments) - TI's gross margin is expected to remain stable between 57% and 60% in 2024, with no significant price reduction strategy implemented [2][5] - To maintain market share, TI may adopt aggressive pricing strategies, but any price cuts are expected to be limited to 1-2% due to current profit margins being close to management's set bottom line [2][6] - TI has increased its total production capacity by 25%-30% since 2023, primarily in the analog chip sector, with no significant new capacity expected until 2026-2027 [2][7][8] - Overall inventory levels at TI have risen, with structural characteristics; some consumer electronics and automotive products have seen inventory reductions, while industrial sector inventory remains high at over four months [2][9][10] Market Dynamics - Demand from downstream customers is expected to improve in Q2 2025 compared to Q1, particularly in consumer electronics and new energy vehicles, leading to a slight increase in overall revenue [2][11] - The Chinese government's subsidy policies have positively impacted demand for consumer electronics, leading to an increase in chip orders, although the actual demand transmission to upstream manufacturers is smoothed out due to inventory chains [2][12][13] - The U.S. plans to impose tariffs on traditional semiconductor exports from China may have limited short-term effects but could hinder future market access to Europe and the U.S. [2][14] Competitive Landscape - The U.S. automotive industry is currently in a downturn, facing challenges from economic factors and competition from Chinese electric vehicles, leading to a pessimistic outlook among many U.S. manufacturers [2][15] - Domestic semiconductor manufacturers are rapidly advancing in the automotive sector, with significant progress in battery protection and autonomous driving camera chips [2][20] - Price differences exist between domestic manufacturers and TI, with domestic products typically 20%-30% cheaper due to intense local competition [2][23] Conclusion - The semiconductor industry, particularly the analog IC market, is on a recovery path with varying dynamics across sectors - TI is strategically managing its pricing and production capacity to navigate competitive pressures while maintaining profitability - The evolving landscape of domestic competition and international trade policies will continue to shape the industry's future.

Group 1: Marvell Technology Inc (MRVL) - Marvell Technology Inc reported better-than-expected fourth-quarter earnings and revenue but provided a lackluster fiscal first-quarter guidance [1] - MRVL's stock is currently up 17.8% at $74.11, aiming to recover from a 33.8% year-to-date deficit, but is experiencing its largest single-day percentage loss since January [2] - The stock is trading at its lowest level since October, breaking below the 200-day moving average, with 11 firms, including Morgan Stanley, reducing their price targets [2] Group 2: Texas Instruments Inc (TXN) - Texas Instruments Inc is down 3.5%, trading at $188.76, and is on track for a weekly loss while still maintaining a 10.6% year-over-year gain [3] - The stock is experiencing a pullback from a February peak above $205, which was the highest mark since November, and is currently testing its 20-day moving average [3] Group 3: Micron Technology Inc (MU) - Micron Technology Inc is down 4.6%, trading at $90, and is set for its third consecutive weekly loss [5] - The stock has a 30.7% deficit over the past nine months but has a support level at $87.50 that has previously contained pullbacks this year [5]

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 ...