Core Insights - Texas Instruments Incorporated (NASDAQ: TXN) has experienced an 8.3% decline since July 24, underperforming the S&P 500 during the same period [1] Company Analysis - The previous investment thesis focused on the potential of Texas Instruments, indicating a need for further evaluation given the recent performance [1] Analyst Background - The analyst has 10 years of experience in investment banking, specializing in industry and company research, with a strong focus on technology sectors such as semiconductors, robotics, and energy [1] - The analyst holds a degree in Mechanical Engineering and has completed CFA Level II in 2024, indicating a solid educational background in finance and engineering [1] Investment Philosophy - The investment approach emphasizes growth at a reasonable price, targeting companies in oligopolistic sectors with high barriers to entry, while avoiding smaller companies due to perceived risks [1]

back to the exchange. Shares of Texas Instruments falling today, taking the chips with them uh uh after giving a weaker than expected fourth quarter outlook. You can see shares of Texas Instruments down about 7% right now.The company noting that while the semiconductor industry is recovering, it's happening at a slower pace than prior upturns. But Evercore just added the company to its tactical outperform list, telling investors to buy the dip despite lowering its price target. Joining me now is Evercor's M ...

Core Viewpoint - Texas Instruments shares fell approximately 7% following a weaker than expected fourth quarter outlook, indicating a slower recovery in the semiconductor industry compared to previous cycles [1][2]. Company Summary - Texas Instruments noted that while the semiconductor industry is recovering, the pace is slower than prior upturns, leading to a cautious outlook [2]. - The company guided for a seasonal quarter with a projected sequential decline of 6% in the December quarter, reflecting ongoing challenges in inventory management and demand [6][13]. - Texas Instruments has a history of conservative guidance, having beaten its forecasts by 2% to 4% in the last four quarters, suggesting potential upside in their current guidance [13]. Industry Summary - The semiconductor supply chain has been cautious, with companies preferring to pay expedite fees rather than rebuild inventory safety stocks due to past experiences with inventory build-up during COVID [4]. - There is a concern in the supply chain about low inventories, with expectations that supply may become tight in the first half of the year, potentially leading to allocation issues [7][8]. - Demand remains strong in specific sectors such as data centers, AI, and electric vehicles, while industrial and automotive sectors show ongoing softness [8][10]. - Sequential growth was observed in industrial (up 4%), automotive (up 10%), and communications equipment (up 10%) [9][10].

Market Performance - The Dow dropped 147 points, S&P 500 fell 0.4%, and Nasdaq slid 0.9% due to weak earnings from Texas Instruments and Netflix [1][21] - Intuitive Surgical was a standout performer, surging 15% on stronger-than-expected revenue and earnings of $2.40 per share on $2.51 billion revenue [3][13] - Over 75% of S&P 500 companies reporting this quarter have beaten expectations, indicating a generally positive earnings season despite some high-profile misses [5][21] Company-Specific Earnings - Texas Instruments shares fell 4% after reporting weaker-than-expected Q4 earnings and disappointing guidance [1][21] - Netflix plunged 9% following a Q3 earnings miss, attributed to a $619 million expense related to a tax dispute in Brazil, despite steady subscriber growth [2][12][10] - Analysts suggest Netflix's growth phase may be slowing, leading to cautious market sentiment despite strong subscriber numbers [10][20] Sector Performance - The semiconductor sector broadly suffered, with AMD, On Semiconductor, and Micron Technology each dropping about 3%, and the VanEck Semiconductor ETF (SMH) pulling back 2% [1][14] - Energy and industrial sectors are showing relative stability amidst the mixed performance of technology stocks [7][20] Upcoming Earnings and Economic Indicators - Investors are focused on Tesla's upcoming Q3 earnings report, with expectations for updates on vehicle deliveries and energy business performance [15][19] - The September Consumer Price Index (CPI) report is anticipated to influence the Federal Reserve's rate decisions, with markets expecting a 0.25% cut in the overnight borrowing rate later this month [6][21]

The company is brushing off better-than-expected revenue for the third quarterTexas Instruments Inc (NASDAQ:TXN) stock is 4.7% lower to trade at $172.31 at last glance, brushing off better-than-expected revenue for the third quarter. In addition to a quarterly profit miss, the company also issued a dismal fourth-quarter outlook. At least 11 analysts chimed in with price-target cuts, including Mizuho to $145 from $150. Analysts lean pessimistic on TXN, with 21 of the 35 in coverage sporting a tepid "hold" or ...

富国银行将德州仪器的目标价从195美元下调至170美元，维持"增持"评级。 ...

Market Overview - The U.S. stock market opened with slight declines across major indices, including S&P 500 (-0.04%), Russell 2000 (-0.11%), Dow (-0.14%), and Nasdaq (-0.18%) [2] Earnings Reports - Intuitive Surgical reported strong earnings, leading to a significant increase in its stock price by 17.76%. Other notable gainers include Vertiv (+7.1%) and Hilton (+3.1%) [3] - Pegasystems saw a rise of 12.5%, while Capital One and Haliburton increased by 4.12% and 2.77%, respectively, benefiting from positive earnings sentiment from the previous day [3] - Conversely, Texas Instruments experienced a sharp decline of 7.9% following weaker after-hours results, alongside other laggards like Manhattan Associates (-7.9%), Netflix (-7.4%), and Newmont (-4.77%) [4] - Mattel's stock fell by 5.5% after missing earnings expectations and reporting a decline in North American sales [4] Upcoming Earnings - Major earnings reports expected later today include Tesla, SAP, and IBM, which will be released after the market closes [8] Economic Indicators - The 10-Year Treasury yield decreased by 1.9 points to 3.944%, while the Continuous Gold Contract fell by 1.76% to $4,036.80 [6]

Key Takeaways Texas Instruments' Q3 earnings of $1.48 beat estimates and rose 1% year over year.Revenues climbed 14% to $4.74B, driven by 16% growth in the Analog segment.Q4 guidance calls for sales in the $4.22-$4.58 billion and EPS between $1.13 and $1.39.Texas Instruments ((TXN) reported better-than-expected third-quarter 2025 results. The company reported third-quarter earnings per share of $1.48, which beat the Zacks Consensus Estimate by 0.7% and came at the midpoint of management’s guidance of $1.36 ...

Bashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within th ...

Summary of Texas Instruments Q3 2025 Earnings Call Company Overview - **Company**: Texas Instruments (TI) - **Quarter**: Q3 2025 - **Revenue**: $4.7 billion - **Gross Margin**: 57% - **Net Income**: $1.4 billion - **Earnings Per Share (EPS)**: $1.48, including a $0.10 reduction - **Operating Cash Flow**: $2.2 billion - **Free Cash Flow**: $2.4 billion, including $637 million from the CHIPS Act incentive - **Debt**: $14 billion with a weighted average coupon rate of 4% [2][6] Financial Performance - **Q3 Revenue Growth**: 7% quarter-over-quarter and 14% year-over-year [3] - **Segment Performance**: - Analog business grew 16% year-over-year - Embedded processing grew 9% year-over-year - Other segments grew 11% year-over-year [3] - **Q4 Guidance**: Expected revenue between $4.22 billion and $4.58 billion, with EPS between $1.13 and $1.39 [7] Market and Industry Insights - **Semiconductor Market**: Continuing recovery but at a slower pace due to macroeconomic dynamics and uncertainties [4] - **Customer Inventory Levels**: Remain low, with inventory consumption appearing to have ended [4] - **End Markets**: - Industrial market grew approximately 25% year-over-year - Automotive market grew in single digits year-over-year and approximately 10% quarter-over-quarter - Personal electronics showed single-digit growth both year-over-year and quarter-over-quarter - China market has returned to normal, with a year-over-year growth of about 40% [2][4][17] Cost and Margin Expectations - **Q4 Gross Margin**: Expected to decline to around 55% due to revenue decrease and increased depreciation costs [2][14] - **Depreciation Costs**: Expected to increase by $1.8 billion to $2 billion in 2025 [14] - **Operational Adjustments**: Adjusting backlog demand and supply to maintain ideal inventory levels [9] Capital Management - **Dividend Increase**: Announced a 4% increase in dividends, marking the 22nd consecutive year of dividend increases [2] - **Share Buyback**: $1.19 billion in stock repurchases during the quarter [6] - **Future Capital Expenditures**: Expected to be between $2 billion and $2.6 billion, with potential for lower spending if recovery remains moderate [18][19] Strategic Initiatives - **Restructuring Plans**: Involves gradually closing 150mm wafer fabs and consolidating R&D investments that are underperforming [10] - **Focus on Data Center Market**: Anticipated annual revenue of approximately $1.2 billion, with a growth rate of about 50% in the first three quarters of the year [22] Additional Considerations - **Economic Outlook**: The recovery is moderate, with customers cautious about capital expenditures due to uncertainties like tariff rates [20] - **Inventory Management**: Adjustments made to maintain stable inventory levels, with expectations of a slight decrease in load factors [21] - **No Significant Anomalies**: No notable positive or negative anomalies in terminal markets for the December quarter [23]