Industry Overview - The semiconductor industry is essential for modern technology, producing chips that power various electronic devices such as computers, smartphones, and automobiles [1] - The industry is characterized by its cyclical nature, experiencing periods of high demand followed by slowdowns [1] - Semiconductor stocks represent companies involved in chip design and manufacturing, offering growth potential due to increasing demand for electronic devices and advancements in technology [1][2] Investment Considerations - Investing in semiconductor stocks provides exposure to technological innovation and growth, with many companies having strong research and development capabilities [2] - Some semiconductor companies offer dividends, appealing to income-focused investors [2] - The industry faces risks such as intense competition, rapid technological changes, and geopolitical factors affecting global supply chains [2] Company Highlights Micron Technology Inc. (MU) - Micron Technology is a global leader in memory and storage solutions, producing a range of semiconductor products including DRAM and NAND flash memory [3] - Recently, Micron launched the Micron 9550 NVMe SSD, claimed to be the world's fastest data center SSD, with performance metrics of 14.0 GB/s sequential reads and 10.0 GB/s sequential writes [3] - Over the last six months, shares of MU stock have increased by 27.16%, although it was trading down by 2.02% at $111.94 during a recent session [4] Texas Instruments Incorporated (TXN) - Texas Instruments specializes in analog chips and embedded processors, serving diverse markets including industrial, automotive, and personal electronics [5] - The company reported better-than-expected Q2 2024 results, with earnings of $1.22 per share and revenue of $3.82 billion, surpassing analysts' estimates [5] - TXN stock has increased by 17.08% over the last six months, trading modestly higher by 0.41% at $199.10 during a recent session [5]

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Texas Instruments' unaudited consolidated financial statements, showing year-over-year declines in revenue and net income, with detailed accompanying notes [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show revenue and net income declines for both Q2 and six-month periods, with increased total assets and stable operating cash flow | Metric | Q2 2024 (Millions) | Q2 2023 (Millions) | Six Months 2024 (Millions) | Six Months 2023 (Millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $3,822 | $4,531 | $7,483 | $8,910 | | **Gross Profit** | $2,211 | $2,910 | $4,306 | $5,773 | | **Operating Profit** | $1,248 | $1,972 | $2,534 | $3,906 | | **Net Income** | $1,127 | $1,722 | $2,232 | $3,430 | | **Diluted EPS** | $1.22 | $1.87 | $2.42 | $3.72 | | Account | June 30, 2024 (Millions) | Dec 31, 2023 (Millions) | | :--- | :--- | :--- | | **Total Current Assets** | $16,789 | $15,122 | | **Total Assets** | $35,048 | $32,348 | | **Total Current Liabilities** | $3,637 | $3,320 | | **Long-Term Debt** | $12,842 | $10,624 | | **Total Liabilities** | $17,834 | $15,451 | | **Total Stockholders' Equity** | $17,214 | $16,897 | | Cash Flow Activity (Six Months Ended June 30) | 2024 (Millions) | 2023 (Millions) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,588 | $2,559 | | **Net Cash from Investing Activities** | $(3,329) | $(2,357) | | **Net Cash from Financing Activities** | $517 | $187 | | **Net Change in Cash** | $(224) | $389 | [Notes to Financial Statements](index=6&type=section&id=Notes%20to%20Financial%20Statements) Notes detail segment performance, geographic revenue trends, accounting policies, debt, equity, and a significant property sale gain - The company operates through two primary segments: Analog and Embedded Processing, with other activities reported under 'Other'[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) | Segment Revenue (Six Months Ended June 30) | 2024 (Millions) | 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Analog | $5,764 | $6,567 | (12.2)% | | Embedded Processing | $1,267 | $1,726 | (26.6)% | | Other | $452 | $617 | (26.7)% | | **Total Revenue** | **$7,483** | **$8,910** | **(16.0)%** | | Revenue by Geography (Six Months Ended June 30) | 2024 (%) | 2023 (%) | | :--- | :--- | :--- | | United States | 36% | 32% | | China | 18% | 20% | | Rest of Asia | 11% | 9% | | Europe, Middle East and Africa | 25% | 28% | | Japan | 8% | 10% | | Rest of world | 2% | 1% | - In February 2024, the company issued **$3.00 billion** in senior unsecured notes and retired **$300 million** of debt in May 2024[39](index=39&type=chunk) - A **$124 million** credit was recorded under 'restructuring charges/other' in the first six months of 2024, primarily from a property sale gain[49](index=49&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q2 2024 revenue decline to decreased customer demand, particularly in industrial and automotive markets, while maintaining long-term free cash flow strategy and investment - The company's strategy is centered on maximizing long-term free cash flow per share growth through a business model focused on analog and embedded processing, disciplined capital allocation, and operational efficiency[54](index=54&type=chunk)[55](index=55&type=chunk) - Q2 2024 revenue decreased **16%** year-over-year, with industrial and automotive markets continuing to decline sequentially while other end markets grew[58](index=58&type=chunk)[59](index=59&type=chunk) | Trailing 12-Month Financials (as of June 30, 2024) | Amount (Billions) | | :--- | :--- | | Cash Flow from Operations | $6.4 | | Free Cash Flow (Non-GAAP) | $1.5 | | R&D and SG&A Investment | $3.7 | | Capital Expenditures | $5.0 | | Cash Returned to Shareholders | $4.9 | - The company expects capital expenditures to remain elevated due to manufacturing and technology investments, benefiting from the U.S. CHIPS and Science Act's **25%** investment tax credit starting in Q2 2024[76](index=76&type=chunk) | Free Cash Flow Reconciliation (Trailing 12 Months Ended June 30) | 2024 (Millions) | 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Cash flow from operations (GAAP) | $6,449 | $7,367 | (12)% | | Capital expenditures | $(4,955) | $(4,185) | - | | **Free cash flow (non-GAAP)** | **$1,494** | **$3,182** | **(53)%** | [Item 4. Controls and Procedures](index=22&type=section&id=ITEM%204.%20Controls%20and%20procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2024, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[82](index=82&type=chunk) [PART II – OTHER INFORMATION](index=23&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=23&type=section&id=ITEM%201.%20Legal%20proceedings) This section refers to Note 8 for legal proceedings, which are not expected to have a material adverse effect on financial statements - Information regarding legal proceedings is detailed in Note 8 to the financial statements, and the company does not expect these matters to have a material adverse effect[84](index=84&type=chunk)[47](index=47&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=ITEM%201A.%20Risk%20factors) The report incorporates by reference the risk factors detailed in the company's Form 10-K for the year ended December 31, 2023, with no new risk factors presented - Risk factors are not updated in this 10-Q and are incorporated by reference from the Form 10-K for the year ended December 31, 2023[85](index=85&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=ITEM%202.%20Unregistered%20sales%20of%20equity%20securities%20and%20use%20of%20proceeds) During Q2 2024, Texas Instruments repurchased **382,729** shares at an average price of **$189.60**, with approximately **$21.12 billion** remaining under repurchase authorizations | Period (2024) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April | 20,776 | $176.46 | | May | 215,795 | $187.21 | | June | 146,158 | $194.98 | | **Total Q2** | **382,729** | **$189.60** | - As of June 30, 2024, approximately **$21.12 billion** remained available for future share repurchases under existing board authorizations from 2018 and 2022, which have no expiration date[86](index=86&type=chunk)[87](index=87&type=chunk) [Item 6. Exhibits](index=24&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, compensation plans, CEO/CFO certifications, and XBRL data files - The exhibits filed with this report include the CEO and CFO certifications pursuant to SEC rules (Exhibits 31a, 31b, 32a, 32b) and Interactive Data Files (XBRL)[89](index=89&type=chunk) [Notice Regarding Forward-Looking Statements](index=25&type=section&id=Notice%20regarding%20forward-looking%20statements) The report contains forward-looking statements subject to risks and uncertainties, including market demand, competition, manufacturing, cybersecurity, and global conditions, with no obligation to update - The report includes a safe harbor statement for forward-looking statements, cautioning that actual results could differ materially due to various risks[91](index=91&type=chunk) - Key risks highlighted include market demand for semiconductors (especially in industrial and automotive), ability to compete, manufacturing capacity investments, and changes in tax laws or global trade policies[91](index=91&type=chunk)

Texas Instruments Incorporated (NASDAQ:TXN) Q2 2024 Earnings Conference Call July 23, 2024 4:30 PM ET Company Participants Dave Pahl - Head of IR Haviv Ilan - CEO Rafael Lizardi - CFO Conference Call Participants Timothy Arcuri - UBS Stacy Rasgon - Bernstein Research Vivek Arya - Bank of America Securities Ross Seymore - Deutsche Bank Chris Danely - Citibank Toshiya Hari - Goldman Sachs Harlan Sur - JP Morgan Joe Moore - Morgan Stanley Dave Pahl Welcome to the Texas Instruments Second Quarter 2024 Earnings ...

For the quarter ended June 2024, Texas Instruments (TXN) reported revenue of $3.82 billion, down 15.7% over the same period last year. EPS came in at $1.22, compared to $1.87 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.8 billion, representing a surprise of +0.60%. The company delivered an EPS surprise of +5.17%, with the consensus EPS estimate being $1.16.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Texas Instruments (TXN) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $1.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.17%. A quarter ago, it was expected that this chipmaker would post earnings of $1.06 per share when it actually produced earnings of $1.20, delivering a surprise of 13.21%.Over the last four quarters, the compan ...

WEST PALM BEACH, Fla., July 23, 2024 /PRNewswire/ -- Elliott Investment Management L.P. (together with its affiliates "Elliott") today released the following statement attributed to Managing Partner Jesse Cohn and Partner Jason Genrich regarding Texas Instruments (NASDAQ: TXN) (the "Company"):We commend Texas Instruments on the positive shareholder engagement and capital allocation initiatives announced by CEO Haviv Ilan on today's earnings call. We are looking forward to the special Capital Management even ...

Exhibit 99 TI reports second quarter 2024 financial results and shareholder returns Conference call on TI website at 3:30 p.m. Central time today www.ti.com/ir DALLAS (July 23, 2024) – Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $3.82 billion, net income of $1.13 billion and earnings per share of $1.22. Earnings per share included a 5-cent benefit for items that were not in the company's original guidance. Regarding the company's performance and returns to shar ...

DALLAS, July 23, 2024 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $3.82 billion, net income of $1.13 billion and earnings per share of $1.22. Earnings per share included a 5-cent benefit for items that were not in the company's original guidance. Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's president and CEO, made the following comments: "Revenue decreased 16% from the same quarter a year ago and increased 4 ...

Texas Instruments Incorporated (TXN) is scheduled to report second-quarter 2024 results on Jul 23.For the second quarter of 2024, Texas Instruments expects revenues between $3.65 billion and $3.95 billion. The Zacks Consensus Estimate is pegged at $3.80 billion, suggesting a decline of 16.2% from the year-ago quarter’s reported figure.Management expects earnings between $1.05 per share and $1.25 per share for the quarter under review. The consensus mark is pegged at $1.16 per share, indicating a fall of 37. ...

CHINA - 2023/02/15: In this photo illustration, the American technology company Texas Instruments ... [+] logo is displayed on a smartphone screen with an economic stock exchange index graph in the background. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesTexas Instruments is poised to report its Q2 results next week. We expect the company’s revenues for the quarter to decline by about 15% year-over-year to $3.84 billion, slightly ahea ...