It May Be Time to Buy the Dip in Texas Instruments

Core Viewpoint - Texas Instruments operates in a different segment of the technology sector compared to NVIDIA, focusing on analog and embedded chips, which may present a buy-the-dip opportunity for patient investors despite recent stock downturns [1][2][3]. Financial Performance - In the trailing twelve-month period, Texas Instruments reported a year-over-year revenue growth of only 2%, significantly lower than NVIDIA's 71% [2]. - The company achieved a strong 14% year-over-year revenue growth in its most recent quarter, primarily driven by manufacturers pulling forward demand to avoid tariffs [4]. - Texas Instruments has guided for revenue between $4.45 billion and $4.80 billion for the upcoming quarter, with the automotive sector being a key focus [5]. Market Position and Analyst Sentiment - Texas Instruments is not seeking government equity stakes, which may alleviate some investor concerns [6]. - Analysts maintain a bullish outlook with a 12-month stock price forecast of $211.90, indicating a potential upside of 14.95% from the current price of $184.35 [8][9]. - Despite trading at a premium to historical averages, analysts believe the company can sustain growth at this valuation [9][10]. Technical Analysis - The stock appears oversold, trading well below its 50-day simple moving average, with a relative strength indicator (RSI) around 36 [11]. - Momentum indicators suggest slowing downside momentum, and if support holds at $180, a near-term recovery could occur with resistance levels around $200 and $210 [12].