Is Texas Instruments Losing Against China?

Summary:

  • Texas Instruments Incorporated reported bad Q3 earnings last week and the stock dropped significantly, continuing its poor year-to-date performance.
  • Management continues with its plan to invest in increased capacity, but the market is unsure if these investments make sense. We explain why.
  • Cash flows continued to be weak but that should change significantly next year.
  • We give our opinion on the “China risk” and how it might impact Texas Instruments Incorporated.

Processor Unit, Chip War. The Chip Crisis, The World"s Big Problem. China and usa Flag.

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Introduction

Texas Instruments Incorporated (NASDAQ:TXN) [TI] reported Q3 2023 earnings this week, and they were pretty rough. We must admit that our conviction is being tested. The market did not like these earnings much, and the


Analyst’s Disclosure: I/we have a beneficial long position in the shares of TXN, ASML either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

We are also long ASML

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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