Biden’s $1.6B Grant To Texas Instruments May Fare Well Under Trump

Summary:

• Texas Instruments benefits from CHIPS Act funding for legacy semiconductors but may lose priority under potential Trump-era cost-cutting, given its non-advanced chip focus.
• Despite expected revenue growth to $22B by 2027 and EPS at $9.29, a 13.5% CAGR doesn’t meet my 15% threshold for long-term buys or 25% for short-term trades.
• While TXN remains critical in automotive and defense sectors, limited margin of safety and dependence on market sentiment lead to a Hold rating for risk-averse investors.

Since my last analysis of Texas Instruments (NASDAQ:TXN), in which I allocated a Hold rating, the stock has lost 8.8% in price. Amid $1.6 billion in funding from the CHIPS and Science Act, is Texas Instruments a Buy as we enter the Trump

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