Texas Instruments Well Placed For The Long Haul, But Not Especially Cheap Today


  • Semiconductor lead-times continue to weaken and industrial end-market demand has started to soften, but management guidance for Q4 anticipated this.
  • I expect Texas Instruments to beat its guidance for Q4 revenue, but industrial end-market demand is a possible negative driver, and I’m concerned that guidance for Q1’23 will be soft.
  • 2023 is shaping up as a challenging year: Auto demand should be healthy, but TI is vulnerable to weaker industrial, consumer, and enterprise demand, and lacks high-end datacenter leverage.
  • The valuation today is not compelling, and I think TXN shares could lag when the semiconductor rally comes, but this is a worthy candidate for a long-term holding should the shares sell-off into the $150s on earnings/guidance.
Main microchip on the motherboard


Texas Instruments’ (NASDAQ:TXN) (“TI”) track records of exceptional margins and market share are no accident, and management has not been afraid to break from the pack to chart its own course (including decisions to build inventory when others cut production, using price

Disclosure: I/we have a beneficial long position in the shares of AVGO 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.

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