Texas Instruments: Short-Term Trends Aren’t A Long-Term Risk


  • The company has a promising future and will be backed up by numerous tailwinds that will boost long-term growth.
  • This year will be demanding, as the market is decelerating and the company is going through an investment cycle.
  • My entire investment thesis is intact, as the long-term is not affected by the actual downtrend.
  • I rate the stock a buy with a target price of $175, as great long-term returns will easily be achieved.

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3d rendering robotic arms with silicon wafers for semiconductor manufacturing


Describes future market growth

Source: ASML Investor Day

R&D capital allocation

Source: TXN’s investor relations

Average semiconductors by powertrain

Source: IDTechEx Research Article

300-mm wafer traits

Source: TXN’s investor relations

Wafer and fabs future metrics

Source: TXN’s investor relations

FCF/Share growth from 2004 to 2021

Source: TXN’s investor relations

Comparison with S&P 500

Source: TXN’s Investor Relations

Shares outstanding

Source: TXN’s investor relations


Source: TXN’s Investor Relations

TXN DCF made by myself

TXN DCF / Author’s creation

P/E Ratio Valuation

TXN P/E Ratio Valuation / Author’s creation

FCF/Share Valuation

TXN FCF/Share Valuation / Authors Creation

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