Texas Instruments: Stretching Thin To Ride Out The Cycle


  • Texas Instruments’ stock has declined by 12.32% due to lower Q3 earnings and a significant drop in free cash flow.
  • The company’s capital expenditure plan has increased by 40% until 2026, potentially leading to a constrained situation.
  • Texas Instruments’ free cash flow conversion and inventory turnover are at historic lows, but the management remains optimistic about long-term growth.

Go figure


Investment Thesis


We first covered Texas Instruments in June this year in “Texas Instruments: Near-Term Slowdown Visible With Strong Long-Term Growth Drivers “. At the time, Texas Instruments was a tad below our bearish estimates, but we expected more slowdown ahead and

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