Who Is The King Of ‘Boring’ Chips? Texas Instruments Vs. Analog Devices


  • The Analog semiconductor market is often overlooked.
  • Texas Instruments and Analog Devices are the market leaders and high-quality businesses.
  • The two companies have differing strategies in some aspects.
  • Both companies identify similar, attractive end markets.

US currency with crown on chess board

new look casting

Texas Instruments (NASDAQ:TXN) and Analog Devices (NASDAQ:ADI) are two leading companies in the semiconductor industry, known for their expertise in designing and manufacturing analog and mixed-signal integrated circuits. Both companies offer a wide range of products

Mature market tailwinds

Mature market tailwinds (ASML Investor Day)

Expected 2030 CAGR TI % of revenue ADI % of revenue
Industrial 12% 41% 50%
Automotive 14% 21% 21%
Personal Electronics/Consumer 3-9% 24% 14%
Communications equipment ~7%(midpoint between Smartphone and wireless) 6% 15%
Enterprise Systems No data found 6% 0%

Semi end market CAGR

Semi end market CAGR (ASML Investor Day)

Margin comparison

Margin comparison (Koyfin)

Reinvestment comparison

Reinvestment comparison (Koyfin)

Return of Capital comparison

Return of Capital comparison (Koyfin)

Valuation comparison

Valuation comparison (Koyfin)

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.

Additional disclosure: This is not financial advice.

Leave a Reply

Your email address will not be published. Required fields are marked *