Why Texas Instruments Leads In Capital Allocation

Summary:

• I rate Texas Instruments as a “hold” due to strategic, long-term investments and growth in the Chinese auto industry.
• I believe Texas Instruments will maintain a strong position in the market, with a market share remaining around 18%-19%.
• Texas Instruments, a top 15 semiconductor company, excels in the analog market with a strong history and commitment to capital allocation.
• With a 7.3% position at an average price of $152.59 and a fair value of $160.60, I see no reason to buy more or sell at current levels.

I rate Texas Instruments (NASDAQ:TXN) as a “hold” as the company is making strategic, long-term investments while benefiting from the growth of the Chinese automotive industry. Since at least 2016, Texas Instruments has maintained a market share of around 17% in the analog market.

Analyst’s 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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