| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 104.40 | -43 |
| Intrinsic value (DCF) | 68.28 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Texas Instruments Incorporated (TII.DE) is a global leader in semiconductor design and manufacturing, specializing in analog and embedded processing chips. Headquartered in Dallas, Texas, the company serves a broad range of industries, including industrial, automotive, personal electronics, and communications. Texas Instruments operates through two primary segments: Analog, which includes power management and signal chain products, and Embedded Processing, offering microcontrollers, digital signal processors, and application-specific integrated circuits. With a strong focus on innovation, the company provides high-performance semiconductor solutions that enable efficient power management, signal conditioning, and embedded computing. Texas Instruments markets its products through direct sales, distributors, and its website, ensuring broad accessibility. Founded in 1930, the company has built a reputation for reliability and technological leadership in the semiconductor industry. Its diversified product portfolio and strong R&D capabilities position it as a key player in the rapidly evolving tech sector.
Texas Instruments presents a compelling investment case due to its strong market position in analog and embedded semiconductors, sectors with steady demand growth. The company's robust financials, including a solid net income of €4.8 billion and operating cash flow of €6.3 billion, underscore its profitability. Additionally, Texas Instruments pays a reliable dividend (€5.12 per share), appealing to income-focused investors. However, risks include high capital expenditures (€4.8 billion) and significant total debt (€13.6 billion), which could pressure margins in a downturn. The semiconductor industry is cyclical, and global supply chain disruptions could impact production. Despite these risks, Texas Instruments' diversified product portfolio and technological leadership make it a resilient long-term investment.
Texas Instruments holds a competitive edge in the semiconductor industry through its extensive analog and embedded processing portfolio, which caters to high-growth markets like automotive and industrial automation. The company's focus on power management and signal chain products differentiates it from competitors, as these segments require deep technical expertise and long product life cycles, creating high barriers to entry. Texas Instruments also benefits from a vertically integrated manufacturing model, allowing better cost control and supply chain stability. However, the company faces intense competition from firms like Analog Devices and NXP Semiconductors, which also target industrial and automotive applications. While Texas Instruments has a strong balance sheet and R&D capabilities, competitors with more specialized offerings or faster innovation cycles could challenge its market share. The company's ability to maintain technological leadership and expand into emerging markets will be critical for sustaining its competitive position.