Technology / Semiconductor / Internet Research

Nicolas Baratte

Nicolas Baratte has been a financial analyst since 2000, covering the Technology sector in Asia mostly, and Global Tech in a couple of jobs. Nicolas has worked on the sell-side for JPMorgan, CLSA and Macquarie. On the buy-side for a Tiger fund and Prudential. Nicolas has covered Asian semiconductors, Asian hardware and components, and the global Semi supply chain. In addition to stock coverage, he also publishes research on sectors as that often shows clearer trends and pinpoints the inflection points in a sharper way. Nicolas lives mostly in Taiwan, sometimes in France and is in New York regularly.

Texas Instruments: Fresh Investments In Manufacturing & Technology & 5 Critical Growth Drivers

Texas Instruments Inc (TXN) - Monday, Nov 20, 2023

Texas Instruments: Is Its China Revival Here To Stay? - Major Drivers

Equity Bottom-Up

<ul>
<li>TXN reported 3Q24 last night: EPS 7% above Consensus, small beat. However, 4Q guidance shows a delayed / tepid recovery: revenue to decline -6% YoY, EPS to decline -21% YoY.</li>
<li>Industrial demand is still declining steeply -23% YoY, “hovering at the bottom”. Auto revenue -2% YoY with growth in China but rest of world is declining. </li>
<li>The stock is trading at 31x 2025 and 25x 2026 Consensus EPS, way above its valuations range.</li>
</ul>


TXN reported 3Q24 last night: EPS 7% above Consensus, small beat. However, 4Q guidance shows a delayed / tepid recovery: revenue to decline -6% YoY, EPS to decline -21% YoY.
Industrial demand is still declining steeply -23% YoY, “hovering at the bottom”. Auto revenue -2% YoY with growth in China but rest of world is declining. 
The stock is trading at 31x 2025 and 25x 2026 Consensus EPS, way above its valuations range.


Texas Instrument: Small Beat in 3Q24, Uninspiring 4Q Guidance, the Stock Is Very Expensive.