Sector: Information Technology | Focus: Semiconductors
HQ: Dallas, Texas
Financial Risks
Texas Instruments faces risks from fluctuating global economic conditions, semiconductor market demand (especially in industrial and automotive sectors), intense competition, cybersecurity threats, implementation challenges of strategic changes, manufacturing capacity limitations, material costs, employee retention, product liability claims, complex regulations, tax law changes, distributor issues, customer inventory adjustments, profit margin pressures, intellectual property risks, financial market instability, and asset impairments.
Financial Upside
Texas Instruments' strong business model, focused on analog and embedded processing, and four sustainable competitive advantages (manufacturing, product portfolio, market reach, and product diversity) position it for long-term free cash flow growth. Investments in R&D, manufacturing, and TI.com, along with shareholder returns, are expected to drive this growth. The company anticipates significant cash benefits from the U.S. CHIPS and Science Act investment tax credit.
