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Texas Instruments (TXN) Unveils Class-D Audio Amplifier

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Texas Instruments (TXN - Free Report) or TI recently launched a new audio amplifier, TAS6424-Q1, capable of delivering high-fidelity audio with low distortion in automotive infotainment applications.

Shares of Texas Instruments have been steadily treading higher on a year-to-date basis. The stock has returned 28.64% compared with the Zacks Semi-General industry’s gain of 20.82%.

Details of the New Class-D Audio Amplifier

TI's new amplifier is specifically designed for applications in the automotive space.

The amplifier enables the use of smaller external filters and thereby eliminates up to 18 external components to reduce system size and cost from the existing Class-D solutions. The device maintains stable audio playback and responds well to high-frequency switching leading to lower distortion. Additionally, the device features an integrated digital-to-analog converter that helps to deliver low system output noise for automotive designs like external amplifiers and head units.

Priced at US$5.97 in 1,000-unit quantities, TAS6424-Q1 is available at the TI store and at authorized distributors.

Outlook

The company is seeing particular success in certain fast-growing segments of the automotive market, which is expected to grow at a CAGR of 5.8% between 2016 and 2022 according to a report from marketsandmarkets.com. TI focuses on infotainment, safety and ADAS, body electronics (including lighting), hybrid electric vehicle and powertrain segments of the automotive market.

In the last reported third quarter, the automotive market retained its strength with all five sectors within it growing in double digits. Overall, we remain optimistic about TI’s compelling product line, the differentiation in its business and lower-cost 300mm Analog output that should drive earnings. We note that channel inventories remain very low, meaning that demand is likely to remain strong.

The launch will enhance Texas Instruments’ differentiated product pipeline and is expected to improve its market share in the auto market. However, Texas Instruments operates in an intensely competitive industry and companies such as Analog Devices (ADI - Free Report) give stiff competition.

TEXAS INSTRS Price and Consensus

 

TEXAS INSTRS Price and Consensus | TEXAS INSTRS Quote

Currently, Texas Instruments has a Zacks Rank #2 (Buy). Some other stocks in the industry worth considering include Cognex Corporation (CGNX - Free Report) carrying a Zacks Rank #1 (Strong Buy) and Fortive Corporation (FTV - Free Report) carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cognex Corporation delivered a positive earnings surprise of 24.92% in the trailing four quarters.

Fortive Corporation delivered a positive earnings surprise of 8.42% in the trailing four quarters.

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