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Texas Instruments' (TXN) Latest Move Boosts Analog Offerings

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Texas Instruments (TXN - Free Report) unveiled a family of electromagnetic interference (EMI) filter integrated circuits (ICs) in a bid to bolster its analog offerings.

The newly launched IC family comprises TPSF12C1, TPSF12C3, TPSF12C1-Q1 and TPSF12C3-Q1, which are marked as the industry’s first stand-alone active EMI filter ICs.

Notably, TPSF12C1 and TPSF12C3 are designed for single- and three-phase commercial applications, whereas TPSF12C1-Q1 and TPSF12C3-Q1 are designed for automotive applications.

These ICs are capable of addressing the challenge of EMI removal from electrical systems. These ICs can detect and cancel common-mode EMI in power systems such as AC/DC power supplies, on-board chargers, servers and UPS. This then allows designers to reduce the size of chokes by 50%.

The new ICs help engineers boost system functionality at a reduced cost, while meeting EMI regulatory standards.

Given the benefits and useful features, we believe that Texas Instruments will gain solid momentum across automotive, enterprise, aerospace and industrial applications on the back of its latest move.

Analog Segment in Focus

With the new IC family, Texas Instruments strengthens its power management and power supply offerings, bolstering the analog segment.

Notably, the analog segment is integral to Texas Instruments, as it generates the majority of its total revenues.

In the fourth quarter of 2022, the segment generated $3.6 billion revenues, accounting for 76.2% of the total revenues.

Therefore, Texas Instruments’ growing efforts toward expanding the analog segment are likely to continue driving its financial performance in the near and long terms.

This, in turn, will instill investor optimism in the stock.

Coming to the price performance, TXN has lost 0.7% over the past year compared with the industry’s decline of 10%.

Expanding Portfolio

The latest move is in sync with the company’s growing efforts toward expanding its overall product portfolio.

Apart from the introduction of the IC family, TXN recently unveiled the battery cell monitor, BQ79718-Q1, and battery pack monitor, BQ79731-Q1, which are designed for electric vehicles.

BQ79718-Q1 and BQ79731-Q1 are designed to maximize the drive time of an EV and ensure safer operation with such a strong measurement capability.

Further, the company introduced device-screening specifications called space high-grade plastic (SHP) and SHP-compatible analog-to-digital converters (ADCs), namely ADC12DJ5200-SP and ADC12QJ1600-SP.

TXN also bolstered its radiation-tolerant Space Enhanced Plastic portfolio with a new family of pulse-width modulation (PWM) controllers, namely TPS7H5005-SEPz.

Additionally, it launched ultrasonic lens cleaning semiconductors named the ULC1001 digital signal processor and companion DRV2901 piezo transducer driver.

With the new ultrasonic lens cleaning chipsets, TXN focuses on improving system accuracy and, thereby, reducing maintenance requirements.

Also, the company introduced a radar sensor called AWR2944 to strengthen its presence in the booming ADAS market. AWR2944 is a 77-GHz sensor that integrates a fourth transmitter to provide 33% higher resolution than the existing radar sensors.

We believe that the growing portfolio of solutions will continue to help Texas Instruments sustain momentum in the various end markets it serves.

Zacks Rank & Stocks to Consider

Currently, Texas Instruments carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 27.4% in the past year. The long-term earnings growth rate for ANET is projected at 14.17%.

Salesforce shares have lost 9.1% in the past year. CRM’s long-term earnings growth rate is projected at 16.75%.

Analog Devices shares have gained 25.4% in the past year. The long-term earnings growth rate for ADI is projected at 12.25%.

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