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Texas Instruments (TXN) Boosts Analog Segment With Latest Move

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Texas Instruments (TXN - Free Report) launched new current sensors for a wide range of common-mode voltages and temperatures.

More precisely, the launch includes a lowest-drift isolated Hall-effect current sensor called TMCS1123 and a range of current shunt monitors.

Notably, TMCS1123 features a strong reinforced isolation working voltage of 1,100 VDC, and has a maximum sensitivity error of ±0.75%, with a 50 ppm/°C drift over temperature and a ±0.5% drift over a lifetime.

With these features, TMCS1123 allows engineers to simplify their designs while reducing system costs and maximizing performance.

Additionally, the current shunt monitors and INA781, a 75-A integrated shunt solution, are a part of the company’s new EZShunt portfolio, which offers a fully integrated current-sensing solution, eliminating the need for an external shunt resistor and allows for a single-chip design.

Moreover, TXN's Hall-effect and EZShunt current-sensing solutions are designed to enhance engineers' accuracy in sensing the world.

Analog Segment in Focus

The recent move has strengthened Texas Instruments' Analog Segment, which is crucial to the company as it generates the majority of its total revenues.

In the second quarter of 2023, the segment generated $3.28 billion in revenues, accounting for 72.3% of total revenues. However, the figure declined 18% year over year, which was primarily attributed to the weak demand environment.

Notably, Texas Instruments has returned 2.8% in the year-to-date period, underperforming the industry’s growth of 128.3%.

We note that the company’s strong expansion efforts for the Analog Segment are expected to benefit its financial performance in the days ahead.

For third-quarter 2023, Texas Instruments expects revenues between $4.36 billion and $4.74 billion. The Zacks Consensus Estimate for the same is pegged at $4.57 billion.

Expanding Product Portfolio

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

Apart from the underlined launch, Texas Instruments recently introduced UCC5880-Q1, a safety-compliant, integrated gate driver that aids engineers in designing efficient traction inverters and maximizing electric vehicle driving range.

Further, the launch of SimpleLink family of Wi-Fi 6 companion integrated circuits (ICs) remains noteworthy. The ICs are designed to provide reliable, secure, and efficient Wi-Fi connections in high-density or high-temperature environments.

We believe that these endeavors will continue to shape Texas Instruments’ growth trajectory and drive its momentum in various end markets.

Zacks Rank & Key Picks

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

Investors interested in the broader technology sector can consider some better-ranked stocks like Salesforce (CRM - Free Report) , Broadcom (AVGO - Free Report) and NetEase (NTES - Free Report) . While NTES currently sports a Zacks Rank #1 (Strong Buy), CRM and AVGO carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

NetEase has gained 41.3% in the year-to-date period. The long-term earnings growth rate for NTES is currently estimated at 13.18%

Salesforce shares have gained 57.7% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 19.25%.

Broadcom has gained 56.8% in the year-to-date period. The long-term earnings growth rate for AVGO is currently anticipated at 13.52%.

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