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Texas Instruments New Converter to Aid Auto & Industrial Space

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Texas Instruments Incorporated (TXN - Free Report) or TI recently took the wraps off a buck converter, which it claims to be the industry’s 100-V input, wide-input-voltage (VIN) synchronous DC/DC buck converter.

These converters extend battery life in rugged applications pertaining to various markets like industrial and automotive. The company’s presence in these markets will further be strengthened owing to these converters.

These converters are designed to maximize power delivery in very small packages.

More on the headlines

The 100-V, 1-A LM5164 voltage converter takes very less space as they are more than 10% smaller than the offerings currently available in the market. In addition, the new converter enables simpler and faster power conversion design. It can operate from a wide input voltage of 6 V to 100 V and delivers up to a 1-A DC load current, making it very efficient.

The converter features constant on-time (COT) control architecture, as well as integrates high and low side power MOSFETs. The company also unveiled an automotive-grade converter, LM5164-Q1.

As the company continues to leverage its expertise in industrial and auto products, as well as systems to launch compelling products for different markets like analog and embedded, we believe that the move is intended to boost TI’s top-line growth.

Wrapping Up

The move highlights Texas Instruments’ R&D investments in several high-margin, as well as high-growth areas of analog and embedded segments. The company is gradually increasing exposure in industrial and automotive markets, as well as dollar content at customers, while reducing exposure to volatile consumer/computing markets.

It has been integrating different functionalities into single devices, as well as encouraging customers to opt for simpler, more power efficient and smaller form factor products that may potentially lower the cost of ownership and might be used in the smallest of applications.

This increases its dollar content per device, helping in share gains and margin expansion. Tough competition from the likes of Broadcom, Analog Devices and Intel is also fended off as a result of the same.

Zacks Rank & Stocks to Consider

Texas Instruments currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Expedia Group, Inc. (EXPE - Free Report) , AMETEK, Inc. (AME - Free Report) and Inphi Corporation , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Expedia, AMETEK and Inphi is projected to be 13.4%, 9.6% and 28.4%, respectively.

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