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Texas Instruments to Gain Traction With New Charger ICs

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Texas Instruments Incorporated (TXN - Free Report) or TI recently took the wraps off buck-boost battery charger integrated circuits (ICs), namely BQ25790 and BQ25792.

The new battery chargers offer maximum power density, reduced solution size, 97% efficiency and 10 times lower quiescent current through USB Type-C and USB Power Delivery.

These can be used for small medical devices like blood-pressure monitors and low-power continuous positive airway pressure machines. These devices can be charged from car adapters or USB-PD adapters, thereby increasing the devices’ flexibility. In addition, they can be used for personal electronics and building automation applications.

Notably, the new battery charger is useful for applications such as smart speakers due to its reduced component count. These speakers are shrinking in size and cost due to their increased adoption.

As the company continues to leverage its expertise in the growing medical and electronics markets, as well as systems to launch compelling products for different markets like analog and embedded, we believe that this move is intended to boost top-line growth.

Texas Instruments Incorporated Price and Consensus


Growth Opportunities

Per a report from Statista, the consumer electronics segment is expected to generate revenues of $365.5 billion in 2020. Further, the report suggests that revenues are anticipated to hit $450.4 billion by 2024, witnessing a CAGR of 5.4% between 2020 and 2024. User penetration in the market is projected at 22.3% for 2020 and the figure is likely to reach 32.5% by 2024.

Solid prospects in this segment and TI’s market position will likely aid sales of battery chargers.

The latest move reflects the company’s continued focus on strengthening the product portfolio, which is likely to drive top-line growth.

Wrapping Up

This move highlights Texas Instruments’ R&D investments in several high-margin, and higher-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 in the volatile computing market.

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.

The launch will enhance the differentiated product pipeline and is expected to improve Texas Instruments’ market share. However, the company operates in an intensely competitive industry and companies such as Analog Devices can pose stiff competition.

Zacks Rank & Stocks to Consider

Currently, Texas Instruments carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Wayfair Inc. (W - Free Report) , eBay (EBAY - Free Report) and Inphi Corporation (IPHI - Free Report) . While Wayfair and eBay sport a Zacks Rank #1 (Strong Buy), Inphi carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Wayfair, eBay, and Inphi is currently projected at 23%, 12.4% and 37.7%, respectively.

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