Summit Insights Group upgraded Texas Instruments (NASDAQ:TXN) to a “Buy” rating, with a current stock price of $193.97.
The company reported Q3 2024 earnings with a revenue of $4.15 billion and a net income of $1.36 billion.
Despite a positive Q3, Texas Instruments projects Q4 revenue to be lower than analyst expectations, between $3.7 billion and $4 billion.
On October 22, 2024, Summit Insights Group upgraded Texas Instruments (NASDAQ:TXN) to a “Buy” rating, with the stock priced at $193.97. Texas Instruments, a leader in the semiconductor industry, specializes in analog and embedded processing products. It competes with companies like Analog Devices and NXP Semiconductors.
During its Q3 2024 earnings call, Texas Instruments reported a revenue of $4.15 billion and a net income of $1.36 billion. The earnings per share were $1.47, slightly above expectations due to a 3-cent benefit from unforeseen items. Despite this, the company projects Q4 revenue between $3.7 billion and $4 billion, below the analyst estimate of $4.07 billion.
The company’s Q4 earnings forecast ranges from $1.07 to $1.29 per share, falling short of the $1.36 per share expected by analysts. This outlook reflects challenges in the analog chip market, with inventory buildup in industrial sectors. However, there are signs of improving demand from China’s automotive market.
Texas Instruments’ stock price has seen a slight decrease of 0.92%, closing at $193.97. The stock fluctuated between $192.85 and $195.30 during the day. Over the past year, it reached a high of $214.66 and a low of $139.48. The company’s market capitalization stands at approximately $177.1 billion.
Summit Insights analyst Kinngai Chan noted that Texas Instruments’ results align with market trends, including mixed performance in PC and smartphone markets. The ongoing weakness in the industrial market, where chips automate factories, continues to impact Texas Instruments and its peers.
