Analyst Note| Brian Colello, CPA |
Texas Instruments reported strong first-quarter results and provided investors with decent second-quarter guidance that points toward robust semiconductor demand in a wide variety of end markets. Given its concentration in analog chips and in-house manufacturing, TI appears to be weathering the current bout of chip shortages better than others. While we’re skeptical that TI is gaining significant market share during the shortage, we’re also relatively more confident that the company won’t be leaving revenue on the table in the near term. We are raising our fair value estimate for wide-moat TI to $166 per share from $140 but still view shares as modestly overvalued.