This chipmaker has strong rebound potential

Article Excerpt

Shares of Texas Instruments are down slightly since the start of 2023. That’s largely because manufacturers stocked up on chips due to pandemic-related supply chain disruptions. We expect orders will increase as customers use up their inventories. The company is also taking advantage of tax credits under the U.S. CHIPS and Science Act to build new plants. That will let it keep up with rising demand as more electronic devices connect to the “Internet of Things.” TEXAS INSTRUMENTS INC. $158 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 908.0 million; Market cap: $143.5 billion; Price-to-sales ratio: 7.7: Dividend yield: 3.3%; TSINetwork Rating: Average; www.ti.comwww.ti.com) makes analog chips, which convert inputs like touch and sound into electronic signals that computers can understand. It has over 100,000 customers worldwide, which cuts its reliance on specific markets or industries. The company’s revenue fell 8.9%, from $15.78 billion in 2018 to $14.38 billion in 2019. That’s largely because customers ordered…