Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 23, 2024

Article Excerpt

TEXAS INSTRUMENTS INC., $209.88, Nasdaq symbol TXN, is still a buy for aggressive investors. The company is a leading maker of analog chips. Its products convert inputs, like touch, sound and pressure, into electronic signals that computers can understand. The stock hit a new all-time high of $210.88 this week after Texas Instruments adjusted its capital spending plans as it builds a new facility in Sherman, Texas. That site will house as many as four new chipmaking plants. Cutting capital spending was a key demand of activist investor Elliott Investment Management, which controls about $2.5 billion worth of Texas Instruments’ shares. In all, costs to build these plants could reach $30 billion. However, the U.S. government will contribute $1.6 billion under the U.S. CHIPS and Science Act. The new plants will use 300-millimetre wafers to make chips, which cost 40% less than the 200-millimetre wafers of its competitors. The company expects these facilities will begin operating in 2026. Under its new approach, Texas Instruments will adjust…