Texas Instruments Boosts Market Share With New Converters

Texas Instruments Incorporated (NASDAQ:TXN) or TI recently took the wraps off four tiny precision data converters - DAC80508, DAC70508, ADS122C04 and ADS122U04.

These converters are designed for small-sized as well as cost-sensitive applications pertaining to various markets like industrial, communications, and personal electronics. The company’s presence in these markets will further be strengthened owing to these converters.

Notably, the stock has lost 3.2%, in line with the industry’s decline recorded on a year-to-date basis.

Details

The company unveiled two eight-channel precision digital-to-analog converters (DACs), namely DAC80508 and DAC70508, which provide 16- and 14-bit resolution.

Both of these DACs include a 2.5-V, 5-ppm/°C internal reference that eliminates the need for an external precision reference. These devices are up to 36% smaller than other converters in the market and provide features like high level of accuracy, as well as cyclic redundancy check (CRC) to increase system reliability. The devices also enable engineers to achieve the best system accuracy, while reducing the board size.

In addition to these DACs, TI unveiled 24-bit precision analog-to-digital converters (ADCs), namely ADS122C04 and ADS122U04, featuring I2C-compatible and UART-compatible interface, respectively.

Available in thin-shrink small-outline package, these ADCs reduce the overall cost of an isolated system. These also enable designers to measure both small-signal sensors and wide input ranges, even in noisy environments.

As the company continues to leverage on its expertise in analog and embedded products, as well as systems to launch compelling products for different markets, we believe that the move is intended to boost TI’s market share.

Wrapping Up

The move highlights Texas Instruments’ R&D investments in several high-margin, as well as high-growth areas of analog and embedded segments. The company is gradually increasing its exposure in industrial and automotive markets, as well as dollar content at customers, while reducing exposure to volatile consumer/computing markets.

The company 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.

This increases its dollar content per device, helping in share gains and margin expansion. Tough competition from the likes of Broadcom (NASDAQ:AVGO), Analog Devices (NASDAQ:ADI) and Intel (NASDAQ:INTC) is also fended off as a result of the same.

Texas Instruments Incorporated Price and Consensus

Texas Instruments Incorporated Price and Consensus | Texas Instruments Incorporated Quote

Zacks Rank & Stocks to Consider

Currently, Texas Instruments has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include AMETEK, Inc. (NYSE:AME) , QuinStreet, Inc. (NASDAQ:QNST) and Stamps.com Inc. (NASDAQ:STMP) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for AMETEK, QuinStreet and Stamps.com is currently pegged at 11.18%, 25% and 15%, respectively.

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