Q4 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$159.51October 1, 2023
Final Price$170.46December 31, 2023
Price Change$10.95
% Change+6.86%
- Texas Instruments is committed to significant capital investments, maintaining $5 billion per year in CapEx through 2026 to expand manufacturing capacity and support future growth opportunities.
- The company is focusing on long-term investments in R&D and SG&A, particularly in the industrial and automotive sectors, which are very long-term in nature, to drive future revenue growth.
- Benefiting from the Chips Act Investment Tax Credit, TI has accrued $1.4 billion and expects to receive $500 million later this year, strengthening its financial position and supporting future profitability.
- Texas Instruments expects Q1 revenue to decline 12% sequentially, significantly below typical seasonality, due to increasing weakness in industrial and automotive markets as customers reduce inventory levels.
- Gross margins are under pressure, declining by 250 basis points sequentially, caused by underutilization charges from reduced factory loadings and increasing depreciation expenses from ongoing capital investments.
- Free cash flow is below the level of dividend payments, impacted by high capital expenditures of $5 billion per year, which may limit share repurchases and other uses of cash.