Analyst Note
| Brian Colello, CPA |Wide moat Texas Instruments reported solid third-quarter results but provided investors with a soft fourth-quarter forecast that suggests that near-term broad-based semiconductor demand may have peaked as customers continue to recover from the coronavirus pandemic. Texas Instruments is seeing customers ask for expedited production on fewer and fewer types of chips, rather than an urgency to stock up on all types of chips, similar to what Texas Instruments and its peers saw during most of 2021. Shares were down about 5% after hours to $188, but we maintain our $166 fair value estimate and continue to view shares of this high-quality company as modestly overvalued.