TXN expected to soar, due to chip shortage in the market

Texas Instruments current Quarter EPS stands at $1.93, and with a steady growth in the last 1 year, the stock is expected to hit $~220 in the next 6 months. The chip shortage is the result of pandemic shutdowns, geopolitics, increased demand for electronics and simple bad luck. The story begins in 2019 when the United States placed restrictions on the export of American technology—including computer chips—to some Chinese firms. Chinese manufacturers responded to that blacklist by stockpiling semiconductors. The pandemic also drove up demand for electronics, including home office devices. And, as demand rose, supply chains slowed. The shortage of microchips is expected to continue till the end of 2022, and hence with the added demand on TXN, one of the largest semiconductor manufacturers, the company would require ramping up and hence would result in increased production. Therefore, we expect the stock price to increase by at least 10%.

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TXN expected to soar, due to chip shortage in the market

bullish

Texas Instruments current Quarter EPS stands at $1.93, and with a steady growth in the last 1 year, the stock is expected to hit $~220 in the next 6 months. The chip shortage is the result of pandemic shutdowns, geopolitics, increased demand for electronics and simple bad luck.


The story begins in 2019 when the United States placed restrictions on the export of American technology—including computer chips—to some Chinese firms. Chinese manufacturers responded to that blacklist by stockpiling semiconductors. The pandemic also drove up demand for electronics, including home office devices. And, as demand rose, supply chains slowed. The shortage of microchips is expected to continue till the end of 2022, and hence with the added demand on TXN, one of the largest semiconductor manufacturers, the company would require ramping up and hence would result in increased production. Therefore, we expect the stock price to increase by at least 10%.

read-time
1 min
220.00
Target Price
7/ 10
Confidence
2-6 Months
Timeframe
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