Texas Instruments (TXN) Nipun Singh Yash Maniar

Recommendation Buy: Limit at $25.75 Buy: Limit at $25.75 Sell: Stop at $27.50 Sell: Stop at $27.50

Background Founded in 1930; named Texas Instruments in 1951 Founded in 1930; named Texas Instruments in 1951 Based in Dallas, Texas Based in Dallas, Texas Total Revenue Last Year: 12.50B Total Revenue Last Year: 12.50B Gross Profit Last Year: 6.24B Gross Profit Last Year: 6.24B Net Income: 1.92 B Net Income: 1.92 B

What They Make Most of its sales comes from the semiconductor business, not scientific calculators Most of its sales comes from the semiconductor business, not scientific calculators Biggest applications of chips: Biggest applications of chips: DVR DVR X-Rays X-Rays GPS GPS Digital Sound Processing in hearing aids Digital Sound Processing in hearing aids DLP TVs DLP TVs Blu-Ray Blu-Ray Mp3 Mp3 Finger-Print Biometrics Finger-Print Biometrics Ultrasounds Ultrasounds

Current Statistics Current Price: $24.18 Current Price: $24.18 Range Range week week Open Open Vol/Avg M/12.45M Vol/Avg M/12.45M Mkt cap 30.29B Mkt cap 30.29B P/E Div/yield 0.12/1.99 EPS 0.72 Shares 1.25B Beta 1.13 Inst. own 78%

Earnings Report Coming out with earnings report Jan. 25, 2010 Coming out with earnings report Jan. 25, 2010 Expected EPS from Analysts v. Actual Per Year: Expected EPS from Analysts v. Actual Per Year:

Earnings Report History of Expected EPS vs. Actual per Quarter History of Expected EPS vs. Actual per Quarter

Expected Earnings This Year As seen in previous slide, TXN continually surpasses expectations for earnings As seen in previous slide, TXN continually surpasses expectations for earnings Estimated Earnings this year after Earnings Report comes out: $0.493 Estimated Earnings this year after Earnings Report comes out: $0.493

Competitors STMicroelectronics STMicroelectronics Motorola Motorola Intel Intel TXN vs. Intel, STM, and Motorola

Competitors Analog Devices, Inc Analog Devices, Inc Fairchild Fairchild Broadcam Broadcam National Semiconductor Corporation National Semiconductor Corporation TXN vs. ADI, Fairchild, Broadcam, and NSM

Why Buy? Why should we buy? Why should we buy? Intel Corporation had an amazing earning report recently and according to analysts, this news is good for Intel’s peers and competitors, because they are in the same sector Intel Corporation had an amazing earning report recently and according to analysts, this news is good for Intel’s peers and competitors, because they are in the same sector Why not buy its competitors? Texas Instruments’ earnings report is coming up soon, and market may cool down by the time of the other company's earnings reports Why not buy its competitors? Texas Instruments’ earnings report is coming up soon, and market may cool down by the time of the other company's earnings reports

Why Buy Over Competitors? Analog Devices, Inc: Jim Cramer on his show, Mad Money, explicitly stated that this stock was too “hubble” and too risky Analog Devices, Inc: Jim Cramer on his show, Mad Money, explicitly stated that this stock was too “hubble” and too risky Intel: Already soaring due to earnings report, prices already too inflated Intel: Already soaring due to earnings report, prices already too inflated NSM: Texas Instruments is already doing better than NSM and prices are sure to increase after its earnings report comes out NSM: Texas Instruments is already doing better than NSM and prices are sure to increase after its earnings report comes out

Sources XJ ?type=globalMarketsNewsI XJ ?type=globalMarketsNewsI XJ ?type=globalMarketsNewsI XJ ?type=globalMarketsNewsI instruments-incorporated/txn/nys instruments-incorporated/txn/nys instruments-incorporated/txn/nys instruments-incorporated/txn/nys

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