Is Texas Instruments Stock A Buy Now?

On October 25, Texas Instruments (TXN 3.75%) released its third quarter earnings report.

The chipmaker's annual revenue increased by 13% to $5.24 billion, above analysts' expectations by $100 million.

The company's net income grew 18% to $2.30 billion, or $2.47 per share, beating expectations by 8 cents.

TI expects its revenue to shrink between 1% and 9% year over year and its profits per share (EPS) to decline between 7% and 19%.

Although the weaker guidance was disappointing, it wasn't unexpected given that many of TI's competitors recently cut their short-term predictions.

After the report, Texas Instruments' shares fell a little, and it is still down about 16% year to date.

For the automotive, industrial, personal electronics, communications, and corporate markets, TI primarily sells lower-end analogue and embedded chips.

Because they include key wireless and power management functionality, these chips are more affordable to produce than higher-end circuits like CPUs or GPUs.