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Texas Instruments' New Charger IC to Aid Electronics Space

Zacks Equity Research

Texas Instruments Incorporated TXN or TI recently took the wraps off a new switching battery charger integrated circuit (IC), namely BQ25619.

At a 4.6-V and 0.5-A output and an ultra-low termination current of 20 mA, the new battery charger IC offers 95% efficiency, 7% higher battery capacity and longer battery life.

The new battery charger delivers three-in-one boost converter integration, and can be used for small medical applications like hearing aids, earbuds, wireless charging cases, IP network cameras, as well as patient monitoring devices. In addition, it can be used for personal care and fitness applications.

As the company continues to leverage its expertise in the growing medical and electronics markets, as well as systems to launch compelling products for different markets like analog and embedded, we believe that this move is intended to boost top-line growth.

Per a report from Statista, the personal electronics segment is expected to generate revenues of $335.5 million in 2019. Further, the report suggests that revenues are anticipated to hit $522.4 million by 2023, witnessing a CAGR of 11.7% between 2019 and 2023. User penetration in the market is projected at 23.8% for 2019 and the figure is likely to reach 34.9% by 2023.

Solid prospects in this segment and TI’s market position will likely aid sales of battery chargers.

Texas Instruments Incorporated Price and Consensus


Texas Instruments Incorporated Price and Consensus

Texas Instruments Incorporated price-consensus-chart | Texas Instruments Incorporated Quote

Wrapping Up

This move highlights Texas Instruments’ R&D investments in several high-margin, and higher-growth areas of analog and embedded segments. The company is gradually increasing exposure in industrial and automotive markets, as well as dollar content at customers, while reducing exposure in the volatile computing market.

It has been integrating different functionalities into single devices, as well as encouraging customers to opt for simpler, more power efficient and smaller form factor products that may potentially lower the cost of ownership and might be used in the smallest of applications.

The launch will enhance the differentiated product pipeline and is expected to improve Texas Instruments’ market share. However, the company operates in an intensely competitive industry and companies such as Analog Devices can pose stiff competition.

Zacks Rank & Other Stocks to Consider

Texas Instruments currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Alphabet Inc. GOOGL, Itron, Inc. ITRI and Teradyne, Inc. TER, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Alphabet, Itron and Teradyne is currently projected at 17.5%, 25% and 11.4%, respectively.

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