CNBC's Jim Cramer criticizes Texas Instruments for its failure to meet investor expectations and expand into less cyclical markets. He argues that the company, despite making high-quality industrial and auto chips, is content with its current position and lacks ambition. Cramer compares TI unfavorably to its peer, which successfully diversified into high-bandwidth memory chips.
CNBC's Jim Cramer on Friday critiqued Texas Instruments , saying the semiconductor company is not living up to investors' expectations or trying to expand into less cyclical markets.
"I'm absolutely convinced that if Texas Instruments wanted to, it could go beyond its cyclical nature. But it won't," he said. "It's content to remain as it is. It's just not content with the critics.", saying the semiconductor company is not living up to investors' expectations or trying to expand into less cyclical markets.
"I'm absolutely convinced that if Texas Instruments wanted to, it could go beyond its cyclical nature. But it won't," he said. "It's content to remain as it is. It's just not content with the critics."Thursday, with Wall Street disappointed by its earnings forecast for the current quarter. The chip maker predicted 94 cents to $1.
If Texas Instruments were a private company, this focus on autos and industrials might not be an issue, Cramer continued. But right now, the company isn't serving shareholders as they expect it to do, he said. He compared Texas Instruments to peer, saying that company was able to successfully expand its focus from commodity chips to high bandwidth memory chips for the data center.
"Texas Instruments … doesn't' seem to care if you don't like them," Cramer said. "So, there's no reason to own the stock, unless you think that the company's really going to take itself private or put itself up for sale, and I don't think they're going to do that."
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