CNBC's Jim Cramer expressed disappointment with Texas Instruments, arguing that the company is failing to capitalize on opportunities beyond its cyclical markets and is not meeting investor expectations.
CNBC's Jim Cramer on Friday criticized Texas Instruments , stating that the semiconductor company is failing to meet investor expectations or exploring opportunities in 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.
' Cramer's comments came after Wall Street expressed disappointment with Texas Instruments' earnings forecast for the current quarter. The chip maker projected earnings per share ranging from 94 cents to $1.16, falling short of analysts' expectations. According to Cramer, Texas Instruments 'feels like a relic' as it specializes in industrial and automotive chips, which constitute 70% of its revenue. Both these markets are currently experiencing downturns. While Cramer acknowledged they could see a revival if the Federal Reserve lowers interest rates, he emphasized that this is not guaranteed. He argued that Texas Instruments excels in producing top-notch chips within its targeted sectors, but this is insufficient to satisfy investors. Cramer further explained that if Texas Instruments were a privately held company, its concentration on autos and industrials might not be a concern. However, he asserted that the company is currently not fulfilling shareholder expectations. He drew a comparison with peer company , highlighting its successful expansion from commodity chips to high bandwidth memory chips for data centers. 'Texas Instruments … doesn't seem to care if you don't like them,' Cramer stated. '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.
TEXAS INSTRUMENTS SEMICONDUCTORS INVESTOR EXPECTATIONS CYCLICAL MARKETS JIM CRAMER
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer Criticizes Texas Instruments for Lack of GrowthCNBC's Jim Cramer argues that Texas Instruments is failing to meet investor expectations by not diversifying beyond its cyclical industrial and automotive markets. While acknowledging the quality of their chips, Cramer believes the company's narrow focus is detrimental to long-term growth and shareholder value. He contrasts TI with competitor which has successfully expanded into higher-growth areas.
Read more »
Jim Cramer critiques Texas Instruments as it deals with auto and industrial market slumpCNBC’s Jim Cramer on Friday critiqued Texas Instruments.
Read more »
Jim Cramer Criticizes Texas Instruments for Failing to Evolve and Meet Investor ExpectationsCNBC's Jim Cramer criticizes Texas Instruments for its lack of innovation and its persistent focus on cyclical markets, arguing that the company is not serving shareholder interests effectively. Cramer believes TI has the potential to diversify but chooses to remain stagnant despite investor pressure.
Read more »
Jim Cramer Slams Texas Instruments for 'Staying Stuck' in Cyclical MarketsCNBC's Jim Cramer criticizes Texas Instruments for its lack of diversification and failure to meet investor expectations.
Read more »
Cramer Criticizes Texas Instruments for Lack of GrowthCNBC'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.
Read more »
Jim Cramer's week ahead: Fed meeting and Big Tech earningsCNBC’s Jim Cramer highlighted what he’s paying attention to next week as Wall Street launches into earnings season.
Read more »