Texas Instruments (TXN) Offering Possible 19.05% Return Over the Next 24 Calendar Days

Texas Instruments's most recent trend suggests a bullish bias. One trading opportunity on Texas Instruments is a Bull Put Spread using a strike $170.00 short put and a strike $160.00 long put offers a potential 19.05% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $170.00 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $8.40 would be incurred if the stock dropped below the $160.00 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Texas Instruments is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Texas Instruments is bullish.

The RSI indicator is at 65.63 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Texas Instruments

Integrated Grade 0 BLDC motor driver shrinks 48-V motor-drive systems as much as 30% in mild hybrid electric vehicles
Mon, 22 Feb 2021 06:00:00 +0000
Texas Instruments (TI) (Nasdaq: TXN) today introduced a highly integrated Grade 0 brushless DC (BLDC) motor driver for 48-V high-power motor control systems, such as traction inverters and starter generators in mild hybrid electric vehicles (MHEVs). The DRV3255-Q1 can help designers shrink their motor system size by as much as 30%, while providing the industry's highest gate-drive current for increased protection and output power. Meeting the most stringent safety requirements, the new motor driver was designed according to TI's TÜV SÜD-certified functional safety development process, helping enable up to Automotive Safety Integrity Level (ASIL) D. For more information, see www.ti.com/DRV3255-q1-pr.

Chip Crisis Flummoxes Congress in a World Where U.S. Output Lags
Sun, 21 Feb 2021 12:00:00 +0000
(Bloomberg) — Lawmakers hoping to revitalize U.S. semiconductor manufacturing in response to a global chip shortage will find it tough to do in the near term, even if Congress throws billions in cash subsidies at the problem.There’s bipartisan support for increasing domestic chip manufacturing capacity with some U.S. carmakers forced to idle plants as supply chains are interrupted by the global pandemic. That would make it a relatively easy political sell to include in President Joe Biden‘s infrastructure package, currently being drafted with a focus on creating jobs.But desire and money aren’t enough to jump-start an industry. The U.S. still leads the world in chip design, but manufacturing has largely been ceded to foreign firms. The few companies that do make chips domestically, including Intel Corp. and Texas Instruments Inc., don’t currently have the capacity or execution track record to compete with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., according to analysts.Even China, which has invested billions of dollars in expanding its capacity, has little to show for it so far, according to Anand Srinivasan, a senior semiconductor analyst for Bloomberg Intelligence.“It’s not for lack of trying. They put a lot of money into it and they are not competitive at all. That’s the risk here,” he said.The chip shortage is expected to wipe out $61 billion of sales for automakers as production is stalled for want of the complex pieces of silicon. And the fallout now threatens to hit the much larger electronics industry.Congress sees an opening to address the issue by creating tax incentives and supplying billions of dollars in federal grants as incentives for building semiconductor plants, called fabs, in the U.S. Advocates say approving subsidies as part of a broader infrastructure package could prevent the next shortage, even if it won’t do much to help the current one.That could help U.S. companies become less reliant on a handful of foreign suppliers, and avoid supply disruptions from trade disputes or outside forces, such as the pandemic. It would also lessen the national-security risk for chips used in defense technology or government systems. And it could create scores of high-paying advanced manufacturing jobs.The Semiconductor Industry Association is pushing for Congress to green-light tens of billions of dollars in the upcoming infrastructure bill, said David Isaacs, vice president of government affairs at the trade group. Those subsidies could offset the higher cost of producing the chips in the U.S. Sustained InvestmentBuilding chip plants is expensive and will require sustained investment. Semiconductor fabs making the most advanced chips can take as long as three years to build and cost roughly $10 billion each, according to Srinivasan.A substantial taxpayer investment would pay off, the chip industry says. Approving $50 billion of incentives would mean the U.S. could capture 25% of the new global manufacturing capacity, compared to 6% without federal help, according to a Boston Consulting Group study funded by SIA. The U.S. would be the second most attractive place to build a fab, next to China, the report said, and it could mean as many as 19 new facilities, creating 70,000 high paying jobs.Bipartisan groups in Congress have been pushing grant programs and tax credit incentives. They think they have a good shot this year in the infrastructure bill that will become Biden’s top priority after another round of virus relief passes next month.Texas Representative Michael McCaul, top Republican on the House Foreign Affairs Committee, has spoken to the White House about the need for semiconductor manufacturing subsidies, and was well received, according to one committee aide.“The Chinese Communist Party has repeatedly shown it has no problem weaponizing its control of the supply chain to benefit themselves and to punish their perceived enemies,” McCaul said. “We absolutely cannot let that happen with semiconductors.”Senators John Cornyn, a Texas Republican, and Mark Warner, a Virginia Democrat, are leading the effort in the Senate. Cornyn joined bipartisan senators in a Feb. 2 letter to National Economic Council Director Brian Deese, urging the administration to act on the global shortage and secure funding to implement the semiconductor provisions approved in last year’s National Defense Authorization Act. Senate Majority Leader Chuck Schumer, a New York Democrat, also signed the letter.“This shortage threatens our post-pandemic economic recovery, the consequences of which stand to be especially acute in dominant auto manufacturing states,” the senators wrote.Warner, in an emailed statement, said without efforts to boost manufacturing, the U.S. is at risk from “serious supply chain and security vulnerabilities, while giving an advantage to our adversaries across the globe, who aren’t taking their foot off the pedal in this arena.”China CompetitionBiden administration officials have identified semiconductors as a strategic area for domestic investment to compete with China. The president is expected to sign an executive order in coming weeks calling for a supply chain review for critical goods, including semiconductors.The defense bill enacted in December authorized the use of federal incentives to promote semiconductor manufacturing and research in the U.S., but the bill didn’t include funding for the grants and tax credits lawmakers say is necessary to attract investment.Taiwan Semiconductor Manufacturing and Samsung are both considering building manufacturing plants in the U.S. TSMC announced plans to build a fab in Arizona worth $12 billion — if it can arrange enough subsidies at the state and federal level. Samsung is considering spending more than $10 billion to build its most advanced logic chip-making plant in Austin, Texas, but plans aren’t final.“If you’re TSMC or one of the big foundries, the U.S. government is going to have to make it worth your while,” said Vivek Arya, a technology analyst with BofA Securities Inc. “Just because it is important to regional security, doesn’t mean it is a profitable endeavor.”Europe, the U.S., China and Japan are all pushing for chip manufacturers to build cutting-edge factories within their borders, and semiconductor manufacturers aren’t going to create more production capacity than there is demand for, Arya said. Asia has a leg up because the electronics manufacturing supply chain is localized there, he added.The U.S has increasingly fallen behind on chip-making, even as semiconductors have become more integral to the economy as a critical part of technologies ranging from cars to artificial intelligence, according to Stephen Ezell, head of global innovation policy at the Information Technology and Innovation Foundation. The U.S. share of global semiconductor manufacturing capacity fell to 12% in 2020 from 37% in 1990, according to SIA data.An ITIF report shows the U.S. offers relatively few research and development subsidies compared to other countries — ranking 24th out of 34 among major economies. China’s incentives are roughly 2.7 times more generous that those offered in the U.S., according to the report.And U.S. incentives are about to get cut back. A change embedded in the 2017 Republican tax law set to take effect in 2022 shifts the accounting rules for the R&D credit, making the incentive about $40.1 billion less valuable next year, according to estimates from the Tax Foundation. The semiconductor industry says those benefits need to be preserved, and new incentives created, to level the playing field for the U.S.“This takes long-term investments and a structural commitment,” Arya said. “It cannot be caught up in politics and the budgeting process. That’s where this has fallen behind.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

3 Sizzling Semiconductor Stocks to Buy
Mon, 15 Feb 2021 13:17:32 +0000
Semiconductor stocks saw massive capital inflows last week as many jumped to record highs. With fresh strength taking the industry, now is a perfect time to hunt for opportunities. While some constituents have run beyond low-risk entry points, others still sit at attractive buy areas. We’ve seen increased attention on the worldwide shortage of chips. Causes range from spikes in demand for electronics, a slowdown in production following the pandemic, and the U.S. trade war with China during the Trump presidency. While companies across various industries are grappling with the longer lead times to get their hands on semiconductors, it doesn’t seem to be adversely impacting the price action of chip companies.InvestorPlace – Stock Market News, Stock Advice & Trading Tips 9 Meme Stocks That Social Media Won't Shut Up About Quite the contrary, traders are rushing into the space and extending well-entrenched uptrends. I’ve scoured the top holdings in the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) and found tasty trade setups in these three stocks. Texas Instruments (NASDAQ:TXN) Applied Materials (NASDAQ:AMAT) KLA Corp (NASDAQ:KLAC) After a brief look at their respective patterns, I’ll share my preferred way to play. 3 Sizzling Semiconductor Stocks to Buy: Texas Instruments (TXN) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade Perhaps Texas Instruments’ most impressive feat this year was how rapidly it rebounded from its earnings gap. The underwhelming report created a quick trip to the rising 50-day moving average. However, buyers rapidly snatched up the discount. The previous month of consolidation made last week’s breakout all the more appealing. When prices breach resistance after a multi-week base, it signals a new advance is kicking off. This next advance probably will have more legs than if TXN prices were extended ahead of the breakout. The last year’s uptrend has been slow and steady, so I suggest taking a longer-term view if you’re playing this pattern. Bull call spreads should do the trick. The Trade: Buy the May $180/$190 bull call for $4. The max loss is $4, and the max gain is $6. Applied Materials (AMAT) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade If Texas Instruments is a tortoise, then Applied Materials is a hare. Though we’re only a month-and-a-half into 2021, AMAT stock is already up 34% on the year. Last week’s single session pop saw volume swell past 12 million shares, marking its highest volume day of the year. With that type of participation backing the breakout, you’d be crazy to bet against it. Next week’s earnings report does up the risk factor a bit, but given how quickly buyers came to rescue TXN’s misstep, I highly doubt AMAT stays down if it does happen to slip. To avoid any implied volatility shenanigans surrounding the event, I like the idea of building a spread over buying calls outright. The Trade: Buy the April $115/$125 bull call for $3.85 The max loss is $3.85, and the max gain is $6.15. Semiconductor Stocks: KLA Corp (KLAC) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade The final of my top three semiconductor stocks, KLA Corp sailed through earnings earlier this month with its fundamental story and uptrend intact. The recent consolidation phase ended last week when prices soared 7%. As with any stock moving toward a record, KLAC is firmly planted above all major moving averages. That means future pauses or pullbacks should be buying opportunities and quickly corrected. At $328, KLAC is a bit rich for buying calls outright. Instead, the bull call vertical is once again my strategy of choice. The Trade: Buy the June $330/$350 bull call for $8.10. The max loss is $8.10, and the max gain is $11.90. On the date of publication, Tyler Craig did not have (either directly or indirectly) any positions in the securities mentioned in this article. For a free trial to the best trading community on the planet and Tyler’s current home, click here! More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden's Presidency The post 3 Sizzling Semiconductor Stocks to Buy appeared first on InvestorPlace.

Is Texas Instruments (TXN) Outperforming Other Computer and Technology Stocks This Year?
Fri, 12 Feb 2021 16:30:04 +0000
Is (TXN) Outperforming Other Computer and Technology Stocks This Year?

Texas Instruments Director Martin Craighead Buys the Dip
Fri, 05 Feb 2021 22:13:00 +0000
Martin Craighead bought $1 million of the chip giant’s shares after they slipped on a fourth-quarter report

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