Credit: Shutterstock photoTexas InstrumentsTXN or TI recently launched a new audio amplifier, TAS6424-Q1, capable of delivering high-fidelity audio with low distortion in automotive infotainment applications.
Shares of Texas Instruments have been steadily treading higher on a year-to-date basis. The stock has returned 28.64% compared with the Zacks Semi-General industry's gain of 20.82%.
Details of the New Class-D Audio Amplifier
TI's new amplifier is specifically designed for applications in the automotive space.
The amplifier enables the use of smaller external filters and thereby eliminates up to 18 external components to reduce system size and cost from the existing Class-D solutions. The device maintains stable audio playback and responds well to high-frequency switching leading to lower distortion. Additionally, the device features an integrated digital-to-analog converter that helps to deliver low system output noise for automotive designs like external amplifiers and head units.
Priced at US$5.97 in 1,000-unit quantities, TAS6424-Q1 is available at the TI store and at authorized distributors.
Outlook
The company is seeing particular success in certain fast-growing segments of the automotive market, which is expected to grow at a CAGR of 5.8% between 2016 and 2022 according to a report from marketsandmarkets.com. TI focuses on infotainment, safety and ADAS, body electronics (including lighting), hybrid electric vehicle and powertrain segments of the automotive market.
In the last reported third quarter, the automotive market retained its strength with all five sectors within it growing in double digits. Overall, we remain optimistic about TI's compelling product line, the differentiation in its business and lower-cost 300mm Analog output that should drive earnings. We note that channel inventories remain very low, meaning that demand is likely to remain strong.
The launch will enhance Texas Instruments' differentiated product pipeline and is expected to improve its market share in the auto market. However, Texas Instruments operates in an intensely competitive industry and companies such as Analog Devices ADI give stiff competition.
TEXAS INSTRS Price and Consensus
TEXAS INSTRS Price and Consensus | TEXAS INSTRS Quote
Currently, Texas Instruments has a Zacks Rank #2 (Buy). Some other stocks in the industry worth considering include Cognex Corporation CGNX carrying a Zacks Rank #1 (Strong Buy) and Fortive Corporation FTV carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Cognex Corporation delivered a positive earnings surprise of 24.92% in the trailing four quarters.
Fortive Corporation delivered a positive earnings surprise of 8.42% in the trailing four quarters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
