TXN - Maxim Integrated Looking Ahead To Improving Growth Prospects
Having moved aggressively to prune channel inventory, Maxim Integrated (MXIM) looks better-placed than many of its peers to return to growth as the semiconductor cycle bottoms out. I also think it’s very relevant that Maxim’s margins bottom out at levels (mid-60%’s for gross margin, around 30% for operating margin) that many semiconductor managements would love to have in their best quarters. Last and not least, Maxim has some attractive company-specific drivers in areas like autos (ADAS and EVs) and industrial (automation) that should propel above-market growth.
Valuation remains a sticking point for me,