TXN - Texas Instruments: Subscription-Like Hardware

• Analog is a subscription-like business with consistent revenue from long-lasting and low-churn products. Analog is built on older technology and has diversity in both customers and products.
• TI’s management has used these industry characteristics to build a flywheel strategy that is hard for competitors to match, allowing TI to earn unmatched industry returns.
• I see an upside between 50-75% ($279-325/share) in re-rating TI to its SaaS and EDA peers, but ultimately think the stock can compound between 17-23% over the long-term.

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