- 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.
For further details see:
Texas Instruments: Subscription-Like Hardware