As much as I want to like semiconductor giant Texas Instruments, the stock is trading at a valuation that is too rich relative to the company's performance. While this company still has a solid market position in over all chip sales, TI still lags behind Qualcomm and Broadcom in that all important mobile devices category. And if fourth quarter earnings were any indication, the company does not expect an immediate recovery. So why then, are shares trading at a P/E that presumes it will outperform Qualcomm?
As much as I want to like semiconductor giant Texas Instruments, the stock is trading at a valuation that is too rich relative to the company's performance. While this company still has a solid market position in over all chip sales, TI still lags behind Qualcomm and Broadcom in that all important mobile devices category. And if fourth quarter earnings were any indication, the company does not expect an immediate recovery. So why then, are shares trading at a P/E that presumes it will outperform Qualcomm?
