Forget Exciting Nvidia, Buy 'Old Boring' Texas Instruments Instead

Oct. 03, 2022 10:00 AM ETNVIDIA Corporation (NVDA), TXNASML, INTC, TSM44 Comments


  • Nvidia has been a high-flier over the last years, while people ignored stable but boring businesses like Texas Instruments.
  • Digital chips get most of the attention, while analog chips rarely are talked about.
  • Both companies have come down substantially, but Texas Instruments (-18%) has held up much better than Nvidia(-62%).

technician with wafer


The Oil Of The 21st Century

By many considered to be the new oil together with data, semiconductors are the building blocks of the 21st century. Cutting-edge technology solutions costing thousands of dollars come to mind, but that's just the tip

Semiconductor content by car type

Semiconductor content by car type (idTechEx/Infineon)

Texas Instruments product portfolio

Texas Instruments product portfolio (TXN IR)

Nvidia revenue by segments

Nvidia revenue by segments (statista)

Past recession handling

Past recession handling (koyfin)

Moore's Law

Moore's Law (wikipedia)

Texas Instruments capital management presentation

Texas Instruments capital management presentation (TXN IR)

World's top semiconductor producers

World's top semiconductor producers (Shiphub)

TXN, NVDA valuation

TXN, NVDA valuation (koyfin)

Nvidia inverse DCF

Nvidia inverse DCF (authors model)

Texas Instruments Inverse DCF

Texas Instruments Inverse DCF (Authors model)

This article was written by

'Heavy Moat Investments' is 24-year-old self-taught investor Niklas based in Southern Germany, who recently finished his bachelor of Science in Business Informatics and now works as a Software Developer, besides writing about his investments on Seeking Alpha and Twitter. Niklas formerly wrote under the 'Stock Metal Investment' username but changed it to reflect his investment style better.The main investment themes in Heavy Moat Investments are great capital allocators, Spawners and companies with deep, widening moats. The only investment horizon discussed on this channel is long-term investments, preferably with decades of growth runway. Follow Niklas on his journey to Financial Freedom.

Disclosure: I/we have a beneficial long position in the shares of TXN, ASML either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Do you agree with my preference for Texas Instruments over Nvidia? How do you play the semiconductor sector, if at all? This is not financial advice.

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