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Texas Instruments (TXN) Boosts ADAS Efforts With New Sensor

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Texas Instruments (TXN - Free Report) unveiled a radar sensor called AWR2944 to strengthen its presence in the booming advanced driver assistance systems (ADAS) space.

AWR2944 is a 77-GHz sensor integrating a fourth transmitter to provide 33% higher resolution than the existing radar sensors. This helps avoid collisions as the sensor aids vehicles in detecting obstacles clearly, monitoring blind spots, and navigating through turns and corners efficiently.

It comprises a unique hardware supported by Doppler division multiple access (DDMA)-based signal processing.

This helps evade fatal crashes as the sensor has the ability to detect the oncoming objects up to 40% farther from the vehicles.

The latest move expands Texas Instruments’ offerings in the promising automotive market.

It strengthens TXN’s portfolio of analog and embedded processing products and technologies, which form the base of its top-line growth.

ADAS Holds Promise

We note that AWR2944 is designed to bring advancements to the domain of ADAS.

With this radar sensor, Texas Instruments remains well-poised to gain momentum among the automakers as it offers a robust radio frequency performance in small factor. It also helps them meet the safety regulations.

Moreover, AWR2944 positions Texas Instruments well in capitalizing on the prospects present in the ADAS market.

Per a MarketsandMarkets report, the global ADAS market is expected to reach $74.9 billion by 2030 from $27.2 billion in 2021, seeing a CAGR of 11.9% from 2021 to 2030.

Going by a Precedence Research report, the market is expected to witness a CAGR of 11.6% between 2020 and 2027.

Per Mordor Intelligence data, this particular market is expected to touch $40 billion by 2026, witnessing a CAGR of 16.2% between 2021 and 2026.

Bottom Line

We believe, AWR2944 will aid Texas Instruments in capitalizing on the increasing need for compliance of vehicles with safety mandates worldwide.

The latest move bodes well for Texas Instruments’ deepening focus on infotainment, safety and ADAS, autonomous and semi-autonomous vehicles, and hybrid electric vehicles and segments of the automotive market.

Moreover, TXN is making significant progress in ADAS, shipping millions of chips into this market. The strength is expected to remain as the electronic content in cars continues to increase rapidly.

Zacks Rank & Stocks to Consider

Currently, Texas Instruments carries a Zacks Rank #3 (Hold). Investors interested in the broader technology sector can consider some better-ranked stocks like Advanced Micro Devices (AMD - Free Report) , Mimecast and Arrow Electronics (ARW - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices has gained 41.8% over a year. The long-term earnings growth rate for AMD is currently projected at 46.2%.

Mimecast has gained 51% over a year. The long-term earnings growth rate for MIME is currently projected at 35%.

Arrow Electronics has gained 28.8% over a year. The long-term earnings growth rate for ARW is currently projected at 27.4%.


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