NEW YORK ( TheStreet) -- Investing in the stock market can be a funny thing sometimes in that every now and then you realize you have turned negative on a company that you have spent so much of your time cheering. Regardless of conviction, patience has its limits.This is the point to which I've arrived with semiconductor giant Texas Instruments ( TXN). On the heels of its third-quarter earnings result, I've become convinced the stock may not be going anywhere for a while.
For the coming quarter, the company is projecting earnings per share of 23 cents to 31 cents - much lower than consensus estimates of 42 cents. Similarly the company's revenue range of $2.83 billion to $3.07 billion disappointed analysts, many of whom had estimates of $3.24 billion. While the uninspiring outlook is disappointing, it's hard to fault the company for its stance. Not only is the company being affected by a tough macro climate, but it does not help that two of Texas Instruments' biggest customers, Nokia ( NOK) and Research in Motion ( RIMM), are both experiencing declining market share of their own -- making it even tougher to place chip orders. But that's only part of the problem. That rivals such as Qualcomm ( QCOM) and Broadcom ( BRCM) continue to perform well despite the macro concerns is pretty telling and speaks to what has contributed to TI's declining sales over the past four quarters. Also intensifying the situation is the better-than-expected progress that another rival, Nvidia ( NVDA) has been making in the mobile market with its Tegra chips. Not only has Nvidia secured design wins in Apple's ( AAPL) MacBook Pro, but the company has also acquired business from titans in Google and Microsoft ( MSFT), becoming a key component in the success of their Nexus 7 and Surface tablets. What this means is that Texas Instruments will find it increasingly more challenging to steal market share if it now falls behind Nvidia, a company that a few years ago was only known for its graphics chip.