see the most uplift in spending from any potentially large fiscal stimulus and infrastructure spending under the new US administration. Tax Policy: Unlike most semis, TXN reports its financials on a pure GAAP basis and its tax rate at 30% is one of the highest in the industry. We think TXN stands to disproportionately benefit from the looser tax policies foreshadowed by the upcoming administration. Specifically, a 10% drop in the corporate tax rate would lead to 15% higher EPS for TXN in 2017, all else equal. Catalysts: (1) Seasonally stronger period for industrial/automotive spending — 46% of TXN’s revenue come from these end markets; (2) Annual strategy and capital allocation policy update call with shareholders which is likely to occur at the beginning of February. Latest report: The new "industrials": growth recovery plus pricing power, Buy TXN, ADI, MCHP, ON 1Q risks: (1} Still somewhat large (> 10%) exposure to consumer electronics could create near-term volatility in topline results; (2) Historically lumpy communications equipment spending trends; (3) Larger than expected slowdown in North America automotive unit production Company Description: Texas Instruments is a broad-based supplier of semiconductor components, ranging from digital signal processors, to high-performance analog components, to digital light-processing technology and calculators. 65% of TXN sales are exposed to the well diversified, business-to-business Industrial, Automotive, Communications Infrastructure, and Enterprise markets. TripAdvisor (TRIP) Nat Schindler +1 415 676 3574 Research Analyst, MLPF&S Underperform, PO $41 1Q investment thesis Despite easier y/y comps in 2017, we see risk that Click-based & Transaction Hotel revenue continues to decline as 1} higher monetizing desktop traffic structurally declines, 2) mobile monetization remains at 30% of desktop traffic and is unlikely to meaningfully close the gap, and 3) Instant Book is unlikely to help reverse the revenue and earnings