Texas Instruments (TXN) is a designer and manufacturer of semiconductor products. Its main products are analog chips and embedded processors. The industrial and automotive industries account for a majority of TXN’s customers. With increasing automation of industrial processes as well as higher use of electronics in vehicles, the company’s future prospects look bright. Investors looking for a top semiconductor stock to buy may want to consider Texas Instruments. Other names like Qualcomm and Broadcom are also worth a look. All of these companies are well over $150 billion in market cap.
Texas Instruments Background and History
Texas Instruments also happens to be the world’s number one maker of analog chips. The company is based in Dallas, Texas, and was founded back in 1951. Texas Instruments has been a pioneer in the semiconductor industry. In 1954, Texas Instruments invented the transistor radio. The company’s employee, Jack Kilby, invented the integrated circuit in 1958. Later, in 1967, Texas Instruments invented the hand-held calculator. In 1971, the company invented the single-chip microcomputer. Since then, it has maintained its reputation as an intellectual powerhouse by coming out with several pioneering technologies over the years. It is certainly a candidate for the best semiconductor stock to buy.
As of 2020, Texas Instruments has two reportable segments, Analog and Embedded Processing. The company reported revenues of $14.4 billion in the year 2020. The Analog segment is by far the larger segment, accounting for almost $10.9 billion out of the $14.4 billion in revenues. The analog segment is further sub-divided into the power sub-segment and the signal chain sub-segment.
Texas Instruments was trading around $173 on 22nd February 2021. The stock has a dividend yield of 2.36% at the time. Meanwhile, Qualcomm was trading around the $139 mark and trading at a dividend yield of 1.86%. Broadcom was trading around $476 on 22nd February 2021, with a dividend yield of over 3%.