Semiconductor stocks have been in the news lately. There are reports of a global shortage in chips due to the supply-side disruptions arising out of the pandemic. Semiconductor businesses have, in general, been in focus due to increasing demand for electronic products. There is a wave of digitization happening across several industries. Texas Instruments is one of the most well-diversified and well-known names in the semiconductor industry. It is also among the candidates for the top semiconductor stock to buy now. The company has a reputation for inventing multiple pioneering products, including the first transistor radio as well as the first hand-held calculator.
Texas Instruments Reports Revenue Growth in Q42020
Texas Instruments reported its fourth-quarter 2020 earnings in late January of 2021. Revenue was up 22% year-on-year and 7% quarter-on-quarter. Total revenue for Q42020 stood at $4 billion. Diluted earnings per share also rose from $1.12 in Q42019 to $1.8 in Q42020. The diluted earnings per share in Q32020 were $1.45. So, earnings were up on a year as well as a sequential basis. Texas Instruments looks like a semiconductor stock to buy right now.
According to Dave Pahl, Head of Investor Relations for Texas Instruments, “We see good opportunities in all of our markets, but we place additional strategic emphasis on industrial and automotive. Our industrial and automotive customers are increasingly turning to analog and embedded technology to make their end products smarter, safer, more connected, and more efficient. These trends have resulted and will continue to result in growing chip content per application, which will drive faster growth compared to our other markets.”
Texas Instrument’s stock has gone up 3X in the last five years. It has risen from around $50 to $170. Additionally, the stock pays a dividend. It was trading at a 2.36% dividend yield at the close of day on 23rd February 2021. Another popular semiconductor stock is Qualcomm. It has gained more than 2.5X, rising from around $50 to $137 in the past five years. The stock was trading at a dividend yield of 1.9% at the close of day on 23rd February 2021.