The world’s largest producer of analog chips is Texas Instruments. Analog chips are used in applications that require the processing of sound and power signals. Texas Instruments is a well-rounded semiconductor company with a leading market position in other areas like microcontrollers and digital signal processors. The latter is used in wireless communication systems, while the former is used in multiple electronics applications. The increasing use of electronics in the world is providing a consistent tailwind that is expected to support the long-term growth of the semiconductor industry. Texas Instrument is, therefore, one semiconductor stock to buy now.
More Information About Texas Instruments
For the fourth quarter of 2020, total revenue was up from $3.3 billion the prior year to $4 billion. Diluted earnings per share were $1.8 as opposed to $1.12 in Q42019. For the year 2020, Texas Instruments derived 37% of its revenue from industrial customers. These include factories, medical facilities, building automation projects, aerospace and defense companies, lighting applications, retail automation, industrial transport, etc. 27% of the total revenue was derived from personal electronics, 20% from the automotive sector, 8% from the communications sector including wireless networking and infrastructure systems, 6% from enterprise customers using data centers and other systems, and the remaining 2% from other markets. Based on the recent performances, Texas Instruments is a candidate worth looking at when evaluating which semiconductor stock to buy.
Texas Instruments’ stock closed at $173 on 22nd February 2021, trading almost flat for the preceding 30 days. The stock had gained 85% since hitting a low in March 2020 when the pandemic broke out. On a 5-year basis, Texas Instruments has performed quite well, rising from around $50 to $173, a return of more than 3X. Another semiconductor stock that has performed quite well is Qualcomm. It is up 128% since the March 2020 market fall though it has not kept the same kind of pace on a 5-year basis. The stock was flat from 2016 till about 2019.