Texas Instruments is a semiconductor giant. It has made over 80,000 products for over 100,000 customers globally. Semiconductor stocks have been in the news lately because of a chip supply issue. The shortage has forced manufacturers, especially certain automakers, to cut production due to the lack of availability of specific key components. Texas Instruments supplies mission-critical components to the auto, communications, personal electronics, and enterprise establishments. It is among the semiconductor stocks to buy today. The semiconductor major’s shares have faced some pressure due to the global chip shortage, but the company seems to be calm about the situation.
A Brief Overview of Texas Instruments
Texas Instruments was founded in the year 1930 by Eugene McDermott as Geophysical Service Inc. Then, in 1951, Cecil Green, Erik Jonsson, and Patrick Haggerty joined Eugene McDermott to reorganize the business and turn it into General Instruments Inc and then Texas Instruments. The company is headquartered in Dallas, Texas. The company currently has 30,000 employees, out of which 12,000 are based in the Americas while 16,000 are based in Asia-Pacific. So, Texas Instruments is very much a global company with worldwide operations. The company produces billions of chips every year through its 14 manufacturing units spread out across the world. The industrial and auto customers account for 57% of the company’s overall revenues. The analog segment is the company’s most significant one in terms of revenue share. Today, Texas Instruments is among the best semiconductor stocks now. The company has managed to deliver profits in spite of the global chip shortage. Trends like 5G and IoT will undoubtedly aid companies like Texas Instruments.
Texas Instruments stock closed at $190 on 27th April 2021. The stock was up 2% for the past 30 days and was trading at a 2.14% dividend yield. Over a 1-year period, the stock is up 66%. The price-to-earnings ratio of the stock is currently a shade under 32.