The top semiconductor stocks have experienced robust growth over the past decade. The increasing use of electronic devices and the increasing digitization of cars and other older technologies are driving business for certain semiconductor companies. If you are an investor looking for semiconductor stocks to invest in right now, then you are at the right place. We are going to talk briefly about one well-known semiconductor company called Texas Instruments. It is a company based in Dallas, Texas, and it one of the top 10 semiconductor firms in the world as measured by sales volume. Embedded processors and analog chips are the key product lines for Texas Instruments. First, let us take a look at the financial performance of Texas Instruments over the last decade.
Texas Instruments Financials
Texas Instruments had earned revenue of $13.7 billion in 2011. The revenue grew to around $15.8 billion in 2018 before falling to around $14.4 billion in 2020. So, the growth has not been very significant. However, the gross margins have improved significantly during this time. They were 49% in 2011 and rose to 64% in 2020. The operating income also improved from $3.4 billion in 2011 to $6.1 billion in 2020, with operating margins rising from 25% to 42% during that period. Earnings per share have also jumped from $1.9 per share to around $6 per share. The growth in terms of profitability has been quite impressive. If you are looking to buy top semiconductor stocks, then Texas Instruments is one company that you may want to consider.
The stock price of Texas Instruments was around $180 at the close of the trading day on 30th April 2021. The stock is actually down 8.3% over the preceding 30 days. On a 1-year basis, the stock is up almost 65%. Texas Instruments was trading at a healthy 2.26% dividend yield and a P/E ratio of 27 on 30th April 2021.