Texas Instruments Incorporated (NASDAQ: TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. The company also provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. It markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
- Market Cap: 136.439 billion
- PE Ratio: 19.46
- EPS: 7.72
- Dividend Yield: 3.46%
Texas Instruments now earns most of its revenue from manufacturing semiconductors. It’s the world’s largest maker of analog chips. TXN has an “A” grade for financial health from Morningstar. It has seen strong earnings growth, and that is expected to continue with 10% yearly EPS growth over the next five years. The company has steadily raised its dividend amount, averaging 14.9% yearly increases over the last five years. The stock is off its 52-week high, but it’s still outperformed the S&P 500 by an average of seven percentage points per year over the last decade.
Therefore, Texas Instruments is the best stock to own for long term investors.