Here’s how much a $1,000 investment in Texas Instruments made 10 years ago would be worth today

What matters to most investors is how much a stock’s price changes over time. This factor can influence your investment portfolio as well as help you compare investment performance across sectors and industries.

Another thing that can drive investing is fear of missing out, or FOMO. This is especially true for tech giants and popular consumer-focused stocks.

What if you had invested in Texas Instruments (TXN) ten years ago? It may not have been easy to hold onto TXN all this time, but if you did, how much would your investment be worth today?

In-depth business of Texas Instruments

With that in mind, let’s take a look at Texas Instruments’ main business drivers.

Headquartered in Dallas, Texas, Texas Instruments, Inc. is an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits.

TI has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe.

Management’s strategy is to build assets that will be fully utilized throughout their lives and outsource any excess peak demand to external foundries.

The company’s analog segment generated 76.6% of revenue in 2021 (compared to 75.3% in 2020). Analog products are categorized into three – high performance analog, high volume analog and logic, and power management.

The embedded processing segment generated 16.6% of revenue (down from 17.8% in 2020). This segment includes TI’s OMAP, connectivity solutions, non-wireless DSPs and microprocessors.

The other segment generated the remaining 6.8% (down from 6.9% in 2020). The segment includes smaller semiconductor product lines, such as DLP products, RISC microprocessors and ASICs, calculators and other schoolroom and royalty tools.

The company’s products are sold in industrial, personal electronics, automotive, communications, enterprise and other end markets.

Bottom row

Anyone can invest, but building a successful investment portfolio requires a combination of several things: research, patience and a little risk. So if you invested in Texas Instruments a decade ago, you’re probably feeling pretty good about your investment today.

A $1,000 investment made in July 2012 would be worth $6,428.31 or a 542.83% return as of July 29, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare that to the S&P 500’s rally of 193.83% and gold’s return of 3.87% over the same time frame.

Analysts expect more upside for TXN.

Texas Instruments reported strong second-quarter results, with earnings and revenue up year-over-year. The continued recovery in the auto market was a tailwind. The robust demand environment in the industrial end market contributed well. Growing momentum in the communications equipment and enterprise systems markets contributed to the results. In addition, the strong performance of the analog and embedded processing segments contributed well. Solid investment in new avenues for growth and competitive advantage remains a tailwind. Additionally, the company’s portfolio of durable products and efficient manufacturing strategies are other positives. The stock has outperformed its industry since the start of the year. However, uncertainty surrounding the coronavirus remains a headwind. Additionally, softness in the personal electronics market remains a concern.

Shares have jumped 14.38% over the past four weeks. Additionally, no revenue estimates have fallen in the past two months, compared to 11 higher for fiscal 2022; the consensus estimate has also risen.
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