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If You Invested $1000 in Texas Instruments 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Texas Instruments (TXN - Free Report) ten years ago? It may not have been easy to hold on to TXN for all that time, but if you did, how much would your investment be worth today?

Texas Instruments' Business In-Depth

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 has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.

The company’s Analog segment generated 75.3% of revenue in 2020 (up from 71% in 2019). Analog products have been categorized into three—high performance analog, high volume analog and logic, and power management.

The Embedded Processing segment generated 17.8% of revenue (down from 20.5% in 2019). This segment includes TI’s OMAP, connectivity solutions, non-wireless DSPs and microprocessors.

The Other segment generated the remaining 6.9% (down from 8.5% in 2019). The segment includes smaller semiconductor product lines, such as DLP products, RISC microprocessors and ASICs, calculators and other schoolroom tools, and royalties.

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



 

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Texas Instruments, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in June 2011 would be worth $5,570.97, or a gain of 457.10%, as of June 3, 2021, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 220.51% and the price of gold went up 19.01% over the same time frame.

Analysts are forecasting more upside for TXN too.

Texas Instruments is benefiting from growth in the personal electronics market owing to coronavirus-led increasing work-from-home trend. Further rebound in the automotive market remains major positive. Additionally, solid momentum across Analog segment owing to robust signal chain and power product lines, is contributing well to the top line. Also, robust Embedded Processing segment is contributing well. Notably, solid investments in new growth avenues and competitive advantages remain tailwinds. Further, the company’s portfolio of long-lived products and efficient manufacturing strategies are other positives. Also, continuous returns to shareholders are likely to help the stock in gaining investors optimism further. The stock has outperformed its industry over a year. However, coronavirus related uncertainties remain major headwinds.

The stock has jumped 5.01% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.

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