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Here's How Much You'd Have If You Invested $1000 in Texas Instruments a Decade Ago

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 76.6% of revenue in 2021 (up from 75.3% in 2020). Analog products have been 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 tools, and royalties.

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

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Texas Instruments ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2012 would be worth $6,231.26, or a 523.13% gain, as of August 15, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 204.45% and the price of gold went up 7.86% over the same time frame.

Going forward, analysts are expecting more upside for TXN.

Texas Instruments reported strong second quarter results wherein both earnings and revenues grew year over year. Continued rebound in the automotive market was a tailwind. Solid demand environment in the industrial end market contributed well. Growing momentum across the communication equipment and enterprise systems markets drove the results further.  Additionally, strong performance of Analog and Embedded Processing segments contributed well. 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. The stock has outperformed its industry on a year-to-date basis. However, coronavirus related uncertainties remain headwinds. Further, softness in the personal electronics market remains a concern.

Over the past four weeks, shares have rallied 15.47%, and there have been 11 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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