#2 - Texas Instruments (NASDAQ:TXN)
Texas Instruments (NASDAQ: TXN) is a company in the semiconductor industry. In 2023, 74% of the company’s revenue came from analog chips. These chips take in inputs like sound or temperature and convert that information into digital form.
A core audience for the company’s analog chips is the automotive industry, particularly in China. While the semiconductor sector at large is in a slump, the slowdown is less pronounced in the automotive sector. That shows up in analysts’ earnings estimates for 2025, which show a 13.8% gain. Those expectations have been going up since the company’s October 2024 earnings report.
That’s one reason that TXN stock is up 23.9% in 2024 but is facing resistance near its all-time high around $213. And with a forward price-to-earnings ratio of around 41x earnings, investors may want to wait for a better entry point.
But if you do get involved, you’ll benefit from a dividend that has been growing for 21 consecutive years and has a yield of 2.54%.
About Texas Instruments
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. 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.
Read More - Current Price
- $214.97
- Consensus Rating
- Hold
- Ratings Breakdown
- 9 Buy Ratings, 11 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $206.95 (3.7% Downside)
