Here's How Much a $1000 Investment in Texas Instruments Made 10 Years Ago Would Be Worth Today
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.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Texas Instruments (TXN) 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 September 2011 would be worth $7,127.39, or a 612.74% gain, as of September 16, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 270.58% and the price of gold went up -4.66% over the same time frame.
Analysts are anticipating more upside for TXN.
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. The company’s portfolio of long-lived products and efficient manufacturing strategies are other positives. However, coronavirus related uncertainties remain major headwinds. Further, leveraged balance sheet remains a concern. Also, intensifying market competition poses risk. Notably, the stock has underperformed its industry on a year-to-date basis.
Shares have gained 7.45% over the past four weeks and there have been 10 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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