Better Buy: Qualcomm Inc vs. Texas Instruments

Chipmakers Qualcomm (NASDAQ: QCOM) and Texas Instruments (NASDAQ: TXN) went down two very different paths in 2017. Qualcomm took investors on a roller-coaster ride, starting the year in the high $60s, then dropping to the high $40s, then rebounding for an anemic year-to-date gain of 4%. Texas Instruments steadily rose with a 34% gain and outperformed the NASDAQ's 28% rally.

I compared these two chipmakers last October and concluded that Qualcomm's lower valuation, higher dividend, and expansion into adjacent markets made it a better investment than TI. I was clearly wrong, since I didn't expect a barrage of probes and lawsuits to derail Qualcomm's growth over the past year. But is TI still the better choice after its year-long rally?

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Source: Fool.com