Where Will Texas Instruments Stock Be in 1 Year?
Texas Instruments' (NASDAQ: TXN) stock has stayed nearly flat over the past 12 months as the S&P 500 has declined 9%. The company also outperformed the benchmark Philadelphia Semiconductor Index, which slumped 15% as post-pandemic sales of new PCs and smartphones cooled off.
TI outperformed the chip sector because it was broadly diversified, it didn't have much exposure to the PC market, and it generated most of its growth from the auto and industrial sectors. Its gross margins held steady because it mainly sold analog and embedded chips, which are cheaper to produce than higher-end chips, and it consistently reduced its production costs by transitioning from 200mm to 300mm wafers (which lowered the costs of its unpackaged parts by about 40%).
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Source Fool.com
