Why Texas Instruments' Shocking Negative Free Cash Flow Could Be a Massive Opportunity
Among semiconductor stocks, Texas Instruments (NASDAQ: TXN) has typically been seen as a safe-haven blue chip stock.
After all, TI s has the largest scale and lowest-cost manufacturing in analog and embedded chips, the small electrical components that go into just about every machine across just about every industry. TI's massive scale, low-cost 300mm manufacturing, and smart capital allocation had allowed the company to grow free cash flow at an 11% annualized rate since 2004, making for a stunning 25% annualized dividend growth. For context, that means TI's dividend has grown 55.7 times over during the past 18 years.
That's why it was shocking to see the semiconductor giant's free cash flow dip into negative territory in the second quarter, breaking an impressive 19-year streak of positive cash flow quarters.
Source Fool.com
