Skip to Content
Stock Analyst Update

It Doesn't Get Much Better than Texas Instruments

Chipmaker remains a great investment, reporting solid results again.


Texas Instruments (TXN) continues to epitomize the kind of technology company that long-term investors should look for. Despite one ailing segment, the firm reported yet another strong quarter Monday. Texas Instruments' shares aren't cheap, but the quality of the firm and its long-term growth prospects seem to justify its rich multiple.

Texas Instruments is right in the middle of the strong demand in the wireless-telecommunication industry. It has about half of the market share for digital signal processors, or DSPs, which are a key component in cell phones. Texas Instruments' second-quarter revenue growth was driven mainly by DSP sales, with wireless components growing 42% compared with the prior-year period--much faster than Texas Instruments' overall 23% revenue growth.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.