What Does the Future Hold for Texas Instruments Incorporated (TXN)?

Texas Instruments Incorporated (NASDAQ:TXN)’s acquisition of National Semiconductor will yield superior returns, along with product life cycles that are far longer than those in the incessantly competitive mobile market. This, in turn, will pave the way towards a strong future for the company with robust foreseeable demand.

The Foolish bottom line

The company is returning cash in the form of buybacks and dividends. Strong free cash flow coming from the maturing Analog and Embedded Processing segments will offer returns with modest capital investment. Further, the company has judiciously invested in productive capacities in the past few years that can feed future growth easily without further outlay. It will be saving around $450 million annually from closure of the wireless business.

I am confident that Texas Instruments is moving towards a more prosperous and stable future that would allow it to become a big player in this market, similar to STMicroelectronics. The analog chip market has a lot of potential, and Texas Instruments Incorporated (NASDAQ:TXN) is getting ready to experience that in the near future.

The article What Does the Future Hold for Texas Instruments originally appeared on Fool.com is written by Joel Gomes.

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