Texas Instruments Incorporated (TXN)’ Earnings Will Be a Turning Point

The real key for TI will be whether its analog chips can gain greater application. General Electric Company (NYSE:GE)‘s Industrial Internet project continues to move forward, and connecting networks of machines in order to improve communication and gather data should require plenty of sensor-chips of the type in which TI specializes. Moreover, Cisco Systems, Inc. (NASDAQ:CSCO) and its Internet of Things initiative also have promise both for TI and for Freescale Semiconductor Ltd (NYSE:FSL), which came out with a new microcontroller chip earlier this year that could potentially work together with TI-made Wi-Fi transmitted chips to facilitate communication. Freescale Semiconductor Ltd (NYSE:FSL) is tiny compared to TI, but a partnership there could help both companies make more from the opportunity than they could separately.

In Texas Instruments Incorporated (NASDAQ:TXN)’ earnings report, look closely for which strategic direction TI chooses to take in trying to bolster its growth. Investors aren’t going to wait forever for the company’s strategy to play out, and the stock’s best chance at further gains is for TI to identify growth markets that won’t be overly sensitive to the industry’s usual cyclical trends.

The article Texas Instruments’ Earnings Will Be a Turning Point originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel.

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