Elliott Bets $2.5 Billion on Shaking Up Texas Instruments
- Activist investor looks to boost the chipmaker’s cash flow
- Texas Instruments stock has lagged behind semiconductor rally
The company’s latest earnings outlook suggested that customers have begun to resume ordering chips after working through a glut of components.
Photographer: N. Johnson/BloombergThis article is for subscribers only.
Elliott Investment Management has invested more than $2.5 billion in Texas Instruments Inc. and is pushing the chipmaker to improve free cash flow, setting the stage for another campaign by the influential activist investor.
Elliott is proposing a strategy that it believes would let Texas Instruments generate free cash flow of $9 or more per share by 2026. Last year, the tech company had $1.47 a share in free cash flow and was projected to deliver $1.87 this year, data compiled by Bloomberg show.