Elliott Bets $2.5 Billion on Shaking Up Texas Instruments (2)

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.

“Investors are concerned that TI appears to have deviated from its longstanding commitment to drive growth ...