5 Most Undervalued Tech Stocks to Buy According to Hedge Funds

In this article, we will take a look at the 5 most undervalued tech stocks to buy according to hedge funds. To see more such companies, go directly to 10 Most Undervalued Tech Stocks to Buy According to Hedge Funds.

5. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 59

Texas Instruments Incorporated (NASDAQ:TXN) is one of the most undervalued tech stocks to buy according to hedge funds. Texas Instruments Incorporated (NASDAQ:TXN) recently posted soft Q4 results, which was not a surprise amid the industry-wide downturn.

However, Texas Instruments Incorporated (NASDAQ:TXN)’s automotive segment posted strong performance in the period. Texas Instruments Incorporated (NASDAQ:TXN)’s automotive products are used in infotainment, driver assistance and safety systems. Texas Instruments Incorporated (NASDAQ:TXN) is one of the leaders in the analog semiconductor market with a 30% share.

As of the end of the third quarter of 2022, 59 hedge funds tracked by Insider Monkey reported having stakes in Texas Instruments Incorporated (NASDAQ:TXN). The total value of these stakes was about $1.8 billion. The biggest stakeholder in Texas Instruments Incorporated (NASDAQ:TXN) was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $556 million stake in Texas Instruments Incorporated (NASDAQ:TXN).

Diamond Hill made the following comment about Texas Instruments Incorporated (NASDAQ:TXN) in its Q3 2022 investor letter:

“Other top contributors in Q3 included health insurance company Humana, semiconductor manufacturer Texas Instruments Incorporated (NASDAQ:TXN) and home improvement retailer Home Depot. Shares of Texas Instruments outperformed as the COVID lockdowns eased in China, and customers could accept the product shipments leading to an upside in expectations.”