Jim Cramer’s Game Plan: 23 Stocks to Watch

13. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 50

While Cramer mentioned that Texas Instruments Incorporated (NASDAQ:TXN) has shown cyclicality, he still likes it ahead of the company reporting its third-quarter earnings on October 22.

“After the close, we hear from Texas Instruments. We’ve been hearing a lot about how semiconductor companies are in the doldrums, the ones without AI, that is. Tex Instruments falls into that category but this company’s become much more focused. I like it ahead of the quarter, even though it has a little more cyclicality than most chip makers.”

Texas Instruments (NASDAQ:TXN) is engaged in the design and sale of semiconductors. The company provides a range of products focused on power management, signal processing, and embedded computing, which are utilized across various sectors, including automotive, industrial, personal electronics, and communications. On October 21, TipRanks reported that Susquehanna lowered the price target on the stock to $240 from $250 and maintained a Positive rating.

In previewing the upcoming third-quarter results, the firm noted that the semiconductor industry is facing broad-based challenges, particularly in the automotive and industrial segments, where momentum has started to decline. For the personal computer market, there is an expectation for notebook production to rise in 2024, although the pace may slow toward the year’s end, largely due to AI-related devices not driving demand as anticipated.

In the handset market, forecasts indicate an increase in smartphone shipments for 2024. Additionally, in the data center segment, recent server evaluations suggest a slightly stronger performance in the latter half of 2024, partly driven by AMD’s market share gains.

Texas Instruments (NASDAQ:TXN) management has indicated an awareness that market conditions may not be as favorable as previously thought. In its midyear update to its long-term planning, which is typically conducted once a year, the company maintained its spending plans for 2024 and 2025. However, it revised the outlook for 2026 expenditures, lowering the anticipated range from $5 billion to between $2 billion and $5 billion, contingent on revenue performance at that time.