Texas Instruments Incorporated (TXN) Surged Along with Market Sentiment

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. After a significant decline in April following President Trump’s “Liberation Day” tariffs announcement, markets recovered and increased consistently for the remainder of the quarter. The strategy modestly trailed the Russell 1000 Value Index in the second quarter and returned 2.87% (net) vs 3.79% for the index. The financial and consumer discretionary holdings lagged, while healthcare and communication services outperformed, boosting overall performance. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its second-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as Texas Instruments Incorporated (NASDAQ:TXN). Texas Instruments Incorporated (NASDAQ:TXN) is a semiconductor manufacturer. The one-month return of Texas Instruments Incorporated (NASDAQ:TXN) was -15.36%, and its shares lost 3.82% of their value over the last 52 weeks. On August 7, 2025, Texas Instruments Incorporated (NASDAQ:TXN) stock closed at $185.91 per share, with a market capitalization of $169.018 billion.

Diamond Hill Large Cap Fund stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its second quarter 2025 investor letter:

“Among our top individual contributors in Q2 were Regal Rexnord and Texas Instruments Incorporated (NASDAQ:TXN). Semiconductor manufacturer Texas Instruments has effectively managed near-term tariff-related uncertainty by capitalizing on its dual-flow manufacturing capability, which enables it to produce the same part in fabrication plants located in different geographical regions. Shares also received a boost as investor sentiment around the semiconductor market improved.”

Buy Texas Instruments (TXN) for its Innovation and Steady Dividend Income

A robotic arm in the process of assembling a complex circuit board – showing the industrial scale the company operates at.

Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the first quarter, which was 66 in the previous quarter. In the second quarter of 2025, Texas Instruments Incorporated (NASDAQ:TXN) reported revenue of $4.4 billion, an increase of 9% sequentially and an increase of 16% year-over-year. While we acknowledge the risk and potential of Texas Instruments Incorporated (NASDAQ:TXN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Texas Instruments Incorporated (NASDAQ:TXN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Texas Instruments Incorporated (NASDAQ:TXN) and shared the list of best major stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.