ClearBridge Investments, a global equity manager, recently published first-quarter 2026 commentary for its “Large Cap Growth Strategy”. A copy of the letter can be downloaded here. Following the outbreak of the Middle East conflict, the market experienced a significant decline in growth stocks, resulting in substantial losses. In the quarter, the S&P 500 Index fell 4.3% while the benchmark Russell 1000 Growth Index declined 9.8%, compared to the Russell 1000 Value Index’s 2.1% gain. In a volatile environment, the ClearBridge Large Cap Growth Strategy outperformed its benchmark, benefiting from a shift away from technology and momentum stocks that led the market in 2025. The strategy saw a positive reversal in communication services and strong support from cyclical growth sectors like industrials, materials, and parts of IT. The Strategy repositioned its portfolio to increase exposure in semiconductors and biopharmaceuticals, and exited positions with turnaround delays to maintain discipline. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, ClearBridge Large Cap Growth Strategy highlighted Texas Instruments Incorporated (NASDAQ:TXN). Texas Instruments Incorporated (NASDAQ:TXN) is a semiconductor manufacturer for electronics designers and manufacturers. On April 8, 2026, Texas Instruments Incorporated (NASDAQ:TXN) closed at $208.90 per share. One-month return of Texas Instruments Incorporated (NASDAQ:TXN) was 9.92%, and its shares gained 33.40% over the past 52 weeks. Texas Instruments Incorporated (NASDAQ:TXN) has a market capitalization of $190.196 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its Q1 2026 investor letter:
“We continue to be optimistic on trends in the semiconductor sector and added a new position during the quarter in Texas Instruments Incorporated (NASDAQ:TXN), a company focused on analog semiconductor devices and embedded processing. The company sells products with long life cycles to a diversified customer base and has a unique free cash flow story. While the company’s cash flow has been depressed by sluggish demand and elevated capex, we believe cash flow can inflect meaningfully as both of those trends reverse. We also view Texas Instruments as well positioned for an improving manufacturing outlook as 30%–40% of its customer base is in industrials.”
Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 78 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the fourth quarter, up from 72 in the previous quarter. 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 AI chip stocks that are currently being highly favored by hedge funds. In addition, please check out our hedge fund investor letters Q1 2026 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.
