35 Chip Stocks Powering AI Boom

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16. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 50

Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers. Although the firm does not directly market AI-related products, it makes and sells several microcontrollers and processors that support machine learning and AI applications, especially in embedded systems and edge computing. For example, the firm markets TI Sitara Processors that are designed for industrial applications and feature AI capabilities to enable machine learning at the edge. They are often used in robotics, smart cameras, and industrial automation. It also makes TI Jacinto Processors that are primarily used in automotive applications and offer AI and deep learning capabilities for advanced driver-assistance systems (ADAS) and autonomous driving.

Texas Instruments Incorporated (NASDAQ:TXN) has been turning heads on Wall Street. Citi recently upgraded the stock to Buy from Neutral with a price target of $235, up from $200. In an investor note, the advisory detailed that the company hosted a capital management call recently and lowered its 2026 capex from $5 billion to $2 billion – $5 billion, with intimated gross margins bottoming, indicating earnings growth ahead when inventory replenishment happened.

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