BofA’s List Of AI & Semiconductor Stocks That Fund Managers Love & Hate: 16 Stocks On The Manager Radar

7. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders In Q2 2024: 50

Section: Gaining Popularity

Texas Instruments Incorporated (NASDAQ:TXN) is one of the oldest American chip manufacturing companies. The firm primarily makes and sells power management, signal processing, and other associated products. Texas Instruments Incorporated (NASDAQ:TXN) has been the target of activist action by Elliot Management lately after the fund disclosed a massive $2.5 billion stake in the company in May. Texas Instruments Incorporated (NASDAQ:TXN) is dependent on smartphones and other products for its revenue, which has meant that revenue growth has slowed down lately as these industries remain under pressure from tight global economic conditions. However, the firm enjoys key advantages such as its ability to benefit from US chip subsidies through the CHIPS Act and the ability to compete in China through low-cost products.

The London Company mentioned Texas Instruments Incorporated (NASDAQ:TXN) in its Q2 2024 investor letter. Here is what the fund said:

“Texas Instruments Incorporated (NASDAQ:TXN) – TXN rallied in 2Q despite declining revenue in its latest update. TXN is beginning to see some encouraging signs of destocking nearing an end and some sub segments of the market are experiencing improving demand. TXN continued to spend on capex and should begin to see positive benefits to cash flow next year from the CHIPS Act.”