Jefferies’ Top Crowded Semiconductor Long Positions: Top 10 Stocks

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders In Q2 2024: 50

Shares Short % Of Outstanding: 2.11%

Texas Instruments Incorporated (NASDAQ:TXN) is one of the oldest semiconductor companies in the world. Unlike Intel, which is another original Silicon Valley firm, it makes and sells power and signal management products among others. Most of Texas Instruments Incorporated’s (NASDAQ:TXN) revenue comes from selling analog chips which are used to convert real-world measurements and inputs such as temperature into digital outputs that computers can use. These chips are predominantly used in the smartphone and sensing industries, both of which are dependent on global economic activity. Consequently, Texas Instruments Incorporated’s (NASDAQ:TXN) shares are up by a modest 14.60% year to date and the firm has also been targeted by activist investor Elliot Management. Elliot announced a $2.5 billion stake in the firm in May, and Texas Instruments Incorporated (NASDAQ:TXN) can benefit from a global consumer electronics recovery, subsidies through the CHIPS Act, and low-cost operations in China.

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.”