Jim Cramer Discussed These 10 Stocks, AI Power Demand & Healthcare

7. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders In Q3 2024: 57

Texas Instruments Incorporated (NASDAQ:TXN) is one of the oldest chip manufacturing companies in America. Its shares are up by 12.6% over the past year as the firm’s broad product portfolio that enables data center connectivity has helped it navigate the downturn in the industrial sector. As of H1 2024, 76% of Texas Instruments Incorporated (NASDAQ:TXN)’s revenue came from industrial businesses. Consequently, the firm’s shares fell by 3.4% in January after its Q1 midpoint EPS guidance of $1.05 missed analyst estimates of $1.17. Cramer believes that Texas Instruments Incorporated (NASDAQ:TXN)’s exposure to industrial companies means that it should be viewed as an industrial stock:

“Right. People keep wanting Texas Instruments to be something other than it is. It’s an industrial company. Very good. 20% of business is in China by the way. Love the China. And uh why people think they can divorce themselves from the end market, particularly auto and industrial, crazy. You’re gonna have Joe Hinricks on, the CEO of CSX. You know he said, what’s weak? Automotives, uh, interest rate sensitive things, housing. Texas Instruments is an industrial company. And it trades like one. And these analysts keep thinking it’s going to trade like the Texas Instruments of 1982, 84. They ought to get the program. I think that Texas Instruments is very forthcoming. They used to be less forthcoming. But they’re basically saying, look, our markets aren’t that good. And they can’t outrun their own markets.

“I love the fact that they’re straight forward. That they’re not doing well in embedded, they’re saying, listen, we’re missing, we’re missing, we’re missing. People are missing. Enough already.”