Jim Cramer’s Bold Predictions About These 15 Tech Stocks

1. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders In Q3 2024: 57

Date of Cramer’s Comments: 10-18-24

Texas Instruments Incorporated (NASDAQ:TXN) is an American chip manufacturing company. Its products enable gadgets and computer systems to convert signals, manage power, and conduct other operations. This provides it with little exposure to the AI sector. Cramer was aware of this as he shared:

“After the close, we hear from Texas Instruments. We’ve been hearing a lot about how semiconductor companies are in the doldrums, the ones without AI, that is. Tex Instruments falls into that category but this company’s become much more focused. I like it ahead of the quarter, even though it has a little more cyclicality than most chip makers.”

True to form, Texas Instruments Incorporated (NASDAQ:TXN) has lost 3.47% since Cramer talked about it. However, he was right in ‘liking’ the firm ahead of the quarter as the shares soared by 6.5% following the firm’s third-quarter earnings which saw it beat analyst revenue and EPS estimates of $4.1 billion and $1.37 by posting $4.15 billion and $1.47. The share price gain indicated pent-up demand in the stock since Texas Instruments Incorporated (NASDAQ:TXN) missed analyst guidance estimates of $4.07 billion by posting $4 billion. The stock then boomed by 7.5% following the election, only to lose all gains immediately afterward. Texas Instruments Incorporated (NASDAQ:TXN)’s shares marked a small 2.5% gain in November after Wells Fargo initiated coverage, set an Equal Weight rating, and a $215 share price target. However, unless a broader recovery occurs in consumer electronics and associated markets, Texas Instruments Incorporated (NASDAQ:TXN) might be unable to see sizable catalysts.

TXN is a stock Jim Cramer got right. While we acknowledge the potential of TXN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TXN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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