Why Texas Instruments Incorporated (TXN) Went Down On Friday?

We recently published a list of 10 Firms Suffer Amid Optimistic Market Environment. In this article, we are going to take a look at where Texas Instruments Incorporated (NASDAQ:TXN) stands against other firms that suffer amid optimistic market environment.

Wall Street’s main indices recovered losses on Friday, as investors repositioned portfolios while digesting the ongoing trade tensions between the world’s two largest economies.

After a battering this week, the Nasdaq finished the day up 2.06 percent; the S&P 500 rose 1.81 percent; and the Dow Jones grew 1.56 percent.

Ten companies, on the other hand, defied a wider market optimism, recording modest losses during the day. In this article, we have listed Friday’s worst performers and detailed the reasons behind their declines.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume.

A robotic arm in the process of assembling a complex circuit board – showing the industrial scale the company operates at.

Texas Instruments Incorporated (NASDAQ:TXN)

Texas Instruments touched a new all-time low at intra-day trading on Friday at $139.95, before slight buying persisted to close the day just down by 5.75 percent at $147.60 apiece.

TXN, a global semiconductor company based in the US, fell after China on Friday announced new tariffs targeting semiconductor imports.

According to the China Semiconductor Industry Association, customs determines the origin of imports by where chips are manufactured, not the home country of origin, putting further pressure on TXN which has manufacturing plants in the US and in the Chengdu High-Tech Zone in Chengdu.

The Chinese government has been targeting US chipmakers since early this year, particularly to look into chip grants and alleged dumping, to ensure that the US was not unlawfully subsidizing chipmakers and undercutting Chinese products.

The investigation followed complaints from Chinese semiconductor companies about the US Chips Act which allocates some $39 billion to encourage Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. to develop high-end chipmaking facilities in the US.

Overall, TXN ranks 1st on our list of firms that suffer amid optimistic market environment. 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.