Why Texas Instruments (TXN) Is Crashing?

We recently published a list of 10 Companies Reflect Market Decline. In this article, we are going to take a look at where Texas Instruments Incorporated (NASDAQ:TXN) stands against other companies that reflect market decline.

The stock market was lackluster on Thursday, with Wall Street’s main indices ending the day with marginal declines.

The Dow Jones Industrial Average dipped by 0.16 percent, the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.

Ten companies mirrored the decline on Wall Street over a series of catalysts including uncertain government policies and disappointing earnings results.

Let’s take a closer look at the worst performers and explore the factors behind their declines.

To come up with Thursday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily 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 Incorporated (NASDAQ:TXN) saw its share prices drop by 5.13 percent on Thursday to end at $187.37 apiece as investors sold off positions following news that the Chinese government kicked off a probe into US chipmakers, 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.

The China Semiconductor Industry Association criticized the act, claiming that it disrupts the semiconductor supply chain and violates market economy principles.

Texas Instruments (NASDAQ:TXN) owns a semiconductor manufacturing plant in the Chengdu High-Tech Zone in Chengdu.

Overall, TXN ranks 10th on our list of companies that reflect market decline. 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. 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.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Most Important AI Stocks According to BlackRock

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