Texas Instruments Incorporated (TXN) Slipped on Slower Demand Recovery

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter of 2025, with the Russell 3000 Index gaining 8%, bringing the calendar-year returns to over 14%. The portfolio declined and underperformed the Russell 1000 Value Index in the quarter.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its third-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as Texas Instruments Incorporated (NASDAQ:TXN). Texas Instruments Incorporated (NASDAQ:TXN) is a semiconductor manufacturer. The one-month return of Texas Instruments Incorporated (NASDAQ:TXN) was -6.01%, and its shares lost 26.74% of their value over the last 52 weeks. On November 6, 2025, Texas Instruments Incorporated (NASDAQ:TXN) stock closed at $161.38 per share, with a market capitalization of $146.634 billion.

Diamond Hill Large Cap Fund stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its third quarter 2025 investor letter:

"Other bottom individual contributors included American International Group (AIG), Colgate-Palmolive and Texas Instruments Incorporated (NASDAQ:TXN). Shares of semiconductor manufacturer Texas Instruments declined as demand in its core industrial and automotive end markets has recovered slower than expected. However, we maintain our conviction in the company’s competitive advantages in manufacturing, product breadth and direct distribution and anticipate these headwinds will be short term."

Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the second quarter, compared to 69 in the previous quarter. In Q3 2025, Texas Instruments Incorporated (NASDAQ: TXN) reported revenue of $4.7 billion, which was approximately in line with expectations, reflecting a sequential increase of 7% and a year-over-year increase of 14%.While we acknowledge the potential of Texas Instruments Incorporated (NASDAQ:TXN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Texas Instruments Incorporated (NASDAQ:TXN) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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