Texas Instruments (TXN) Fell Due to Below-Expected Guidance

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 2.2% in the third quarter compared to an 8.1% gain for the S&P 500 Index. The current market focus on short-term profits led the fund to underperform the benchmark considerably in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison 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 -7.68%, and its shares lost 24.53% of their value over the last 52 weeks. On November 10, 2025, Texas Instruments Incorporated (NASDAQ:TXN) stock closed at $160.58 per share, with a market capitalization of $145.907 billion.

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

"The bottom five detractors for the quarter were Gartner, Fiserv, Texas Instruments Incorporated (NASDAQ:TXN), Liberty Broadband, and Accenture. Texas Instruments reported a solid quarter of revenue and profits growth, but the outlook for the third quarter was below expectations as it appears some of the strong demand in the first half of the year was due to customers pulling forward orders to avoid potential tariffs. While tariff related purchasing clouds the outlook, we believe that its end markets remain in the early innings of an upcycle after one of the worst downcycles for analog semiconductors in decades."

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 most profitable semiconductor stocks to buy. Texas Instruments Incorporated (NASDAQ:TXN) detracted from the performance of Diamond Hill Large Cap Fund in Q3 2025. 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.