Texas Instruments (TXN) Fell Due to the Persistent Doubt Around Tariffs

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. As we move into 2025, the market’s concentration persists, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 6.47% in the first nine months of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 11.35% and the Morningstar Moderate Allocation peer group, which rose 10.73%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mairs & Power Balanced 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 14.02%, and its shares lost 5.18% of their value over the last 52 weeks. On December 11, 2025, Texas Instruments Incorporated (NASDAQ:TXN) stock closed at $181.67 per share, with a market capitalization of $165.163 billion.

Mairs & Power Balanced Fund stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its third quarter 2025 investor letter:

"The Information Technology sector was the largest contributor to the underperformance of equities during the period. A handful of companies witnessed outsized share price performance driven by enthusiasm around artificial intelligence (AI), while the Fund largely lacked exposure to these companies. Additionally, several technology companies the Fund has exposure to also underperformed the market, specifically Entegris (ENTG), Motorola Solutions (MSI), and Texas Instruments Incorporated (NASDAQ:TXN). For Texas Instruments, the lackluster demand environment continues, and while we are confident that this will turn at some point, the uncertainty introduced from tariffs is hanging over the stock for the time being."

Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the third quarter, which was 68 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 best augmented reality stocks to buy. 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.