Should You Be Optimistic on Texas Instruments' (TXN) Growth Potential?

Matrix Asset Advisors, an asset management company, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The stock market hit a new all-time high in the fourth quarter of 2025, rising +2.66%. Three-quarter-point interest rate cuts from the Federal Reserve, strong corporate results, and ongoing AI momentum drove investor optimism. The S&P 500 Index recorded its third consecutive year of double-digit gains, returning +17.88% in 2025. Matrix’s equity portfolios returned double-digit gains in 2025 and positive results in the fourth quarter. Matrix’s Large Cap Value portfolio (LCV) returned 20% in 2025, outperforming the S&P 500 Index. Matrix’s fixed income returns, except long-term bonds, were slightly positive in the fourth quarter, and for the year, the returns were up in the mid to high single-digit range, depending on maturity. Entering 2026, the firm maintains a cautious, optimistic view on the economy and the market. Please review the Firm’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Matrix Asset Advisors highlighted Texas Instruments Incorporated (NASDAQ:TXN). Headquartered in Dallas, Texas, Texas Instruments Incorporated (NASDAQ:TXN) is a global semiconductor company. On February 10, 2026, Texas Instruments Incorporated (NASDAQ:TXN) stock closed at $220.92 per share. One-month return of Texas Instruments Incorporated (NASDAQ:TXN) was 14.20%, and its shares are up 22.74% over the past twelve months. Texas Instruments Incorporated (NASDAQ:TXN) has a market capitalization of $200.733 billion.

Matrix Asset Advisors stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its fourth quarter 2025 investor letter:

"During the quarter, we started a position in Texas Instruments Incorporated (NASDAQ:TXN), a leading semiconductor company. TXN is very well managed with a strategy of investing through the business cycle. The company has a strong balance sheet and earnings history. Its share price was volatile in 2025, peaking at over $200 in July following strong second quarter earnings but declining in November to less than $160 after weaker fourth quarter guidance despite beating third quarter revenue and profits forecasts. The drop in the share price provided a good entry point for this high-quality company and we expect to see a nice cyclical rebound in its business and a much higher stock price over the next few years. We also opportunistically added to positions in Generac and Meta Platforms (Facebook) on price weakness during the quarter."

Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the third quarter, up from 68 in the previous quarter. Texas Instruments Incorporated (NASDAQ:TXN) announced Q4 2025 revenue of $4.4 billion, reflecting a 10% year-over-year growth. 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 a list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 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.