Texas Instruments (TXN) Climbs as Outlook Tops Expectations

Texas Instruments (TXN) Climbs as Outlook Tops Expectations

Mon, August 3, 2026 at 5:30 PM GMT+3 3 min read

• TXN -1.84%
• CL=F -5.81%

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its "Large Cap Strategy". A copy of the letter is available to download here. The Strategy returned 3.42% net of fees, trailing the Russell 1000 Value Index's 13.87% gain. Performance benefited from stock selection in consumer staples, materials and consumer discretionary, along with an underweight in utilities. However, stock selection in information technology, health care and industrials detracted from relative performance. AI remained the dominant market theme, driving an 81% gain in technology, while energy declined after the Iran war ended and oil prices fell. The Strategy's limited exposure to companies benefiting from AI-related capital spending caused most of its underperformance, while software holdings remained pressured by concerns about AI disruption. Despite elevated market valuations, the team continues to find attractive opportunities through bottom-up research and expects active management to support better-than-market returns. In addition, please check the Strategy's top five holdings to know its best picks in 2026.

In its second-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted Texas Instruments Incorporated (NASDAQ:TXN). Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. On July 31, 2026, Texas Instruments Incorporated (NASDAQ:TXN) closed at $275.74 per share. One-month return of Texas Instruments Incorporated (NASDAQ:TXN) was -11.14% and its shares gained 46.20% over the past 52 weeks. Texas Instruments Incorporated (NASDAQ:TXN) has a market capitalization of $251.82 billion.

Diamond Hill Capital Large Cap Strategy stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its Q2 2026 investor letter:

"Semiconductor and processor producer Texas Instruments Incorporated (NASDAQ:TXN) saw shares rise after issuing 2Q26 guidance above market expectations, signaling improving demand trends, particularly in industrial and data center end markets."

Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the first quarter which was 78 in the previous quarter. 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 stocks to buy according to David Greenspan's Slate Path Capital. In addition, please check out our hedge fund investor letters Q2 2026 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.