Texas Instruments Incorporated (TXN): "Great modesty from management" says Jim Cramer.

Jim Cramer praises Texas Instruments for its modesty, dismissing the stock's 13.3% drop in July as a result of management's reserved approach. He believes the firm's exposure to industrials and data centers, and its power management chips, make it a good investment. Cramer thinks the stock is undervalued and suggests listening to the conference call to understand the company's tone and avoid selling based on negative assumptions.

Jim Cramer, renowned financial commentator, recently praised Texas Instruments Incorporated (NASDAQ: TXN) for its modesty, dismissing the stock's 13.3% drop in July as a result of management's reserved approach. According to Cramer, the firm's exposure to industrials and data centers, coupled with its power management chips, makes it a solid investment [1].

Cramer's remarks came after Texas Instruments reported its latest earnings, which saw a significant 13.3% drop in July. Despite this dip, Cramer believes that the stock is undervalued and suggests that investors should listen to the conference call to understand the company's tone and avoid selling based on negative assumptions. He advises investors to consider the long-term potential of the stock rather than reacting to short-term fluctuations.

Texas Instruments is a semiconductor company that makes and sells power management and other associated products. The company's shares have gained a modest 2.6% year-to-date, but the July drop was a notable setback. Cramer's belief in the stock's potential is rooted in its exposure to key growth sectors and its ability to navigate the challenges posed by global tariffs.

While acknowledging the potential of Texas Instruments, Cramer also expressed his conviction that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. He suggested that investors looking for an AI stock should consider a free report on the best short-term AI stock.

Investors should take note of Cramer's advice and consider the long-term potential of Texas Instruments. By understanding the company's tone and avoiding knee-jerk reactions, investors can make more informed decisions about this semiconductor giant.

References:
[1] https://finance.yahoo.com/news/texas-instruments-incorporated-txn-great-082018985.html
[2] https://finance.yahoo.com/news/texas-instruments-incorporated-txn-good-125457676.html