Texas Instruments Stock Surges 5.04% on Strategic Pricing Hikes and Tariff Exemptions Trading Volume Ranks 33rd

On August 12, 2025, Texas Instruments (TXN) surged 5.04% with a trading volume of $1.91 billion, a 60.11% increase from the prior day. The stock ranked 33rd in market activity. The rally followed a Bernstein report highlighting planned price hikes of 20%-50% across 10,000-20,000 products, a strategic move to enhance margins. This came amid U.S. government exemptions from potential 100% semiconductor tariffs for domestically manufactured firms like Texas Instruments, easing investor uncertainty.

Despite the sharp intraday gain, the move was seen as a measured response to strategic adjustments rather than a fundamental shift in market perception. The stock had previously faced volatility, including a 12.3% drop in late July due to a weaker-than-expected Q3 forecast. While the recent price action reflects confidence in margin optimization, cautious guidance for the current quarter—projecting $4.45 billion-$4.80 billion in revenue—underscores challenges in automotive demand and tariff-related order timing.

A backtest of a high-volume trading strategy showed mixed results. Buying the top 500 stocks by daily volume and holding for one day generated a $2,340 profit from 2022 to the present. However, the approach faced a maximum drawdown of -15.3% on October 27, 2022, highlighting inherent risks despite short-term gains.