Madison Investments, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Large Cap Fund”. A copy of the letter is available to download here. The Madison Large Cap Fund (Class I) declined 2.7% in the quarter, outperforming the S&P 500’s -4.33% return. The fund focuses on long-term capital appreciation. The quarter saw a shift in the equity market beyond the mega-cap technology stocks into physical economy stocks, influenced by fears of AI disruption. Additionally, rising commodity prices due to the Middle East conflict reignited inflation concerns, benefiting sectors such as Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not invest in, impacting its relative performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Madison Large Cap Fund highlighted Texas Instruments Incorporated (NASDAQ:TXN) as a leading contributor. Texas Instruments Incorporated (NASDAQ:TXN) is a semiconductor manufacturer that provides chips and solutions for electronics designers and manufacturers. On June 15, 2026, Texas Instruments Incorporated (NASDAQ:TXN) closed at $313.34 per share. One-month return of Texas Instruments Incorporated (NASDAQ:TXN) was 5.26%, and its shares gained 60.96% over the past 52 weeks. Texas Instruments Incorporated (NASDAQ:TXN) has a market capitalization of $285.17 billion.
Madison Large Cap Fund stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its Q1 2026 investor letter:
“The top five contributors for the quarter were Keysight Technologies, Analog Devices, Texas Instruments Incorporated (NASDAQ:TXN), Deere, and PACCAR. Analog Devices and Texas Instruments reported strong results and a good outlook due to the concurrent improvement of end market conditions and demand for products used in datacenters.”
Texas Instruments Incorporated (NASDAQ:TXN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 71 hedge fund portfolios held Texas Instruments Incorporated (NASDAQ:TXN) at the end of the first quarter, up from 78 in the previous quarter. Texas Instruments Incorporated (NASDAQ:TXN) announced a revenue of $4.8 billion for the first quarter of 2026, marking a sequential growth of 9% and a year-over-year increase of 19%. 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.