Best Chip Stock For Long Term

last updated on

Best Chip Stock For Long Term

This Chip Stock Could Shine By 2027

When investors look for stocks to benefit from the AI revolution, the first thought is always Nvidia. But, there is one more chip stock that can benefit from the AI, and it's called Texas Instruments (TXN).

Texas Instruments specializes in making analog chips, which doesn't sound all that exciting. In case you don't know, an analog chip is used to convert the real-world signals into digital signals.

Texas Instruments Makes Analog Chips

For example, every time you push a button on any digital device, there's an analog chip controlling it. The best part about Texas Instruments is that their chips are simple and very low-cost.

So, the chips made by Texas Instruments can be used in any tech product. Now, you might be thinking, how might Texas Instruments fit into the AI equation?Well, the chips from Texas Instruments provide power management, and that's very important in AI data centers.

Since the AI infrastructure is still just getting started, there are years of growth ahead for Texas Instruments. So, while Texas Instruments' share in the AI race might be small, it is still enough for the share prices to reach a new high.

In the last few years, the companies in the analog chip sector have been in a rut. But now, Texas Instruments is expanding its chip production capacity and has also bought Silicon Labs.

This clearly tells us that Texas Instruments is anticipating future growth. And since Texas Instruments is a leader in its own sector, the ideal choice is to buy the Texas Instruments stock instead of any other chipmaker.

Considering all of these things, analysts think Texas Instruments could start to see the results from the AI sector very soon. So, there's a good chance that Texas Instruments could become a top chipmaker by 2027.

After all, we all know power management is very important for the AI infrastructure, and Texas Instruments is a company whose chips can make it all possible.

Trending Stories