Semiconductor chips have been a hot topic this year.
They’re needed in everything from cellphones to computers, cars to refrigerators, medical equipment to military weapons, and automation to artificial intelligence (AI).
And the race is on to make America self-reliant when it comes to this crucial technology.
It’s the reason many tech stocks – Nvidia (NVDA) being the most famous example – have returned double or even triple digits this year.
But while investors are chasing the latest and greatest digital chip advances from well-known semiconductor stocks like Nvidia or Advanced Micro Devices (AMD)…
One U.S. company is making history by plugging the failings of these chips.
It may be producing a technology that’s over 60 years old… But without this technology, AI can’t progress beyond its present stage.
And best of all, it’s an income opportunity within this red-hot trend.
Today, I’ll share with you the name of this company… and why a future where AI is embedded in everything we do depends on the technology it’s manufacturing.
The Technology AI Can’t Grow Without
Nvidia and AMD create advanced digital chips that process data at unimaginable speeds.
They’re powering AI programs that spot trends and solve problems faster than the best human brains.
But there is one area they utterly fail at.
These advanced digital chips can’t seamlessly process continuous real-world experiences like sounds and surroundings.
Why?
Because they store all the information they receive as binary code, broken down into ones and zeros.
And no matter how fast and efficient these digital chips get – they can’t process information like humans unless it is first translated into their language – binary code.
So how is AI able to interface with the real world right now?
With the help of a much older, more boring, and bulky technology – the analog chip.
Analog chips serve as translators between the real world and binary computer code.
Digital chips struggle with time-varying sensations such as temperature, pressure, or light.
Analog chips translate all the above, including sound waves (speech, music, or audio) into ones and zeros.
Analog chips allow you to talk on your cellphone by converting radio frequencies into sound. And these radio frequency circuits make Wi-Fi and satellite communication possible.
Analog chips also enable virtual assistant devices, like Amazon’s Alexa, to understand and communicate with you.
And they power the radar behind autonomous vehicle driving systems.
You name a popular growth trend in the tech sector, and analog chips are involved.
In other words, it’s impossible for technology to become truly intelligent and autonomous without analog chips bridging the sensory gap between the real world and binary code.
And while analog chips have been around for 60 years… these chips will soon be the eyes and ears of the most cutting-edge AI machines of the future.
And today, the world’s leading analog chip company is making history here in the U.S.
The Analog Chip Company You Know
This may come as a shock to you, but Texas Instruments (TXN) – the well-known calculator company – is also the leading analog chip company in the entire world.
In 1958, one of the company’s newest engineers, Jack Kilby, invented the first integrated circuit (grandfather to the analog chip). This invention led to handheld calculators and the entire field of microelectronics.
Today, almost every industry you are surrounded by uses hundreds of Texas Instruments’ analog chips daily.
And it’s about to produce tens of millions more…
Earlier this month, Texas Instruments broke ground on an $11 billion facility that will manufacture analog chips in Lehi, Utah.
Utah’s governor, Spencer Cox, even went so far as to say that this analog chip plant is “the greatest single economic investment in the history” of the state.
It will produce thousands of jobs and grow the state’s economy as AI continues to evolve.
So if you’re looking to safely invest in the future of AI without the ups and downs of overvalued tech stocks… this blue-chip company is a great option.
Rather than paying more than 50x earnings for shares of Nvidia today, you could buy Texas Instruments stock at a 20x earnings multiple.
That’s a pretty good deal, considering Texas Instruments has grown earnings per share (EPS) by double digits in 14 out of the last 20 years.
Texas Instruments also has a dividend yield of 3.4%. That’s much better than Nvidia’s 0.03% dividend yield.
So you don’t need to speculate to profit from AI. Instead, you can get paid regularly by a dividend blue-chip stock that’s producing mission-critical technology for the future of AI.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily
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