This Chip Inventory May Be a High Performer by 2027

When traders take a look at investing in laptop chips to benefit from the unreal intelligence (AI) revolution, they’re more likely to begin with an organization like Nvidia (NASDAQ: NVDA). That is smart, on condition that it makes the most well-liked chips for dealing with AI workloads. Nevertheless, there’s one other chip inventory that would additionally become an enormous AI winner: Texas Devices (NASDAQ: TXN).

Nvidia makes high-powered parallel processing chips that act as the first brains that undergird AI software program. Texas Devices makes analog chips, the boring ones that convert bodily occasions into digital indicators. While you push a button on a digital system, it’s probably being managed by an analog chip. Texas Devices’ chips are easy, comparatively low price, and will be present in tech merchandise nearly in every single place.

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Within the synthetic intelligence {hardware} world, Texas Devices’ chips present energy administration. That is an important perform inside the information facilities that home AI. Given the expectation that the AI infrastructure buildout is barely simply starting, Texas Devices might have years of development forward of it on this finish market.

Over the previous few years, the analog chip sector has been in a rut. Nevertheless, Texas Devices has been investing in new chip manufacturing capability. Only recently, it agreed to purchase competitor Silicon Labs (NASDAQ: SLAB). In different phrases, Texas Devices is making ready for development.

It is usually shifting the way in which it studies its gross sales. Within the fourth quarter of 2025, the corporate broke out its information middle enterprise as a separate finish market. The phase accounted for round 9% of the highest line. Nevertheless, it grew 64% yr over yr within the fourth quarter.

That is most likely not a quantity to bake into your development expectations, on condition that the AI alternative is model new. Nonetheless, income rose by a mid-single-digit proportion from the third quarter. If that is just the start of the AI buildout, this phase might assist supercharge an upturn within the sometimes cyclical analog chip sector and help development for years to come back.

There are different analog chipmakers, and there are chipmakers that make extra thrilling chips than Texas Devices. Nevertheless, for many traders, opening a place on this industry-leading firm will most likely set you up for long-term success. And given the power of the enterprise and the corporate’s development efforts, the AI buildout might simply flip Texas Devices right into a top-performing chipmaker by 2027, if not sooner.

Before you purchase inventory in Texas Devices, think about this:

The Motley Idiot Inventory Advisor analyst group simply recognized what they imagine are the 10 greatest shares for traders to purchase now… and Texas Devices wasn’t certainly one of them. The ten shares that made the lower might produce monster returns within the coming years.

Think about when Netflix made this checklist on December 17, 2004… in the event you invested $1,000 on the time of our suggestion, you’d have $443,299!* Or when Nvidia made this checklist on April 15, 2005… in the event you invested $1,000 on the time of our suggestion, you’d have $1,136,601!*

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*Inventory Advisor returns as of February 9, 2026.

Reuben Gregg Brewer has positions in Texas Devices. The Motley Idiot has positions in and recommends Nvidia and Texas Devices. The Motley Idiot has a disclosure coverage.

Prediction: This Chip Inventory May Be a High Performer by 2027 was initially revealed by The Motley Idiot