Analog Chips Are the Silent Winners of the AI Trade. These 3 Growth Stocks Are Capitalizing on the Opportunity.
Analog chips are essential for data centers, and Texas Instruments, ON Semiconductor, and Analog Devices are among the leaders in that tech niche.
Overview
In the years since the artificial intelligence megatrend kicked off, investors have heard plenty about graphics processing units (GPUs), AI accelerators, and memory chips, but there is another type of chip that is silently gaining momentum. Analog chips sit at the interface between real-world inputs -- things like temperature or voltage -- and the digital world. They function as sensors across a wide range of use cases, and also manage power flows throughout data centers to ensure that servers can draw power from the electric grid without putting themselves at risk of thermal damage.
These same types of chips convert electricity into data that GPUs and CPUs use. In other words, data centers can't operate without analog chips, so these products are guaranteed to gain more traction if data center construction continues to increase. These three growth stocks are riding the opportunity.
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Originally published at www.fool.com.