The problem is, they can't do anything by themselves. Digital chips are big, highly sophisticated marvels of engineering that can calculate incredible things via the binary system of ones and zeros. Semiconductors can be grouped into two areas: analog and digital chips. Throughout the article, I'll also refer to Texas Instruments as TXN or TI and to Nvidia as NVDA. I prefer TXN because it is a more stable business with deeply integrated manufacturing in an industry with high switching costs, while NVDA has a much more volatile business with much less certainty. In this article, I'll compare one of the growth stock darlings of the last decade, NVIDIA Corporation (NVDA), with my personal investment, boring old Texas Instruments Incorporated (TXN) ('TI'). Cutting-edge technology solutions costing thousands of dollars come to mind, but that's just the tip of the iceberg.

Nvidia has been a high-flier over the last years, while people ignored stable but boring businesses like Texas Instruments.ĭigital chips get most of the attention, while analog chips rarely are talked about.īoth companies have come down substantially, but Texas Instruments (-18%) has held up much better than Nvidia(-62%).īy many considered to be the new oil together with data, semiconductors are the building blocks of the 21st century. Forget Exciting Nvidia, Buy 'Old Boring' Texas Instruments Instead

Nvda news from 2 years ago