My Favorite Semiconductor Stock Is One You May Not Know About
We use analog semiconductors, or chips, every day, even when we aren't aware of it. If you drove a car today, you probably used several analog chips. Watch TV on a flat-screen device? It had analog chips. From advanced medical systems like robotic-assisted surgical systems and CT scanners to home thermostats, analog chips bridge real-world data with many electronic and digital devices.
It's this presence in so many of today's devices and the booming demand for these chips to be added to other devices that has Analog Devices' (NASDAQ: ADI) management seeing growth accelerating to 7% to 10% compounded annually for the next several years.
Analog Devices' products are popular and that has been good for the company's bottom line. The company's free cash flow leaped by 30% in fiscal 2021 from $1.8 billion to $2.4 billion (see chart below) and this could be the start of a secular trend.
Source Fool.com
