Over the past year, the surge in demand for AI, primarily fueled by the efficiency gains it offers to major corporations, has sparked considerable enthusiasm among investors in 2024. However, this excitement has also given rise to a wave of skepticism within the sector, with increasing discussions about an “AI boom” or the potential for an “AI bubble.” Unlike previous tech bubbles, the current AI surge is underpinned by substantial market value, with strong revenue generation and backing from well-established companies across both technology and other industries, contributing to a multi-billion dollar market. This sets it apart from earlier tech bubbles, which were often characterized by investor hype and little financial foundation. Although there are risks related to regulations and the environmental impact of AI’s high energy consumption, the economic potential of Artificial Intelligence remains compelling, with projections indicating robust double-digit compound annual growth rates (CAGRs) for the next decade. 

So how should you navigate through the ambiguous market sentiment to ride through the promising long term demand of this sector?

Once such company to take of note of remains:

Texas Instruments Inc. (NASDAQ: TXN) maintains the ideal commercial position, where its analog and embedded semiconductors allow the company to both capitalize on the AI demand while its existing strong position in the semiconductor market with applications covering a range of established tech sectors, provides security in future growth in sales for the company. This company while already providing a healthy dividend yield of 3%, is expected to further improve its dividend payments with a track record of a 3-Year dividend growth of around 11%, while also showcasing scope for extraordinary breakthroughs through rising AI demand. 

Find out what’s the potential of NASDAQ: TXN covered in our Dividend Report along with expert recommendations Buy, Hold or Sell.