TXN is a robust infrastructure beneficiary of the autonomous/robotics trend due to broad analog content demand in EVs and data centers, not just pure autonomy.

Now Rachel, I actually want to jump into stock number two before sending in your way for stock number three. And it has to be a semiconductor player, right? This is it can't be an episode without Jose without talking about a chip stock.

And we're going to talk about Texas Instrument. And while Texas Instrument isn't a a pure play in autonomous driving, it is kind of like that picks and shovel angle with this one.

For those that are not familiar, Texas Instrument is an analog and embedded chip player. They both design and manufacture these solutions which handle a variety of things that go in the vehicle.

Things like power management, things like sensor signal processing, and real world to digital conversion which is essentially needed for any form of autonomous vehicle electronics.

So, this is why I wanted to bring this one into into this field.

Most recent earnings, quarter two of 2026, revenue was 5.46 billion dollars, up 23% year-over-year and 13% sequentially. Another great thing about this is for Analog Devices, this is a market that has been kind of weak the past few quarters and it seems like the bottom is in.

Now we're starting to see that sequential growth and that year-over-year growth, which is should be exciting for a lot of investors.

Analog's revenue grew 26% on its own. Right, the embedded processing grew about 16% as well. Texas Instruments CEO did specifically called out the accelerated growth in automotive alongside industrial and data center as the quarter's growth engines.

And this is what's pretty exciting about Texas Instruments is you kind of get some of the excitement in the automotive spot in the automotive spot, but more importantly, if you're using these types of solutions in an automotive environment, it can somehow also translate to the robotics industry.

So you're you're you're seeing kind of the robotics industry kind of exploding as well, both in the industrial space and potentially in the future in the consumer space. So you also have kind of like that call option coming in here from Texas Instruments.

More importantly, you also have kind of the data center angle with this play. The data center, which is also crucial for automotive autonomous for autonomous driving solutions because you need to have that training, you have to have the solutions.

Now Texas Instruments doesn't focus on the computer itself, but a lot of the power solutions that are needed to turn on these data centers that are needed in the data center server boards or even the GPUs themselves are part of the solutions that Analog that Texas Instruments has.

So the company is doing well, net income most recent quarter was 1.9 billion almost 2 billion dollars, up 53% year-over-year. Earnings per share were roughly $2.14. Quarter three guidance came in at another sequential growth, which is kind of giving us that kind of data point that the bottom is here for the analog market.

And trailing 12-months free cash flow was roughly 6.5 billion, roughly 33% of total revenue.

And this was kind of one of the big pains for Texas Instruments in the past few years. The past few years the company has been focusing a lot is spending capex on building new facilities to improve its overall efficiencies, its overall yield, and improve the inventory production that it can make when things really ramp up.

Now we're seeing that play out. 33% of free cash flow is pretty impressive in my opinion.

So Rachel, that's why I'm bringing in Texas Instruments. You have kind of not necessarily the pure play, but more of the picks and shovels play in this autonomous world. Would love to hear your thoughts here.

Yeah, I like this business. The other thing I think to point out is, you know, there Texas Instruments automotive revenue, it's not just, you know, an autonomous driving story.

I mean, they have a meaningful portion of that growth is just general vehicle electrification, right? You know, EVs need vastly more analog content than traditional vehicles.

And so it's a it's interesting because they can benefit from multiple growth tailwinds as we are seeing a lot of changes just kind of broadly in the the automotive space. And you know, the the vehicles that are built by companies pursuing autonomy, they all rely on a lot of the same categories of chips here for that are relevant to Texas Instruments business.

You know, the power management ICs, the single chain components, and all these embedded microcontrollers. So they're going to really see incremental demand regardless of which player or players win in the end.

And another thing as well, you know, they they manufacture the large majority of their chips in their own wafer fabs rather than relying on outside foundries. and so there's a real in-house manufacturing scale there.

That's why they have, uh, you know, favorable double-digit, you know, margins.

Um, and and I think that that's another key point. I mean, also, as well, you know, any chip that's going into a vehicle's driver assist or autonomous systems, they need the very specific automotive grade functional safety certification.

It has to survive years of extreme temperature and testing. And that's the kind of moat, um, and history that Texas Instruments has.

And so, I they are in this space as sort of a bit of an under the radar, uh, infrastructure player. Interesting business to look at. You know, this is also a cash flow producing business.

You know, they regularly engage in shareholder buybacks. So, there are a lot of ways for, I think, long-term shareholders to benefit from this business.

Definitely, Rachel. And one point, just I I just want to kind of push this one. One of the biggest assets for Texas Instrument is their manufacturing side. They did spend a nice amount of money, like they mentioned, in 2021, 2022, I think up to like 2025, on building this capacity, um, and improving it.

It wasn't just to add more lines. It was also to increase the efficiency of their chip productions, which which overall helped margins. And it also helps the opportunity if there is a massive explosion in demand for a lot of their solutions.

And if we truly are in the bottom, they are able to kind of get a lot of the upside by owning, uh, their own, uh, manufacturing plant. So, I I just wanted to push that over.