Smart Finance News App learned that well-known technology industry analyst from TF International Securities, who tracks the supply chain of tech giants like Apple, Guo Mingchi, mentioned on Wednesday that the two leading companies in the analog chip field, Texas Instruments (TXN.US) and Infineon (IFNNY.US), have been added to the new supplier list of AI chip leader NVIDIA (NVDA.US). Typically, the stock prices of listed companies that join the NVIDIA hardware supply chain will experience a significant increase, as seen with the surge in stock prices of South Korea's memory chip giant SK Hynix and **** server manufacturer Foxconn. Therefore, some institutional investors believe that the stock prices of Texas Instruments and Infineon are also expected to rise.

"As NVIDIA's server systems with the GB200 AI GPU approach mass production, more core components are seeking new supplier support, which helps reduce costs and improve NVIDIA's quality control system," analyst Guo Mingchi wrote in a post on the social media platform X (formerly Twitter). "However, this also indicates that the competition within the supply chain is becoming increasingly fierce."

According to the latest disclosure, Texas Instruments and Infineon are now providing voltage regulator components, which were previously mainly provided by Monolithic Power Systems (MPWR.US), a manufacturer of analog and mixed-signal chips specializing in power solutions.

Furthermore, Monolithic Power Systems is currently providing integrated basic control components, previously only provided by Delta Electronics, further demonstrating NVIDIA's gradual expansion of the AI server supply chain to enhance the quality control system and reduce supply costs.

As a result of this latest news, the stock price of analog chip leader Texas Instruments continued to rebound on Wednesday, hovering near its all-time high. The ADR stock price of Infineon and Monolithic Power Systems also increased to a certain extent. However, NVIDIA's stock price experienced a slight decline on Wednesday, ending the strong upward trend of five consecutive trading days.

Texas Instruments is the world's largest analog chip manufacturer with products that perform simple but critical functions such as converting power sources to different voltages in electronic devices. More importantly, analog chips have played an indispensable role in various key function modules and systems of electric vehicles in recent years, including power management, battery management, sensor interfaces, audio and video processing, motor control, etc.

Texas Instruments has one of the widest customer bases and largest product ranges among chip manufacturers, making its performance and performance outlook data one of the predictive indicators for various industries. Most of its chip products are used in industrial and electric vehicle sectors worldwide. The company stated earlier this year that demand from many end customers in the industrial category has started to improve, sparking optimism about overall performance enhancement.

Infineon also holds an important position in the analog chip sector, especially in automotive electronics and power management. Infineon focuses on power semiconductors and high-efficiency analog chip devices, providing solutions for global automotive, industrial, and power management applications. Particularly in the electric vehicle and energy management sectors, Infineon's analog chips and power devices are highly competitive.

Many analog chip manufacturers focusing on the industrial and electric vehicle markets, including Texas Instruments, have been experiencing continued poor performance since 2023. Their revenue scale has been severely hit due to customer inventory surplus, with customer order sizes slowing down across the board. The sharp shortage of analog chips post-COVID-19 has led industrial customers to accelerate stockpiling inventory.

More importantly, the sluggish demand for electric vehicles is difficult to alleviate. In the high-interest rate macro environment, global electric vehicle demand has significantly cooled since last year, compounded by the gradual withdrawal of government subsidies related to electric vehicles globally, further weakening electric vehicle demand. Joining NVIDIA's AI server supply chain is a significant positive catalyst for the performances of Texas Instruments and Infineon, the two analog chip giants, and also provides a new path for other analog chip manufacturers, turning to cooperation with AI server manufacturers to seize this wave of global AI datacenter construction boom.