ADI
⚙️ Linear Technologies or Analog Devices provide essential chips for critical applications like airbags.
💰 These chips have low costs for the end client but are crucial, ensuring consistent demand.
✅ Amazon favors companies with key consumer products at low cost, making these companies attractive.
@adriarivero:
“Amazon likes to invest in companies that have a key product for the consumer and that also involves a low cost. That would be perfect. For example, it is possible that customers face a very high cost if they close a production line due to the lack of a key component. Cases like Linear Technologies or Analog Devices, which have gross margins of 30%, give chips that are worth very little to the final customer, like $1 for the airbag chip, but logically having an airbag is a critical mission and is key for the company, since if the airbag does not work well, we have a problem.”
Watch the exact part of the video where Adria talks about Analog Devices and Linear Technologies here:
Watch the video on YouTube.
Read more articles featuring the most recent analysis of Analog Devices (ADI) at this link: ADI stock.
