MOSFETs and IGBTs

What are they and why should we care?

Let’s start with some definitions of technical terms you have likely not heard much about (don’t feel bad - I am just learning these technical terms for the first time…).

MOSFET: stands for Metal-Oxide-Semiconductor Field-Effect Transistor. This is a semiconductor device used to switch or amplify signals in electronic circuits to control current flow. MOSFETs are crucial for power management and digital logic.

Diodes: two-terminal semiconductor devices that permit current flow in only one direction. Think of diodes as electronic check valves.

Rectifiers: specific types of diodes designed to convert alternating current (AC) into direct current (DC) by blocking the reverse half of the AC cycle.

Zener diodes: are a form of semiconductor diode in which at a critical voltage, a reversal of current can be made to happen.

Inductor: an electrical component that stores energy in a magnetic field when electric current flows through it.

IGBT: stands for Insulated-Gate Bipolar Transistor which is a high-speed, high-efficiency switch designed to handle large currents and voltages.

So why should we care about these definitions?

All we hear about these days is AI data centers, companies floating 100 year bonds to finance more AI expenses, Nvidia chips, blah, blah…

The bigger issue is - what is under the hood? What is behind the curtain? What makes these AI data centers run?

The above technical devices are but a handful of these devices that make an actual AI data center run. Without these devices, there are no AI data centers. Therefore, logic says that investors should perhaps focus on the makers of these hi-tech devices.

The bigger question then is - are there any publicly traded in the U.S. that make these components?

I have found one such company and although its share price has declined with the latest AI rout, the decline has been minimal ($21 to $18.50), After all - this company is an essential entity. Without it, AI data centers would be wholly dependent on foreign providers of these hi tech components. And that opens up a whole new discussion of geopolitics.

Let’s take a look at this company through the lens of cycles and quantum lines…