Semiconductors power everything – from your phone and headphones to storing files on the cloud and F-35 Joint Strike Fighters. This is why we have seeing companies like Intel Corp. (NASDAQ: INTC), Nvidia Corp. (NASDAQ: NVDA) and others make big acquisitions to be the top dogs in a $500 billion market. Just this year we have seen some huge deals.
Archive for October, 2020
This month, for your Strategic Tech Investor monthly video Q&A, I’m looking into some of the hottest market issues heading right into the election, including how I think it’s going to go.
But I don’t stop there. I look into Operation Warp Speed, the federal project to get a coronavirus vaccine to market as soon as possible, and how you can play it for the best chance at reliable gains.
If you want to go even further and look into how you can multiply your money even further with the development of what we call new “super vaccines,” click right here.
All of that, plus the new 5G iPhone, and what it’s going to mean for the smartphone market, and some of the best plays I’m seeing on the horizon for the entire high-tech sector.
You can click on the video image below to hear all about what I have to say. And, for next month, if you have any questions about tech investments and the tech-driven market, leave a comment on this video for a chance of having it featured on next month’s video Q&A.
I’m looking forward to hearing from you.
My words come back to haunt me.
See, on September 20, 2019, I told you that Washington’s war on Big Tech was likely to go nowhere, but the option remained open for the Federal Department of Justice to bring a case.
And that is exactly how events have transpired. The Justice Department, along with seven states, recently opened a case against Alphabet Inc. (GOOGL).
The basic premise is that Google has been using its commanding market position to make Google’s search engine the default on a whole vast selection of devices.
If that sounds eerily familiar to the case against Microsoft Corp. (MSFT) 20 years ago, that’s because it is the same basic idea; a search engine holding its leading market share through deals whose legality is now in question.
Last year, companies like Alphabet Inc. (GOOGL) were under fire from Congressional Democrats led by Jerrold Nadler of California.
What I said at the time is that Congress would have very little to say about the business practices of titans like Alphabet, the parent of the dominant search firm Google.
I went on to cite two previous federal antitrust cases taken against large tech leaders.
But now, with the Justice Department getting involved, I want to help you understand what this all means for tech investors.
Before November 3, everyone is trying to get ahead of an “Election Day” boost – buying stocks in certain sectors and hoping prices rise because of who won the race.
You don’t have to do that because this technology I’m about to talk about is set on an unstoppable path. I have a clear winner that’s going to make you money, no matter who is in office.
I’m talking about solar energy, the fastest growing renewable energy source last year according to the Energy Department. Since 2016 we will have more than doubled the total installed capacity, continuing the groundwork that has been laid for solar power generation in the United States.
When it comes to scientific breakthroughs, the only thing better than a Nobel Prize is a Nobel Prize with its own hidden way to beat the market.
And that’s exactly the opportunity I’m presenting to you today.
It comes to us from the field of gene editing, which actually allows doctors to edit material in human DNA to combat disease.
As a biotech investor, I have followed this field for many years.
While it stretches back to the 1970s, two women recently shared a Nobel Prize in Chemistry for turning the field on its head.
They developed what’s known as Crispr-Cas9, which allows genomic editing at the embryonic level. The Nobel committee described the science as “rewriting the code of life.”
The market for direct use of this platform is growing at 16% per year and will soon be worth roughly $10 billion.
In the midst of a nasty recession, anyone looking to build a brand new $12 billion manufacturing plant really stands out.
And in this case, it’s not the price tag that is the most important part of the deal.
It’s the fact that it’s all about what lies at the heart of our fast-moving digital economy.
Indeed, the devices to be made there are nothing short of critical because they power everything from mobile devices to PCs to artificial intelligence.
Of course, I’m talking about semiconductors. The new plant in Arizona, big enough to employ 1,600 people, will produce some of the most advanced chips ever released.
The news comes as the chip sector continues to post solid gains in a weak, COVID-focused economy.
For August, the last month for full data, global chip sales showed a yearly gain of 4.9% to $34.5 billion.
The chipmaker I have in mind is a global leader that has doubled the S&P 500’s return since the market bounced back on March 23.
They are relied on by some of the most prominent device makers in the world, like Apple Inc. (AAPL), along with chip designers like Intel Corp. (INTC), Advanced Micro Devices Inc. (AMD), and Nvidia Corp. (NVDA).
This month, your host for Digitization-X, Alex Kagin, Director of Technology Investing Research for Money Map Press, is coming to you with an exclusive interview with Ian Kar, the Founder and CEO of Fintech Today. This weekly newsletter is dedicated to keeping up with the latest breaking developments from the fintech industry.
He and Alex will be discussing what’s new and what’s next in the world of personal and digital financial services. We’ll be looking at how banking has changed since the start of the COVID-19 pandemic and plans from companies like Square Inc. (SQ) and PayPal Holdings Inc. (PYPL) to disrupt the industry.
On Tuesday, I showed you that tech is one of the very best places to find great dividends.
Here’s the thing; These are not your traditional dividend payers from years gone by. They’re an example of a new trend that we’re seeing in action right now.
I still firmly believe that the road to wealth is paid with tech.
Not with staid dividend stocks, but with bona fide growth leaders. See, even ten years ago tech darlings put all their money into growing faster, leaving nothing to pay a dividend with.
Today’s tech world looks very different.
It’s all because of the digital economy. This new dynamic has created earnings giants that make so much cash, they can easily invest in the next round of growth – and still pay a nice dividend to shareholders.
You may recall that in our last chat, I showed you three tech stocks that offered appreciation and yield.
Today, I want to follow up with the flip side of this investing coin.
I sure hope you don’t make the kind of costly mistake my uncle did.
A few years ago, the retired telco worker invested in a communication company that offered a juicy double-digit dividend.
When I heard about that, I ran some numbers on the company. And what I saw alarmed me.
Windstream Communications had a mountain of debt. My concern was that if things got tight, it would cut the dividend.
And sure enough, that’s exactly what happened. Shares slide from a high of $100 to below $2 before Windstream filed for bankruptcy protection.
I’m sharing this story with you because I’m concerned other retirees or those approaching retirement, may be tempted to shop around for high yields after the Fed recently signaled its commitment to low interest rates.
Irony abounds. Tech has become the very best place to find dividends that are the least likely to be cut no matter what happens with the economy.
Streaming services have experienced rapid growth in adoption over the last five years. And while almost 80% of U.S. households have some form of device for streaming video and subscribe to a streaming service, many of them still pay for access to cable.
A big part of this is that sports and news content have been a key driver for cable operators. Most streaming subscription services have chosen to focus only on entertainment offerings.
While traditional TV has suffered at the hands of newer services like Netflix, Hulu, and HBO, some people will never stop watching TV in that fashion.
Sometimes, you just want to sit down and channel surf live TV, turn on the news, or watch sports.
Just like 10 years ago, when I would come home from work and flip on the TV, I do the same today. But I don’t need a cable subscription to watch traditional TV. Many still want this, which is why we’re seeing services pop up from many big companies replicating traditional TV.
Alphabet Inc. (GOOGL) has YouTube TV, DISH Network Corp. (DISH) has SlingTV, and Walt Disney Co. (DIS) has Hulu+ Live TV. This can all happen without plugging in a bulky cable box. All you need is an Internet connection. The best part is you don’t need to be tied to the TV. You can watch on your tablet and phone, on the go, or at home.