With the ongoing shortage, it’s been “chips this” and “semiconductors that.” Believe me, I understand if you’re burnt out, but we’re here to make money on this $430 billion industry.
Today, I’m going to tell you about a tech firm that’s virtually an ETF because of its wide-ranging services. And unlike the chip manufacturers we’ve discussed before, they’re fab-less, or factory-less. In other words, they operate on the highly lucrative theoretical side of the chip industry and save millions on overhead.
Think of electronics as like a great rock band. All the players have to play the right parts at the right time and this is what the company does. Keeping with this metaphor, SITM is basically Jerry Garcia. No flash. Just pure rock and roll.
Based on their own humbly conservative estimate, SiTime (nasdaq: SITM) has a total market worth of $8 billion. Their chips can be found in everything from smartphones to missiles. Their rather arcane solutions like network synchronizers, oscillators and clock generators have applications in platforms like Internet of Things, 5G, automated driving, high-end missiles and industrial applications. I’m talking about 250 distinct applications and they’re looking to expand that number to 500 and even 1,000.
Most recently, SITM saw a stunning 429% quarterly EPS growth and are projecting profit gains of 400% on the back of a 100% increase in sales. Again, that’s coming from the highly prudent analysts at SiTime.
This is the summer of big tech, and at this point, the broader market is starting to catch on to that. The irony is that big tech companies can beat formal expectations and not see much of a jump to their stock prices. They just get too much scrutiny to pull off an upset that really wows the market. To see a real sudden jump, the quarterly results need to be a surprise. To cash in on this kind of surprise, you have to be in the right place at the right time, and it takes a strong investment thesis to maximize your chances of being there. I talk about just that on Chuck Jaffe’s radio show.
For anyone that follows Tesla, every time they hold an event, they know the world is watching. Last week’s AI Day was no different. They didn’t introduce a new car or even announce updates to its current line, but that didn’t matter. Instead, they announced to the world, they are much more than an electric car company.
One of the least talked about lessons from the pandemic has been the importance of good data.
After all, the federal Centers for Disease Control and the majority of states were making their decisions about mask mandates and re-openings based on statistics that were made available to the public.
And then there’s the mountain of data compiled by a group of researchers in Finland led by geneticist Andrea Ganna. Over the last 15 months, he’s compiled statistics pulled from more than 3,300 researchers in 25 countries. We’re talking stats about millions of people, including more than 125,000 Covid-19 patients.
All of which brings me around to one of my favorite tech-investing topics – cashing in on the Big Data sector that will be worth at least $229.4 billion in the next couple of years.
The company I have in mind for you is a leader in the field and recently scored an 80% growth in earnings and has plenty of upside ahead…
Everyone loves Microsoft and its latest earnings report shows why it deserves a spot in everyone’s portfolio. Revenue came in at $46.2 billion an increase of 21% year over year and net income was $16.5 billion an increase of 47% year-over-year. Even more impressive is that those two numbers don’t tell the whole story as older products like Windows are not seeing any growth at all, hiding big growth divisions. Azure, its cloud product grew 51% year-over-year and several other businesses saw similar growth profiles.
Microsoft is really firing on all cylinders and that’s why I want to tell you about a company you can buy for less than $10 that is riding Microsoft’s coattails…
Please don’t think I’m being flip. Even my friends who had both doses of the FDA approved vaccine have experienced breakthrough cases.
I’m sharing this with you not to cause alarm but to alert you to a great way to invest in the $753 billion biotech sector.
You may have heard about a key medical panel advising the US government has already called for Covid booster shots for some segments of the population after this first wave of vaccinations.
What’s more, biotech executives are now proposing to use gene-based vaccines to fight the seasonal flu. Before the pandemic, roughly 45% of the US population got flu shots every year. Doubtless, now with greater awareness of the risks, that number will grow.
More people protecting themselves against infectious diseases is great for the world and even better for a biotech leader that pioneered the entire genetic approach that received approval for a Covid vaccine in record time.
Netflix Inc. (NFLX) is a perfect example of a disruptive tech success story. The company’s name is practically synonymous with how we watch television these days, and its rise to prominence has kickstarted an entire new sector for entertainment that is overshadowing its traditional counterpart.
Netflix currently boasts over 200 million subscribers worldwide, equal in number to about 2/3 of the American population. Pew Research claims that only 56% of Americans claim to watch satellite or cable T.V. as of this year. That’s not even factoring in the market share held by Netflix’s competitors in the industry that they created.