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.
Articles About Computing
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).
The nation may still be coping with COVID lockdown, but that doesn’t mean that economic progress isn’t still going on out of sight.
It’s true that public spaces are hardly crowded. Restaurants, concert venues, cinemas, and gyms are empty.
But day to day business is alike and kicking in the digital space. In spite of everything that’s happening, the Port of Los Angeles, a main e-
commerce hub, is bursting at the seams
Port officials reported that August 2020 was their busiest month on record, with cargo volume up by about 12% both from July and from August 2019 just one year before.
We’re seeing similar encouraging cargo statistics out of Long Beach, not to mention the fact that consumers and e-tailers are gearing up for a strong Christmas season, typically the peak of consumer shopping for the year and worth roughly $1 trillion.
Altogether, it’s a sign that the economy is picking up steam online, instead of on main street, building towards a hidden recovery.
With that in mind, today I want to reveal a tech leader that is helping thousands of small businesses throughout the U.S. set up online stores.
The stock is beating the broad market by 444%.
Not only that, this mid-cap leader is set to double its earnings again in as little as a year…
Albert Einstein was dead on the money about quantum mechanics.
He referred to the entanglement of subatomic particles like photons “spooky action.”
Let me explain. Quantum computing makes use of subatomic particles to store information. This is very different from standard computers.
See, classical computing makes use of data stored as either a 0 or a 1. But quantum systems make use of subatomic particles like photons or electronics, that can exist in both states at the same time.
We’re talking an exponential increase in computing speed that could profoundly affect complex fields like AI and drug discovery.
And if federal officials and a team of elite scientists have their way, it could lead to a much more secure internet.
Backed by $1.25 billion from the Trump administration, the team hopes to create a hack-proof Web.
Microsoft Corp. (MSFT) is set to release an upgrade to its signature operating system with a very unique hook.
In as little as three months from now, Mr. Softy goes to market with Windows 10X.
Microsoft has designed the upgrade specifically to address the coming era of foldable-screen PCs and dual-screen laptops.
Here’s the thing; I have recommended Microsoft several times in recent years and continue to do so.
But today, I want to talk with you about the flip side of that investing coin – the 10X upgrade cycle.
Once 10X hits the market around the fall of this year, other software and apps makers will have to tweak their packages to fit the new format.
And that means there is a much broader play that takes advantage of the 10X ecosystem and other software trends.
When we spoke on February 25, I noted how important it is to go behind the headlines if you want to score big gains on the wealth machine that is high tech.
That rule says to “separate the signal from the noise.” And it really comes into play with a great stock like NVIDIA Corp. (NVDA).
The fact is, for years Wall Street and the media wrote this company off as nothing more than a play on computer gaming.
But the reason the stock has racked up amazing gains approaching 20,000% is because this company is so much more dynamic than that.
Its robust, high-speed chips are finding their ways into advanced autos, AI, and more.
It never ceases to amaze me just how lazy Wall Street analysts can be.
Maybe they’re more like Big Media than I had earlier imagined. In other words, the Street engages in groupthink. Oh yeah, and they often give us superficial analyses.
Here’s the thing; Wall Street largely wrote off a great chip firm as nothing more than a play on gaming.
Granted, it’s true that the company led the world in graphics chips that make computer games so much more immersive. And that market is nothing to sneeze at.
Forbes estimates the global computer gaming market will be worth $196 billion three years from now.
But hiding beneath that surface was the chance to become a millionaire with a firm that has since moved into AI, self-driving cars, and virtual reality.
Starting from September 27, 1999, until February 19 of this year when the stock reached its high point of $314.70, it’s gone up in value by a whopping 19,692%.
That’s enough to turn $10,000 into $1.98 million.
Not even the coronavirus can stop tech. The market as a whole might be coming under pressure, but that hasn’t stopped some of tech’s biggest leaders from giving absolutely astounding earning’s reports. Veteran companies with massive market caps are achieving the kinds of earnings numbers that someone would expect to see out of up and coming startups. The cloud services industry has given Silicon Valley firms a path to profit margins and cash flow that used to be impossible. And as for semiconductors, we still can’t have the modern economy without them. Outside news like coronavirus might still cause some instability in the short term, but in the long term, the outlook is good. If that pressure keeps up, then this could be a great chance to buy great stocks for great prices. Click here to watch.
When we spoke a few days ago, I noted how my friend “Pete” had passed on recommending Apple Inc. (AAPL) to his Wall Street clients.
This was back in 1997, around the time the late Steve Jobs returned to run the Silicon Valley Legend. Since then, the stock has experienced the kind of gains that can turn $10,000 into $3,433,860.
Today, I have another anecdote to share with you regarding Apple. This one involves a friend I will call “Steve.”
Back in the summer of 2012, Steve told me over lunch that he had recently sold all his Apple stock. He said he did so because he felt that the new CEO Tim Cook would never match the innovation that occurred under Jobs.
It’s possible I need to make savvier friends…just saying…both missed the boat on Apple – and left a lot of money on the table.
Under Cook, Apple has continued its historic run, rising as much as 395.6% in a little more than eight years.
I sure hope you don’t make the kind of big investing mistake as that of my friend “Pete.”
He passed on one of the greatest tech opportunities of all time.
I have actually have changed his name for our chat today.
That’s because, if he finds out I told you this anecdote, I’m sure he will be red-faced all day with extreme embarrassment.
You would feel the same way, too, if you turned your back on the chance to earn a return of a whopping 34,238.5%.
Those are the kinds of gains that would turn $10,000 into $3,433,850
Just let that sink in for a moment.
This is why I keep saying it only takes a handful of tech winners – and in some cases just one – to make you a millionaire, if you know where to look.