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…
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.