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You may notice that global chips supplement has been facing a serious problem in recent months. News about chips kept popping up, indicating how these companies are desperate for semiconductors. There just aren't enough of them to meet industry demand, many popular products like cars, PC, and smartphones, etc. are in short supply. However, The crisis could be a great opportunity for another industry, brought out hope to thrive.
Since the market crash of March 2020, the benchmark Philadelphia Semiconductor Index $PHLX Semiconductor Index (.SOX.US)$ has surged more than 180%.
Some of the largest chip-makers, like $NVIDIA (NVDA.US)$ and $Advanced Micro Devices (AMD.US)$ also produced impressive returns that swelled their market capitalizations. $Taiwan Semiconductor (TSM.US)$ the world’s most advanced manufacturer of semiconductors, expects sales to rise more than 20% in 2021. The company, which also supplies chips to $Apple (AAPL.US)$ and a key partner to many of the world’s biggest car-makers.
Let's take a quick look at all related stocks, you will soon understand the current situation.
The supply side is facing capacity problem
First, the supply side are facing capacity problem. However, these chips makers are also making great benefit through it. They also took plenty of actions in order to solve the shortage problems.
Since 2020, $Advanced Micro Devices (AMD.US)$ has surged 110%
Since 2020, $NVIDIA (NVDA.US)$ has surged 290%
Since 2020, $Taiwan Semiconductor (TSM.US)$ has surged 130%
Since 2020, $Qualcomm (QCOM.US)$ has surged 57%
The rising demand
Let's see all the sectors that are strongly connected with semiconductors industy, what change their demand for chips?
Traditional car makers keep showing the unfulfilled demand for chips.
Ford limits production at multiple factories through July due to semiconductor shortages
EV(Electric Vehicle) brands like $Tesla (TSLA.US)$ , also posponed their product shipment schedule.
Tesla's China output halted for days in August on chip shortage
Smart phone: the rise of 5G brings more demand for advance semiconductors, and the shortage leads to higher price.
Global chip shortage could make Apple products even more expensive
PC: Pandemic last year encourage people to stay home, thus push up the demand of PC. Supply get insufficient relatively.
Worsening chip shortage will apparently limit supply of Windows 11 compatible PCs and laptops
How to invest semiconductor stocks?
The semiconductor industry is a typical cyclical industry that:
1. Sensitive to microeconomic & business cycle
2. Price fluctuate over certain periods, depending on supply & demand
3. Profitable during periods of prosperity and inactive during downturns
For example, The global economic recovery leads to strong demand for chips, while the pandemic continues to suppress the supply, resulting in a chip shortage phenomenon. As major companies keep hiking chip prices up, the semiconductor industry had entered a booming stage since the beginning of 2021.Overall, buying and selling cyclical stocks is about timing: buy at the rock bottom and sell at the peak.
Where does semiconductor industry stand and in which direction will it go?
As the stock price keeps breaking record highs, the market has recently become increasingly concerned that the semiconductor industry may have reached its peak. In August, Morgan Stanley issued a bearish global semiconductor industry report, which states that the chip industry is entering the late stage of the cycle. As the demand side starts to pull back and the supply side gradually increases, the semiconductor industry may reach its turning point in 2022.
On the contrary, many star institutions keep optimistic about the semiconductor industry. According to Credit Suisse, the peak of the rally will not appear until the second half of 2022 or 2023. Continued strong demand for technology products and the shortage of the chip supply tend to drive up the stock prices of semiconductor companies.
Global Top15 List
ICInsights, a leading semiconductor analyst firm, has released its Q3 revenue growth forecast for the world's leading semiconductor companies. In Q3, most of the companies are expected to achieve sales growth, with $Apple (AAPL.US)$ , $Qualcomm (QCOM.US)$ , $Taiwan Semiconductor (TSM.US)$ , Kioxia up by more than 10%, $Intel (INTC.US)$drop by 3%.
How to invest in semiconductor stocks? Which stocks should we add to the watchlist? Is now a good time to buy?
Rewards:
Click "Enter Now" to post before Sep 17, and based on the quality and originality,
5 mooers will win 2,000 points
10 mooers will win 1,000 points
Don't forget to click "Enter Now" to win!
You May Also Like:
Nvidia, AMD Benefit From New Products, Strong Gaming Cycle: BofA
Nvidia is up 71% this year, but Jefferies sees even more gains
Taiwan Semiconductor On Pace for Longest Winning Streak Since June 2020 -- Data Talk
Qualcomm Agrees To Work With Europe's Foundry Partners
Since the market crash of March 2020, the benchmark Philadelphia Semiconductor Index $PHLX Semiconductor Index (.SOX.US)$ has surged more than 180%.
Some of the largest chip-makers, like $NVIDIA (NVDA.US)$ and $Advanced Micro Devices (AMD.US)$ also produced impressive returns that swelled their market capitalizations. $Taiwan Semiconductor (TSM.US)$ the world’s most advanced manufacturer of semiconductors, expects sales to rise more than 20% in 2021. The company, which also supplies chips to $Apple (AAPL.US)$ and a key partner to many of the world’s biggest car-makers.
Let's take a quick look at all related stocks, you will soon understand the current situation.
The supply side is facing capacity problem
First, the supply side are facing capacity problem. However, these chips makers are also making great benefit through it. They also took plenty of actions in order to solve the shortage problems.
Since 2020, $Advanced Micro Devices (AMD.US)$ has surged 110%
Since 2020, $NVIDIA (NVDA.US)$ has surged 290%
Since 2020, $Taiwan Semiconductor (TSM.US)$ has surged 130%
Since 2020, $Qualcomm (QCOM.US)$ has surged 57%
The rising demand
Let's see all the sectors that are strongly connected with semiconductors industy, what change their demand for chips?
Traditional car makers keep showing the unfulfilled demand for chips.
Ford limits production at multiple factories through July due to semiconductor shortages
EV(Electric Vehicle) brands like $Tesla (TSLA.US)$ , also posponed their product shipment schedule.
Tesla's China output halted for days in August on chip shortage
Smart phone: the rise of 5G brings more demand for advance semiconductors, and the shortage leads to higher price.
Global chip shortage could make Apple products even more expensive
PC: Pandemic last year encourage people to stay home, thus push up the demand of PC. Supply get insufficient relatively.
Worsening chip shortage will apparently limit supply of Windows 11 compatible PCs and laptops
How to invest semiconductor stocks?
The semiconductor industry is a typical cyclical industry that:
1. Sensitive to microeconomic & business cycle
2. Price fluctuate over certain periods, depending on supply & demand
3. Profitable during periods of prosperity and inactive during downturns
For example, The global economic recovery leads to strong demand for chips, while the pandemic continues to suppress the supply, resulting in a chip shortage phenomenon. As major companies keep hiking chip prices up, the semiconductor industry had entered a booming stage since the beginning of 2021.Overall, buying and selling cyclical stocks is about timing: buy at the rock bottom and sell at the peak.
Where does semiconductor industry stand and in which direction will it go?
As the stock price keeps breaking record highs, the market has recently become increasingly concerned that the semiconductor industry may have reached its peak. In August, Morgan Stanley issued a bearish global semiconductor industry report, which states that the chip industry is entering the late stage of the cycle. As the demand side starts to pull back and the supply side gradually increases, the semiconductor industry may reach its turning point in 2022.
On the contrary, many star institutions keep optimistic about the semiconductor industry. According to Credit Suisse, the peak of the rally will not appear until the second half of 2022 or 2023. Continued strong demand for technology products and the shortage of the chip supply tend to drive up the stock prices of semiconductor companies.
Global Top15 List
ICInsights, a leading semiconductor analyst firm, has released its Q3 revenue growth forecast for the world's leading semiconductor companies. In Q3, most of the companies are expected to achieve sales growth, with $Apple (AAPL.US)$ , $Qualcomm (QCOM.US)$ , $Taiwan Semiconductor (TSM.US)$ , Kioxia up by more than 10%, $Intel (INTC.US)$drop by 3%.
How to invest in semiconductor stocks? Which stocks should we add to the watchlist? Is now a good time to buy?
Rewards:
Click "Enter Now" to post before Sep 17, and based on the quality and originality,
5 mooers will win 2,000 points
10 mooers will win 1,000 points
Don't forget to click "Enter Now" to win!
You May Also Like:
Nvidia, AMD Benefit From New Products, Strong Gaming Cycle: BofA
Nvidia is up 71% this year, but Jefferies sees even more gains
Taiwan Semiconductor On Pace for Longest Winning Streak Since June 2020 -- Data Talk
Qualcomm Agrees To Work With Europe's Foundry Partners
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With the $S&P 500 Index (.SPX.US)$ taking a breather from the recent rally, semiconductor stocks may be in trend. For the most part, semiconductors are now a fundamental component of most technology in the world today. As such, some of the top semiconductor firms $Taiwan Semiconductor (TSM.US)$, $NVIDIA (NVDA.US)$, $ASML Holding (ASML.US)$, $Intel (INTC.US)$, $Broadcom (AVGO.US)$, $Qualcomm (QCOM.US)$ may be in focus, especially as the industry kicks into higher gears to cope with increasing demands. Among the powerhouse names in semiconductor stocks, $NVIDIA (NVDA.US)$ continues to be in the radar of investors. On the fundamental front, $NVIDIA (NVDA.US)$ is already an expensive stock with lofty valuation in terms of P/E multiple. Nevertheless, its expensive valuation may be justified with its spectacular growth. There are positive growth catalysts that can ensure strong growth rates in the long run. The video gaming sector is in the early phases of a long term upgrade cycle. $NVIDIA (NVDA.US)$ could gain from shipping more graphic cards to gamers and benefit from a combination of stronger volumes and higher pricing. The data centre business is the next most important growth driver. Investors can expect solid growth from this segment as its GPUs are deployed by hyperscale data centres and cloud service providers to deal with Artificial Intelligence workloads. With $NVIDIA (NVDA.US)$ tapping other types of data centre chips as well, it is reasonable to assume that this segment could continue to grow at impressive rates in the future. The automotive business has been an underperformer for $NVIDIA (NVDA.US)$. The good news is that its automotive prospects seem to improve now as the adoption of its DRIVE platform picks up the pace with several automotive design wins that has started to translate into revenue. The automotive business is built for long term growth as the adoption of EVs like $Tesla (TSLA.US)$ increases, spurring more demand for the company's hardware and software offerings. $NVIDIA (NVDA.US)$ is clearly on its way to exploit the potential growth of the autonomous vehicle market. Investors looking for a solid growth stock in the semiconductor industry may consider $NVIDIA (NVDA.US)$ in their portfolio before it becomes even more expensive, as it appears capable of justifying its rich valuation, thanks to the growth opportunities it is sitting on in the automotive business, apart from the fast growing video gaming and data centre markets that have been the firm pillars of the company's impressive financial growth so far. The market value of $NVIDIA (NVDA.US)$ could rise substantially over the years as the growth trends in Artificial Intelligence, Cryptocurrency and autonomous driving are set to accelerate. Investing in $NVIDIA (NVDA.US)$ offers a direct exposure to these long term growth trends. While market corrections are unavoidable, patient investors with $NVIDIA (NVDA.US)$ could anticipate a sizeable return in the future.
$NASDAQ 100 Index (.NDX.US)$
$NASDAQ 100 Index (.NDX.US)$
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$Applied Materials (AMAT.US)$ stock price has surged nearly 400% in recent years. The growing demand for semiconductor manufacturing equipment has supercharged the company's top and bottom-line growth.
Things are about to get better for Applied Materials in the near future as the world's appetite for semiconductors is increasing by leaps and bounds.
$Applied Materials (AMAT.US)$ is the most diverse semiconductor equipment manufacturer. A key supplier of equipment for chip fabs around the globe. Applied Materials certainly looks like a good quality business worth owning for the long haul.
Longer term, Applied Materials is benefiting from more than just a global chip shortage and government interest in boosting localized manufacturing. Technology, itself, is evolving.
Digital transformation is driving exponential growth in data generation and AI computing.
Look beyond the daily ups and downs. Zoom out and you will notice that Applied Materials is an exceptional company with solid financials, future revenue and earnings growth.
Long-term investors can nibble pullbacks and accumulate heavily on corrections. Clearly, long-term bullish on Applied Materials! 🚀🚀
Things are about to get better for Applied Materials in the near future as the world's appetite for semiconductors is increasing by leaps and bounds.
$Applied Materials (AMAT.US)$ is the most diverse semiconductor equipment manufacturer. A key supplier of equipment for chip fabs around the globe. Applied Materials certainly looks like a good quality business worth owning for the long haul.
Longer term, Applied Materials is benefiting from more than just a global chip shortage and government interest in boosting localized manufacturing. Technology, itself, is evolving.
Digital transformation is driving exponential growth in data generation and AI computing.
Look beyond the daily ups and downs. Zoom out and you will notice that Applied Materials is an exceptional company with solid financials, future revenue and earnings growth.
Long-term investors can nibble pullbacks and accumulate heavily on corrections. Clearly, long-term bullish on Applied Materials! 🚀🚀
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In this millennium, our reliance on the use of semiconductor for technological advances is undisputed worldwide. These semiconductors are utilised extensively in electronic circuits. Automobiles, smartphones, home appliances and wireless networks depend heavily on the use of semiconductors. This is what "makes the world goes round", and is the "DNA" of technology. SIA (The Semiconductor Industry Association), has recently announced the sales of semiconductors to grow to $488 billion in 2021, and an additional 8.8% in 2022.
Covid 19 pandemic has invariably escalted their sales too.
In summary, isn't an investment in these stocks a lucrative deal? However, before an investor commits his decision, he has to have a comprehensive study of this investment portfolio. Let's also explore the minus sides of this industry.
The key challenges are:
1) The inability to meet the market's demands. Since 2019, there is an acute shortage of chips' supply globally. These high demands for chips may stretch into 2023.This will incur a 27% loss if there is a 3 months'delay in manufacturing.
2) Hence the cost of manufacturing may not meet planned budget.
After weighing through both the positive and negative aspects of semiconductor investment, I opt to follow my heart and favours the trading of quality semiconductor shares as a long term investment. It is wise to focus on selective business like Fuji Electronic Global, $Applied Material (AMAT.US)$ and $Taiwan Semiconductor Manufacturing (TSM.US). Their shares will certainly surge and "march" zealously into the trading market and emerged as "victorious bulls".
Covid 19 pandemic has invariably escalted their sales too.
In summary, isn't an investment in these stocks a lucrative deal? However, before an investor commits his decision, he has to have a comprehensive study of this investment portfolio. Let's also explore the minus sides of this industry.
The key challenges are:
1) The inability to meet the market's demands. Since 2019, there is an acute shortage of chips' supply globally. These high demands for chips may stretch into 2023.This will incur a 27% loss if there is a 3 months'delay in manufacturing.
2) Hence the cost of manufacturing may not meet planned budget.
After weighing through both the positive and negative aspects of semiconductor investment, I opt to follow my heart and favours the trading of quality semiconductor shares as a long term investment. It is wise to focus on selective business like Fuji Electronic Global, $Applied Material (AMAT.US)$ and $Taiwan Semiconductor Manufacturing (TSM.US). Their shares will certainly surge and "march" zealously into the trading market and emerged as "victorious bulls".
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![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined"){kind=small}
This one looks like a bullish leap with downside protection. If this is just another part of a bigger spread then who knows. But this is the semiconductor space. Im bullish long term here for sure. AMD is my favorite but there are some good semi companies and a couple semi material suppliers I've tagged at the bottom.
$Intel (INTC.US)$ $Advanced Micro Devices (AMD.US)$ $RTX Corp (RTX.US)$ $NVIDIA (NVDA.US)$ $Taiwan Semiconductor (TSM.US)$ $ON Semiconductor (ON.US)$ $Qualcomm (QCOM.US)$ $Lattice Semiconductor (LSCC.US)$ $Nova (NVMI.US)$
$Intel (INTC.US)$ $Advanced Micro Devices (AMD.US)$ $RTX Corp (RTX.US)$ $NVIDIA (NVDA.US)$ $Taiwan Semiconductor (TSM.US)$ $ON Semiconductor (ON.US)$ $Qualcomm (QCOM.US)$ $Lattice Semiconductor (LSCC.US)$ $Nova (NVMI.US)$
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$Meta Platforms (FB.US)$ For technology giants such as Facebook, self-developed chips not only meet their own needs, reduce procurement costs, and complete the layout of software and hardware; self-developed chips can also reduce the dependence of technology giants on chip suppliers, and fully control the chip development progress and launch time .
At the same time, Facebook's chip layout is not reckless. Instead, it first cooperates with chip suppliers to train its own chip design team, and then enters the field with previous design experience. In the long run, the chip layout of these technology giants may change the trend of the industry
At the same time, Facebook's chip layout is not reckless. Instead, it first cooperates with chip suppliers to train its own chip design team, and then enters the field with previous design experience. In the long run, the chip layout of these technology giants may change the trend of the industry
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$Qualcomm (QCOM.US)$ Qualcomm said it will provide chips for Renault's new electric vehicles.
Qualcomm said on Monday that it will provide a key computing chip for the digital dashboard of Renault SA's new electric car. Qualcomm, headquartered in San Diego, California, is the world's largest supplier of key semiconductors for mobile phones. The company has been expanding into the automotive field. Its chips can simultaneously power dashboards and infotainment systems. Earlier this year, Qualcomm announced an agreement with General Motors to use Qualcomm chips...
Qualcomm said on Monday that it will provide a key computing chip for the digital dashboard of Renault SA's new electric car. Qualcomm, headquartered in San Diego, California, is the world's largest supplier of key semiconductors for mobile phones. The company has been expanding into the automotive field. Its chips can simultaneously power dashboards and infotainment systems. Earlier this year, Qualcomm announced an agreement with General Motors to use Qualcomm chips...
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$Alphabet-C (GOOG.US)$ Chip shortage Google postpones the release of low-end phones in India
A low-cost smartphone "JioPhone Next" developed by Google and Indian companies will be postponed to November, indicating that the phone will miss India’s traditional shopping season-Diwali
A low-cost smartphone "JioPhone Next" developed by Google and Indian companies will be postponed to November, indicating that the phone will miss India’s traditional shopping season-Diwali
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$NVIDIA (NVDA.US)$ and $Skyworks Solutions (SWKS.US)$
These two companies are two of of the industry's most promising investments, as leaders in connectivity and GPUs, respectively, and the emerging markets they’ve focused on have meant higher-than-average profit margins. That means they’ve had money to invest in research to continue developing new products, pursuing new markets, and growing their revenue.
These two companies are two of of the industry's most promising investments, as leaders in connectivity and GPUs, respectively, and the emerging markets they’ve focused on have meant higher-than-average profit margins. That means they’ve had money to invest in research to continue developing new products, pursuing new markets, and growing their revenue.
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BMW CEO Oliver Zipse said on Monday that the tight supply chain is expected to continue until 2022, dashing hopes that the critical semiconductor shortage will end soon.
He said at the Munich IAA Motor Show: "I expect that the generally tight supply chain will continue in the next 6 to 12 months."
Zipse, like other auto industry executives, is also struggling with production declines caused by semiconductor shortages. But he said that he does not think there is a problem in the long run, and added that the automotive industry is a very attractive customer for chip manufacturers. ...
He said at the Munich IAA Motor Show: "I expect that the generally tight supply chain will continue in the next 6 to 12 months."
Zipse, like other auto industry executives, is also struggling with production declines caused by semiconductor shortages. But he said that he does not think there is a problem in the long run, and added that the automotive industry is a very attractive customer for chip manufacturers. ...
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