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Magnificent Earnings Week: What was your fave?
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A Peek Into the Semiconductor Industry - Market Insights

The "Super 7" – Apple, Microsoft, Google, Amazon, Tesla, Meta, and Nvidia – have partly helped lift the tech-focused Nasdaq index up over 30% this year. All of them have outperformed the broader market, with the top performer Nvidia more than doubling its share price.

These tech giants are all part of the latest artificial intelligence (AI) revolution, largely driven by the rise of ChatGPT and other generative AI apps earlier this year. Apple's smart headset, Vision Pro, is an example of how this technology is being applied. Microsoft has invested in OpenAI, which is a prominent player in this wave of technological innovation. Nvidia makes chips that provide necessary processing power to train AI models, and its CEO Jensen Huang claims publicly that "the iPhone moment of artificial intelligence" has arrived.

More than a decade ago, the first generation of iPhone was released, marking the watershed moment for mobile Internet. Are we witnessing a similar turning point for AI? Recent stock rallies in AI-related sectors seem to suggest that some investors are buying into this idea.

A quick look at ChatGPT's industry chain on moomoo reveals a wide range of businesses are involved in this booming business, many of which are publicly traded companies. Among them are semiconductor companies that play a key role in providing the computing power needed to train large AI models and support their applications.

Overall Landscape

"Life is like a snowball, all you need is wet snow and a very long hill," says Warren Buffett. It's an apt metaphor for investing, where finding a growing, sustainable industry is key. So what about the market size and growth rate of the semiconductor industry?

The semiconductor industry has a substantial market. Our technological world relies heavily upon chips as they are critical to the production of everything from smartphones to cars.

According to a report by the Semiconductor Industry Association (SIA), the global semiconductor market was worth USD 574 billion in 2022 and has quadrupled over the past 21 years, growing at a compound annual growth rate (CAGR) of 7%.

McKinsey, a consultancy, estimates the industry's aggregate annual growth could average 7% a year up to 2030, resulting in a $1 trillion dollar industry by the end of the decade.

Industry chain

To narrow our focus within the vast and complex semiconductor industry, it is important to find a segment with higher growth potential and understand how each division works.

Chips can be categorized into eight types, including logic chips, such as the Central Processing Unit (CPU) and Graphics Processing Unit (GPU), memory chips for data storage in computers and phones, and analog chips , such as 5G chips commonly used in telecommunications. Among them, logic chips create the largest revenue stream, accounting for over 30% of the industry's total sales in 2022.

Within the category of logic chips, CPUs are adept at performing complex serial computations, whereas GPUs - originally developed for graphics processing - are well-suited for handling simple parallel computations. As AI continues to advance, there is an increasing demand for the kind of simple yet powerful computing capabilities that GPUs can provide, making them a vital component in the industry. According to Verified Market Research(VMR), GPUs may experience a growth rate exceeding 30% in the future.

A chip generally goes through three stages before its application: design, manufacturing, and packaging and testing. Most chipmakers specialize in part of the process except for Intel and Samsung which have integrated chip production.
Short-Term Trading: Day traders often make decisions based on minutes or hours, focusing on short-term price movements.

Swing Trading: Traders may hold positions for several days or weeks, capitalizing on expected price swings.

Long-Term Investing: Investors often look at timeframes of months or years, focusing on a company's fundamentals rather than short-term market fluctuations.
WE HAVE A WIDE RANGE OF AGES & STAGES ON DECK SO LETS TAWK BOUT

RISK TOLERANCE

* The Long Game

Recognize that investing is often about long-term growth rather than short-term gains. The market can be volatile, and understanding that ups and downs are part of the journey can help you remain patient.

How much RISK can you take⁉️

When it comes to investing, risk and return may come hand-in-hand. If unwilling to take risks, one should not expect returns.

However, it could be dangerous when some only has their eye on the CAGR, ROI & returns while neglecting the risks.

So, how does one balance risk and return⁉️ This depends on how much risk you can take.

Risk tolerance varies from person to person. This is often related to 4 main factors.

• The first factor is age.

A youngin in his prime and a retired senior generally have different levels of risk tolerance.

Young people usually (think they) have a longer timeline to recover from their losses.
Therefore, they may be more risk-tolerant.

However, many elderly people live off pensions or savings, and may not have other sources of income, which can make them relatively less risk-tolerant.

A commonly cited rule of thumb makes it easier to approach the relationship between age and potentially high-risk assets, such as stocks.

According to this principle, the percentage of stocks people may consider holding is equal to 100 minus their age.

For example, a 30-year-old investor may consider allocating 70% of their idle funds to stocks, while according to this rule, that percentage for an investor aged 70 should be within 30% (this number can be more based on the person’s individual goals and risk tolerance. If their risk tolerance is high and they want to retire soon they can allocate 50-80%+ into the market and other assets with a solid history & CAGR).

However, this formula can be flexible. You can adjust it according to your situation. But, all else being equal, the principle is the older you are, the lower the proportion of your portfolio that you MAY want to consider investing in high-risk assets.

• The second factor is financial status.

For example, if someone is well-off and has no debt and he is also single, then there is a lot less financial burden on his hands. But if he is married with kids, then living expenses are high, and he might struggle to make ends meet.

There is an essential difference between his risk tolerance level in these two situations.

The former is in good financial condition. A slight loss will not affect life. Therefore, the risk tolerance is relatively strong.
The latter's financial situation is already unstable. Losing money on an investment might result in a huge burden on life.
Therefore, the risk tolerance is less.

• The third factor is individual risk appetite.

Everyone has different perspectives on risks.

Some people are conservative even when they are young and well-off. They simply do not want to take any risks, thus they are not the best candidates for high-risk investments.

Some people are more radical. Losing money will not rattle their mindsets. Thus they are willing to take high risks to gain possible high returns.

• The fourth factor is the level of investment knowledge.

The essence of risk is uncertainty. Before investing, you will not know the profits or losses it brings.

If you have done your homework in asset analysis with the right investment mindset, you may become more capable of controlling the investment risks perceived by others as huge uncertainty.

Conversely, you'll be walking a thin line if you choose to invest in financial assets that you don't know much about, especially those involving high risk.

To sum up, the investment risk that you can take depends on your age, financial situation, risk appetite, and investment knowledge. Before investing, we must know our situation, and not act on impulse.

* Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.

- Warren Buffett, Billionaire

Extra Credit:

* ETFs, Longs, Shorts 👈🏽 in that order. ETFs and Longs is the retirement and Generational Wealth. NO funny stuff in the ETFs and the Longs. Shorts is for fun and Free Cash Flow… but can occasionally also hit 2x to 10x plus, if it doesn’t go to 0. Hail Mary.

* Only invest LONG TERM in stuff that’s outperforming the market. S&P 500 📈 does 7-10% a year, my ETFs gotta yield or earn the same or MORE on an annual basis, to be worth my time.

* IF you have extremely LOW RISK tolerance consider a CD or money market.

* ONLY deal with shorts if you have the means and risk tolerance. Otherwise stick to LONG TERM STOCKS, ETFs & REAL ESTATE FOR CASH.

Let’s all

Stop 🛑 focusing on a quick buck. Hold, and go long.

Collect Assets at a Discount. DCA either way. Be patient. We Build Wealth.

The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a period longer than one year.

It's one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios, and anything that can rise or fall in value over time.

= 10 to 100% CAGR or more for All of Our Assets:

Ex:

What does 10% CAGR mean?

CAGR tells you the average rate at which an investment has grown over a specified period.

10% CAGR means the 10% interest you earn every year is first added to your principal investment. And then, on the total amount, you again get 10% return.

Traditional Investing
Buy & Hold
Big Boy Blue Chip
Long Term

#CoachDonnie

For ANY and all aforementioned/heretofore Stocks, ETFs, side hustles or other Assets/asset classes discussed here

Remember the following:

🚨 DISCLAIMER 🚨

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

I Share Because I Care. The aforementioned is for Informational Educational & Entertainment purposes ONLY, this is NOT investment advice.

You have to do what’s best for you and yours at the end of the day. There’s NO guarantees in Investing nor Asset Accumulation.

Reach out to your Financial Advisor, CPA and or CFP.

I am not a Financial Advisor, CFP nor CPA.
• Let’s Put in the work - work smarter not just harder

Do these 7 things & you’ll level up

1. Build your Assets over time, Create some Net worth (Gold and Silver, Stocks, Real Estate, Businesses)

2. Stay out of Bad Debt - Leverage Good Debt (Debt that you use to pay you monthly)

3. Live on a Plan - Live on less than what you make

4. Save & Invest

Have:

5. Discipline

6. Patience

7. Consistence

#CoachDonnie
#GenerationalWealth
Hope everyone is having a Wealthy Weekend

Remember 🧠

The MIND and the HEART ♥️ are like a Parachute 🪂

They work BEST

When Open… 🤯

Finances is a Tool to be used

Not a pool to be viewed

Be a River

Not a dam 🦫 reservoir

Let anything and everything that’s truly good 😌

Flow through you

Not just to you

Be like water 💦 my friend 🤝

#CoachDonnie #BruceLee
While $NVIDIA (NVDA.US)$ dominates semiconductor headlines during the AI boom, several other companies also hold monopolistic positions in the evolving digital economy -- here's a cheat sheet of the top 10 👇

1. $ASML Holding (ASML.US)$ | ASML Holding
• They hold a monopoly in lithography machines, which are essential for enabling the mass production of ultra-small, efficient chips crucial for AI applications. Their technology is foundational in pushing the boundaries of miniaturization and performance in semiconductor manufacturing.

2. $Taiwan Semiconductor (TSM.US)$ | Taiwan Semiconductor Manufacturing
• They remain the world’s largest dedicated independent semiconductor foundry, with unmatched capabilities in manufacturing advanced chips that are crucial for AI technologies. They are the only manufacturer with sufficiently advanced technology to produce the most sophisticated AI chips.

3. $KLA Corp (KLAC.US)$ | KLA Corporation
• They specialize in process control and yield management solutions. Their equipment and services are essential for the semiconductor manufacturing industry, ensuring the production of high-quality chip performance at micro and nano-levels, which is critical for the reliable operation of AI systems.

4. $Applied Materials (AMAT.US)$ | Applied Materials
• They excel in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Their innovations in metal deposition and etch systems are essential for creating smaller, faster, and more reliable electronic devices needed in AI applications.

5. $Lam Research (LRCX.US)$ | Lam Research
• They are pivotal in the semiconductor fabrication process, providing advanced wafer fabrication equipment and services. Their technology is crucial for the production of highly sophisticated semiconductor devices, making them indispensable for manufacturers aiming to meet the increasing demands for more powerful and efficient AI chips.

6. $Micron Technology (MU.US)$ | Micron
• They are leaders in providing memory and storage solutions crucial for AI data processing. Their competitive advantage comes from their cutting-edge DRAM and NAND technologies, which significantly enhance the speed and capacity of AI systems.

7. $Broadcom (AVGO.US)$ | Broadcom
• Their range of semiconductor devices supports data center networking and broadband capabilities, crucial for AI ecosystems. Their broad product line and innovation in 5G technology position them as a key infrastructure provider in the rapidly expanding AI market.

8. $Qualcomm (QCOM.US)$ | Qualcomm
• They have a near-monopoly in mobile phone chips and is now integrating AI into its Snapdragon processors. This positions Qualcomm at the forefront of AI applications in mobile devices, enabling advanced features like natural language processing and on-device AI models.

9. $Marvell Technology (MRVL.US)$ | Marvell Technology
• Their technology excels in creating solutions that enhance data center performance and capacity, critical for AI data handling. Their specialized chipsets for cloud and enterprise applications position them as leaders in the data infrastructure market.

10. $Texas Instruments (TXN.US)$ | Texas Instruments
• They specialize in analog ICs and embedded processors, used extensively in automated applications and smart devices, pivotal for modern industrial applications.
* Above ☝🏽 are recent things I read not necessarily my views.

* Q: Coach Donnie, are there any Guarantees with Stocks ETFs or the market overall?

* A: Yes. Nothing is guaranteed.

For ANY and all aforementioned/heretofore Stocks, ETFs, side hustles or other Assets/asset classes mentioned

Remember the following:

🚨 DISCLAIMER 🚨

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

I Share Because I Care. The aforementioned is for Informational Educational & Entertainment purposes ONLY, this is NOT investment advice.

You have to do what’s best for you and yours at the end of the day. There’s NO guarantees in Investing nor Asset Accumulation.

Reach out to your Financial Advisor, CPA and or CFP.

I am not a Financial Advisor, CFP nor CPA.
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
A Peek Into the Semiconductor Industry - Market Insights
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  • Coach Donnie OP : To those trading hours for dollars 💸 you’ll be free soon 🔜

    Get ready to fire 🔥 your boss and donate your job back to the economy

    In order to do that, knowing the following helps:

    Target 🎯 Date *
    Target 🎯 Amount *
    Target Net Worth *

    • EARN More on the side (side hustles: eBay, Etsy, Lyft, Door Dash, Uber Eats)

    • GIVE More (give at least 10% what you earn to God’s Children/those in need)

    • KEEP Most of what you earn

    • MULTIPLY what you keep by investing

    Invest Daily Weekly and/or Monthly until you hit your Goals 🥅

    • Example *

    1. Target 🎯 Date:

    In 20 years @ age 50-55 I need

    2. Target 🎯 Amount - Passive Income:

    $10,000 a month - $120,000 a year, Passively

    3. Target 🎯 Net Worth:

    Take the 10k x 200 ( Rule of 200 ) I need $2 million minimum in order to take care of ALL my expenses, have fun, have funds leftover, give, enjoy FREEDOM, PASS ON THE PRINCIPLE TO THE NEXT GENERATION ($2 Million) & if I want to, make millions

    Everything I do has to get me to $2 million ASAP because I know I can get a 6-8% return 120k a year min / 12 and I'll have $10k a month, passively

    Then you pass on the $2 million to the Next Generation

    Build Wealth and Live off the Interest without having to click in

    The interest will be $10k a month minimum you’ll still have $2 million principle

    WE DO THIS FOR FREEDOM KINGDOM LEGACY STEWARDSHIP LOVE FAMILY NOT JUST STOCKS STUFF OR MONEY 💯

    #Freedom
    #CoachDonnie
    #GenerationalWealth
    #WeDoThisForFreedom

  • Coach Donnie OP : Faith evicts Fear

    Fear knocks at the door 🚪

    Faith answered

    Nobody was there

  • Coach Donnie OP : This Wealth Blueprint - or something similar - is working for a lot of people

    50 - 30 - 20 split aka 50% 30% 20%

    Example using $10,000:

    5k goes to SPLG
    3k goes to FTEC
    2K goes to Magnificent 7 split equally (TSLA is optional)/and or individual stocks with an amazing 10+ year history such as NVDA MSFT AMZN AAPL GOOGL META etc

    You can use that framework above ☝️ also outlined in the first video I sent you and adjust the numbers for your specific needs

    And/or develop your own Wealth Transfer Blueprint

    Whatever you do be sure to pick ETFs that yield 7-10% a year on a 10 year average and or stocks that yield/bring 10-100% a year on a 10 year average

    #CoachDonnie

    Q: Coach Donnie, are there any Guarantees with Stocks ETFs or the market overall?

    • A: Yes. Nothing is guaranteed.

    For ANY and all aforementioned/heretofore Stocks, ETFs, side hustles or other Assets/asset classes mentioned

    Remember the following:

    🚨 DISCLAIMER 🚨

    PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

    I Share Because I Care. The aforementioned is for Informational Educational & Entertainment purposes ONLY, this is NOT investment advice.

    You have to do what’s best for you and yours at the end of the day. There’s NO guarantees in Investing nor Asset Accumulation.

    Reach out to your Financial Advisor, CPA and or CFP.

    I am not a Financial Advisor, CFP nor CPA.

  • Ultratech : sounds like a plan

  • Coach Donnie OP Ultratech : What part?

  • Ultratech Coach Donnie OP : I thought the whole thing was

  • Coach Donnie OP Ultratech : This Wealth Blueprint - or something similar - is working for a lot of people

    50 - 30 - 20 split aka 50% 30% 20%

    Example using $10,000:

    5k goes to SPLG
    3k goes to FTEC
    2K goes to Magnificent 7 split equally (TSLA is optional)/and or individual stocks with an amazing 10+ year history such as NVDA MSFT AMZN AAPL GOOGL META etc

    You can use that framework above ☝️ also outlined in the first video I sent you and adjust the numbers for your specific needs

    And/or develop your own Wealth Transfer Blueprint

    Whatever you do be sure to pick ETFs that yield 7-10% a year on a 10 year average and or stocks that yield/bring 10-100% a year on a 10 year average

    #CoachDonnie

    Q: Coach Donnie, are there any Guarantees with Stocks ETFs or the market overall?

    • A: Yes. Nothing is guaranteed.

    For ANY and all aforementioned/heretofore Stocks, ETFs, side hustles or other Assets/asset classes mentioned

    Remember the following:

    🚨 DISCLAIMER 🚨

    PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

    I Share Because I Care. The aforementioned is for Informational Educational & Entertainment purposes ONLY, this is NOT investment advice.

    You have to do what’s best for you and yours at the end of the day. There’s NO guarantees in Investing nor Asset Accumulation.

    Reach out to your Financial Advisor, CPA and or CFP.

    I am not a Financial Advisor, CFP nor CPA.

  • Coach Donnie OP Ultratech : The comments, the post or both?

  • Ultratech Coach Donnie OP : well both but mostly the post. I don't know how to read very well though but it seemed like a good plan

  • Coach Donnie OP Ultratech : Yes indeed , check the comment section as well

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