That’s because we don’t think only a single sector, like the red-hot semiconductor industry, is poised for explosive potential next year.
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In fact, it’s only one of the four free stock recommendations we unveil in our presentation. Now, Luke, Eric and I reveal the name and ticker of this company in our Early Warning Summit 2022… for free. In other words, the company is making a transition from negative to positive earnings, which is exactly when a company’s shares tend to take off. Typically, positive analyst revisions precede future earnings surprises. Obviously, due to the current semiconductor ship shortage, the company’s business is booming.Ĭase in point: The analyst community is expecting 157.1% annual earnings growth of $0.04 per share in its current quarter that ended in November. In the past two months, the analyst community has revised their consensus earnings estimate up for a loss of $0.01 per share to $0.04 per share. The company markets and sells its products to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in and test service companies through a network of distributors and sales representatives. In fact, I’ve been recommending chipmakers for years and with great success. I think we’re in the early stages of a massive chip manufacturing boom, and so, in the short term, and I expect chip manufacturers to generate incredible earnings throughout 2022. (NASDAQ: MU) recently announced plans to invest $150 billion over the next decade to expand its semiconductor output. QUALCOMM Incorporated (NASDAQ: QCOM) is investing from $25 billion to $28 billion this year alone. The world’s largest chipmaker, Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), has said it will invest $100 billion over the coming three years to ramp up its output. It’s why some of the biggest semiconductor manufacturers are pouring so much money into expanding their capacity. However, the situation bodes well for the high-quality companies that are expected to benefit from the supply chain shortage, as I explained with my InvestorPlace colleagues Luke Lango and Eric Fry on Wednesday in our Early Warning Summit 2022.Īs we discussed, the microchips made from semiconductors are the lifeblood of the modern digital world.Įverything from tech, manufacturing, and agriculture to travel, entertainment, and banking can’t function without massive amounts of computer chips.Īnd with new technologies like 5G, the Internet of Things (IoT) and artificial intelligence (AI) all converging and growing every single day, demand for chips will remain strong for years. These shortages could spell trouble for folks looking to fulfill their loved ones’ holiday wish lists. Commerce Secretary Gina Raimondo recently told CNN the chip shortage isn’t likely to abate until late 2022, assuming new coronavirus variants don’t continue to crop up. Intel Corporation (INTC) CEO Pat Gelsinger said he thinks the global chip shortage won’t end until sometime in 2023, while ARM Holdings CEO Simon Segars said the chip shortage will last much longer and be much worse than many are expecting. But Ford Motor Company’s (NYSE: F) new EV, the Mustang Mach-E, requires nearly 10-times as many chips. To give you a sense of the level of demand that’s coming, consider that your typical Ford Focus uses roughly 300 chips. The chip shortage is also hitting other prized electronics products, like graphics cards, Wi-Fi routers, lower-end laptops, speakers and earphones, not to mention EVs. Among the products hardest hit are the semiconductors that power our electronic devices, from gaming consoles to electric vehicles (EVs).Ĭompanies like Sony Group Corporation (NYSE: SONY), Microsoft Corporation (NASDAQ: MSFT) and Nintendo (OTCMKTS: NTDOY) have said supplies of their highly prized new gaming consoles could be constrained through 2022 due to the chip shortage. That’s because product shortages have become routine these days as we face ongoing snags in the global supply chain. Interestingly, many folks are anxiously wondering whether they’ll be able to procure the latest and greatest tech gadgets, among other items, for their loved ones in time for Christmas.
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