Two Tech Stocks With Massive Growth Ahead
They tell us there’s been a trade war going on.
They also tell us that this war is very bad for tech stocks.
Many tech names rank among companies with exposure to overseas markets (CHINA!).
This is of particular interest to us…
Source: Goldman Sachs, CNBC
But if the trade war is real, you’d hardly know it from looking at the bones of the tech market.
The semiconductor market has been growing like crazy, and it appears on pace to keep going.
New Highs For Tech’s Biggest Names Are Coming
Month after month, global semiconductors keep setting new all-time record sales.
Writes Dylan McGrath at EE Times, “Semiconductor sales once again set a new all-time high in May, growing by more than 20% for the 14th straight month, according to the Semiconductor Industry Association (SIA) trade group.”
Moreover, semis are poised to grow 15% this year, with the potential to exceed half a trillion dollars in sales for the first time ever next year.
It’s no wonder tech indexes like the Philly Semiconductor Index (NASDAQ: SOX) have been setting all-time highs in 2018.
Moreover, the Chinese exposure numbers commonly supplied for tech stocks in many instances don’t tell the whole story.
The real number subject to tariffs could often be much lower.
Big tech names like Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) don’t just grab revenues from physical shipments of goods subject to potential tariff hikes.
They also derive significant licensing revenue as part of their worldwide operations.
In the meantime, we are heading into the back half of the year — the time when tech stocks like NVDA, MSFT and others start to heat up.
People want the latest gadgets and electronics for the holidays, so production on new products starts to ramp up months in advance.
NVDA will likely be releasing a new version of its gaming graphics chips this fall — just in time to supply the surge of gamers hungry for more powerful chips.
Microsoft’s Xbox could be on the same schedule, and potentially, one of the two companies might include new virtual-reality technology. My bet is that Microsoft will come around and offer a competing version of VR to Sony’s.
This, and much more, will be fueling demand for MSFT, NVDA and other tech behemoths.
And it’s not just gaming chips.
Million Dollar Trends Converge for Outsized Gains
The chip content in automobiles is skyrocketing as they get smarter, safer and easier to use. We’re talking self-driving cars that respond to voice commands!
We also know NVDA is at the heart of advanced tech in cars. We’ll soon see NVDA’s new chips in action very soon. This week, Daimler and Bosch inked a deal to use NVDA’s new DRIVE Pegasus system in their autonomous vehicles.
And don’t forget the growing internet of things, as well as the biggest tech infrastructure upgrade in history in the form of 5G.
All these trends are converging as we speak and promise massive profits for early movers.
Most importantly the trade war hasn’t dampened global demand for technology products.
We are experiencing exponential growth trends in tech that are bringing record profits to this market.
As the world becomes even more dependant on advanced technologies and the chips that drive them, it’s almost certain there’s plenty of upside left in tech.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily
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