Auto Bears Flash Buy Signal
Car sales will slow to lowest levels since 2014 as “U.S. auto sales are expected to drop below 17 million,” as reported by CNBC.
The world’s biggest auto market, China, will mark its first sales decline in nearly three decades as “China’s car brands suffer most,” reports Nikkei.com.
Automobile sales are tanking.
As are the share prices of major automakers this year, with companies like Ford losing a third of their value since January.
Everyone hates the automobile biz right now.
Which actually makes it a great time to invest in tech companies with automotive exposure.
Even though auto sales may be down, the amount of tech in the average new car is skyrocketing.
The amount of semiconductor content in an average new car is now worth hundreds of dollars.
That figure will grow into the thousands of dollars per new vehicle as features you might only see in luxury cars trickle down into the mainstream vehicle market.
Some top-end new vehicles claim more lines of computer code than the F-35 stealth fighter jet! All that software requires a lot of silicon to run.
Your smart, connected, self-driving and possibly electric drivetrain vehicle will become the equivalent of a rolling supercomputer — and likely the most powerful tech you own.
Right now, companies like Waymo, Uber, Lyft as well a big auto names like Volkswagen (OTC: VWAPY). Meanwhile big name chipmakers like Nvidia (NASDAQ: NVDA) and others are working with pilot self-driving car programs.
Self-driving capabilities require some of the most sophisticated circuits to ever hit the consumer market. That’s a high-margin business for tech companies.
Plus, what will people do during their commutes as their cars are increasingly capable of driving themselves?
They’ll be using more electronics as they are whisked to work!
Over the next few years, the trend towards smarter electric cars will swamp any slowdown in vehicle sales… making automotive electronics the fastest-growing sector in semiconductor tech.
The current automotive bearishness marks a perfect time to invest in automobile semiconductor tech for big gains.
Plus, the current slump in auto semiconductor stocks could make a fast turnaround as early as next month as new technology is unveiled at Las Vegas’ Consumer Electronics Show as well as the Detroit Auto Show.
I’ll be attending at least one of these events in order to get a hands-on look at what 2019 will bring in automotive tech.
It’s a great time to buy shares in companies that specialize in high-tech auto components for the world’s automakers, or in semiconductor producers themselves.
It could become the most lucrative tech trend of the next few years or more!
Ray’s Cannabis Corner
Here’s one you can file under strange but true.
The new 2018 Farm Bill could bolster the tech sector…
How? Because part of the new Farm Bill includes measures for legalizing hemp cultivation. Hemp is widely being studied as a replacement for graphene in high powered supercomputers.
Graphene chips are superfast, and run a lot cleaner. But graphene isn’t cheap. However hemp could be, and could be the gamechanger in computing we’ve waited for in recent years.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily