Chips, the basic building blocks of computation, have become integral in everything from smartphones to cars, laptops, PCs, video games and data centers. As the pandemic supercharged the demand for computing, the world faced the worst chip shortage in many years.
Most advanced chips are designed in the US, but only about 12% are manufactured here. Taiwanese chipmaker TSMC
TSM
, the world’s largest contract chip manufacturer, accounts for more than 90% of the world’s most advanced chips. The company plans to increase prices of most chips by 10% to 20%, per WSJ.
We have also seen an acceleration in the industry consolidation, with Nvidia’s
NVDA
plan to acquire chip designer Arm Holdings for about $40 billion and AMD’s
AMD
$35 billion deal to purchase Xilinx
XLNX
. Western Digital
WDC
is planning to merge with Japan’s Kioxia in a deal exceeding $20 billion.
To learn about iShares PHLX Semiconductor ETF
SOXX
, VanEck Vectors Semiconductor ETF
SMH
, SPDR S&P Semiconductor ETF
XSD
and Invesco PHLX Semiconductor ETF
SOXQ
, please watch the short video above.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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