Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The AI Stocks Megatrend Big Picture - 8th Mar 21
The Future of FINRA, Regulatory Defense and Bad Stockbrokers - 8th Mar 21
Almost Everyone Is Online: But Most of the Money Isn’t - 8th Mar 21
It is Time for Stock Market Investor Caution? - 8th Mar 21
Gold Predictive Modeling Suggests A New Rally Targeting $2300+, But When Will it Start? - 8th Mar 21
Gold: Crisis or Opportunity? - 8th Mar 21
US Bitter Cold Snap is a sign of the times - 8th Mar 21
How Scan Computers Builds Your Custom Built PC - Scan.co.uk Review (2) - 8th Mar 21
US Economy, GDP, Unemployment, Inflation Impact on House Prices Trend 2021 - 8th Mar 21
BACK TO SCHOOL - UK Coronavirus Lockdown Ending - Summer Holidays & Booming Economy Ahead - 8th Mar 21
So, Where Is Gold's Corrective Upswing? - 7th Mar 21
US Treasury Yields Rally May Trigger Stock Market Crazy Ivan Event - 7th Mar 21
The Great Reset Is Coming for the Currency - 7th Mar 21
Gold Continues Declines on Bond Yield Jitters - 7th Mar 21
The Case for Inflation - 7th Mar 21
Dow Short-term Stock Market Trend Analysis - 6th Mar 21
Intel Rocket Lake EXPLODE on Launch - 11th Gen CPU's RUN VERY HOT Bad Cinebench R20 Scores - 6th Mar 21
US & UK Head for Post Coronavirus Pandemic Lockdown Inflationary Economic BOOM - 6th Mar 21
FED Balance Sheet Current State - 5th Mar 21
The Global Vaccine Race Against Time and Variants - 5th Mar 21
US Treasury Yields Rally May Trigger A Crazy Ivan Event (Again) In Stock Market - 5th Mar 21
After Gold’s Slide, What Happens to Miners? - 5th Mar 21
Racism Pandemic Why UK Black and Asians NOT Getting Vaccinated - NHS Covid-19 BAME - 5th Mar 21
Get Ready for Inflation Mega-trend to Surge 2021 - 4th Mar 21
Stocks, Gold – Rebound or Dead Cat Bounce? - 4th Mar 21
The Top Technologies That Are Transforming the Casino Industry - 4th Mar 21
How to Get RICH Crypto Mining Bitcoin, Ethereum With NiceHash - 4th Mar 21
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade

Companies / AI Jan 16, 2021 - 05:40 PM GMT

By: Stephen_McBride

Companies

What was the most important financial event of 2020? Most folks would tell you it was the coronavirus pandemic and the economic devastation caused by government lockdowns.

But that’s wrong. For investors, the most life-changing thing that happened last year has to do with computer chips. In 2020, for the first time ever, the value of the computer chip industry surpassed that of the oil industry. The 30 largest semiconductor companies are now worth $2.5 trillion combined. Compare that to $1.7 trillion for the 30 largest oil firms.

This sent an important signal to investors. Oil is no longer the most important resource is the world. Computer chips are. Longtime RiskHedge readers know computer chips, also called semiconductors, are the “brains” of electronics.


There would be no iPhone, Amazon Webstore, or online messaging apps without them. Temperature sensors in air conditioners are powered by tiny microchips. Rice cookers cook rice to perfection because built-in semiconductors control the heat. The chip inside pacemakers sends electrical pulses to the heart to keep it beating regularly.

From flying across oceans to hailing a ride on our smartphones when we land, streaming movies to buying stuff online, checking out groceries to paying for dinner with your credit card: every modern system runs on chips.

You can’t grab a packet of microchips off the shelf at Walmart. But the latest cameras, TVs, washing machines, ovens, and refrigerators are all made “smart” by semis.

Last year, there were 300 billion computer chips sold. For perspective, we consumed roughly 34 billion barrels of oil last year. The five largest chip companies are now worth over $1.4 trillion combined. And chip stocks are ripping higher:

Semiconductors Are The Most Valuable Goods The World Has Ever Known

It took a staggering 498 people to prepare dinner for King Louis XIV. The French king was the richest of the rich, in the world’s wealthiest city at the time. What if I told you the average American today is “better off” than the 17th century king?

You likely don’t have a personal tailor like Louis did. But you can buy all kinds of clothes on the internet and have them dropped on your front porch in a few days. Louis travelled in a golden carriage with a personal chauffeur. You can fly to hundreds of destinations the king never dreamed of visiting.

Modern life is made possible by semiconductors. As I said, without them the internet and smartphones wouldn’t exist. Even airplanes rely on computer chips these days. They control autopilot, monitor jet-engine performance, and even measure the aircraft’s temperature.

Semis Are Also “Fueling” Every Future Disruption

A few weeks back, I wrote about a disruptor called Butterfly Network (LGVW). Butterfly invented a “beard shaver” shaped instrument that transforms any smartphone into an ultrasound machine:

How the heck did it achieve this act of “magic?” Traditional ultrasound machines use piezoelectric crystals, which turn electrical energy into vibrations in the form of ultrasonic waves. In short, this makes the machines bulky and expensive.

Butterfly’s world-class engineers reinvented how ultrasounds work and squeezed the technology onto a tiny chip. This is why their tech is called Ultrasound-on-Chip. Aeva (IPV) is achieving similar breakthroughs with self-driving cars. Aeva is one of the world’s top LIDAR companies.

LIDAR sensors that resemble a lawn sprinkler are affixed to the roof and front grill of the self-driving car. These sensors then send out roughly 160,000 pulses per second in all directions. And they can detect the smallest detail, like a leaf blowing in the wind. Aeva shrank the size of its sensor by 1,000X by bolting all the functions onto a semiconductor:

This helped Aeva slash the cost of a LIDAR sensor to roughly $500. That’s far cheaper than the tens of thousands of dollars you’d pay for the current top-of-the-range sensors.

Self-driving cars, artificial intelligence, computer vision, space tourism, and genomic medicine need faster chips. Semiconductor sales have only gone one way our entire lives: UP.

Chip companies are expected to rake in a record $470 billion this year. And all these future disruptions will likely push that well above $1 trillion.

Here’s My “Slam Dunk” Investment For The 2020s

A good exercise when sizing up a stock is to ask, “Could the world survive without this company?” The answer for the vast majority of firms is “Yes, we’d do just fine.” But if we woke up tomorrow to find NVIDIA (NVDA) had disappeared, the world would be a much worse place.

NVIDIA pioneered a new type of chip called graphics processing units (GPUs) back in the 1990s. GPUs were specifically made to improve video game graphics. But the disruptor achieved a major milestone in 2020. For the first time, artificial intelligence-related sales were its largest business. In the last three quarters, its AI business raked in $4.8 billion.

NVIDIA Is The “Brains” Behind The Most Important AI Projects

It powers several robocar startups, including Zoox and Google’s Waymo. Amazon and Microsoft’s giant data centers are also packed full of NVIDIA GPUs. Medical imaging disruptor Paige is using computer vision to revolutionize the way we diagnose cancer. Using a dozen NVIDIA GPUs, it trained a machine to detect early signs of tumors.

I first recommended NVIDIA back in 2018. As I said at the time, if I could buy only one stock for the next five years, NVIDIA would be it. The stock has doubled since then, and it’s headed much higher in the coming years. That’s why it’s a current buy in my Disruption Investor advisory.

Last year, NVIDIA took the mantle of “America’s largest chipmaker” from Intel for the first time ever. This kicks off a new era, and my research suggests it will be one of world’s 10 largest companies by 2025. Investing in leading chipmakers like NVIDIA is the surest way to make money over the next decade.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"
Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2020 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules