That’s how our tech investing expert and former semiconductor industry insider, Jeff Brown, describes the global chip shortage.
As we covered yesterday, computer chips – aka semiconductors – are the “brains” in everything from your smartphone to your laptop… to medical devices, cars and trucks, air conditioners, fighter jets, and missile defense systems.
They’re essential to most of the tech we use today.
Not only that, but artificial intelligence (AI)… 5G networks… self-driving cars… and other bleeding-edge tech trends now need more semiconductors than ever before.
The problem is, there aren’t enough chips to go around.
The media is acting as though the sky is falling on our heads. But where the mainstream sees calamity, Jeff sees opportunity.
He’s now more bullish than ever on the chip industry. As supply chains come unglued, demand is ramping up.
And as you’ll see today, Jeff says one company is poised to take the lion’s share of that growth.
That’s because we haven’t seen a supply shock like it since the “oil shock” of the 1970s.
If you’re over a certain age, you’ll remember it.
Following an embargo on oil exports by the OPEC oil cartel, gas shortages became common in the U.S.
Things got so bad, some gas stations adopted a flag system to cope.
A green flag meant gas was readily available. A yellow flag meant there were rations. A red flag meant there was no more gas.
But as Jeff explained in detail in a new online presentation he put together, the chip shortage isn’t the result of a cartel blocking exports.
It’s a result of supply-chain disruptions caused by the pandemic… along with booming demand for chips.
And right now, a record level of investment is pouring into the industry to build out new capacity.
Jeff says this will not only fix the chip shortage, it will also fuel an explosion of innovation and the next generation of advanced semiconductors.
He held executive-level positions at chipmakers Qualcomm (QCOM) and NXP Semiconductors (NXPI).
While President of NXP Semiconductors Japan, he worked closely with Sony (SONY) to make chip sets for the latest gaming consoles and other consumer electronics devices.
And since joining us here at Legacy Research, he’s been devoted to researching and recommending bleeding-edge technology stocks to his readers.
That’s worked out well for folks who’ve acted on his recommendations.
At The Near Future Report, Jeff has given his readers the chance to make a gain of 212% on payments processor Square (SQ)… 385% on cloud-based electronic signature company DocuSign (DOCU)… and 488% on chipmaker Nvidia (NVDA).
And keep in mind… These aren’t tiny tech start-ups fraught with risk. They’re blue-chip tech stocks with $16 billion, $1.8 billion, and $22 billion in sales, respectively… and market caps of $108 billion, $50 billion, and $513 billion, respectively.
More impressive still, the longest holding period of the three is just over two and a half years. (Jeff recommended NVDA in January 2019.)
It’s the world’s largest semiconductor foundry company – Taiwan Semiconductor Manufacturing (TSM).
A foundry makes chips to order for other semiconductor companies that don’t have fabrication plants.
TSM controls about 57% of the global chip foundry market. And it’s responsible for about 90% of advanced semiconductor manufacturing.
It’s so powerful right now in the industry, it was recently able to flex its muscles and raise its prices. Over to Jeff…
TSM is raising prices on its most advanced semiconductors by about 10%. These are the kinds of semiconductors that power iPhones and other advanced consumer electronics devices. For less advanced chips – like the ones we use in cars and trucks – prices will rise as much as 20%.
Most mainstream reports say its the supply-chain disruptions that have allowed TSM raise its prices and fatten its margins. And yes, there are shortages. But something different is going on…
Demand for semiconductors is off the charts right now. And it’s only going to ramp up further still. Tech is advancing at an exponential, not a linear, rate. That’s magnitudes faster than most of us can conceptualize. This is turbocharging demand for the chips that make this possible.
As we connect more devices via the Internet of Things… build out cloud computing… roll out 5G… develop faster, more powerful gaming consoles… and scale up AIs and self-driving cars… the semiconductor market will have to grow to meet the new demand.
By 2028, Fortune Business Insights forecasts the global chip market growing to $803 billion – from $426 billion in 2020.
That’s a doubling of the addressable market for TSM over the next seven years. Some chipmakers even project $1 trillion in global chip sales by 2030.
That’s a massive opportunity. I’ll leave Jeff with the last words on that…
TSM is an opportunity to essentially benefit from all of the innovations being driven in the semiconductor space. And we have the opportunity to buy in now while this industry-leading company builds out the next generation of advanced semiconductors.
The company has proven time and again that it can improve semiconductor manufacturing processes above and beyond its nearest competitors. What’s more, TSM’s entrenched position in the market ensures it will remain on the leading edge of chip manufacturing for years to come.
Consider adding some shares of Taiwan Semiconductor Manufacturing (TSM) to your portfolio today.
And if you’ve already joined Jeff as a Near Future Report subscriber, you can find Jeff’s four top chipmaker recommendations here.
Jeff doesn’t just offer his readers insights into the bleeding-edge tech that’s reshaping the world…
As I showed you up top, he also brings them outsized profit opportunities.
And one of Jeff’s newest subscribers just got in touch to share his success so far…
Just wanted to reach out and give you my feedback since joining Brownstone Unlimited [Jeff’s top membership tier]. I couldn’t tell you how pleased I am up to this point. The fee to join the service has been paid for twofold! This is all in the course of 6 months.
A big thanks to you and your team for the wealth of knowledge you bring to your subscribers.
– Filip G.
Has Jeff’s advice handed you a big win? Will you be buying shares in Taiwan Semiconductor Manufacturing (TSM) to profit from the “tech shock”?
Let us know at [email protected].
September 30, 2021