What to Expect from Tech Stocks 2017
Dear reader: in the last three quarters, you may have noticed that we have featured a lot of microchip stocks on Profit Confidential. This is because there was a big change in the market—a change that few retail investors even knew was happening.
Unbeknownst to the Average Joe, an arms race had kicked off between some of the world’s biggest tech companies. But, rather than racing for the next great weapon of war, these titans of tech are hunting for an “iPhone”-level success story.
There was no greater success than the iPhone during the last decade, which is how Apple Inc. (NASDAQ:AAPL) accrued monster-sized gains during those years. But the smartphone wars are over. The next big winner has to come from an entirely different corner of the tech market, such as data centers, virtual reality (VR), or drones. You may have heard about some of these developments, but the real scale of these changes are enormous. Institutional investors are betting heavily on these developments—and we’ve been paying attention to their movements.
But we have a slightly different approach to how to get rich on these big changes in the tech market. One of our key strategies has been to bet on suppliers rather than end manufacturers. Let me explain…
Imagine you were alive during the Gold Rush era. Anyone with enough ambition and courage is heading out West to dig up their fortune. Do you follow them into those mines and waterways? There would be a possibility that you hit gold and strike it rich, but the chances would be slim.
What if, instead of standing knee-deep in mud digging with 1,000 other guys, you decide to open a shovel stand? By selling digging tools to fortune-hunters, you would get a steady stream of business without any of the risk. We believe this is an appropriate metaphor for the current tech market. Everyone is rushing towards VR, data center expansion, and drone technology.
But who is selling them shovels? Who is supplying the digging tool-equivalent for this 21st Century Gold Rush? Answer those questions and you’ll unlock the door to untold wealth.
Lucky for you, we have done the legwork. Our analysis shows that microchip makers are today’s shovel-makers. Any company trying to build a VR device, data center, or drone needs to acquire these essential building blocks, which means that microchip stocks are an amazing way to get rich off the 21st Century Gold Rush.
Our team of analysts have kept their ears to the ground, eyes glued to trading screens, and brains hopped up on coffee to find you the best stocks. To keep up with the latest gems that we’ve identified, click the links below.