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Semiconductor Stocks Are Worth Buying Today

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Semiconductors are a great way of investing for the future because all the technological progress that we can conceive of today is enabled by these pieces of logic or memory. These are the things that empower machines to follow our commands whether at the press of a button or by a voice command.

And depending on the nature and volume of chips used, machines can also operate in what we’d call intelligent ways. In fact, as the neural patterns in our brains are replicated by artificial neural networks, machines will be increasingly capable of doing most of the things that we do today.

So for example, the cars of tomorrow will have sensors picking up the details of their surroundings and send the information to the brain, where hundreds of processors will get to work to determine the correct course of action for the car, in real time.

Drug discovery will be hastened by several magnitudes, as computers do millions of processes in record time to determine the desirable course of action.

Retail will change in ways that we are just beginning to imagine today as augmented/virtual reality (AR/VR) goggles determine the best fit for our homes and ourselves. And of course there will be no cashiers, so no queues either. We simply pick what we want and get going, whether online or at the store.

Machines will also suggest the kind of food we are likely to enjoy or the kind of places we’d like to visit from all the tons of data that we’ve been feeding them. And they’ll also get the pesky housework done and order the stuff we’re running out of, as well.

And so many other things.

If this is our future world, it is a world full of semiconductors, and we haven’t even scratched the surface yet. I expect the change to happen rapidly over the next decade. So we simply must be invested in it. And there’s practically no better way than doing it with semiconductors, because they are the most important component of both the brainpower and the memory of these machines.   

Some companies like Nvidia (NVDA - Free Report) and Micron (MU - Free Report) are extremely well positioned for this already.

Then there’s Advanced Micro Devices (AMD - Free Report) , which is also going great guns and Intel (INTC - Free Report) , which has fallen out of favor since it squandered its process lead. But there’s good technology there.

Another one is NXP Semiconductors (NXPI - Free Report) , which can be a bet on the automated vehicle revolution.

But it isn’t just the big names that will make you the big bucks. Smaller companies like CEVA, (CEVA - Free Report) , Himax Technologies (HIMX - Free Report) and Diodes Inc. (DIOD - Free Report) are also going laces. And then of course, the rising tide will lift most if not all boats. So as long as a company’s technology is well differentiated, the management team is sound and the cash position is good, this is a market segment that will be hot for years to come.

Semiconductor Stock Performance-

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