[Charts] Chip-Stock Mania and Apple's Next Conquest

Lou Basenese

Friday, February 12, 2021

Can I get a whoop whoop? Because it’s Friday in the Trend Trader Daily Nation.

That means slinging words takes a backseat to flashing pictures, so I can quickly convey an important investment insight or two.

This week’s edition includes an urgent reminder about why I’ve been pounding the table about chip stocks since, oh… since the beginning of the pandemic!

Don’t fret, though. This profit party’s just getting started.

Then, I’ll dish on why you should never discount Apple’s dominance — and how we can turn that dominance into triple-digit profits ahead of the tech giant’s next big launch.

So let’s get to it…

Chips Out Everywhere

The newswires are suddenly overrun with headlines about a global chip shortage. But I alerted you to this potential last April (see here), and even shared four chip investments to scoop up right away.

Whether you opted for the conservative ETF or individual stocks, this trade has worked out very well:

  • Lam Research Corporation (LRCX): +109%
  • NXP Semiconductors (NXPI): +104%
  • iShares PHLX Semiconductor ETF (SOXX): +87%
  • VanEck Vectors Semiconductor ETF (SMH): +92%

And now let me explain why this trade will continue to keep working:

In the automotive sector alone, the global chip shortage is expected to cause $61 billion in missed revenue.


(click image to enlarge)

Newsflash: This pent-up demand isn’t going to disappear. It’s guaranteed to be unleashed. And now that the current administration has pledged aggressive steps to overcome supply-chain bottlenecks, it’s guaranteed to be unleashed faster.

So, let me put this as plainly as I can: buy more chip stocks!

Apple: Watch Me Now

When Apple plunged into the wearables space and immediately made Fitbit irrelevant, most investors insisted that the Apple Watch would never become a big deal.

In fact, the device was universally mocked.

But today? Apple Watch users recently topped 100 million. It’s universally worn.


(click image to enlarge)

Why bring this up? Simple: because Apple is setting its sights on the “next big thing” in consumer electronics: augmented reality.

As always, expect nothing less than total market dominance.

For that to happen, though — for all the reasons I shared last week — Apple will need to bolster its capabilities via a timely and strategic acquisition…

An acquisition of Vuzix Corporation (VUZI).

It’s not too late to profit here, either. Don’t miss out!

Ahead of the tape,
Lou Basenese
Lou Basenese

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