[Charts] Rise of the Machines… And Chip Stocks

Lou Basenese

Friday, November 12, 2021

It’s Friday in the Trend Trader Daily Nation...

That means it’s time to add some excitement to our usual word-based investment analyses. How? By ushering in a handful of charts.

If nothing else, charts make it a whole lot faster to digest new information, make some investments — and then get on with the weekend!

With that in mind, today I’m featuring:

  • The most obvious buy in the market — or should I say, what’s still the most obvious buy in the market.
  • A heartstopping warning about profiting from meme-coins.
  • And not one, not two, but three timely investments in the hottest sector in healthcare right now, based on venture funding.

So let’s get to it…

Semis (Still) Surging

Literally since the start of the pandemic, I’ve been telling you to back up the truck and buy chip stocks.

Again and again and again. And again today!

Why? Because the trend is our friend, and it isn’t letting up anytime soon.

As you can see, the Philadelphia Semiconductor Index (SOX) keeps hitting record highs on what seems like a daily basis.

And given the extreme shortage of chips in the face of ever increasing demand, the profit party is far from over here.

So keep buying chip stocks, especially my favorite — Atomera Inc. (ATOM).


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Squished

Being a fundamental analyst can be hard when so many “FOMO” investors are pocketing millions of dollars trading trashy meme-stocks and cryptocurrencies.

Before you give up and join them, though, a few words to the wise: think twice!

Hype and fad-driven investments devoid of any fundamentals are subject to sudden and permanent price declines.

Case in point: Squid Game coin, which, as it turns out, had no direct connection to the widely popular Netflix series by the same name.

After soaring more than 2,000%, prices crashed literally to zero in less than 24 hours. And never recovered.


(click image to enlarge)

Forget being a vehicle to generate wealth, meme-coins have a higher probability to destroy wealth.

If you really want to identify low-risk investments that have a high probability of big profits, I’ve got the answer for you...

Follow the “Smartest” Money

I’m often asked how we should time our tech investments just right.

After all, there are so many new technologies emerging at any given time, it’s impossible to invest in them all at once. Not to mention, they all seem to launch into the stratosphere at different rates.

You’ll recall, I shared one foolproof strategy with you before: use Gartner’s Hype Cycle.

Another way involves monitoring money flows from venture capitalists.

A few weeks ago, I alerted you to the fact that venture investors are going “all-in” on robotics and automation.

Based on the latest data, it turns out that they’re also particularly keen on investing in artificial intelligence companies in the healthcare sector.

(Think AI-based drug-discovery platforms and diagnostic companies.)

As you can see, healthcare AI startups had a blockbuster quarter, raising over $3 billion.


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Of course, all this money is going into early-stage startups that are likely years away from generating profits for investors.

But fear not. If you want to capitalize on this trend – and profit from it right away, too – I have three options for you.

First (and second) of all, you can buy established companies in the AI drug-discovery space — like the roughly $1 billion market cap BioXcel Therapeutics, Inc. (BTAI), and the $3.3 billion market cap Schrödinger, Inc. (SDGR).

Or thirdly, you can find under-the-radar micro-cap players in this sector that are on the brink of reporting key data and forging significant strategic partnerships...

Just like the one I’ve identified for today’s Trend Trader Pro “Trade of the Week” below.

Don’t miss out!

TREND TRADER PRO
TRADE OF THE WEEK

[ ACTION TO TAKE ]

FOR TREND TRADER PRO READERS ONLY
>>>>>>>>>> Learn more <<<<<<<<<<

Ahead of the tape,
Lou Basenese
Lou Basenese

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