Semiconductors…I have been looking at the wrong 'Tell'

The SMH is a useless ‘TELL’. Freaking Intel and some other old semi stocks like Applied Materials just count too much. My bad. The world has changed and I have been a tad lazy lately scouring for new ideas.

At least I own nVidia (NVDA). That’s our semiconductor bellweather now. If you own a fund and it owns Intel, fire the fund. Same for Microsoft. You have a lazy manager.

The gaming cycle is the real cycle and it’s just too big and strong and wide to stop. Home entertainment is not far behind, but it’s too convoluted and crowded with the big players.

I did own SIGM and we Wallstripped it back in November , but seeing that I counted is at a component play, I sold too early. The stock is hitting more all-time highs. Good.

Elsewhere in chipland, I am eyeballing WFR – also Wallstripped last week. It has quickly recovered most of it’s losses from the sub-prime swoon (like that can stop the solar move) and looks like a leader. Shoulda, coulda…

Also eyeballing MPWR (thanks ERIC) – lord knows what the hell it is they are doing, but it’s poised at all-time high land. I will likely take down a few shares for shits and giggles as it does.

Chips are also powering all the freaking unmanned warplanes and drones raining hell on our enemies. I have not done that much work in the space, but one look at UIC (thanks ERIC) which makes the drones makes me want to delve . I need more time…or some good feedback from you.

Screw the old time SOX index, there is massive strength in selected chips. Tech should be going higher over the medium term.

Disclosure- Long nVidia


  1. Thomas says:

    I think I commented on chips already here. Intel and MSFT just fail to bring something new. In the case of semiconducturs: Face it, the Integrated Circuit is around since the early 70s. And besides making it smaller, they do not add that much innovation to it. Maybe the techs that provide the chip industrie with Hardware to do the shrinking of chip sizes would be worth looking into. Or better yet, look at companies that take the technology and use it in new Products – nVidia comes to mind, or also MPWR, who by the way provides chips for the digital cam, Mobile, Laptop etc. Industry. They do signal processing with them. So as nVidia they specialize. I think that’s where the money is now. Everybody knows how to do ICs. It’s how you use them that gets important. Gaming could become big. Not a fan of MSFT either though…

Comments are closed.