Inference: as a result of the pandemic, there could be a decline in mobile device usage. If persons do not venture out of doors as frequently, they should not have the same desire to acquire a new smartphone. It is just intuition that either existing phones might not be upgraded or folks would use a household computer.
The iPhone continues to be Apple’s (AAPL) most important product. The firm is worth over $1 trillion, actually above $1 1/3 trillion! It is one of the heaviest-weighted companies in the S&P 500 (VOO), as well as several other technology funds (VGT). Not only that, the corporation’s activities affect those of other businesses, such as its suppliers.
Qualcomm (QCOM), a chip maker known for licensing its designs, might be well-positioned for the future, in part because it owns technology to be utilized in Apple’s implementation of 5G handsets. However, currently, no bet is being made on QCOM here. Its stock, and Apple’s, have continued to climb since March though.
There is a list of other semiconductor firms that produce chips utilized in smartphones, not
powerful application processors, but hardware that processes radio frequencies, conserves battery power, allows secure wireless communications, affects touchscreen gestures, and so forth. Such companies include Skyworks Solutions (SWKS), Broadcom Ltd (AVGO), Qorvo (Qrvo), NXP Semiconductors (NXPI), and others. An electronic fund that tracks chip corporations is SOXX.
Some of the above may have encountered further challenge amid the most recent governmental action against China’s Huawei. Allegations involve security, or the possibility of Chinese espionage. Whether concerns are well-founded or merely plausible, Huawei does have a meaningful position in the future implementation of 5G technology. As such, the current United States policy might be one of protectionism–we have viable competition?
The overall market has already corrected with the onset of Covid-19 and some shock such as a natural disaster or war might be needed for it to decline again. However, if expectations are too high for Apple, there could be a damping effect upon stocks over the next several months, and perhaps even into the distant future. Some claim that Apple is not a technology company but is in consumer products, which is the worry.
If looking for microchips to invest in, there are still firms involved in processing power. Namely, Intel (INTC), Advanced Micro Devices (AMD), and Nvidia (NVDA). The latter is at the vanguard, and researches artificial intelligence and machine learning, which are believed to be technologies of the future. Nvidia is also known for its graphics cards that are prized by gamers. Imagine all the people studying computer science nowadays: Nvidia’s products are for them.
Yes, shares of Nvidia might be like owning the market’s leadership that is identified with intelligence. That is to say its chips are not sensors or controllers that allow household appliances to connect with mobile devices (IoT) but are associated with computing performance. The value of its equity might continue going up and up, even if there trouble for Apple at hand.
However, there is no guarantee that it is worthwhile to buy NVDA stock today. Though it started the year at about $250 per share, it is now just over $350. Sometimes when stocks are at or resetting all-time high prices, investors or traders eliminate risk by selling. Also, the company is scheduled to report its quarterly earnings on Thursday, May 21st. If a stock heads into its earnings report with this type of enthusiasm, the situation can be such that no matter how terrific results are they do not meet expectations.
Apple is a huge company, valued at substantially over $1 trillion. It may have problems with consumer demand for its smartphones that stem from Covid-19. Even if it does not, sanctions against Huawei should not make things any easier for suppliers of microchips. However, if the market is to trend higher, Nvidia may continue to be among its leaders.
The author owns, but may sell, NVDA stock over the next 72 hours. The author owns VOO and VGT.
The iPhone continues to be Apple’s (AAPL) most important product. The firm is worth over $1 trillion, actually above $1 1/3 trillion! It is one of the heaviest-weighted companies in the S&P 500 (VOO), as well as several other technology funds (VGT). Not only that, the corporation’s activities affect those of other businesses, such as its suppliers.
Qualcomm (QCOM), a chip maker known for licensing its designs, might be well-positioned for the future, in part because it owns technology to be utilized in Apple’s implementation of 5G handsets. However, currently, no bet is being made on QCOM here. Its stock, and Apple’s, have continued to climb since March though.
There is a list of other semiconductor firms that produce chips utilized in smartphones, not
Some of the above may have encountered further challenge amid the most recent governmental action against China’s Huawei. Allegations involve security, or the possibility of Chinese espionage. Whether concerns are well-founded or merely plausible, Huawei does have a meaningful position in the future implementation of 5G technology. As such, the current United States policy might be one of protectionism–we have viable competition?
The overall market has already corrected with the onset of Covid-19 and some shock such as a natural disaster or war might be needed for it to decline again. However, if expectations are too high for Apple, there could be a damping effect upon stocks over the next several months, and perhaps even into the distant future. Some claim that Apple is not a technology company but is in consumer products, which is the worry.
If looking for microchips to invest in, there are still firms involved in processing power. Namely, Intel (INTC), Advanced Micro Devices (AMD), and Nvidia (NVDA). The latter is at the vanguard, and researches artificial intelligence and machine learning, which are believed to be technologies of the future. Nvidia is also known for its graphics cards that are prized by gamers. Imagine all the people studying computer science nowadays: Nvidia’s products are for them.
Yes, shares of Nvidia might be like owning the market’s leadership that is identified with intelligence. That is to say its chips are not sensors or controllers that allow household appliances to connect with mobile devices (IoT) but are associated with computing performance. The value of its equity might continue going up and up, even if there trouble for Apple at hand.
Apple is a huge company, valued at substantially over $1 trillion. It may have problems with consumer demand for its smartphones that stem from Covid-19. Even if it does not, sanctions against Huawei should not make things any easier for suppliers of microchips. However, if the market is to trend higher, Nvidia may continue to be among its leaders.
The author owns, but may sell, NVDA stock over the next 72 hours. The author owns VOO and VGT.