Several times during the course of this year, I’ve written to you to make sure you’re aware just how much of a huge profit potential the semiconductor industry has right now.
After all, global semiconductor sales are projected to grow by 25.1% this year, and another 10.1% in 2022.
And as more and more devices require advanced microchips with technology ever-improving, it’s safe to say there’s a lot of money to be made in this industry.
For much of the year, the narrative has been delays from Intel Corporation (INTC) costing the company valuable market share and revenue.
And this week, those delays have continued to hurt Intel, while providing a boost to some of its biggest competitors.
In 2019, Intel signed a deal to build a supercomputer to the U.S. Dept. of Energy capable of exascale performance – the ability to perform 1 quintillion calculations per second.
The new Aurora supercomputer was initially supposed to be delivered in 2021, but persistent delays in Intel’s ability to develop and produce on their most advanced chips have pushed back the expected arrival to sometime in 2022 at earliest – and opened the door for some of Intel’s biggest competitors.
While the Dept. of Energy waits on Intel, it has turned to Advanced Micro Devices, Inc. (AMD) and NVIDIA Corporation (NVDA) to provide it with their Polaris supercomputer that, although less powerful than Intel’s, can be delivered much faster.
Intel’s contract to deliver the Aurora supercomputer is still on, the Dept. of Energy will simply use the Polaris supercomputer to begin testing and readying software for Intel’s machine whenever it is finally delivered.
The bad press continues to pile up for Intel while allowing its competitors additional footholds in the lucrative supercomputer space (Intel’s Aurora supercomputer came with a $500 million price tag).
In addition, the distinction of producing the first exascale supercomputer in the U.S. will likely no longer be going to Intel, but instead be achieved by Hewlett Packard in the machine it is building for the Oak Ridge National Lab in Tennessee. That supercomputer will be powered by Advanced Micro Devices chips.
For now, your best bets in the semiconductor industry continue to be AMD and NVDA, as both have reported strong earnings this year and have attracted a ton of new buyers in recent weeks.
Trading tip of the week
I always keep an eye on holidays when the stock market is closed.
Usually, the days before a holiday are slow in the stock market, providing less quality trading setups.
Labor Day is Monday, September 6th, so plan on being less aggressive in your trading this Friday.
Earnings report to watch
Retail has been among the most beaten down sectors over the last 18 months as the world struggled with lockdowns and restrictions.
But with more and retailers able to open their doors at greater capacity, we’re starting to see improve top and bottom lines from the largest names in retail.
Lands’ End, Inc. (LE) reports this Thursday, and analysts are expecting huge increases in revenue.
The problem with the market expecting a beat means that an earnings report really needs to impress for the stock to move higher.
Any shortfall, and investors tend to overly-punish stocks that otherwise had a solid report.
So in situations like this, I tend to shy away from trading around earnings where everyone expects big things.
Score massive profits working just three days a week
While the gains on AMD and NVDA stock this year have been fantastic, it’s chump change compared to the gains Project 303 members have the chance to secure every week.
Three days a week, I’m scouring the market for the largest institutional order flow. Once I know where the big money on Wall Street is moving, I let Project 303 subscribers know exactly how to ride that buying momentum to big profits – often in just a matter of days or weeks.
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The next Live Trading Room begins on Monday morning, and I want you to be a part of it. Click here to see everything you get as a Project 303 member.