Watch out, Chip Counters

ThinkOrSwim
2022-04-27

Evidence is here; GM's earnings are meeting market demands as semi-conductor chip supplies are still available to meet manufactoring needs. This broadly contradicts the views of those who hang onto the narrative that chip shortages will create a premium price for Chip counters.

Going forward, I'd look for counters that are able to take advantage of their postion in securing resources to meet on-going consumer and business demands - esp. those where consumers and businesses are willing to pay a premium for such counters' products and services. 

To end this article, I probably won't take a position in GM though - simply for the reason that its earnings trajectory to-date looks uneven.

Happy trading and make the best of your hard-earned money. [Happy] 

https://www.bloomberg.com/news/articles/2022-04-26/gm-raises-outlook-tops-profit-views-with-chip-shortage-easing

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Comments

  • MengKeng
    2022-04-27
    MengKeng
    all chip stocks will rise in the long run with AI and ML technology replacing human, haha
    • ThinkOrSwim
      If AI replaces humans, then it’s an inflection point where humanity’s existential being becomes a risk. Careful on what you wish for. I would read Stephen Hawking’s book before going with that notion.
  • Numero
    2022-04-27
    Numero
    At some point the supply crunch will be overcome. All in due course.
  • ToughCoyote
    2022-04-27
    ToughCoyote
    Yes even with such news the stocks leep falling
  • Ultimate Dystopia
    2022-04-27
    Ultimate Dystopia
    great
  • Huathuat23
    2022-04-27
    Huathuat23
    Hais
  • Cassmeow
    2022-04-27
    Cassmeow
    nice
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