To The Moon

Semiconductors are being more advanced and dangerous

Semiconductors and microchips have been advancing at a very fast rate. Decades ago, there would have been only some transistors on semiconductors and microchips. But now, there are millions of transistors and semiconductors and microchips. These technologies are crucial to make computers, laptops, tv’s, phones, and many other electronic devices. And the two most important countries that aid in creating semiconductors and microchips are Taiwan and The Netherlands.

Introduction

Taiwan has many factories that create semiconductors and microchips, and the Netherlands has a company where it creates some of the world’s most advanced semiconductors and microchips.

NVIDIA, one of the largest companies of semiconductors and microchips, manufactures a lot in Taiwan. NVIDIA is also good stock right now to buy due to their AI chips being popular due to the increased demand of AI. However, good investors also look toward global policy and international news as well when deciding which stocks to buy.

There is an increased risk of China invading Taiwan due to their semiconductors and microchips, and 65% of the world semiconductors and microchips output will go away. This is the risk with semiconductors and microchips right now.

Risk vs Reward

Reward

NVIDIA Stock chart

Right now, NVIDIA $NVIDIA Corp(NVDA)$ is a great stock to buy. In February 1st, it was $209.43 a share. Now, it is $232.92 a share. NVIDIA has beat their EPS (earnings per share) of 9.46% and revenue of 0.53%. Soon, it’s also suspected that they will advance into AI and the cloud much faster than many companies and will dominate AI and the cloud for a good amount of time.

NVIDIA teamed up with Microsoft, ironically since Microsoft is also developing their own AI, to build a massive AI cloud computer for NVIDIA chips. They’ve also progressed in accelerated data science for data analytics, machine learning, deep learning, graph analytics, and accessibility of accelerated data science among other advances.

If international relations between Taiwan, China, and other countries stay strong, then it’s no doubt to buy NVIDIA stock. However, there is a risk as well.

Risk

China has been increasingly cautious on whether or not to invade Taiwan. On one side, it could gain access to Taiwan’s semiconductors and microchips and control the semiconductor and microchip industry. On the other, it would gain international criticism and a potential world war could break out. The US and it’s allies would go to Taiwan and fight against China, creating a war that will fight for semiconductors and microchips. Both Taiwan and China are getting ready to deploy drones, tanks, and troops as they might fight for control.

However, there may be not a lot that China could gain. If China does take control of Taiwan, the factories wouldn’t be able to operate due to them being dependent on global supply chains.

NVIDIA and other companies can be destroyed, and it will take a lot of time for the world to recover.

Conclusion

The future of semiconductors and microchips is uncertain, but it depends on international policy and relations. If China decides not to invade Taiwan, NVIDIA and other semiconductor and microchip companies will soon be able develop further into AI Cloud, especially NVIDIA, and will soon create billions of dollars in profit, benefiting investors, NVIDIA and semiconductor and microchip manufacturing companies, and the world as the world will progress in AI. However, there is a risk as well.

If China does decide to invade, then this will cause a world war and semiconductor and microchip companies will not be able to produce chips, which will greatly negatively affect the world. For some people, this risk may not seem big as China probably won’t invade Taiwan due to international criticisms. For others, the risk may seem big as China invading will cause a huge disrupt in the semiconductor and microchip industry and a huge negative impact.

Whether China decides to invade or not, the future of semiconductor and microchips stay uncertain and only time will tell as to if a billion dollar industry will develop and create a new form of semiconductors and microchips, or if the world will be halted by a world war and a sudden stop in production of semiconductors and microchips.