How to Think About Semiconductor Stocks

Semiconductor stocks can make you rich, especially when the industry stands on the cusp of another enormous revolution. This slideshow will show you how.

Jun 5, 2014 at 10:45AM

There's money in those chip wafers! Source: Intel

Thanks to the personal computing and mobile revolutions, the semiconductor market has made a bushel of millionaires already. For example, QUALCOMM (NASDAQ:QCOM) rose to dominate the mobile market in many ways, and shares have soared 2,600% in the last 15 years. For another example, NVIDIA (NASDAQ:NVDA) straddled the border between mobile computing and high-performance graphics, reaping a 1,090% shareholder return in a decade and a half.

Right now, the industry stands on the threshold of another game-changing overhaul. Texas Instruments (NASDAQ:TXN) and Qualcomm are poised to pounce on the Internet of Things. And you can never count Intel (NASDAQ:INTC) out of any new computing market.

But what separates these great names from the lesser lights? For every success story in the Qualcomm mold, there are ten disasters like the huge OmniVision Technologies (NASDAQ:OVTI) misfire in 2009.

Anders Bylund is a longtime Technology Specialist here at the Fool. In the slideshow below, he lays out how he thinks about investing in semiconductors. You'll learn why the semiconductor sector is so exciting, the core characteristics of popular business models in this industry, and walk away with three crucial metrics to watch.

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in Apple? Or to load up on Qualcomm in the 1990s, and then just keep holding? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure-play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 TRILLION industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

Anders Bylund owns shares of Intel, Micron Technology, and OmniVision Technologies. The Motley Fool recommends Apple, Cypress Semiconductor, Intel, Linear Technology, and Nvidia. The Motley Fool also owns shares of Apple, Intel, and Qualcomm. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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