It looks like the U.S. government has decided to get behind the semiconductor industry, offering up a more than $50 billion bill to boost semiconductor production. The legislation is part of a Chinese competition act, looking to incentivize semiconductor production within the U.S. and decrease dependence on Asia-based manufacturers.
After the Senate, the bill will go to the House and then to the President. The tax breaks and incentives are supposed to encourage the construction of production plants based in the U.S. for the semiconductor industry.
Who wouldn’t like this? No more chip shortages? We might finally get Playstation 5 gaming consoles in stores more regularly. Automotive companies like Ford (F), General Motors (GM), and Tesla (TSLA) would love to get their hands on chips faster, right?
But there’s a catch… There’s no such thing as free money.
Companies like Advanced Micro Devices (AMD), Qualcomm (QCOM), and Nvidia (NVDA) design chips, but have other partners involved in the manufacturing process, therefore they would not benefit as much.
So who are the companies that are most likely to benefit from this windfall?
Keep reading and we’ll go over the companies you need to know about in the semiconductor industry, including one that could see a $30 billion check coming their way.
If this bill keeps going, you’ll want to keep your eye on Intel (INTC), Micron (MU), and Texas Instruments (TXN). Each of these companies manufactures their own chips so they would benefit from this bill as well as the FABS Act, which includes tax credits for investment in semiconductor fabrication, like purchasing tools that go into the factory.
That’s right, you could see one of these companies walk away with $20 billion from CHIPS and another $10 billion from FABS, for a combined payout of $30 billion.
We don’t know the exact amount that would go to each company, but we do know that Intel (INTC) already announced a plan in January to invest $20 billion to build two chip factories in Ohio. INTC could then see another $10+ billion from the FABS Act, which offers a 25% discount on the fabrication costs for anything needed to be built within these factories.
We’re still in a bear market, even though it may not seem that way since INTC has gained over 10% since July 5th. There’s some resistance at $45, but that’s still another 12% away. Before we get there, I would not be surprised to see a pullback here and it could certainly fall apart if the bill fails, but this is a stock that I’ll be following.
As much fun as it is to speculate and look at a chart and make some trades, that can easily lead to haphazard results. The emotional swings of the market can prevent you from achieving your goals.
Jody Samuels has agreed to make a two-part video training series completely free to the readers of Filthy Rich, Dirt Poor. This has something for everyone – doesn’t matter if you’re a seasoned pro or completely new to trading. It’s worth your time to check it out.
Make sure you watch this before it’s taken down.
Keep your eye on the jobless claims in the morning. Otherwise, let’s see if this bullish rally has more legs.
As we look for trade ideas, the U.S. government just handed over a potential big win for one industry. Will we see a boost to the clean energy stocks after the Senate voted to unlock nearly $370 billion this past weekend?
What does all of this mean for the future? Are the jobs reports good or bad?
Keep reading to find out the key levels for the S&P 500 and what reports are likely to move the markets this week.
We could see another strong month ahead for tech and there’s one symbol that you may want to add to your trading list.
Keep reading to learn more about the one symbol that could have a strong August.
As the markets remain relatively flat, theta decay is your friend this week so I thought I’d write about a trade that has been showing remarkable accuracy lately.
This one trade has a 90% accuracy rate. Keep reading to find out more.
It wasn’t too long ago that the market was reacting (or overreacting) to every piece of news that was published. Over the last month and a half, the markets have settled down some. That can be seen from the VIX (volatility index) which has been steadily decreasing since the mid-June market lows.
The Mediots Are At It Again
As we’ve explained over the last few months, it was likely that the U.S. economy would meet the ‘technical’ definition of a recession (two or more consecutive quarters of negative GDP).
It’s official, the Fed increased interest rates by 75 basis points for a second straight meeting. Inflation remains high, job growth is slowing, and consumer confidence is at historic lows.
Maybe that’s why investors are rushing toward dividend investing to protect their portfolios. With a recession likely on the horizon, if we’re not there already, and dividend payouts projected to increase throughout 2022, there are three quality companies you should consider for your portfolio.
What can learn from the major companies that reported earnings?
Alphabet (GOOG/L) released earnings and missed overall, but their ad revenue beat expectations so their stock went up after hours. Microsoft (MSFT) missed on cloud revenue and ad revenue and their stock went down. Great.
267 Kentlands Blvd #225
Gaithersburg, MD 20878
P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)
Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.
Get notified about new articles, special events, training, and much more
Leave your info below to get more options and trading ideas to your inbox
Yes, send me news to my inbox.