Tick, Tick, Tick: 5G Buy!

August 1, 2019
By Vlad Karpel

RoboStreet – August 1, 2019

5G Rollout Has Long Runway of Future Stellar Growth 

There’s a lot of buzz surrounding the advances of 5G technology and how it will provide blazing speed resulting in much smoother connectivity for streaming, downloading files, browsing, fostering data crunching for AI, boosting big data transfer, and connecting the billions of devices around the world through the adoption of the Internet of Things (IoT). If global service providers don’t roll out 5G networks to their customers, they will see a rapid and material loss of subscribers. It’s that huge. 

Allied Market Research put out a recent note stating the “market for 5G technology is expected to reach $668 billion globally by 2026, growing at a compounded annual growth rate (CAGR) of 122.3% from 2020 to 2026. Increase in demand for low latency connectivity in industrial automation and surge in demand for content streaming services are the two major factors that drive the growth of the global 5G technology market.Very few disruptive and innovative technologies provide the growth potential to match 5G in both scale and real dollars. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

For the past couple of months, I’ve been highlighting specific companies that own their own proprietary technology to address the 5G market, which makes perfect sense. Last week, I laid out the investment case for Cisco Systems (CSCO), a clear leader in the space and a company that can offer a whole suite of 5G products suited its customers. And this past week, we saw shares of Texas Instruments (TXN) soar to new highs on the strength of its core analog business while also guiding to future robust growth that will be driven by demand for 5G chips. 

So, looking deeper into the sector as to which other companies stand to be the biggest winners from the transition from 4G to 5G, it became clear that the world’s largest contract semiconductor manufacturer would be among the front runners. I’m talking about Taiwan Semiconductor (TSM), the purest play within the independent chip foundry sector anywhere. 

The company offers a triple threat of bullishness for its shares to outperform for the balance of 2019 and 2020. TSMC serves a huge customer base, Apple being its biggest customer that accounts for about 20% of revenue. There is huge opportunity to garner big market share for manufacturing products for not just 5G, but cloud, AI, autonomous cars and IoT – all of which are megatrends with multi-year visibility. 

Taiwan Semi reported second-quarter 2019 results on July 18 that reflected further contraction of the broader global computer market, but also cited that the industry-wide inventory correction is nearing an end with the second half of 2019 looking more favorable. Two things are notable here. One is that TSMC is a bell-weather for not just the tech sector as a whole, but is a leading indicator of global growth as a whole. 

And though year-over-year revenues and earnings were down, they both handily beat analyst estimates while management was notably upbeat on the earnings call. It truly appears as if the overhang of slower global growth is about to lift as laid out by Taiwan Semi and the company has positioned itself to greatly benefit from the eventual recovery. According to the company’s website – TSMC serves about 465 customers and manufactured more than 9,920 products for various applications covering a variety of computer, communications and consumer electronics market segments. So, it has a pulse on most of the global IT marketplace, making it a reliable barometer for the rate of future growth. 

My proprietary AI platform is bullish on Taiwan Semiconductor. The Tradespoon Seasonal Chart has three of four probability indicators registering a “higher” reading for the next 20, 30 and 40-day periods. But the stock’s sudden move up from $38 to $44 makes an ideal entry point elusive. This is where my tools are so key to buying and selling at just the right time. 

Speaking of timing, my AI platform has produced a string of 28 straight winning trades for a 94.94% success rate. I think that qualifies to be included in the “unheard of” category of winning streaks. And I’m not playing around with special situation stocks or small or mid-cap stocks, or M&A rumor stocks or turnaround stories. Nope. My focus and my AI tools are focused entirely on blue-chip stocks and ETFs. There is no need to increase risk when there is so much opportunity working with the best-of-breed. 

Just in the past few weeks, subscribers to my RoboInvestor advisory have rung the register in Coca Cola (KO), Lululemon Athletica (LULU), Microsoft Inc. (MSFT), Amazon.com (AMZN), JP Morgan (JPM), PayPal Holdings (PYPL), Honeywell International (HON), Whirlpool Corp. (WHR) and Applied Materials (AMAT). 

While market volatility is set to expand as we head into the late summer and early fall months of August, September, and October where history shows market conditions being significantly more difficult, it really behooves anyone serious about managing through this period to have a toolbox of sharp-edged technology to benefit from. AI was not available to retail stock investors until recently. 

And today, being a subscriber to RoboInvestor has proven to be a very smart decision by those that saw the opportunity and the potential to win 95% of the time. The proof is in the numbers, and we’ve delivered and continue to deliver on that proposition. That’s worth putting RoboInvestor to work today to build real and steady wealth tomorrow. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.

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