Latest / Earn Your Leisure / Cliff Notes: COMPUTER CHIP SHORTAGE - STOCKS THAT COULD RISE

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Cliff Notes: COMPUTER CHIP SHORTAGE - STOCKS THAT COULD RISE · Earn Your Leisure

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  Speaker 1: An illegal alien from Guatemala charged with raping a child
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  Speaker 3: Joy, you was talking about today that you shent me
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  Speaker 3: an articles, an article that was interesting that everybody knows
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  Speaker 3: how I feel about these chip stocks Semiconductors. Yes, yep,
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  Speaker 3: and you know been very vocal about a lot of them.
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  Speaker 3: And but you were saying that a lot of these
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  Speaker 3: tech companies you sent the article, a lot of these
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  Speaker 3: tech companies are starting to explore doing it themselves, or at
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  Speaker 3: least a portion of it themselves. So that's interesting because
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  Speaker 3: in my brain, that would hurt the industry that's been
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  Speaker 3: doing extremely well SMH, been on fire, you know, the
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  Speaker 3: Taiwan Semiconductor a m B. All of these have done
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  Speaker 3: extremely well for you know, the last five ten years.
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  Speaker 2: So what's what's the deal with that?
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  Speaker 4: Yeah, So obviously, and even in November, I think on
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  Speaker 4: market money as we talked about, and it's happened already
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  Speaker 4: with Apple making their own and one chip they put
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  Speaker 4: it in the new iPads, they put it in the
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  Speaker 4: new MacBook. So they've made their own chip. Tesla and
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  Speaker 4: said they're gonna be making their own chip. The Dojo
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  Speaker 4: chip by do which is the Chinese version of Google,
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  Speaker 4: has made their own chip. We just put up a
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  Speaker 4: post last week about Google creating their own chip and
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  Speaker 4: Amazon working on something and so it's interesting, right, And
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  Speaker 4: I thought the same thing as you. I'm like, wait
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  Speaker 4: if they start making O chips. Some of these companies
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  Speaker 4: are gonna get pulled back. But what they're going to do,
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  Speaker 4: and they're making their chips, but the key is who's
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  Speaker 4: manufacturing the chip? Right, Because to invest in that is
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  Speaker 4: going to be the key, right Because to create a
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  Speaker 4: factory that has manufacturing, it's like a I think, like
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  Speaker 4: fifteen billion dollar operation and it takes like seven years
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  Speaker 4: to do it. So they don't have that type of
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  Speaker 4: time right, right, So because business moves every day, and
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  Speaker 4: so the manufacturing piece is going to be key. And
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  Speaker 4: so who's the number one manufacturer of the chips? TSM,
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  Speaker 4: right or Intel?
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  Speaker 2: Right? Right now? I give the notch to TSM in
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  Speaker 2: that category.
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  Speaker 4: So that's a company obviously with the chip shortage that
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  Speaker 4: we've said this so.
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  Speaker 2: Many times, I love TSM. I love TSM.
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  Speaker 4: When companies need to have manufacturing which is going to
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  Speaker 4: be on a high demand sense, there is a shortage,
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  Speaker 4: I want to find a person.
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  Speaker 2: That's manufacturing it.
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  Speaker 4: But I dug a little deeper into the research, right,
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  Speaker 4: And so I keep hearing we keep paying chip shorts,
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  Speaker 4: keep shitting chip shorts.
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  Speaker 2: What is the problem? And so I think.
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  Speaker 4: Wall Street Journal, it might have been Wall Street Join
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  Speaker 4: and I put the article in the chat they wrote a
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  Speaker 4: very good article and explaining what happened. And so there's
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  Speaker 4: a piece inside of these ships called the substrate, right,
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  Speaker 4: So the sub it's called the substrate, right.
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  Speaker 2: Sub s T R A T E.
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  Speaker 4: So when I'm like, yo, do your research, like I
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  Speaker 4: really was reading this all weekend, I'm like, damn, oh,
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  Speaker 4: I get it. And so the substrate is pretty much
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  Speaker 4: what connects the chips to communicate with each other.
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  Speaker 2: And so they've been having a problem producing those.
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  Speaker 4: And so this is interesting because substrates are something that
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  Speaker 4: people don't really invest in, even if you look now
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  Speaker 4: that put the people that produce them.
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  Speaker 2: Even in the articles, it's like three companies, but they're.
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  Speaker 4: All in Southeast Asia, not heavily invested in because it's
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  Speaker 4: not a lot of money. Until now, right before, it
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  Speaker 4: was like we can get these ships, it's cool, we
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  Speaker 4: put it in all our devices.
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  Speaker 2: It's nothing.
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  Speaker 4: Now there's a shortage, you know, So now the substrate
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  Speaker 4: that man is about to go up. And so now
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  Speaker 4: even me I'm looking at it, like, so who makes
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  Speaker 4: a substrate? So there's like three companies that they list
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  Speaker 4: in article. I think one of them is Samsung Materials.
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  Speaker 4: It's not actually Samsung the company, it's like Samsung Materials.
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  Speaker 4: I'll posted the article so we can see it. But
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  Speaker 4: these are the type of things that I'm looking into. Now.
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  Speaker 4: It's like all right, well, all right, so substrates is
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  Speaker 4: what helps the chips communicate. That's how that's the piece
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  Speaker 4: that's keeping this as a shortage. There's a low supply
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  Speaker 4: in it right now, who's going to be making that?
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  Speaker 4: And so like that, you know what we talked about
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  Speaker 4: it with Trapp last week, like when somebody's dig gonna
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  Speaker 4: for go, we got to find the shovels. I'm looking
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  Speaker 4: into those type of things and so now they might
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  Speaker 4: be the piece that becomes in demand. But again, who's
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  Speaker 4: going to manufacture? And so if we look at it
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  Speaker 4: from that standpoint, I still like companies like Taiwan Semi
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  Speaker 4: Conductor because they already have the infrastructure to manufacture.
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  Speaker 5: And your thoughts, we shouldn't even do a follow up.
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  Speaker 5: You killed that thirty nine off the bench and all
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  Speaker 5: possessions you killed that. I agree with that. That's yeah,
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  Speaker 5: all the earned is going crazy.
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  Speaker 6: Truy teaching, yup, I have nothing to add, might cut
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  Speaker 6: all my parts out?
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  Speaker 4: Yeah yeah, no, I was like seriously. It's like we
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  Speaker 4: talk about researching and I'll try to put it in YouTube. Man,
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  Speaker 4: these are the things that we should be really researching, right,
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  Speaker 4: Shortage right, then this could hurt our industry, hit the
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  Speaker 4: industry right, or hurt our.
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  Speaker 2: Etf and we don't we don't need that.
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  Speaker 4: So let's find other ways that we can invest in
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  Speaker 4: and make a bad situation or a dim situation right.
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  Speaker 4: Because now it started out by saying it would last
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  Speaker 4: half of twenty two. Now this talks that it might
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  Speaker 4: last to twenty twenty five.
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  Speaker 6: What the chip shortage?
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  Speaker 4: The chip shortage right, because the automakers are like listen
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  Speaker 4: we can't produce. The cars are hurting, they're getting killed.
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  Speaker 2: If you look at who who reported last week, was
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  Speaker 2: it for.
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  Speaker 4: One and the one automative reported and it was just
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  Speaker 4: like they took a hit because they don't have this.
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  Speaker 4: They can't get the chips in the cars fast enough
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  Speaker 4: to sell them. And so knowing those things, we just
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  Speaker 4: gotta dive a little bit deeper into the research and say,
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  Speaker 4: all right, well this is something that we could look into.
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  Speaker 4: I'm gonna post article so everybody can have it as well.
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  Speaker 4: Out to Wall Street Journal. It was a great article.
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  Speaker 5: Also, in every shortage or in every crisis, there's an
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  Speaker 5: immense opportunity and the true goal of every company is
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  Speaker 5: to happen a monopoly.
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  Speaker 6: So AMDTSM will still be fine.
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  Speaker 5: Keep your eye on Apple, on Google and see what
• 9:15
  Speaker 5: they come up with. Also Amazon with web services.
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  Speaker 6: That's what I always tell you guys.
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  Speaker 5: You got to invest in companies that have a bunch
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  Speaker 5: of cash in case if a crisis comes about and
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  Speaker 5: these are playing like I put it in stock Club yesterday.
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  Speaker 5: Notice twenty twenty Health crisis nineteen twenty, Spanish fluid health
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  Speaker 5: crisis eighteen twenty, What health crisis came about put it
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  Speaker 5: in Chat seventeen twenty.
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  Speaker 6: These are change in up the guard. I'll leave it
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  Speaker 6: at that. Do your research.
• 9:50
  Speaker 5: Study every time these economic resets happen, they lead to
• 9:54
  Speaker 5: a new wave of companies that normally die off, and
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  Speaker 5: then some will blossom and do well over the.
• 9:59
  Speaker 6: Next fifty years. So be prepared. So that's why I say,
• 10:04
  Speaker 6: go do your research and go when I'll be.
• 10:08
  Speaker 5: Telling culture hacks for everybody listening by Richard Conrad, go
• 10:12
  Speaker 5: read this book. When I tell you guys to go study,
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  Speaker 5: And when Troy said he studies, he's every time I
• 10:19
  Speaker 5: call him like broch, you're reading looking at once. You
• 10:22
  Speaker 5: study what happens over one hundred year business cycle. You
• 10:25
  Speaker 5: can almost time oil came in. It was a dominant
• 10:29
  Speaker 5: force and dominant resource after something else left. These things happen.
• 10:33
  Speaker 5: If you go look at those bnner cycles and tied
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  Speaker 5: all together, you're a happy blueprint.
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  Speaker 6: All the answers are there. I promise you that's a book.
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  Speaker 2: hit the like button.
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  Speaker 3: Forty one hundred people on YouTube hit the like button,
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  Speaker 3: don't forget okay, So okay. So the most highs for
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  Speaker 3: the S and P five hundred over the last one
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  Speaker 3: hundred years, which is interesting. The most was nineteen ninety five.
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  Speaker 3: It was seventy seven new highs that was hit that year.
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  Speaker 3: The next was twenty and seventeen with sixty two. The
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  Speaker 3: next was nineteen sixty four with sixty two, The next
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  Speaker 3: was nineteen twenty eight with fifty nine, and the next
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  Speaker 3: the fifth is twenty twenty one with fifty four. But
• 11:21
  Speaker 3: we still have three months left. So what that means
• 11:23
  Speaker 3: is that we have hit record highs in the S
• 11:26
  Speaker 3: and P five hundred fifty four times this year and
• 11:31
  Speaker 3: there is still three months left, so it's already at
• 11:34
  Speaker 3: number five. This is already the number fifth year ever
• 11:38
  Speaker 3: for most highs hit.
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  Speaker 2: What do we make of that?
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  Speaker 6: This is the first time I read some information to
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  Speaker 6: scare me.
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  Speaker 5: If it matches or surpasses nineteen twenty nine, it comes
• 11:52
  Speaker 5: back to what I say, they being twenty three will
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  Speaker 5: have a slight drop, but twenty seven would be pretty harsh.
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  Speaker 5: And if you look at what happened post nineteen sixty
• 12:03
  Speaker 5: four and post nineteen ninety five, ninety five kind of
• 12:07
  Speaker 5: ushered in that tech wave and then it was great
• 12:09
  Speaker 5: until it wasn't and the crashes were immense.
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