This U.S. business will benefit as China tries to capture up in semiconductors

Nobody likes the Sword of Damocles hanging over them– certainly not if you are China, the second-largest economy on the planet.

Oil utilized to be the lifeblood of the economy, however no more. The lifeblood of the modern economy is semiconductors. (Please see “ Investors are losing risks to the U.S. stock market“)

The U.S. dominates the semiconductor industry, and therefore China is extremely dependent on U.S. business. During the trade war, President Trump effectively utilized the U.S.’s position in semiconductors as a Sword of Damocles. It is natural for China to try to get out of this situation.

For investors, it is everything about making observations, getting ahead of Wall Street and profiting. Which company’s stock will benefit the most as China attempts to decrease the U.S.’s dominance in semiconductors? Let’s explore with the help of a chart.

Read: Taiwan Semi boosted its capex spending plan– that’s good news for chip stocks

Chart

Please click here for an annotated chart of Applied Products.

AMAT, 2.07%

Note the following:

– Applied Materials is a provider of devices for semiconductor production based in Santa Clara, Calif.

– In its effort to lower reliance on the U.S. in semiconductors, China is most likely to ramp up its semiconductor production and design capabilities.

– The chart shows that Applied Materials stock has been in a consistent uptrend.

– The pattern that the price is tracing in Applied Materials stock, in the past, has actually shown a high probability of a breakout above the resistance line revealed on the chart.

DJIA, 0.92%,.

Nasdaq 100 ETF.

QQQ, 0.96%

and S&P 500 ETF.

SPY, 0.83%

– Applied Products is a 5G stock.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies.

More tech stocks

Other semiconductor-manufacturing stocks that may benefit include Lam Research.

LRCX, 2.55%,.

KLA Corp.

KLAC, 1.68%,.

Kulicke and Soffa Industries.

KLIC, 1.88%

and ASML Holding.

ASML, 0.33%

Semiconductor-testing stocks such as Teradyne.

TER, 1.95%

may likewise benefit.

Here are extra semiconductor stocks in the Arora Report portfolio that will benefit.

– Intel.

INTC, 1.22%

– Mellanox.

MLNX, 0.23%

Mellanox remains in the process of being purchased by Nvidia.

NVDA, 1.37%

– Micron Innovation.

MU, 2.69%

– Maxim Integrated Products.

MXIM, 0.83%

– NXP Semiconductors.

NXPI, 1.27%

– Qualcomm.

QCOM, 2.36%

– Qorvo.

QRVO, 1.16%

– Semiconductor ETF.

SMH, 1.61%

– Western Digital.

WDC, 3.00%

– Xilinx (XLNX).

XLNX, 2.56%

Amongst large-cap tech stocks, Apple.

AAPL, 1.25%

is the major recipient of the trade offer. Segmented money circulations are the best tool to give financiers an edge in stocks like Apple. (Please see “ Something uncommon is taking place amongst popular technology stocks“)

Disclosure: Subscribers to The Arora Report might have positions in the securities discussed in this article or might take positions at any time. Nigam Arora is an investor, engineer and nuclear physicist by background who has founded 2 Inc. 500 fastest-growing business. He is the founder of The Arora Report, which publishes 4 newsletters. Nigam can be reached at Nigam@TheAroraReport.com

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