Last week, I showed you how sales of industrial robots are skyrocketing worldwide. And if you read my work in Winning Investor Daily, you know that the Internet of Things (IoT) mega trend is a major focus of my paid service, Profits Unlimited.
Based on the thousands of hours of research and millions of dollars’ worth of work that I put into this service, I can tell you that there is one single thing underlying the entire IoT field. This single component is so critical that without it, there wouldn’t be any robots … and no IoT at all.
I’m talking about semiconductors, which are also called chips, or sensors.
Semiconductors are the engines powering every element of the IoT mega trend … from robots to Big Data, to artificial intelligence, to connected self-driving cars and networked machines.
And one way I track the progress of the IoT is to check on shipments of semiconductors.
In 2017, semiconductor shipments are estimated to reach 900 billion (yes, billion) — that’s 3.5% more units than were shipped in 2016, which totaled 869 billion. However, 2018 is setting up to be a breakout year, with an estimated 1 trillion shipments of semiconductors, according to research firm IC Insights. This represents an astonishing 11% growth rate in just one year.
This is one reason why stocks of companies that make semiconductors have been on a tear for some time now, such as the VanEck Vectors Semiconductor ETF (NYSE Arca: SMH). SMH is an exchange-traded fund (ETF) that owns most of the companies in the semiconductor industry, and it’s gone up 46% over the last 12 months alone.
This is the same ETF that I’ve been recommending since June 2016, and had you followed my suggestion and bought in then, you’d be up by over 38%.
Editor, Profits Unlimited