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Much as the steam engine helped power the Industrial Revolution, semiconductors are in many ways the backbone that power today's information revolution. A semiconductor is a microchip that allows any computing device to carry out the instructions a program sets forth. The size of the semiconductor industry should continue to climb with the levels of technology in our daily lives, though the growth won't be evenly distributed. This is a diverse industry, but for now let's focus on some of the more compelling opportunities for investors in the semiconductor space today. QCT, the chip business, dominates revenue production, having generated between 68% and 71% of Qualcomm's total sales in each of the past three fiscal years.
Gaining 953% over the past three years is no mean feat, and yet here we are with a stock that is high-risk, high-gain, and possibly the most exciting tech stock outside the FAANG cohort. If you like investing in American stocks – and let's face it, most Canadians have at least some exposure to our southern cousins – then you may want to take a look at one of the hottest semiconductor growth stocks around. The following stock is also a great buy for anyone looking to get in on the esports boom, which is likely to be worth $2 billion a year by 2020. Gaming, self-driving cars, artificial intelligence – they're some of the most exciting areas of tech investment today, but what do they all have in common? With just one stock, you can gain access to all of the above or see it as a pure play semiconductor pick.
Earlier this year, semiconductor shares were caught in the crosshairs of escalating China-U.S. trade tensions. Trade between the world's two biggest economies is crucial to the chip-making business. The strife led to volatility in the sector after the PHLX Semiconductor Index hit an all-time high in March. But more recently, investors have been encouraged by the plans laid out by China and the U.S. to resolve their spat. The PHLX index has risen in six straight sessions through Tuesday.