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The Q.ai Team

About the Global Microchip Shortage Kit

About the Global Microchip Shortage Kit

Benefit from high microchip prices due to the imbalance of supply and demand with Q.ai’s Global Microchip Shortage Kit.

Global Microchip Shortage Blog Kit Blog:

ICYMI: There’s a major microchip shortage—an amalgamation of the COVID crisis-induced shutdowns and a surge in demand for electronics. A demand with which supply still can’t keep up.

While the global microchip shortage has obvious implications for a multitude of industries, including the automotive industry and consumer electronics, it has a less obvious impact on your portfolio.

But you don’t have to sit back and wait for the world to balance the supply and demand of microchips, or for prices to wane ensuingly. With Q.ai’s Global Microchip Shortage Kit, you can benefit from the high chip prices.

Here’s how it works.

Benefit from higher chip prices with the Global Microchip Shortage Kit

The elevated prices of microchips are a direct result of the persistent demand for consumer electronics, the increase in crypto mining and more. Meanwhile, the disruptions to supply of these chips, which largely happens in Asia, means that companies can upcharge for them.

Higher prices per unit are beneficial to manufacturers even if overall unit sales are slightly lower. So, frankly, semiconductor companies are benefiting from the higher prices they can charge to their customers as the demand for chips ticks up and supplies stay stagnant.

But why should they reap all the rewards? With Global Microchip, you can benefit from this trend, too. 

Invest in Intel, NVIDIA or other industry stocks and ETFs

Recent price increases for semiconductors are far greater than any declines in volume production or sales, which is in sharp contrast with the history of chips becoming more and more powerful while rapidly declining in cost.

That’s why Global Microchip Shortage selects 10 securities from a mix of 30 U.S. and international semiconductor manufacturers and industry ETFs. It does this on a weekly basis while shifting in and out of positions as opportunities and conditions change. Those companies may or may not include the following:

  • United Microelectronics Corporation
  • Wolfspeed, Inc.
  • Intel Corporation
  • Micron Technology, Inc.
  • QUALCOMM Incorporated
  • Universal Display Corporation
  • NVIDIA Corporation
  • Teradyne, Inc.
  • Monolithic Power Systems, Inc.
  • ON Semiconductor Corporation

Benefit from outperformance in a theme we find favorable

Global Microchip Shortage can benefit you in two key ways: We’ve identified a strong theme, and we think you can gain from outperformance within this category.

While this is a high-risk Kit because it’s focused on one industry that’s fairly volatile, with higher risk you can potentially reap greater rewards. Plus, the diversification into all kinds of companies with differing geographies and types of semiconductors gives you a wide range of exposure. And, of course, this Kit can be part of a balanced portfolio. We (and your financial future) love diversification.

Bottom line

Global Microchip Shortage is a Limited Edition Kit that seeks to capitalize on a strong short-term trend (even though it feels like a rather long short-term trend). This means that it’s only available for a limited time—and you don’t want to miss out.

The minimum investment for this Kit is $200, making it an accessible and affordable way to diversify your portfolio and take advantage of an otherwise not-so-ideal theme.

Add the Global Microchip Shortage Kit to your investment portfolio in Q.ai.

Disclosures
Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.

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