New milestone reached and Chips Ahoy!
We invest so you can do the rest.
Delivery times for semiconductors just keep going up. We’re now at an average wait of more than 20 weeks. When demand outpaces supply, prices go up. Source.
The capital-intensive and specialist nature of the semiconductor sector, as well as its concentration in a limited number of countries, opens the table for potential investment opportunities.
The downside is that a high degree of cross-country interdependence exposes the supply chain to political risk.
The US Senate passed the US Innovation & Competition Act to allocate $52 Billion USD for domestic chip manufacturing.
On the top of our watchlist are two profitable US based semiconductor companies:
AOSL- Alpha And Omega Semiconductor-
Pros: In top 10th percentile for P/E value, 40% YoY revenue growth, Gross profits up 100% from last year.
Cons: Foundery in Chongqing China keeps supply chain at risk.
INTC- Intel Corporation-
Pros: CEO Pat Gelsinger is back from VMware, positive sales grow over the last 5 years, large player able to take on additional capacity.
Cons: Lags competition with lack of innovative chip design, low operating margins.
I’ll be sharing more as we continue to research and get to know these companies inside and out, from the Boardroom to the Breakroom…
Other Big News
I am officially a CFA® Charterholder and can use the highly regarded CFA Institute designation.
If you haven’t heard of it that’s OK. Among portfolio managers, the CFA credential is the most respected and recognized investment designation in the world.
For context, over the last 10 years; 1,000,000+ candidates sat for the exams, only 128,000 have passed all 3 levels worldwide. Source.
Sure, passing feels great, and it proves I am a smart guy.
In reality, the true value is demonstrating that I am a highly skilled professional able to uniquely serve you.
Read more: Why Hire a CFA Charterholder?
Our newsletter was accepted into the Substack Grow private writing community!
The program is specifically reserved for committed independent writers, who are already publishing consistently on Substack.
To be accepted, the newsletter had to have promising engagement signals with readership in the thousands and the highest open rates.
You made this happen. So thank you!
We appreciate the opportunity to contribute and are committed to making Substack a home for great writing.
As always, if you'd like to schedule a time to discuss your personal financial goals click here!
Darin Tuttle, CFA
Founder & Chief Investment Officer
Tuttle Ventures, LLC