The global chip shortage could last for at least another two years…
According to the Nikkei Asia news service, Intel (INTC) CEO Pat Gelsinger reiterated his previous comments surrounding the semiconductor supply shortage.
He said that while manufacturers have taken steps to improve production, the company still anticipates current woes will continue through 2023.
Prior to these comments, he announced the company would expand its manufacturing capabilities in Malaysia to help alleviate some of the shortages.
But while Gelsinger believes these efforts will help mitigate present supply-chain problems, the pandemic’s impact on the industry could disrupt activity for quite some time.
That’s because the sector had averaged 5% growth per year prior to COVID-19. However, the pandemic’s disruptions, combined with a 20% surge in demand, helped create a large supply and demand imbalance.
So, given Gelsinger’s latest comments, we’ll likely see chip makers continue to benefit from elevated demand and higher prices.
As a result, this one stock will benefit…
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Micron Technology (MU) is an American-based semiconductor manufacturer known for its development of memory-based chips.
These memory-based semiconductors are known as DRAM. And DRAM is a form of computer RAM (memory) that stores information on individual capacitors. As a result, it often requires less space to store and transfer data than other forms of RAM.
That makes this technology pivotal for the data-center sector – as data centers are filled with computers that process and store information at rapid speeds.
And the need for these facilities is only increasing thanks to the rise of 5G and AI – benefiting Micron in the process.
This is evident in its December earnings report. For the first quarter, the company said its earnings per share were $2.16 compared with the estimated $2.10. Micron’s revenue was $7.69 billion, also greater than the consensus of $7.68 billion.
These figures have the company confident the trend will continue as well. Micron projects that its second-quarter earnings per share may be around $1.85 to $2.05 versus the expected $1.84. The chipmaker also forecast that revenue may be between $7.3 billion and $7.7 billion.
So, while it will take time for companies in the space to boost their overall capacity, Micron should continue to see strong demand. This is especially true considering the company is already shipping units at a higher level than it did in 2019 – bolstering businesses’ overall reliance on Micron moving forward.
Will You Be Blindsided by the Global Chip Shortage?
Legacy Research
GM and Toyota factories are shutting down…
Mass shortages of electronics…
Medical device production nearly halted…
You may know a global computer chip shortage is happening. You may know something seems to be very wrong…
But what you probably don't yet realize–what few so far have figured out…
Is what's really causing it.
And what happens next for investors.
Now a former computer chip executive with over 20 years of experience is stepping forward to tell all…
