With President Biden setting aside $52 billion earmarked specifically to push ahead with what some are calling 'the new oil' of the economy, investors are clamoring to get in on the ground floor of this incredible industry.
And with the United States neck and neck with China…this arms race is one the USA doesn't think it can afford to lose.
This new oil?
The lifeblood of an ever more interconnected world.
They power everything, from smart phones to smart fridges, from electric vehicles to electric power grids. Even fighter jets and drones.
Of course we're talking about semiconductors, which is really nothing new for savvy investors. However, the CHIPS act, passed in July 2022, has put a newfound attention on this vital technology.
For reference, the $52 billion set aside for what the president is calling a "once-in-a-generation investment in America," is more than the 2021 profits of Tesla, Netflix, and Meta – combined.
This is not chump change.
And to hammer home just how important this industry is…
CNBC called it 'the industry of the decade.'
'The future world order will be decided by the war over semiconductors,' The New Statesman proclaims.
MarketWatch says 'it's eating the world.'
In fact, McKinsey predicts over $1 Trillion in sales by the end of the decade. To put that into perspective, that's:
- 10x the size of the AI market in 2021
- 21x the value of 5G services in 2021
- 26x the size of the projected Metaverse market in 2021
Yet this transformative technology can fit on your pinky fingernail.
I think we've made the point abundantly clear…
We could be talking about one of the most important technological revolutions…EVER.
So we've told you the what…but how about the why and the how?
Well, this is where The Motley Fool comes into play.
You see, we've made it our business to educate investors on the biggest trends before they arrive.
Like when we recommended people buy shares of Amazon in 1998…before the ecommerce boom.
Or when we recommended people buy shares of Netflix in 2003…before the advent of streaming media.
Or when we recommended people buy shares of Tesla in 2012…before the rise of electric and self-driving vehicles.
Basically, we know the importance of identifying and investing in huge and potentially lucrative trends, and we think we're seeing another one right now.
What's more, this CHIPS act puts importance on building and manufacturing semiconductors in America. And with recent crackdowns on chip exports from China, you're seeing America having their cake and eating it too.
