In recent time, I developed a liking for accumulating stocks that involves in #semiconductor related business. The growth of Kaynes Technology from ₹ 200 to above ₹ 6k in just over 3 years has proven that the future lies in the invisible force behind much of the technology that shapes our world today. The continued development of #semiconductor is crucial for future advancements. In the future, everything that moves will be autonomous — cars, vacuums, you name it. I am not the only one saying this. Jensen, Nvidia’s CEO, nailed it much before :
“Everything that moves will be autonomous.”
Manufacturing companies won’t just make the machine. They all need a second factory to build the brain which is nothing other than semiconductors. That is why I am more focused on semiconductor based stocks like Syrma SGS Technology companies - they could be the next big multibaggers in the stock market. I had few shares alloted in #syrma IPO, however I exited the shares after booking decent profits. Unable to realize it's importance, now I am regretting and doing my best to add on in my portfolio on every dip.
What are Semiconductors ?
Before getting to the reason, why I am investing on these stocks. It is important, to know how these microchip devices are are big changer.
A semiconductor is a material with electrical conductivity between a conductor and an insulator.
Semiconductors are used to create transistors, which are essentially switches that control the flow of electricity, and integrated circuits (ICs), which are complex circuits on a single chip. These components are the building blocks of virtually all modern electronics.
The semiconductor industry is experiencing high demand due to the increasing reliance on digital technologies across various sectors. This demand is driven by advancements in AI, 5G, electric vehicles, and the digital things, all of which require significant semiconductor components.
Digital Transformation driver
The ongoing digital transformation across various industries is a major driver of semiconductor demand, with virtually every sector becoming increasingly reliant on digital technologies. Smartphones, laptops, and other consumer devices fuels the need for more and more powerful semiconductors. While #Kaynes technology are mobile oriented who basically carter the need of mobile companies. #Syrma has a vast scope around the different industry. With the continous technology advancement and various consumer needs like demand for Electric vehicles, autonomous driving features, and advanced driver-assistance systems (ADAS) are heavily reliant on semiconductors, leading to a surge in demand.
Advancements in areas like AI, 5G, and cloud computing are constantly pushing the boundaries of semiconductor technology, requiring more powerful and efficient chips. AI applications, especially those involving deep learning and generative AI, are driving the demand for specialized AI chips and semiconductor technology. The growth of automation in manufacturing and other industrial sectors requires semiconductors for every other applications and various control systems.
The advancements in semiconductor technology have led to smaller, faster, and more powerful electronic devices, driving innovation across various industries. Like it was the #energy sector few years ago, now the booming #technology sector opens up a vast avenues for chips industry like the #semiconductors. Making it a promissing investment option.
In good faith - Peace!!
