I'm talking about companies like... - Lam Research (Nasdaq: LRCX), a supplier of wafer fabrication equipment and services
- ASML Holding (Nasdaq: ASML), the leader in photolithography equipment, a crucial tool for etching circuits onto silicon wafers
- Cabot Microelectronics, recently bought by Entegris, a provider of chemical mechanical planarization (CMP) slurries and pads, used to fabricate of integrated circuits
- Applied Materials (Nasdaq: AMAT), a leading maker of the sophisticated machinery used to manufacture semiconductor chips. It provides equipment, services, and software for chip-making.
Not to mention the many companies that are involved with... - Designing, building and operating testing equipment that ensure chip quality and performance
- Assembly and packaging in the later stages of semiconductor production, including wafer processing, assembly, and packaging chips
These "pick and shovel" plays are lesser-known ways to capitalize on the growth of the semiconductor industry... their products are in high demand. And much like the hopeful prospectors of the gold rush... the industry can't survive without them. But when it comes to AI... there's one small company that isn't just a "pick and shovel" play... it's a make-or-break, backbone-strengthening, industry-changing player. Nvidia recently introduced its advanced Blackwell chips, designed to push the boundaries of AI capabilities. These chips are the fastest and most powerful chips on the market. But Nvidia needs this one small company - what I'm calling "Nvidia's Secret Partner" - in order to make the chips work for AI. The tech this company produces doubles data transfer rates... cuts energy usage in half... and can clean and amplify signals, increasing the reach of connections over long distances. All critical for AI's success. Beyond just enhancing performance, this tiny company also aids in the broader adoption of AI technologies. Industries such as healthcare, automotive and finance are increasingly relying on AI to drive innovation and efficiency. The reliability and speed of the hardware provided by companies like Nvidia and enhanced by this "pick and shovel" company are pivotal in making AI applications more viable and widespread in these critical sectors. It's a critical component that the industry can't advance without. And the best part? This company is the same size Nvidia was nearly a decade ago... right before its monumental ascent. It's my No. 1 "pick and shovel" play for the AI revolution as it goes mainstream. Get all the details on the company here. Cheers, Shah |
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