A global pandemic in 2020 ignited a tech revolution and spurred people to drastically raise the demand on personal electronic devices. But this rising desire for tech devices has caused a shortage of semiconductor chips, resulting in production delays for things like the PS5 and electric vehicles (EV).
As I mentioned in a previous video, these tiny chips operate as the “brain” for a million different products — computers, cellphones, TVs, game consoles, vehicles… These little babies are everywhere.
The sweeping demand for chips didn’t happen overnight. The transition to a semiconductor shortage came in waves.
In the first wave we saw consumers targeting PCs, monitors, laptops and anything else tech-related to prepare for working and going to school from their homes.
The second wave was all about making remote living more entertaining: People started buying out every game console, TV and phone that stores had to offer.
It was in the third wave, however, that we realized just how many products needed chips in order to function.
And that’s why we’re now seeing how the semiconductor shortage threatens the production of Sony’s extremely popular PS5 console — which in turn is somehow also helping certain semiconductor stocks to soar…?
How is that possible?
In today’s video, I want to talk about the PS5 and why a shortage and overwhelming demand for them — which nobody is able to get their hands on right now, including yours truly — is actually helping semiconductor stocks.
The PS5, Sony’s latest gaming console, came out a few months ago around the 2020 holiday season.
They are sold out everywhere — online and in-store. And while there are some available on eBay… you have to buy for over double the retail value.
That’s because Sony Corp. (NYSE: SNE) cannot find enough chips to make sure production keeps up with demand.
As demand for technology continues to grow, this semiconductor shortage and delays in the PS5 production are both likely to continue. The Semiconductor Industry Association said that sales for chips are expected to grow 8.4% in 2021.
And there seems to be no end in sight…
And in an interesting turn of events, this PS5 shortage could actually create major upside for certain semiconductor stocks.
Check out the video below to hear how it’s possible and to get the names and ticker symbols of the stocks making gains right now. As always, leave your thoughts in the comment section below and don’t forget to subscribe to my YouTube channel to stay up to date with all things options trading.
P.S. Today, WealthPress Senior Strategist Roger Scott is pulling back the curtain on a handful of small-cap stocks he believes are poised for massive breakouts.
You see, trillions of dollars are now being poured into the once overlooked small-cap sector. And if investors can identify exactly where the money’s about to flow next, they can collect massive windfalls on those stocks as they rise.
Lucky for us, finding these “microbursts” happens to be Roger’s specialty. And he’s agreed to reveal his secret ahead of the next big market move.