Adding ASML to Jubak Picks and 50 Stocks portfolios on Monday, March 29
In my Trick or Trend post on Saturday, March 27, I argued that the increasingly serious chip shortage experienced by car makers was bad for car stocks (since car companies are having to cut production), but good for chip makers who concentrate in the auto sector (since they are seeing rising demand and increasing pricing power) and even better for chip equipment makers (since they were already on a roll to meet higher demand for equipment to expand chip production and are now very likely to see that extra demand for chip equipment run higher and longer.)I already own shares of two chip makers that are seeing rising demand and increasing pricing power: NXP Semiconductors (NXPI) and Infineon Technologies (IFNNY). I own NXP in my Volatility Portfolio–up 97.16% since June 2, 2020. I own Infineon in my Jubak Picks Portfolio–up 81.38% since May 6, 2019. And I also own shares of chip equipment maker Applied Materials in my Jubak Picks and 50 Stocks portfolios. Applied Materials has been a member of my Jubak Picks Portfolio since January 14, 2021 (for a gain of 21.59% as of the close on March 26) and of my long-term 50 Stocks Portfolio since December 31, 2017 (for a gain of 151.64%.) Today, Monday March 29, I’m adding shares of ASML (ASML), the leading producer of lithography equipment to draw circuits onto chips. That stock gained 7.14% on Friday and is now up 28.28% for 2021 to date.
