Prediction: This Will Be the Next Supercycle After AI Memory. 1 Stock to Buy Now Before It Surges 300%.
The memory industry has been one of the best-performing slices of the stock market over the past year, with leading chipmaker Micron Technology up by more than 700% to a $1 trillion market cap, and Sandisk up by more than 3,800%. Those two growth stocks likely aren’t done climbing, but investors could find new opportunities for massive gains by finding the next supercycle.
While semiconductors have defined AI supercycles so far, actual AI products may govern the next one. Smart glasses could spark the next boom, and Himax Technologies (NASDAQ: HIMX) may be one of the best ways to play it. This under-the-radar stock has the potential to multiply shareholders’ money quickly and produce a 300% return once the word gets out.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Understanding the upcoming AI glasses super cycle
AI smart glasses won’t be just another product. These devices will be able to replace smartphones and could drive a megatrend of the same magnitude as the one triggered by the debut of the iPhone. These glasses let you take pictures, record videos, take phone calls, interact with AI models, and type on a virtual keyboard without being paired to a smartphone.
Meta Platforms is the clear leader in the niche, and launched an array of AI glasses in June. Prices start at $224, and there are multiyear plans available, so the devices are broadly accessible. Apple, Alphabet, and Amazon are all scrambling to release their own versions with augmented reality capabilities.
Some investors may think that the best way to profit from an AI glasses supercycle would be to load up on Meta Platforms, Apple, Alphabet, and Amazon now, but those stocks are not the best place to put your money. The highest returns in the space are likely to come from small companies that make the necessary components for AI glasses. That’s where Himax Technologies comes into play.
How Himax Technologies benefits from the upcoming AI glasses boom
Himax Technologies doesn’t look like an exciting stock on the surface. Its revenues have declined year over year for consecutive quarters, and its profit margins are razor-thin. However, management’s guidance suggests that this bad streak is about to end. Its projected 10% to 13% sequential growth rate in Q2 would be enough for year-over-year revenue growth, too.
