GM Falls On Chip Shortage, But Traders See Opportunity For Some Stocks
General Motors is the latest company to sound the alarm on a chip shortage, warning it could reduce full year earnings by up to $2 billion.
And it’s not the only one – Ford, solar company Enphase, Xbox maker Microsoft and PlayStation parent Sony are also feeling the semiconductor squeeze.
On the other side of the supply chain, some of the top chipmaker stocks could benefit from increased demand and pricing power.
This is the semiconductor stocks’ time to shine, according to Todd Gordon, founder of TradingAnalysis.com.
“I’ve been overly bullish for years and I continue to be,” Gordon told CNBC’s “Trading Nation” on Wednesday. “I think we’re literally in the next tech boom – 5G, Internet of Things, smart homes, self-driving cars, virtual reality. There’s so many things that chips need to go into, and the demand is going to continue to explode.”
Gordon said Nvidia, in particular, shows a promising trend.
“I love the technical setup, looks like if we can get above $600, we actually don’t have … resistance until about $1,000,” said Gordon, who holds shares in the company.
Trading Nation: Bumble IPO On Deck — Here’s What Analysts Expect For The Dating App
By Todd Gordon
February 10, 2021
Todd Gordon of Tradinganalysis.com and Quint Tatro of Joule Financial discuss their expectations for the company’s public debut with Seema Mody.
Founder and Lead Analyst of Trading Analysis
Todd has been trading as a career for the last 20+ years. His goal is to not only provide insightful analysis, but to teach people how to think and grow as professional traders. Todd is a practitioner of Elliott Wave Theory and he uses it to gain an edge in the highly competitive trading arena. In addition to trading professionally, Todd has worked as an analyst and researcher at two different hedge funds. Click Here To Learn More about Todd Gordon