Is The Chip Boom Over?

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Is The Chip Boom Over? Arm Holdings’s stock plunged yesterday after issuing subpar guidance which worried Wall Street that the AI spending is slowing down. The company expected revenue to be between $3.8 billion to $4.1 billion for fiscal 2025, while Wall Street estimated $4.01 billion. As a result, the shares nosedived by as much as 10% in late traidng. Arm is an important player in the AI Age because it designs and licenses AI chips. At the same time, it is a major player in smartphone chips so a lower-than-expected guidance may not always mean its AI products are seeing a slowdown. Intel also expected its revenue to fall “below the midpoint” of its recent guidance due to US ban on chip exports to Huawei Technologies. Could this mean that the notoriously-cyclical chip business has peaked? Perhaps so. (Photo: Sundry Photography) s for the market, the S&P 500 is hovering around 5,190. The rally resumed after the jobs report showed a modest increase in payrolls. It boosted the chance of a rate cut this year. And of course, the earnings season was strong. Yes, there were some companies with subpar guidance (like Arm Holdings) but most of them beat the expectations for the quarter. The S&P 500 is now just ~1% from its all-time high. Matt Maley at Miller Tabak + Co. hopes that the rally will spread over the days and weeks since the valuations are already expensive. A prolonged rally would allow companies’ earnings to catch up valuations. - “That’s not the end of the world,” said Matt Maley at Miller Tabak + Co. “But it would be a lot more positive if this rally can broaden out over the coming days and weeks — given that the market is a lot more expensive than it was at this time last year.” A Top “Pick-And-Shovel” Play On Gene Therapy Revolution Today’s Pick: Repligen Corporation (RGEN) There is no doubt about it – cell and gene therapy is going through a revolution. And it is vital for any investor to have a hand in this boom. However, the industry is at mercy of the regulators and clinical trials. So, any stock in this industry has a massive risk. But there’s a way for you to get in the action with lower risk. Meet Repligen. It is the “engine” for the research and development of next-generation products by supplying instruments and associated disposables that are required for the production of cutting-edge therapies. It innovated single-use products that reduce the amount of maintenance and cleaning. As a result, it offers the company a tidy stream of recurring revenue. Its products include everything from filtration and separation to fluid management, analytics, and lab software. Repligen Corporation HQ at Waltham, Massachusetts (Photo: Repligen) The biggest growth driver for Repligen is through acquisitions. Life sciences is historically a fragmented market, and the industry saw a surge in deals to consolidate. Sure enough, Repligen has at least 12 M&A since 2016. What makes Repligen remarkable is its ability to grow its acquired company. Believe it or not, it grew the revenue of four major acquisitions by 30%+ in the first full year! That’s a phenomenal number. All in all, the biotech company grew its revenue by about 22% CAGR since 2019. That was an incredible growth rate! (Source: Repligen) Better yet, there’s plenty of growth ahead. Repligen only has ~5% - 6% overall market share in its TAM for 2023. Filtrations, which is more than half of its revenue, only has ~5% market share. This brings a tremendous opportunity to expand. (Source: Repligen) Bottom line: By owning shares in Repligen, you’d have a safe way to tap into the explosion of the cell and gene therapy. It supplies products required to produce them, so Repligen doesn’t need to bet on a product. In other words, it’s a “pick-and-shovel” play. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](