What is a semiconductor and why are they important to tech companies?

Semiconductors are materials that conduct electricity under specific conditions, making them perfect for controlling electrical current in electronic devices. These materials are used to make computer chips (also called integrated circuits) that power everything from smartphones to cars to data centers. Companies like TSMC and GlobalFoundries specialize in manufacturing these chips, which are absolutely essential for tech giants like Apple, Nvidia, and Tesla to create their products. Without advanced semiconductors, the innovations we take for granted today simply wouldn't be possible.

What does EUV lithography mean and why is ASML so important?

EUV (Extreme Ultraviolet) lithography is an advanced manufacturing technology used to create incredibly tiny circuits on semiconductor chips. Think of it like a super-precise printing press that uses light to draw extremely small patterns. ASML is important because they hold a virtual monopoly on EUV lithography machines, which are essential for making today's most advanced chips. These machines cost hundreds of millions of dollars each and are so complex that only ASML can make them. Without ASML's technology, companies like TSMC couldn't manufacture the cutting-edge chips that power Apple's iPhones or Nvidia's AI processors.

What is a "tech supply chain" and how does it work?

A tech supply chain is the network of companies that provide components, materials, and services needed to create finished technology products. For example, when Apple makes an iPhone, they rely on hundreds of suppliers: companies that make memory chips, processors, cameras, display screens, batteries, and many other components. This theme focuses on these crucial suppliers rather than the big-name tech companies. When tech giants grow and sell more products, they order more components, which can boost their suppliers' revenues and potentially their stock prices too. It's like a ripple effect of growth throughout the entire technology ecosystem.

What does "Market Cap" mean in the stock data?

Market Cap (short for Market Capitalization) is the total value of a company's outstanding shares of stock. It's calculated by multiplying the current stock price by the total number of shares. Market Cap helps you understand the size of a company: large-cap companies ($10+ billion) tend to be more established but might grow more slowly, while smaller companies have more room to grow but often with higher risk. For example, Apple has one of the world's largest market caps (over $3 trillion), while some suppliers in this theme might be mid-sized companies with more growth potential but potentially more volatility.

What are "Projected Sales" and "Projected Profit" in the stock data?

"Projected Sales" refers to the revenue that analysts expect a company to generate in the coming period (usually the next fiscal year). "Projected Profit" is the expected earnings or net income the company might achieve. These forward-looking estimates are based on analyst research, company guidance, industry trends, and economic conditions. They're useful for understanding a company's potential growth trajectory rather than just looking at past performance. For tech suppliers, strong projected figures might indicate that analysts expect increased demand from major tech companies like Apple or Tesla, but remember that projections aren't guarantees and actual results may differ.

15 handpicked stocks

Tech Titans' Triumph

Ride the wave of tech giants' success with this carefully selected group of stocks. These companies are vital suppliers to industry leaders like Apple, Nvidia, and Tesla, handpicked by our expert analysts to help you capitalize on the tech sector's powerful momentum.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 3