2 Promising Semiconductor Stocks to Consider in September: AAPL & ARM

The investment horizon is forever changing, with various sectors going through cyclical trends and technological advancements creating new opportunities. Among the most intriguing investment areas right now are the semiconductor stocks, particularly those that are poised to benefit from cyclical tailwinds and the artificial intelligence (AI) revolution. This month, two such stocks have been identified as potential 'screaming buys': Apple Inc. AAPL and Arm Holdings ARM.

Understanding the Growth Potential of AAPL

Apple Inc. AAPL stands as a titan in the technology industry. Known for its innovation in consumer electronics, software, and online services, it is the world’s largest technology company by revenue and, as of early 2021, the world’s most valuable company. Apple is not just a consumer electronics giant; it's also a significant player in the semiconductor space, using cutting-edge chip technology in its products—from iPhones to Mac computers. Apple's push into developing its own silicon, moving away from third-party suppliers, signifies its commitment to controlling its product ecosystem. This vertical integration can result in more efficient operations and potentially higher profit margins.

The Strategic Role of ARM in Semiconductor Industry

Arm Holdings ARM, on the other hand, operates behind the scenes in the technology world, designing CPU architectures that are fundamental to a myriad of digital devices. It does not manufacture chips but licenses its designs to semiconductor companies who do. This business model makes ARM an integral part of the semiconductor supply chain. As the trends towards AI, 5G, and the Internet of Things (IoT) accelerate, ARM's role becomes even more crucial, potentially boosting its license revenue and making it an attractive investment proposition.

Both AAPL and ARM offer unique advantages. AAPL's leadership in consumer electronics and its progress in self-designed chips, combined with ARM's extensive influence across the semiconductor industry, present strong cases for investment. With AI on the rise and the technology sector continuing to expand, these stocks may well prove to be standout performers in the coming months and beyond.

Investment, Semiconductor, Technology