Built by Traders, for Traders

The Top Stock for the Next Big Tech Breakout

The core of every new must-have technology is the semiconductor or chip. And to get the next major breakout product, companies need to engineer the chips that will make it the next new-new thing that all of us are going to want or need to buy.

This means every new smartphone, smart speaker, tablet, laptop, television or anything that powers up needs new chips, and they need them on an ongoing basis.

This sets up a pipeline of product development for chips that has to keep flowing for a myriad of companies from the mega ones like Apple (AAPL) to the countless competitors in all sorts of products.

And it’s not just about the chips under the plastic, aluminum or glass – but actually the screens that we all stare at throughout the day. Screens and displays need to be better, sharper and more interactive – and this takes the same level of development as the chips and other components inside all of the newest devices and products.

This week, we have a company and its stock that makes all of the chip and display developments and major breakthroughs possible and probable to make the massive breakout technology products for countless other companies.

And this stock is set for a good quick gain in our trade this week for Josh’s Top 5. We project a nice potential return in this tech-enabling and empowering stock.

This continues our successes in our stock trades inside Top 5 with the average return on our hit stock trades at 7.66% for a total gain for hit trades running at 459.34%. And for the stock option alternatives presented for many of the stocks, the average gain for hit trades is running at 47.80%.

So, for weekly hit stock trades and stock option alternatives, these returns add up and can compound to amount to four-figure returns over the year.

The Stock Making the Tech Breakouts

Applied Materials (AMAT) is the Santa Clara, California-based company that is the go-to for all of the absolutely needed components and supplies that go into making the next level semiconductor chips as well as the next generation displays.

Chips are of course in shorter supply now with supply chain catchups underway. But this shows the dramatic demand for them for all industries from handheld devices to automobiles. And one of the biggest chip makers, Samsung Electronics is already guiding the market that it is experiencing boffo business for its chips as well as for the overall chip market.

This is where Applied Materials comes in. Its products and services are bought and deployed by builders and assemblers around the globe for chips. And it also extends to displays that are increasingly needing to be bigger, brighter and better at interacting with users.

Sales are up strongly this year with a gain in excess of 17% with more on the horizon. And this sets up our trade for this week in Applied Materials stock for Top 5.

Here is our latest analysis for the stock trades and how it sets up for this week:

Applied Materials Price & Technical Analysis — Source: Traders Agency & TradingView

The trade to make for Applied Materials is to buy the shares as they trade above the identified counter trend line and then hold it for the target price of $132.81. From Friday’s closing price of around $126.22, it represents a potential cash gain on the shares of 5.22% for a short-term trade.

Keep on trading,

Josh Martinez

Editor, Josh’s Top 5

P.S. This is a great pick, but it’s still only one out of my Top 5. To find out about the rest of the trades I’m recommending, complete with specific entry and exit points, you need to click here and join me on the Top 5 journey…