During the PC revolution that started back in the early 90’s one could have never conceived that a small phone would someday replace the PC as the primary device people used to play music, games, browse the web, read email and organize life in general. Bill Gates wanted a beige PC box in every one’s home. He envisioned the PC as the future to connect everyone and everything, the PC was to be the central hub to connect your entire life to. Unfortunately for Bill, it didn't quite happen that way.
Looking back, one could have easily predicted what ultimately happened to the PC as a primary electronic device. The reason for this is simply put in one word, "Miniaturization".
Microprocessors eventually get smaller and smaller. Not only do they get smaller, they also become more and more powerful and even driving supporting industries with it to miniaturize until, finally, it was possible to put the power of the PC into the palm of your hand.
Keeping this in mind, as an investor in tech stocks, would it then be possible to begin to predict where the next technological revolution would take place?
Well, look no further than the automotive industry to become the next technological revolution that will allow people to use computers in a whole new way. So, let’s look at the companies investors should be adding to their portfolios, 401Ks or by whatever means you invest.
First off, Qualcomm, the recognized leader in supplying processors for cell phones recently bid to acquire NXP semiconductor for it automotive expertise. Currently, Qualcomm is trading at $65 dollars a share and is down on revenues from $23.5 billion in 2015, however NXP is currently trading at $98 and is seeing its revenues up compared to 2015 at $6.1 billion. NXP builds it's latest connected device call Bluebox, which is an autonomous driving platform that much less costly then competitors offerings. The automotive industry thrives on cheap making this technology a perfect growth opportunity for Qualcomm.
Qualcomm has been losing value since 2014 however, it is posied to leap back up based on this latest aquisition. Keep your eyes on Qualcomm for 2017.