Micron Technology | Global Leaders in Semiconductors
https://www.micron.com/
Pick and shovel investing traces its origins to the US gold rush of the 19th century, wherein prospective fortune-seekers lusted for precious metal. Albeit, there were no guarantees of success. Conversely, vendors selling implements such as picks and shovels, essential for mining, fared a lot better. What kind of sorcery is that?
Well, the idea is simple. In a competitive market, where demand fuels production, suppliers play a key role. This analogy extends to the stock market as well. While giant companies have a relatively complex pattern of operation, their suppliers prove to be a safer bet for tech investors.
Consider, for instance, Nvidia, renowned for its cutting-edge graphics processing units (GPUs) which have cemented its stature as a dominant force in the technology arena. Beneath its veneer of success lies a network of ancillary enterprises furnishing components and services that underpin Nvidia's operations.
A good example is Taiwan Semiconductor Manufacturing Company (TSMC). This company is a preeminent supplier of semiconductor chips and a linchpin of Nvidia's supply chain. Similarly, Micron Technology, renowned for its high-performance memory modules, assumes a pivotal role in bolstering Nvidia's technological prowess. In essence, the ecosystem of enterprises complementing Nvidia is a lucrative investment avenue for stakeholders with a penchant for AI-centric equities.