The tech sector is in a tailspin, there's no doubt about that. Chip stocks, especially, are getting hammered. Last week, the tech-heavy Nasdaq Composite suffered its worst decline since January 2022. And the carnage has continued this week as investors, spooked by NVDA's recent slide, are starting to question the entire AI-fueled tech boom.
But, as our friend Shah Gilani from Total Wealth Research likes to say, the trend is your friend. And when it comes to the U.S. economy and the stock market, the trend is still pointing up.
Now, I know what you're thinking: If the trend is up, then why are stocks falling?
It's simple.
The market is a discounting mechanism. And right now, it's discounting the near-term economic weakness that's being caused by high interest rates. But once the Fed starts cutting rates, which will likely happen in two weeks, and the economy begins to thaw, all those discounted prices are going to quickly revert to their means.
This means a massive market boom is probably just around the corner. And smart investors are getting ready now.
F: Your Chance to Buy an Undervalued Chipmaker
Yes, you read that right. Ford (F).
I know, I know. Ford isn't just a chipmaker. They are an iconic American car manufacturer. But the same semiconductor chips that are powering NVDA's growth are also a critical component of Ford's electric vehicle (EV) strategy. And, as it turns out, this classic American brand is quietly emerging as a major player in the world of AI.
While everyone is laser-focused on companies like NVDA, Shah sees a golden opportunity to get into Ford at a fraction of the price, with a massive dividend yield, and a clear path to a 40% surge.
As Shah said in his latest Buy This, Not That video, while GM has had a great run with impressive revenue and earnings growth (over 7% and 14% respectively in the last 12 months), for him, the real opportunity is in Ford.
“Now, Ford (F), on the other hand… is a Buy for me here… and I’m going to start by showing you the one-year chart. And you’re going to say to me, why would you think that’s a Buy? And I’ll tell you why. Because first and foremost, it pays a pretty handsome dividend,” [he said](https://totalwealthresearch.com/ford-f-gm-which-is-a-buy/).
He's right. Ford pays a forward dividend yield of over 5% That's more than 5X what GM pays.
And just look at Ford's chart! On July 18th, the stock hit an intraday high of almost $15. Right now, it's trading around $11. That's a nearly 40% potential gain just to get back to the highs from two months ago!
Shah's advice? Buy Ford (F). And don't buy GM.
Don't Miss the Market Boom
So, what should you do?
First, stop panicking about NVDA. Second, take a close look at Ford (F). This undervalued chipmaker, with its massive dividend yield and a clear path to 40% gains, is a much better buy in today's market. And third, get ready for a huge market boom that's likely just a few weeks away.
Tomorrow, I'll highlight another unique opportunity to invest in a $9 stock that just flashed a buy now signal. Could this be the next big AI winner, hiding in plain sight? Stay tuned!
