Ian King’s “Chip-Making Boom” (Semiconductor) Stock Picks

I received an email from Banyan Hill’s Ian King today about what he’s calling the “$1.4 trillion secret of Green Chapel Road,” which centers around semiconductor stocks.

In short, Ian King believes there’s a new chip-making “boom” taking place that could make investors “a fortune,” and he teased three chip stocks he’s bullish on.

Here’s a snippet from the presentation:

“Green Chapel Road…

“This 3.6 mile long stretch of dilapidated road sits on the outskirts of Johnstown, Ohio. Population 5,182…”

[…]

“What’s unfolding at Green Chapel Road is expected to create 200,000 high-paying American jobs, annually.

“And this small rural town could become a new hotbed of wealth as Americans discover the $1.4 trillion secret being unveiled.

“Make no mistake. Those who know what’s happening stand to make a fortune.

“That’s why, today, I’m going to show you how to invest and profit from what’s unfolding.”

Source: https://web.archive.org/web/20230830024928/https://pro.banyanhill.com/p/WMC-EXFTOWNS23-001/EEXFZ8BA/Full

As expected, Ian King never revealed his stock picks in the presentation because he wants you to join his $1,995 newsletter called Extreme Fortunes.

But after looking into his clues, I think I know what two of his picks are.

So with that said, let’s get right into it!

Breaking Down Ian King’s Prediction

The basis of Ian King’s August 2023 presentation is that the semiconductor industry is being re-shored to the U.S., which he claims is creating an opportunity for investors.

He began by talking about how an investment firm called The New Albany Company is helping Intel invest in “the area around Green Chapel Road” (Ohio) because they’re building two factories in the area and want enough land for the homes of their employees.

“That’s right. The New Albany Company is tasked with helping Intel invest part of its $100 billion investment into the area around Green Chapel Road.

“The mission: to procure enough land for homes for all future Intel employees.

“Because right down the road, they’re building not one … but two factories to make the next generation of microchips…”

And according to Ian King, the so-called “boom” he’s predicting is “all part” of the CHIPS act, a $250 billion U.S. government initiative to re-shore the semiconductor industry.

“It’s all part of the bipartisan Public Law 117-167 … or CHIPS Act as it’s more commonly called.

“A $250 billion government initiative to counter China … and bring chip manufacturing back to the U.S.

“Starting at Green Chapel Road…

“All of this $250 billion is going to flow into American manufacturing.

“America will be the center of the entire chip industry that’s expected to be worth $1.4 trillion by 2030.”

As is often the case with the stock teasers I look into, there was a lot of hype in Ian King’s presentation. He makes the whole thing seem like the most exciting opportunity in the world, and that if you’d followed his past recommendations, you’d be rich.

So, naturally, you should listen to him now, right?

Not necessarily.

There is no such thing as a “sure thing” in the investment world, and Ian King has (well and truly) recommended his share of losing picks over the years.

I’m not a member of his Extreme Fortunes newsletter, but I have looked into numerous stock teasers he’s released (you can see my full writeup of his 2023 picks here), and in the process, I’ve learned to take his statements with a grain of salt.

Still, he has recommended some winning stocks.

And it’s no secret that, as Ian King points out in the pitch, semiconductors are essential to everything from smartphones and electric vehicles to defense systems.

So, I was curious to know what he was teasing.

What Semiconductor Stocks Is Ian King Teasing?

Ian King teased three stocks in the presentation, which he reveals in a report titled “3 Stocks to Profit From America’s New Chip-Making Boom.”

And I think I know what his first two picks could be.

So let’s discuss those now.

Company 1

This semiconductor company is apparently Ian King’s “top recommendation,” and the first main clue he shared was that it has a $1.75 billion market cap.

“My top recommendation today is positioned to be my next big winner. It passes all three steps of my analysis.

“It has a market cap of $1.75 billion.”

Next, he revealed that the company makes chips for the EV sector, and that they make “next-generation gallium nitride chips” that are supposedly faster than silicon chips.

“You see, they make chips for one of the fastest growing sectors: electric vehicles.”

[…]

“This firm’s next-generation gallium nitride chips can conduct electricity 1,000 times faster than traditional silicon and can handle higher voltages.”

He then shared some clues about its revenue and the number of employees it has, and said that the stock is trading for “under $10.”

“And my top recommendation…

“Without any catalyst…

“Grew its revenues over 90% in the last two years.

“Not bad for small manufacturer with just over 200 employees.”

[…]

“This stock is trading for under $10 today…”

What could it be?

It looks like Ian King is teasing Navitas Semiconductor Corporation (NVTS), a California-based semiconductor company that (according to its website) develops “ultra-efficient gallium nitride (GaN) semiconductors.”

The main clue that tipped me off to Navitas was the one about how it makes gallium nitride chips for EVs. That clue led me to this CNBC article about how gallium nitride tech could help EVs charge faster, and it specifically focused on Navitas’ tech.

Aside from that, here’s an overview of why I think Navitas is Ian King’s pick:

• Navitas currently (August 30, 2023) has a market cap of around $1.4 billion. That is a bit lower than Ian King’s clue stated, but he likely made the presentation in July/August 2023, and the stock has traded down since then (so it’s still a potential match).
• Second, when you look at the company’s quarterly revenue from Q3 2021 to Q2 2023 (past two years), its revenue has gone up by “over 90%,” as King said.
• Third, according to macrotrends.net, Navitas had 230 employees in 2022, which lines up with what Ian King said in the presentation.
• And lastly, the stock is trading “for under $10” a share (as of writing, it’s currently sitting at just over $8 a share).

So, I think Navitas is a match.

Without seeing the report firsthand, I can’t be 100% sure, but it looks that way.

And while I won’t comment on whether or not I think it’s a good investment, I did find this writeup about the company on Seeking Alpha, which you may find useful if you want to further your research – without joining Ian King’s pricey newsletter.

Company 2

Next, we have a company that makes iron flow batteries.

According to Ian King:

“… it has a market cap of just under $300 million… which makes it a small cap.”

[…]

“It has a strong X-factor.

“As we transition to a cleaner, renewable world, we’re going to need more energy storage.

“This company designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide.

“You see, conventional battery chemistries have a limited life cycle. They typically last 7- 10 years before requiring augmentation – a process where they add storage capacity as the battery ages.

“But this company’s iron flow chemistry delivers over 25 years with no capacity fade or degradation.

“On top of that, Iron flow chemistry doesn’t use lithium or cobalt, and this reduces their environmental impact…”

[…]

“Its shares trade for around $2 right now.

“I expect this stock to soar in the coming months and years.”

So, we are looking for a company that makes iron flow batteries (which apparently last longer and don’t require lithium or cobalt) that’s trading for “around $2.”

Oh, and he said it has a market cap of “under $300 million.”

Based on those hints, I think his pick is ESS Tech Inc (GWH), an Oregon-based energy storage company that, according to simplywall.st, “designs and produces iron flow batteries for commercial and utility-scale energy storage applications” across the globe.

What tipped me off with this pick is that I’d heard about iron flow batteries before in a different pitch from a stockpicker named Nomi Prins (you can see that article here).

And from there, I looked into his other clues, which seem to suggest ESS Tech is the company he’s teasing.

For example, here’s a chart of ESS Tech that shows it has a market cap of under $300 million and that it’s trading for about $1.50 a share (it was closer to $2 a month ago).

Company 3

Here’s a summary of the clues about Ian King’s third and final pick:

“My third recommendation provides manufacturing and cleaning equipment for chipmakers.”

[…]

“… it has a market cap of just under $800 million.”

[…]

“This company has 40 patents that cover chip cleaning, electro-polishing and plating — all crucial parts of the chip-making process.

“And thanks to these patents, this company can fetch a higher price than its peers.

“Right now, this company is generating roughly $400 million in revenue.”

[…]

“… it’s expected to generate over $1 billion in revenues by 2027.

“And its shares trade for less than $20. But it might not be that way for long.”

Based on that, we’re looking for a company that:

• Provides “manufacturing and cleaning equipment” for chipmakers.
• Has a market cap of under $800 million.
• Has 40 patents.
• Is generating roughly $400 million in revenue (I’m assuming annually).
• Is trading for “less than $20” a share.

Those are some fairly specific clues, but with so many companies in the semiconductor space, I wasn’t able to solve this one without something more tangible to go off.

If you have any ideas, let me know in the comments below.

Bottom Line

Ian King’s pitch on semiconductors was pretty hyped up, but also somewhat interesting. And based on the clues he shared, we now know what two of his picks are likely to be.

I wouldn’t expect his (or anyone’s) stock picks to make you rich, though. Picking high-flying stocks is not easy, and even then, there’s a lot more to successful investing than picking one or two decent stocks.

So, despite how convincing some of these teasers (aka sales pitches) can be, it’s always a good idea to do your own due diligence and not invest more than you can afford to lose. Because nobody knows what companies will rally in the future with certainty.

And as I’ve learned by joining many different newsletters over the years, a lot of stockpickers show you their best all-time picks, while hiding their losing picks. It is very (very) rare that their track records are ever as good as the sales pitch implies.

In any case, I hope you found this post helpful.

And I wish you the best moving forward!