Investment guru Jeff Brown just released a presentation about his “#1 Microchip Stock of 2022” on the Brownstone Research website.
In it, he reveals the ticker for his number one microchip pick, which he claims makes an “EUV machine” capable of producing “100% of the advanced chips that will power $12 trillion worth of technologies by 2025.”
He also talked about five other chip-related stocks in the presentation. And while the clues about these other stocks were vague, I’ve managed to identify three of them.
In this post, I’ll walk you through everything I learned about Jeff Brown’s microchip prediction and stock picks. But first, here’s a quick overview of what we’ll cover:
- Jeff Brown’s 2022 microchip prediction centers around how he believes a handful of companies are crucial to ending the current chip shortage. And his number one microchip stock pick is ASML Holding (NASDAQ: ASML).
- According to Jeff Brown, ASML makes an Extreme Ultraviolet Light (EUV) machine that “uses the most advanced lasers ever” to produce “advanced microchips.”
- Aside from ASML, Jeff Brown mentions five other stocks he’s interested in, but he doesn’t reveal their names. Instead, he shares the details in two separate research reports that come with a $49 subscription to The Near Future Report.
Read on to learn more about Jeff Brown’s latest microchip-related prediction, his top semiconductor pick, and the other five stocks he’s tracking (three of which I reveal).
What’s an EUV Machine? (Unpacking Jeff Brown’s “#1 Microchip Stock of 2022” Presentation)
In Jeff Brown’s latest presentation with Chris Hurt, he talked about the global chip shortage and claims that his number one company could help solve this problem with its $180 million technology that could make all of the world’s “advanced chips” by 2025.
What is an advanced chip? I’m not an expert on how semiconductors work, but according to Jeff Brown, “there are two broad categories of chips.”
One category is “simple chips,” and the other is “advanced chips.”
In short, he says that simple chips are manufactured by “mature processes” and help run basic devices like refrigerators and some of the simpler functions in vehicles. And according to Brown, these are the chips we have the biggest shortage of right now.
However, Brown says that “we’re on the leading edge of a massive shift in chipmaking technology,” so we need “advanced chips” with more computing power, that are more energy-efficient, and that are capable of powering “all kinds of new technologies.”
For example, the Internet of Things (IoT), artificial intelligence, metaverse technology, blockchain, cloud-computing systems, and self-driving vehicles.
According to Brown, those technologies “will have no use for simple chips” but instead will need “massive quantities of advanced chips.” And he says there’s only ONE company that can make these chips thanks to its “unique chip-making machine.”
“Those technologies will have no use for simple chips.
They’ll need massive quantities of advanced chips.
And only one company is capable of making them.
By 2025, I believe they could control 100% of the advanced chip market.”
“Every chip involved in $12 trillion worth of tech industries – made by one single company.
And it’s all because of a unique chip-making machine only they’ve patented and perfected.”
As the presentation continued, Jeff Brown revealed that the “unique chip-making machine” he’s referring to is called an EUV machine, which he claims is “the only machine capable of making these leading-edge advanced chips.”
“It’s called EUV.
It’s likely the most complicated machine humans have ever made.
And it’s the only machine capable of making these leading-edge advanced chips.”
What is an EUV machine? According to Jeff Brown, an EUV (Extreme Ultraviolet Light) machine is an advanced lithography machine that’s larger than an SUV, has over 100,000 parts, and costs $180 million a pop.
How does it work?
Until now, I’d never heard of either a lithography machine or an EUV machine. But in the presentation, Jeff Brown explains that a lithography machine etches tiny microchip circuits onto silicon wafers and that EUV machines are essentially a more advanced version.
In short, he says that a generator ejects thousands of tiny droplets of molten tin, which is then vaporized into plasma. This plasma emits EUV radiation, which is focused into a beam and bounced through a series of mirrors to make semiconductor chips.
Here’s how Jeff Brown describes it:
“Extreme Ultraviolet Light.
This machine uses the most advanced lasers ever.
The process is extremely precise.
A generator ejects 50,000 tiny droplets of molten tin every second, Chris. One of these lasers blasts each droplet twice.
The tin is vaporized into plasma, which emits EUV radiation and is focused into a beam and bounced through a series of mirrors.
The EUV beam then hits a silicon wafer with a precision equivalent to shooting an arrow from Earth straight through an apple… on the moon.
The EUV machine is then able to etch transistors into the wafer. This wafer, which now has trillions of transistors, is made into computer chips.”
Is any of this true?
As it turns out, yes. As I was researching this, I found this Brookings article, which matches up closely with what Jeff Brown says about the machine.
In fact, it’s so similar that I think this might have been the article he used as part of his research prior to making the presentation. Because if you look at what the above article states about EUV and what Brown says, it’s (very) similar.
In any case, that article may be worth a read if you want to know more about how the machine works and to see what it looks like (there’s a photo of the machine in it).
The article also talks about the company that makes the machine, ASML. And according to the presentation, ASML is Jeff Brown’s “#1 Microchip Stock of 2022.”
“After I name my #1 Microchip Stock of 2022, I’m also going to share the details on two other companies that could soar as advanced chips take over.
So I encourage all of our viewers to stick around.
I want everybody watching to get out a pen and please write this ticker symbol down.
That stands for Advanced Semiconductor Materials Lithography.
This is the Dutch company behind the EUV machine.
The company that will control 100% of the advanced microchip market by 2025.”
Why is ASML Jeff Brown’s top semiconductor pick for 2022?
According to Brown, this is the only company capable of making EUV machines, which he says makes the advanced chips that will “power the vast majority of our technology by 2025.” And based on what he says in the presentation, he believes the stock could triple:
“I believe ASML could easily triple its share price from here.”
How can you learn more about ASML?
One thing I suggest doing is checking out this “Busting ASML myths” page on the company website because it answered numerous questions I had about what the company does.
For example… the article states that ASML doesn’t make semiconductors; they make the machines that other companies use to manufacture microchips. It confirms that ASML is the only company capable of making EUV technology (which backs up what Brown said). And it points out that lithography, printing patterns on silicon wafers, is only one step in the process of making a semiconductor.
Also, as a quick side note, ASML is apparently no longer an abbreviation for “Advanced Semiconductor Materials Lithography.” It’s just ASML, which is also the ticker symbol.
In any case, the above article is worth checking out if you want to further your research.
Aside from that, there are many articles from finance-related sites on ASML that walk you through the investment side of things. Like this article on Motley Fool, for example.
You could also see Jeff Brown’s research report called “Advanced Microchips: How to Profit off the Next Wave.” Because this report gives you his research on ASML, details his recommendation further, and explains why he’s bullish on the company.
The only catch is that you need to join The Near Future Report to access it. However, the service is pretty comprehensive, and the report covers more than ASML. So it’s not like you’d only be signing up to access his research on ASML.
According to Jeff Brown, ASML is not the only company that will benefit from “advanced chips.” And the above report details two other microchip stocks he’s tracking.
There’s also a second report that details three other stocks he’s bullish on. So, in total, Jeff Brown is recommending six stocks (including ASML) as part of his 2022 prediction.
In the next section, I’ll give you a quick breakdown of each report and the stocks he’s recommending within each – as well as my guess on three of his picks. Then, I’ll give you the heads up about The Near Future Report to help you decide if it’s worth it.
What Other Mircochip Stocks Is Jeff Brown Teasing?
Jeff Brown doesn’t reveal much about his other five stock picks, but he does drop some clues about them. And the gist is that they could each help solve the semiconductor shortages the U.S. is facing and benefit from rising tech innovation and adoption.
Here’s an overview of each report…
Report 1: “Advanced Microchips: How to Profit off the Next Wave”
As mentioned, this report gives you the details about Jeff Brown’s ASML stock pick (AKA his “#1 Microchip Stock of 2022”). But it also covers two other stocks.
According to Jeff Brown, these companies “could be big winners” thanks to the “shift in chip technology” related to advanced chips. And he says that, like ASML, they are both “playing a prominent role in solving the current chip shortage.”
- The first stock is a company that makes “specially-designed microchips” and is one of the top suppliers to the automotive industry. According to Brown, this company is “primed to take advantage” of the rise of EVs.
- According to Brown, the next stock is “at the heart of the cloud-computing phenomenon” and has plants in 13 different countries.
Aside from those clues, Jeff Brown doesn’t give much away.
So, in this case, I wasn’t able to identify which stocks these could be. However, I was able to uncover what all three of the picks in his next report might be.
Report 2: “The 3 Heroes of the Chip Shortage”
According to Jeff Brown, “advanced chips aren’t the only way to make a buck in the microchip and semiconductor market right now.” He says that there are three other companies that “will soon become the public ‘heroes’ of the chip shortage.”
- Jeff Brown states that the first company is “the largest pure-play semiconductor foundry in the world,” that one of its locations is “churning out more than 13 million chips a year,” and that its customers include Apple, Qualcomm, Broadcom, Nvidia, and Sony. He also says the company is “in the middle of a 3-year span where they are investing $100 Billion to increase their chip-producing capabilities.”
- My guess on this is Taiwan Semiconductor Manufacturing Company (TSMC) because it matches all of Brown’s clues.
- The second stock, according to Brown, “is another giant in its field” and “a leader in graphics processing units (GPUs).” He also said that the company earned $9.8 billion in revenue in 2020 and $16.4 billion in 2021.
- My guess on this stock is Advanced Micro Devices (AMD) because, like the last company, it matches the hints Brown shared.
- Jeff Brown says that his third pick (or sixth pick overall) operates its own in-house foundry and its semiconductors are “used in high-value 5G wireless base stations as well as consumer electronics, including smartphones.” And in a roundabout way, he suggests a few companies it’s not, which helped narrow it down further.
- This one could be Intel (INTC). Intel recently announced its “Intel Foundry Service,” where it makes its own chips and it seems to match Jeff Brown’s other clues. The only caveat is that Intel doesn’t appear to make chips for smartphones, but the company can make chips for other companies (like Qualcomm) that do make smartphone chips. So, this could be a match.
To sum it up… based on my research, I think the three companies Jeff Brown teases in the “3 Heroes of the Chip Shortage” report are TSMC, AMD, and Intel.
Of course, these are just my guesses. But I’m confident that, at the very least, the first two are on the money, given the clues were less vague on those.
Either way, to find out what Brown’s clues are, you’ll need to see his reports. And as mentioned, the only way to access those is to join The Near Future Report.
Recommended: Go here to see my #1 rated stock advisory of 2023
What Is The Near Future Report?
The Near Future Report is an investment research service run by Jeff Brown of Brownstone Research focused on large-cap tech stocks at the center of emerging trends.
In particular, Brown tracks companies in the tech and biotech space that he thinks will benefit from these trends as they pick up steam.
At the core of the service are the monthly issues of The Near Future Report that show you Jeff Brown’s latest stock picks and research. However, you also get access to his latest research reports (including the ones I mentioned earlier) and other resources.
For example, you can see his latest stock picks in the model portfolio, and Jeff Brown updates you when there are any changes to his existing recommendations.
How much does it cost?
The Near Future Report retails for $199 last I checked, but you can sign up for $49 through the presentation we’ve been discussing in this post. And it comes with a 60-day refund policy.
Is it legit?
Yes, the service is legitimate. For $49, you get access to legitimate stock picks, research, and other resources aimed at helping you invest in the latest tech trends.
That said, as with any service, there is no guarantee you’ll make money. So even though it’s not a scam, it’s still possible you could lose money following Brown’s stock ideas.
Who Is Jeff Brown?
Jeff Brown is the founder of Brownstone Research and editor of The Near Future Report.
According to his profile on the Brownstone Research website, he spent 25 years as a tech executive at companies like NXP Semiconductors and Qualcomm.
After that, he got into financial education, and now he’s best known for sharing stock picks with subscribers of his services.
Aside from The Near Future Report, these include Early Stage Trader, Exponential Tech Investor, and a free newsletter called Bleeding Edge, to name a few.
According to Brownstone Research, he has picked the “top tech stock” of 2016, 2018, 2019, and 2020. And based on my research from other Jeff Brown presentations, his picks have included AMD, Nvidia, Square, Tesla, and bitcoin before they saw big gains.
Is he the real deal?
Some of the Jeff Brown presentations I’ve come across have been a bit “gimmicky,” but he does seem like a genuine expert, from what I can tell. Not just from his past stock picks but also because he shares some genuinely insightful information with readers.
For example, I’ve written about his free newsletter called Bleeding Edge, which contains a lot of worthwhile analyses. And I’ve written about his latest 2022 predictions.
So, while I wouldn’t expect to get rich following his stock picks, he does appear to be a genuine expert, and some of his picks have worked out well over the years.
Jeff Brown’s “#1 Microchip Stock of 2022” (AKA his EUV stock pick) is ASML, a company that makes an EUV machine that uses advanced lasers and mirrors to produce microchips.
Aside from ASML, he mentions five other stocks in two separate reports that come with a subscription to The Near Future Report.
The first report details ASML and another two stocks I’m not sure about because the clues Brown shared were quite vague. But I was able to guess the three stocks he shares in the second report (TSMC, AMD, and Intel).
What do you think? Are my guesses on the money? Or do you think it’s something else? Let me know in the comments below, and either way, I hope you found this helpful.