Semiconductor industry research, direct index modeling, & investments in modern computation.

info@fourierresear.ch

We believe the semiconductor industry will lead the economy of our lifetime for many reasons.

1. Pervasive technology growth: As technology becomes increasingly integral to our daily lives, the demand for semiconductor chips will continue to grow. These chips power everything from smartphones and laptops to smart home devices and advanced manufacturing machinery. As the digital revolution progresses, the importance of semiconductors will only continue to rise.
   
2. Artificial intelligence and machine learning: The rapid advancement of AI and machine learning technologies is driving up demand for powerful, efficient semiconductors. These technologies require high-performance chips to process vast amounts of data, which in turn creates opportunities for semiconductor companies to develop innovative solutions and expand their market share.
   
3. 5G and IoT: The rollout of 5G networks and the growth of the Internet of Things (IoT) are expected to drive significant increases in demand for semiconductors. 5G promises faster, more reliable connectivity, while IoT devices will generate massive amounts of data that need processing. These trends will directly contribute to a growing need for advanced semiconductor chips.
   
4. Electric vehicles and renewable energy: The shift towards electric vehicles and renewable energy sources requires efficient and reliable semiconductor technologies. As governments worldwide push for greener solutions and consumers become more environmentally conscious, demand for semiconductors in these sectors will continue to rise.
   
5. Competitive moat: Semiconductor manufacturing requires significant capital investments and advanced technological know-how. This creates a barrier to entry for potential competitors, allowing established semiconductor companies to maintain their market positions and generate consistent returns for investors.
   
6. Global semiconductor shortage: The current global semiconductor shortage has highlighted the importance of this industry and its supply chain. As governments and companies work to address this issue, investments in semiconductor manufacturing are expected to increase, which will further drive growth in the sector.
   
7. Favorable financials: Many semiconductor companies have strong balance sheets, high profit margins, and robust cash flows, which make them attractive investment options. These healthy financials also make it easier for these companies to invest in R&D and expand their production capabilities.
   

Owning equity in semiconductor companies can be seen as an important aspect of societal participation for several reasons, based on the idea of collective ownership over the technology that will govern much of the future:

1. Democratization of technology benefits: As technology plays an increasingly significant role in our daily lives, it is crucial that its benefits are shared equitably across society. By owning equity in semiconductor companies, individuals can take part in the wealth generated by these firms, which can help address income inequality and foster a sense of shared prosperity.
   
2. Increased accountability: Collective ownership in the form of equity holdings can give individuals a voice in the decision-making processes of semiconductor companies. Shareholders can exercise their voting rights to influence corporate governance and advocate for responsible business practices, thereby holding these companies accountable for their actions and ensuring that they contribute positively to society.
   
3. Socially responsible investing: By investing in semiconductor companies, individuals can help shape the development and direction of the industry. They can choose to support companies that prioritize sustainable practices, ethical supply chains, and fair labor standards. This can help drive positive change within the industry and promote a more responsible approach to technology development.
   
4. Financial literacy and empowerment: Owning equity in semiconductor companies can promote financial literacy and empowerment among individuals. This can lead to a better understanding of the financial markets, investment strategies, and the role that technology companies play in the broader economy.
   
5. Fostering innovation: Collective ownership can help support the continued growth and innovation of the semiconductor industry. By investing in these companies, individuals contribute to the capital required for research and development, allowing firms to push the boundaries of technology and develop new, cutting-edge solutions.
   
6. Shared risk and reward: As technology continues to advance rapidly, there will inevitably be winners and losers within the semiconductor industry. Collective ownership allows individuals to share in the risks and rewards associated with these technological advancements, distributing both the benefits and potential drawbacks across society.
   
7. Promoting long-term thinking: When individuals hold equity in semiconductor companies, they may be more likely to think about the long-term implications of technological advancements and the industry's direction. This can promote a more forward-thinking approach to technology and its societal impact, ensuring that the future is shaped responsibly and sustainably.
   

Example of NVDA-deleted real-time direct index model for volatility mitigation: