Helium Shortage and Its Impact on the Global Tech Industry

The global tech industry, which heavily relies on semiconductors, is facing a dual shortage: a scarcity of semiconductors and a squeeze in the supply of helium, a critical gas used in semiconductor manufacturing. 

The shortage of helium has significant global implications, and its demand extends far beyond the tech sector. 
 
The healthcare industry depends on helium for MRI and NMR machines, while space exploration and consumer electronics also rely on this gas. As a result, the helium market holds immense potential, possibly surpassing gains made in previous booms like cannabis and blockchain.

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Helium Shortage and Its Impact on the Global Tech Industry.
 
While the helium shortage poses challenges, it also presents opportunities for junior companies. Historically, small-cap stocks tend to respond favorably to news of progress in exploration plays when commodity shortages loom. 
 
The expiration of the Helium Stewardship Act last year added urgency to the helium situation. The US Federal Helium Reserve, which currently supplies 40% of the world's helium, will no longer sell commercially after its assets are sold. Private operators will need to bid for the remaining helium reserves, and the market will be free from the current price ceiling. 
 
The global helium market is predicted to reach over $13 billion by 2030. That’s a 3x from its current size!
 
As the tech industry continues to expand and generate data, the demand for helium and semiconductors shows no signs of slowing down. This makes helium an essential gas in the current era of technological advancements.

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Artificial intelligence, crypto, and cloud computing – you name it. All the emerging tech trends of our age require more and more helium. 
 
Companies operating in the semiconductor sector, such as Intel Corporation (NASDAQ: INTC), Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), Advanced Micro Devices, Inc. (NASDAQ: AMD), NVIDIA Corporation (NASDAQ: NVDA), and Maxar Technologies Inc. (NYSE: MAXR), face the challenge of sourcing an adequate supply of semiconductors. 
 
These companies play critical roles in various industries, including electric driving, gaming, data centers, and satellite communications. And they all need more helium.
 
Nick Hodge has identified a tiny Helium producer that few people have noticed yet. It’s extremely well positioned to explode in value as demand for this precious resource increases. 

 

Get in before it’s too late.

Chris Curl

Chris Curl
Editor, Daily Profit Cycle