Stock Reveal: Ian King’s “The Fourth Convergence”

Ian King is back with a new stock teaser, and this time he's pitching what he calls "The Fourth Convergence."

He claims there's a chance to buy a stock to "ride America's next 1000% wave."

The only problem is that Ian wants you to join his newsletter to learn the company name.

But I have good news!

King left enough clues in the presentation to figure out the name of the stock.

I reveal it below, along with some information on whether it's a good investment or not.

Let's get started!

Breaking Down The Fourth Convergence

If you want more information on Ian King's "The Fourth Convergence," this section is for you.

Below are some FAQs about this presentation that will help you understand it better:

1) What is the theme of "The Fourth Convergence"?

Ian King is alluding to what he calls a "convergence" happening in the chip market.

According to Ian, a number of factors must be present for a "convergence" to occur.

This includes:

• Government support
• Private equity investments
• Innovation

Other "convergences" that happened according to Ian include fracking, green energy, and biotech as a result of COVID.

Ian also believes that investors haven't taken notice of this new "convergence" happening in the chip market.

So he believes there are many semiconductor businesses that are set to rise in the near future.

2) How important are semiconductors?

Very important.

You will find semiconductor chips in basically all electronics.

And the more technically advanced products become, the more chips are needed.

For example, electric cars use many more chips than gas-fueled cars.

It's debatable how fast we'll be able to replace gas-powered cars with electric ones, but I think everyone can agree there's an effort to do so.

This can only happen if more chips are created.

Chips are extremely important in medical devices, aerospace, defense, and energy systems.

3) What challenges does the chip market face?

Despite chips being essential to modern life, there are still a lot of challenges for this market.

Chips Are Made In Taiwan

One of the biggest issues is that almost all advanced chips are created in Taiwan.

Taiwan is in the news a lot because there's a real risk of China invading this island country.

China believes the West is encroaching on their borders through Taiwan and will use this country for a war in the future.

much like Russia feels about Ukraine.

If China does invade, it would most likely be very bad for chip manufacturing.

The war would slow down production, and if China takes control of Taiwan, it could easily use the world's dependence on Taiwan chips to their advantage.

And many government officials in America have signaled that if China does invade Taiwan, then they'd defend Taiwan, meaning a very serious war that is likely to drag on.

not good for the chip industry.

Supply chain issues

Another major problem with the chip industry is that it's greatly affected by supply chain issues.

Supply chain problems cause shortages and mean fewer products are being developed.

This recently affected car manufacturing, and fewer cars were made.

If fewer cars are made, that means fewer chips are needed, which means less revenue for chip makers.

This is the same for all products.

So if we continue to see supply chain problems, you'll see the stock price of chips have problems.

It takes time to build production capacity.

Another challenge for chip manufacturing is that it takes a lot of time, capital, and energy to ramp up manufacturing for chips.

This isn't the kind of industry that you can snap your fingers and produce more of.

A lot of materials are needed to create chips.

As a result, this can cause higher prices for consumers, which can affect the economy and more.

4) What company is Ian King pitching?

The whole point of this pitch from Ian is to show America is ready to combat the challenges of growing their ability to manufacture chips.

The American government and private sector are spending money to bring semiconductor manufacturing back home and mitigate the risks of the chip market as a whole.

Here are some clues about the company that King believes will grow as a result of this:

• Located in Beverly, Massachusetts
• Investments from BlackRock, State Street Corporation, and Dimensional Fund Advisors
• Executives from Intel, Raytheon, GE, and ASML
• launched the first single wafer planter

All these clues indicate the stock being recommended is Axcelis Technologies.

They are located in Beverly, Massachusetts, have investments from the companies mentioned above, and launched the first single wafer planter.

5) What does Axcelis Technologies do?

Axcelis Technologies plays an important role in the production of semiconductor chips.

They create ion implantation and process equipment used in the fabrication of chips.

What this does is hard to describe and has to do with introducing impurities into the silicon substrate.

The impurities change the electrical properties of the silicon, which makes it possible to make different types of semiconductor structures like transistors, diodes, and other parts that are the basis of modern electronics.

It's alright if you don't understand what that means, and it's not really important for you to understand it.

What you need to know is that "ion implantation" is very important in the production of advanced microchips.

6) What are the risks of investing in this company?

The risks for this company are the same as for all companies in the chip market.

Mainly China and supply chain issues.

The company has grown a lot over the last few years, and the stock has responded by doing well in the last year (when many other companies struggled):

But because the semiconductor market in America is small, 90% of their revenue comes from exports.

Much of these exports are to China, with Chinese-owned SMIC representing 10% of Axcelis Technologies revenue.

So there's always a threat that exports to China could be halted for various reasons.

And because most of their revenue comes from exports, supply chain issues become more prevalent.

But these are risks all semiconductor businesses face.

They're all reliant on China and the supply chain.

Recommended: The Best Place to Get Stock Picks

7) Is Ian King legit?

I reviewed Ian's main newsletter, Strategic Fortunes, previously.

This newsletter has performed really, really poorly over the last couple of years.

Ian recommends a lot of cryptos that have completely crashed.

For example, he told his readers to buy Luna, which essentially lost 100% of its value over night.

Other crypto recommendations have lost 90% as well.

He recommended Square in 2023 at $271, and the stock price now is under $70.

He recommended Inseego at $12, and it's now under $1.

So I personally would avoid buying any of Ian's newsletters because of this.

Wrapping Things Up

So that's the end of my post detailing Ian King's "The Fourth Convergence" presentation.

Like all stock pitches, this one is heavy on the drama and paints a picture of a stock that simply can't fail.

However, if you look into Ian's past, you'll see he's recommended some major stinkers before.

Is Axcelis Technologies going to be another that ends up in the hall of shame?

Time will tell.

However, this stock pick does seem like a reasonable one.

The world will need more semiconductors, and America is making a push to bring the manufacturing of chips here.

Will this happen before a catastrophe like China invading Taiwan happens?

We'll see.

But something like that would have devastating effects on all chip companies.

Are you thinking about investing in Axcelis Technologies?

Let me know below what you think about this company.