Key Chip Suppliers for Apple Vision Pro: Chart

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Apple Vision Pro is a wearable headset made by Apple (AAPL) that costs nearly $4,000. In this chart post, let’s take a quick look at the some of the key suppliers for the chips that are in this device. Last year, when Apple’s iPhone 15 came out I wrote a post on the key suppliers for that phone and it was well received.

The Key Chip Suppliers for Apple Vision Pro:

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Source: The Suppliers Making the iPhone Possible, Quartr

Referenced Companies:

  • Texas Instruments (TXN)
  • Cirrus Logic (CRUS)
  • Lattice Semiconductor (LSCC)
  • ON Semiconductor (ON)
  • Analog Devices (ADI)
  • Diodes Incorporated (DIOD)

Disclosure: No positions

Germany’s Major Trade Partners and Trade Goods 2023

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Germany is the largest economy in Europe and is an export-oriented economy. The latest trade partners chart from DeStatis shows some interesting facts. The top 3 export destinations for Germany goods in 2023 were the US, France and the Netherlands. As the Chinese economy contracted last year exports of goods to the country suffered. As a result, China ranked fourth as shown in the chart below. However in terms of the source of imports, China was the top exporter to Germany followed by the Netherlands and the US. Among the East European countries, Poland is a major trade partner of Germany.

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Source: DeStatis

Germany’s top three export goods in 2023 were automobiles, machinery and chemicals. The main trading goods in 2023 are shown in the following chart:

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Source: DeStatis

US Stocks Are Overvalued Relative To Other Developed Markets

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The US equity market as represented by the S&P 500 has shot up by 21% YTD. While double-digit growth is excellent, the market has become overvalued especially when compared to other developed markets. So for a value-oriented investor better opportunities exist elsewhere.

The S&P 500’s forward P/E is 21.0. This is much higher than the historical average of about 17.0.

Based on the MSCI Index values, the forward P/E for the US is 21.8 as shown in the chart below. This is much higher than the other developed markets such as Germany at 12.3. Though US markets always command a premium relative to other markets, the divergence has grown wider.

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Source: Yardeni Research

The S&P 500 P/E ratio based on trailing 12-month earnings is nearly 30 according to the latest data from multipl.com.

Source: Multipl

For US investors it may be wise to be cautious at current levels. Certain parts of the market such as technology including the AI-fueled chip sector are overvalued to say the least.

Related ETFs:

  1. SPDR S&P 500 ETF (SPY)
  2. iShares Core S&P 500 ETF (IVV)
  3. Vanguard S&P 500 ETF(VOO)
  4. SPDR Portfolio S&P 500 ETF  (SPLG)

Disclosure: No positions

Notes on Automotive Employment in the European Union

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The automotive industry is one of the largest industries in the EU employing about 13 million people both directly and indirectly according to data by ACEA. Out of the 12.9 million jobs, 2.4 million are direct jobs while the rest are indirect employment. To put it another angle, the auto sector accounts for 3.1 million manufacturing jobs.

In six member countries, the industry accounts for more than 10% of the manufacturing jobs as shown in the chart below:

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From an absolute number point of view, the top three countries in direct employment Germany, France and Poland in that order. More than 860,000 Germans are employed in the auto industry. Among the former East European countries, Poland, Czech Republic and Romania have significant number of auto sector workers.

Globally Europe produces less than one-fifth of autos manufactured.

The chart below shows the number and location of auto plants in the EU:

Source: The Automobile Industry Pocket Guide 2023/2024, ACEA

Related:

S&P 500 vs. NASDAQ vs. Dow Jones Returns: Chart

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Equity markets are performing very well so far this year. After a dramatic selloff in July and early August, markets have recovered and continue to reach record highs. Some of the individual stocks have soared much more than than the S&P 500’s 21.0% YTD. With that said, I wanted to see how the three major indices of the US markets have grown this year and the past five years. While the main benchmark of the market is the S&P 500, the NASDAQ and Dow have also had double-digit returns this year.

The following chart shows the price returns of S&P 500 vs. NASDAQ Composite vs. Dow Jones Indices YTD:

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Source: Google Finance

The chart below the 5-year returns for the above three indices:

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Source: Google Finance

It remains to be seen if the markets would continue to move higher through the last quarter or remain at current levels. With interest rates starting to go down and chances of recession remaining unlikely it may not be a bad idea to nibble at quality names especially when there is any major declines. Valuations no doubt are at stretched for most stocks. So despite consistent high earnings investors may not be willing to bid up stocks even more from current prices.

Related ETFs:

  • SPDR S&P 500 ETF (SPY)
  • Vanguard S&P 500 ETF (VOO)
  • Invesco QQQ Trust ETF (QQQ)
  • SPDR Dow Jones Industrial Average ETF Trust (DIA)

Disclosure: No positions