Tech Companies Are Facing a Global Chip Shortage: 5 Tips for Investors

Investors may be reading dire headlines about a "severe chip shortage" causing lost sales for many large companies, from Apple (NASDAQ: AAPL), which said shortages would cause a sales shortfall next quarter of $3 billion to $4 billion, to global automakers, which advisory firm Alix Partners predicts will lose $61 billion in sales because of the chip shortage this year. The current supply-demand imbalance in semiconductors currently presents investors with risks, but also opportunities. Here are five key things to keep in mind when navigating the chip shortage in 2021.