2 More Semiconductor Stocks Just Flashed Buy Signals This Week

If you want to succeed in this market, you better be able to suspend disbelief.

The single biggest impediment for the bulls on Wall Street can be traced directly to the length of the current bull run.

We are going on a decade now without a recession.

The so-called "smart money" is sitting on the sidelines today waiting for prices to dip so they can buy back in.

At first glance, their case is solid.

Nothing goes up in perpetuity. And given the heights we have climbed, the next drop lower could end up being substantial.

The "smart money" hates losing, hence their conservative stance in the markets.

What happens if we suspend disbelief?

Another scenario emerges, and it's quite attractive for investors today.

Instead of the current bull run completely ending, the markets may end up just taking a pause to refresh.

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That "refresh" can be just as effective at restoring demand for future growth as a recession.

One could even argue that given the depths of the last financial crisis, the length of recovery from the abyss could be measured by decades, not years. This "recovery" could be far from over.

Through that lens, it is very safe to continue investing in stocks, no matter what the "smart money" says.

In a pause and refresh scenario, what sectors should we be targeting?

Historically, some of the biggest gains in the market come from semiconductor stocks after a period of declines.

When business is slow, the door is open for mergers and acquisitions as a remedy to withstand weakness.

After the pause, semiconductor stocks rocket higher as demand recovers.

The gains for the best semiconductor stocks are often significant as businesses, governments, and consumers ramp up their technology buying to prepare for the next phase of growth.

That's where we are today - the beginning of the next phase of growth.

In 2019, we'll see a pause in earnings, with analysts expecting strong earnings growth thereafter.

Fortunately, the Money Morning Stock VQScore™ has found two more semiconductor stocks to buy in advance of that move.

Here they are...

The Best Semiconductor Stocks to Buy Now, No. 2

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Looking for safety with the upside of a semiconductor rally?

I suggest turning to the blue chip of the group, Intel Corp. (NASDAQ: INTC).

Shares of the leading maker of semiconductors gained a solid 5% after Apple and Qualcomm announced a cease-fire in their long-running intellectual property battle.

Intel pivoted away from the low-margin cell phone modem business, turning its attention to the far more lucrative cloud opportunity in 5G.

The vast and rapid transfer of data over these new networks will feed growth for many years to come.

Little of that expected growth is factored into the current analysis of Intel.

Wall Street expects Intel to grow profits by only 8% over the next five years.

That single-digit growth is the likely reason why Intel shares trade for only 13 times current-year expected profits.

To the extent 5G cloud opportunities exceed current expectations, Intel shares could double from current prices.

Twenty times next year's earnings estimate puts Intel just below $100 per share.

The Best Semiconductor Stocks to Buy Now, No. 1

A great example of pause and refresh can be seen in shares of Power Integrations Inc. (NASDAQ: POWI).

In 2018, the company made $2.72 per share.

Analysts expect that number to drop to $2.33 per share in 2019.

There's your pause and refresh.

In 2020, analysts expect a jump in profits from $2.33 to $3.06. That's a gain of 31%.

Power Integrations is a niche player in the technology market.

All those devices use power of some kind, and Power Integrations makes that use more efficient.

With global economies on the rise, demand for power is only going higher, with Power Integrations poised to benefit for many years to come.

With the stock trading flat over the last year, the time to buy is now for the next leg of the economic expansion.

The U.S. Federal Reserve is at our back, and semiconductor stocks like Power Integrations will be the leaders of the continued gains in the market.

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It's the greatest breakthrough in history. It can usher in an incredible new world, potentially minting millionaires by the bucketload!

And one $6 company - that no one is talking about - could skyrocket in 2019.

Here's how you could make 10 times your money from this red-hot phenomenon.

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