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Jacob: The autonomous trend is real, but is it right for your portfolio? You're going to want to hear what our two experts have to say. TheStreet's Tech Editor, Nelson Wang is eyeing the semiconductor space and Lamar Villere, founder of Villere Balanced Fund is going to tell us his stock pick for the space. Let's set the stage first with Nelson. Nelson, tell us what stands out to you in terms of semiconductor players in the autonomous space.

Nelsan: So you've got a lot of these chip players that are looking more in the autonomous space as growth rates in some of their traditional areas like smart phones and laptops starts to level off. So within the autonomous space, you have companies like Intel and Nvidia, which are making sort of the brains behind some of these systems to gather all this information and process it so that the cars can drive autonomously. You have Mobileye, which Intel purchased in 2017, which, makes a lot of the chip sensors and cameras that allow cars to sense their environment. And then you've also got Qualcomm, which along with Intel is making the chips, the modem chips that allow, cars to connect to the Internet and communicate all this data,

Jacob: Big space out there, Lamar you like on semiconductor. Why is this the pick of the litter for you, Lamar?

Lamar: Well, the nice thing about On ,and the nice thing about playing the autonomous vehicle trend through on or through the semiconductors is number one, we're not making a hard call that all of a sudden every car is going to be autonomous in the next couple of years. No matter what happens, cars are getting smarter. So we think even without autonomous vehicles, you're going from about $300 of semiconductors in a car today to about a thousand dollars of semiconductor content within a couple of years. Number two, the other thing is you're trying to pick the car manufacturer. Is it gonna be Tesla? Is it going to be one of the legacy car manufacturers? Again, we're selling bullets into the war. So we think On's interesting. it's pulled back in large part I think to the concerns about the trade war. We think that's temporary. And so we think this is an interesting one. Now there's more to on, they recently bought Quantenna that gives them Wifi, which is still a growing space and it's a creative acquisition as well as their exposure to the 5Gs of it, you know, with all the new, base stations that are getting installed. They're a major player in that, so we think there's a lot of compelling places, to get excited about with On. In addition to, you're paying about 13 times this year's earnings, so it's not a hugely expensive stock, which is kind of a rare thing to find these days.

Jacob: All right, great insight. Thanks to our experts, Nelson Wang, TheStreet's Senior Tech Editor and Lamar Villere, founder of Villere Balanced fund.

The semiconductor industry is huge, and the promising outlook for autonomous driving is a potentially big tailwind for some chip makers. 

The global autonomous vehicle market is expected to reach over $550 billion by 2026, according to Allied Market Research. That exact number varies depending on the research hub, but many reports say the growth should be explosive. Research and Markets says autonomous vehicle sales could grow by over 40% yearly through 2026, when the total market would hit over $600 billion. 

Let's sort through the different players in semiconductors that could benefit. 

Nvidia (NVDA - Get Report) and Intel (INTC - Get Report) are making "the brains" behind what powers an autonomous vehicle, TheStreet's Tech Editor Nelson Wang said. Nvidia is expected to see about 7% of its revenue in 2020 come from its automotive segment. Intel in 2017 acquired Mobileye, a maker of sensor and camera chips for cars. Intel doesn't break out its automotive revenue. And Qualcomm (QCOM - Get Report) makes modem chips that power a car's ability to connect to the internet. 

While it's hard to say, at this juncture, which chip company is best positioned to best capture the autonomous trend, one fund manager is high on On Semiconductor (ON - Get Report) . "No matter what happens, cars are getting smarter, so we think even without autonomous vehicles, you're going from about $300 of semiconductors in a car today to about $1,000 of semiconductor content within a couple of years," said Lamar Villere, founder of Villere Balanced Fund. Put simply, as cars become more technologically advanced, the amount automakers are paying for chips per vehicle will rise significantly. 

Villere noted that On Semiconductor shares have contracted in the past several months, making the stock attractive. On is down almost 16% since May 23 and shares trade at 11.3 times forward one-year earnings. NXP (NXPI - Get Report) , by contrast, trades at 12.3 times earnings, with Qorvo, which gets almost half of its revenue from its automotive segment,  (QRVO - Get Report) at 12.6. 

Nvidia is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells NVDA? Learn more now.