Ployker/iStock via Getty Images With the current Middle East conflict entering its second month, it seems more likely this conflict is going to go on for a while, at least several months if not much longer. While the world is focused on oil prices and the umpteenth time some sort of negotiations are mentioned and then dispelled and then refloated, it may be an opportune time to take a look at some...
Ployker/iStock via Getty Images With the current Middle East conflict entering its second month, it seems more likely this conflict is going to go on for a while, at least several months if not much longer. While the world is focused on oil prices and the umpteenth time some sort of negotiations are mentioned and then dispelled and then refloated, it may be an opportune time to take a look at some less obvious beneficiaries of the current crisis. Helium is mentioned as an item potentially in shortage due to the Hormuz Strait blockade, and I believe that though Intel ( INTC ) stock price has been flat in the past few months, it is set to become a big beneficiary. INTC stock price ( StockCharts.com ) Helium: The Big Shortage While helium may seem innocuous when used to inflate balloons at parties, it is actually a critical industrial material for high-end medical and technological applications, including the fabrication of semiconductor chips . The current Middle East conflict knocked out a facility in the Middle East capable of producing helium, removing a third of the global supply and sending semiconductor fabs (among other companies) in a rush for helium. Helium spot prices have reportedly doubled already. But if we look a bit further, INTC is actually set to benefit from this. According to the United States Geological Survey (USGS) below, the US is the world’s largest producer of helium ((68+13)/180=43% of world production in 2024). World helium production (USGS) According to the same source, the US extracts its helium from natural gas production and produces more than it consumes, i.e., the US is fully self-sufficient in helium. US helium production consumption (USGS) Why INTC is Set to Benefit From Helium Crisis 70-75% of the world’s semiconductor chips are produced in East Asia, and these are all reliant on imports of helium; for example, South Korea imports 65% of its helium from Qatar, and Taiwan relies on Qatar for the majority of its helium as well. But IN...
Ployker/iStock via Getty Images With the current Middle East conflict entering its second month, it seems more likely this conflict is going to go on for a while, at least several months if not much longer. While the world is focused on oil prices and the umpteenth time some sort of negotiations are mentioned and then dispelled and then refloated, it may be an opportune time to take a look at some...
Ployker/iStock via Getty Images With the current Middle East conflict entering its second month, it seems more likely this conflict is going to go on for a while, at least several months if not much longer. While the world is focused on oil prices and the umpteenth time some sort of negotiations are mentioned and then dispelled and then refloated, it may be an opportune time to take a look at some less obvious beneficiaries of the current crisis. Helium is mentioned as an item potentially in shortage due to the Hormuz Strait blockade, and I believe that though Intel ( INTC ) stock price has been flat in the past few months, it is set to become a big beneficiary. INTC stock price ( StockCharts.com ) Helium: The Big Shortage While helium may seem innocuous when used to inflate balloons at parties, it is actually a critical industrial material for high-end medical and technological applications, including the fabrication of semiconductor chips . The current Middle East conflict knocked out a facility in the Middle East capable of producing helium, removing a third of the global supply and sending semiconductor fabs (among other companies) in a rush for helium. Helium spot prices have reportedly doubled already. But if we look a bit further, INTC is actually set to benefit from this. According to the United States Geological Survey (USGS) below, the US is the world’s largest producer of helium ((68+13)/180=43% of world production in 2024). World helium production (USGS) According to the same source, the US extracts its helium from natural gas production and produces more than it consumes, i.e., the US is fully self-sufficient in helium. US helium production consumption (USGS) Why INTC is Set to Benefit From Helium Crisis 70-75% of the world’s semiconductor chips are produced in East Asia, and these are all reliant on imports of helium; for example, South Korea imports 65% of its helium from Qatar, and Taiwan relies on Qatar for the majority of its helium as well. But IN...