Sign in Subscribe
3 min read

The Best Supporting Stocks & ETFs to Top Trending Stocks

The Best Supporting Stocks & ETFs to Top Trending Stocks

Hollywood has the Oscars, and the stock market has its own "Best Supporting Actor" awards! While the Magnificent 7 and other trending stocks hog the spotlight, it's often the lesser-known supporting stocks and ETFs that keep the show running. So, why should you care? Because sometimes, the best way to profit isn’t from the main star but from the crew working behind the scenes.

Why Supporting Stocks Matter

Think of Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOGL), Meta (META), Tesla (TSLA), and NVIDIA (NVDA) as the A-list celebrities. They’re the ones getting all the attention. But who supplies Apple’s chips? Who keeps Amazon’s cloud running? Who helps Microsoft’s AI services function? These unsung heroes might not make the headlines, but they play a crucial role in the success of the big players—and that means investment opportunities.

1. Apple (AAPL)

Supporting stocks:

  • Taiwan Semiconductor Manufacturing (TSM) – Manufactures Apple’s A-series processors.
  • Qualcomm (QCOM) – Provides modem solutions for iPhones.
  • Broadcom (AVGO) – Supplies Wi-Fi and Bluetooth chips.
  • Corning (GLW) – Makes glass for iPhones and iPads.

2. Amazon (AMZN)

Supporting stocks:

  • Equinix (EQIX) – Data center provider for AWS.
  • Quanta Services (PWR) – Supports Amazon’s cloud infrastructure.
  • United Parcel Service (UPS) & FedEx (FDX) – Handle Amazon’s massive logistics needs.
  • Broadcom (AVGO) – Supplies data center components.

3. Microsoft (MSFT)

Supporting stocks:

  • Dell Technologies (DELL) – Provides cloud and computing infrastructure.
  • Qualcomm (QCOM) – Works with Microsoft on Azure AI chips.
  • Broadcom (AVGO) – Supplies Ethernet switches and adapters.
  • Accenture (ACN) & Infosys (INFY) – Provide IT consulting for Microsoft's enterprise services.

4. Alphabet (GOOGL)

Supporting stocks:

  • Arista Networks (ANET) – Supports Google Cloud’s networking needs.
  • Equinix (EQIX) – Data center provider for Google.
  • Synaptics (SYNA) – Supplies touch controllers.
  • Broadcom (AVGO) – Provides networking components.

5. Meta (META)

Supporting stocks:

  • Equinix (EQIX) – Supports Meta’s data centers.
  • Broadcom (AVGO) – Provides key networking infrastructure.
  • Qualcomm (QCOM) – Supplies AI and VR-related semiconductor solutions.
  • Qorvo (QRVO) & Skyworks Solutions (SWKS) – Support wireless connectivity for Meta's devices.

6. Tesla (TSLA)

Supporting stocks:

  • Albemarle Corporation (ALB) – Provides lithium for Tesla’s EV batteries.
  • NXP Semiconductors (NXPI) – Supplies chips for Tesla’s vehicles.
  • LG Chem (051910.KS) – Provides battery cells.
  • ON Semiconductor (ON) – Supplies power management chips.

7. NVIDIA (NVDA)

Supporting stocks:

  • Advanced Micro Devices (AMD) – Competes but also collaborates in GPU technology.
  • Micron Technology (MU) – Provides memory solutions for AI workloads.
  • Marvell Technology (MRVL) – Supplies semiconductor solutions.
  • Broadcom (AVGO) – Provides networking components for AI infrastructure.

Recurring Supporting Stocks – A Closer Look?

Did you notice a pattern? Broadcom (AVGO), Qualcomm (QCOM), Equinix (EQIX), and Arista Networks (ANET) show up repeatedly across multiple main actor stocks. This suggests that these supporting players are deeply embedded in multiple high-growth industries—cloud computing, AI, semiconductors, and networking. If one of the main actors stumbles, their suppliers might still thrive. Worth a deeper dive? Absolutely.

What About ETFs?

If picking individual stocks feels like too much work, ETFs can be a great way to gain exposure. Some relevant ETFs include:

  • SOXX (iShares Semiconductor ETF) – Covers chipmakers like TSM, QCOM, and NVDA.
  • SMH (VanEck Semiconductor ETF) – Holds TSM, ASML, NVDA, and AVGO.
  • CLOU (Global X Cloud Computing ETF) – Includes cloud-based service providers like EQIX and ANET.
  • BOTZ (Global X Robotics & AI ETF) – Focuses on AI and automation, including NVDA and QCOM.

Risks to Watch Out For

  • Supplier Dependence: Supporting stocks heavily rely on their big customers. If Apple or Amazon cut orders, suppliers like AVGO or QCOM could suffer.
  • Tech Cycles: Semiconductor and cloud stocks are cyclical—booms are great, but downturns hit hard.
  • Regulation: Big Tech faces increasing scrutiny, which could trickle down to their suppliers.
  • Competition: Some supporting stocks have rivals that could take their place in the supply chain.

Final Thoughts

Supporting stocks and ETFs offer an alternative way to invest in the hottest names in tech. They may not be as famous as the Magnificent 7, but their roles are just as important. Keep an eye on recurring supporting stocks—they might be hidden gems with strong long-term potential.

Happy investing! 🚀

Published by:

EDMUNDWAY