10. Microsoft (MSFT) – Microsoft’s growth in the PC market is mostly kaput and similar to Cisco’s (CSCO) monopoly over routers and switches. Despite substantial market share, growth is very low, which means both have to innovate and branch into other product/service lines in order to appease investors. For Microsoft, this meant developing a presence in the cloud as corporate demands for data storage increase. While there is no shortage of competition – from Amazon (AMZN), Oracle (ORCL), Salesforce (CRM), among other players – Microsoft’s large customer portfolio acquired over the years puts it at a competitive advantage relative to newer entrants. 11. Nvidia (NVDA) – Nvidia competes directly with AMD (AMD) on GPUs and produces system on a chip units (SOCs) and focuses on four main markets – data centers, automotive technology, gaming, and professional visualization. The company also competes with Intel (INTC) and Qualcomm (QCOM) in these markets. It nonetheless holds a unique position where it can achieve a high share in its markets. At the moment, Nvidia is using GPUs to branch out its focus into machine learning and artificial intelligence. A big focus, naturally, is into autonomous driving and Nvidia’s GPUs are used in Tesla (TSLA) vehicles. Nvidia holds an important role in the tech world, but a lot of the future growth in the stock largely appears priced in based on the stock’s run since the beginning of 2016. 12. Sirius XM (SIRI) – Sirius XM has above 60% share in the new car market. Normally those who purchase a new car will obtain a free trial to Sirius and after a certain amount of time if they feel it’s worth the price they’ll convert into a paying member. Close to 50% sign up as full subscribers. Sirius is not without competition, as online broadcasting channels and traditional radio provide free outlets. Services such as Spotify (SPTF) and Pandora (P) provide much of the same. Yet given that the service is inbuilt into most new cars and provides a large host of options to cater to nearly all tastes, the company enjoys a large moat accordingly. Using a substitute service would be akin to not using “Messages” on an iPhone or downloading Chrome rather than simply going with the already present Safari. Features that are already the inbuilt default have a distinct use advantage largely by convenience. _____ Part 1 Part 2 Part 3 Part 5 Part 6