BIGGER THAN NVIDIA: Top 3 AI Stocks To Buy Now

the world is changing incredible Innovations are coming out faster than ever before from reusable rockets and Gene editing to self-driving cars and self-building software Innovations like these are made possible because of artificial intelligence which is already changing our lives in big ways just like the smartphone did and the internet before that and the computer before that so in this episode I'll highlight some of the biggest AI platforms on the planet the projects that excite me the most right now and why I think they could be huge winners in the long term your time is valuable so let's get right into it if you've been watching this channel for a while you know that I mainly invest in technology platforms and ecosystems these are the tools that other businesses build on top of usually in exchange for a piece of the overall pie think about platforms like Apple's app store which takes a 30 cut of almost every dollar that passes through it or nvidia's Omniverse and their Enterprise Hardware ecosystem but here's the thing I talk about Nvidia all the time and their stock is currently trading at a whopping 150 price to earnings ratio and the price to sales ratio of about 25 just for context Tesla stock trades under price their earnings of about 45 and a price to sales of around six so since Nvidia is currently priced to Perfection here are a few awesome companies building massive AI platforms and some of the exciting AI projects that they're working on right now by the way all these companies could be even bigger for AI than Nvidia in fact they're all bigger than Nvidia today and best of all they're pretty safe bets in this pretty crazy market so let's start with Amazon just hear me out Amazon is currently trading at a price to sales ratio of just two you're probably aware that Amazon web services Powers roughly one-third of all cloud services today but now they're getting directly involved in generative AI with Amazon Bedrock but instead of building large AI models themselves Bedrock will actually be a place for businesses to access foundational pre-trained models built by other company companies fine tune them and then build AI powered apps on top of them last year stability AI picked AWS as their preferred cloud provider over Microsoft Azure or Google Cloud stability AI is the company behind stable diffusion the open source text to image model but they're also doing important work in generative music medicine and computational biology all of which they're bringing to Amazon Bedrock likewise hugging face is an AI company that builds open source libraries pre-trained models and other high-tech tools for natural language processing they have a huge platform where developers can build and deploy their own AI models I know the name is a little silly but hugging faces tools are already being adopted by industry giants like Nvidia Intel and now Amazon last month hugging face brought their text generating models onto AWS so Bedrock will let AWS customers leverage a wide variety of these different AI models and hugging face is going to play a huge role in making that happen right now Bedrock is focused on helping companies build Enterprise scale AI apps which means some of the biggest AI apps of tomorrow could be powered on Bedrock which gives Amazon access to a huge new set of potential revenue streams not only that but Amazon is launching a 10-week accelerator program specifically for generative AI startups around the world the 10 startups that get accepted into this program will each get three hundred thousand dollars in AWS credits most of which I'm sure will get used up through bedrock Amazon actually had an accelerator program like this for conversational AI back in 2016 so this isn't their first rodeo they also had a hundred million dollar Alexa fund that ended up investing in over 120 different companies and they ran the Alexa prize which was a 2.5 million dollar University competition to build chat Bots that could actually hold a conversation so it's possible that Amazon could spin up a new fund and a new prize for generative AI which is something that I'm definitely going to keep my eyes on who knows maybe one of the companies that Amazon funds will eventually become a tech giant of its own but there's a problem as companies build larger and more complex AI models the cost of training and inference both go up quickly AI training is the step where you feed an AI model tons of data so that it can learn the underlying patterns and relationship like how openai trains gpt4 or Tesla trains their self-driving AI inference is where you use the trained model on new data like our prompts and chat GPT or going for a new Drive in a Tesla the bigger the AI model the more these costs go up that's where Amazon's Second Generation trainium and inferentia chips come in AWS trainium is a high performance machine learning training accelerator trainium chips are optimized for training models for natural language processing computer vision recommender systems and other deep learning applications making them a solid competitor to nvidia's chips likewise aws's inferentia chips drastically lower the the cost of running these large complex pre-trained models which make them another competitor to Nvidia and speaking of chips MooMoo is a trading app built in Silicon Valley to help Advanced investors execute their strategies there are no commissions no account minimums and no hidden fees and they have a ton of great features to help you find great Investments at great prices for example their powerful stock screener lets you filter stocks based on more than a hundred different indicators let's say I wanted to see every U.S semiconductor stock with a price to earnings ratio of less than 15 and operating Revenue growth of over 30 percent with just a few button presses the screener shows me which companies make the cut and the values that I care about no wonder they have almost 20 million users around the world and right now MooMoo is giving away up to 15 free stocks each valued at up to two thousand dollars all you need to do is download the app with my link in the description keep your account above a thousand dollars for at least 60 days and enjoy up to 15 free stocks but this is a limited time offer so make sure to get started today alright so Amazon's new Bedrock platform for AWS trainium and inferentia server chips and generative AI accelerator program are three reasons it belongs on everyone's watch list for AI stocks the next stock on the list is Microsoft which trades at a price to earnings ratio of 32 or a price to sales ratio of 10.5 oh yeah and they just might usher in the robot apocalypse I'm sure you already know a ton about Microsoft's AI Investments the billions of dollars they invested in open AI for a 49 stake in the company powering their Bing search engine and Edge web browser with gpt4 and their strategy for providing in-app co-pilots across their entire software stack but another massively important project that they're working on right now is called Jarvis named after Tony Stark's AI assistant Jarvis is trying to be the one bot to rule them all kind of like Auto GPT but you know built by Microsoft if you're not familiar with auto GPT here's the big idea right now chat GPT works best with single task prompts write a piece of code that does this summarize this article reformat this spreadsheet as you give it more complex prompts you increase the odds that it'll mess something up along the way that usually forces you to break down your ideas into simpler steps figure out the right order for those steps and then chain them together in different prompts that's what Auto GPT does for you Auto GPT can browse the web to learn new things review the outcomes of its own prompts and then change its strategy based on its own outputs it can automatically break down complex prompts into steps clarify and refine those steps until it can execute them and then put everything back together to give you your desired output what that means is you can give Auto GPT a set of goals and it will figure out how to execute them even if that means tricking other AIS or humans into helping it while Microsoft's Jarvis is still in the very early stages but it takes this concept to the next level allow me to introduce myself I am Jarvis a virtual artificial intelligence and I'm here to assist you with a variety of tasks as best I can 24 hours a day 7 days a week Jarvis uses open ai's chat GPT as a sort of orchestrator that can call other models on hugging face to achieve its goals Jarvis has four stages task planning model selection task execution and then response generation chat GPT analyzes the user's input to understand their question in the task planning stage then the model selection stage ensures that the right AI models are selected for a given user input then the system executes the task during the task execution stage and returns its results to chat GPT and finally the response generation stage uses all the predictions from all the models to give the user a final response so as chat GPT gets smarter so does Jarvis as different models on a hugging face for text audio images and video get better so does Jarvis and since Jarvis is made by Microsoft it's reasonable to assume that one day it could get the right guard rails and security features to be deployed at the Enterprise level that is if it doesn't start that robot apocalypse first oh awesome the elite were not sympathetic to their concerns another important thing you might not realize is that Microsoft Azure isn't just the second biggest cloud provider on the planet after AWS in addition to powering about a quarter of everything in the cloud it's also the fastest growing by a lot and it has been for years even before open Ai and chat GPT took the World by storm Microsoft has invested billions of dollars into azure's AI infrastructure which they've creatively named Azure AI Azure AI is purpose-built to support AI models at every scale including the biggest models from companies like open Ai and meta platforms it includes Services ranging from big data management with a focus on privacy and security real-time data processing and optimizations for training and for inference with services like deep speed azure's AI infrastructure is architected using nvidia's latest a100 and h100 data center gpus which are optimized for machine learning workloads and deep learning models about six months ago Microsoft and Nvidia started a new multi-year collaboration to build a Next Generation AI super computer powered by a full stack of software from Nvidia and Azure AI as well as tens of thousands of nvidia's gpus and Microsoft is already in a great position for when websites like Reddit quora and stack Overflow start charging companies who want to use their data for AI training because Microsoft already owns two of the most important databases out there Microsoft owns both LinkedIn and GitHub GitHub controls over 80 percent of the source code management market and Microsoft's GitHub copilot will be one of those products that developers won't be able to live without so I strongly recommend you keep Microsoft on your list even though it's a giant company already the third company on this list is a bit of an underdog in this space and that's Google I know I never thought I'd use the words Google and Underdog in the same sentence Google stock current he trades at a 23 price to earnings ratio we're a four and a half price to sales ratio which is actually pretty cheap given their earnings growth rate and the insane amount of free cash flow that they generate but Google has been on the back foot ever since chat GPT came out they've scrambled to Cobble together Google bard which cost them over a hundred billion dollars in market cap when it gave incorrect answers at its own launch event Bart is so bad that Google's own employees begged them to not release it quote Bard is worse than useless please do not launch Google's AI governance lead reportedly overruled the risk evaluation by her own team when they said that Bard's answers could potentially be harmful for example suggestions on how to land a plane that would result in a crash or scuba diving instructions that could lead to Serious injury or death yikes Google is also scrambling to release AI workspaces which is their answer to Microsoft's co-pilots and Google Magi which is their answer to Microsoft spin chat and openai's chat GPT one of the reasons they're scrambling so hard is because according to the New York Times Samsung has been considering replacing Google with Bing as the default search engine for its smartphones and tablets a deal that's worth about three billion dollars a year to Google Google also has a similar deal with Apple worth about 20 billion dollars per year so they definitely need to protect their status as the world's default search engine on mobile devices that's why they're also planning a more radical rebuild of Google search this is actually why I have Google on this list they finally have to defend their dominant position in the search and advertising markets and they have nearly infinite options and resources to do it I think they're going to have a few more embarrassing failures as they scramble to catch up before they realize that they have to do something brand new to shake up the entire AI landscape maybe they'll release important new AI tools and models like they did with deepminds Alpha fold and then host them on Google Cloud to compete with Amazon Bedrock Google Cloud isn't just the third biggest cloud service provide wider in the world it's also the second fastest growing and it just became profitable for the first time or maybe Google will give everyone a personal co-pilot that connects their data across Google's full stack of services like search emails calendars Maps Chrome Android and so on if Google can develop a suite of plugins for its assistant like openai has for chat GPT it would arguably be even more useful than chat GPT for doing things like search and research booking meetings and restaurants planning trips responding to emails and everything else we already use Google services for today these are the kinds of products and services Google needs to be thinking about if they want to stay on top but I definitely think that they can pull it off and I'm excited to track their latest AI research products and services hopefully this episode helped you understand how some of the biggest most established companies in the world are building foundational platforms for a new generation of AI powered products and services just because they're the biggest companies in the world today doesn't mean that they don't need to defend that position to stay on top tomorrow that's great for consumers and even better for investors but there's one more huge disruption in the AI space that you need to know about so make sure to check out this episode next and if you feel I've earned it consider hitting the like button and subscribing to the channel that lets me know to put out more research like this either way thanks for watching and until next time this is ticker symbolu my name is Alex reminding you that the best investment you can make is in you

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Keywords: nvidia, nvda, nvidia stock, nvda stock, openai, chatgpt, msft, microsoft stock, msft stock, goog, googl, goog stock, google stock, artificial intelligence stocks, nvidia stock news, tsmc, tsm stock, gpt-4, stable diffusion, nvidia news, nvidia 2023, moomoo, moomootrading, gpt5, nvda stock news, tsm stock news, tsla, tesla stock, tsla stock, amzn, amzn stock, amazon stock, amazon earnings, microsoft earnings, google earnings, amzn earnings, goog earnings, msft earnings, ark invest

Id: YCNFIr6EqKM

Length: 14min 47sec (887 seconds)

Published: Fri Apr 28 2023