GET IN EARLY! Top 5 Stocks I'm Buying Thanks To the Apple Vision Pro

the Apple Vision Pro is taking the World by storm and mixed reality will change our lives in a fundamental way just like the smartphone did and the internet before that and the personal computer before that but the real opportunity for investors is where mixed reality meets artificial intelligence and in this episode I'm going to highlight five stocks that are already winning in these quickly growing markets which is a great way to get rich without getting lucky your time is valuable so let's get right into it first things first I'm not here to keep you hostage here's everything I'm going to talk about I'll quickly go over the mixed reality and AI markets and how fast they're expected to grow then I'll talk about the biggest winners operating in both of these markets today and then I'll show you a few more companies with big software or Hardware platforms ready to benefit from them as well and since there's a lot of ground to cover I'll be keeping everything at a pretty high level my entire Channel focuses on the science behind the stocks so if there's a company that interests you you you can probably find a video where I cover it in way more detail I should also mention that I only buy stocks when they drop below my price targets research tells me which stocks to buy but price targets tell me when so if you want to see those I'll leave a survey Link in the description it only takes a few seconds and your answers tell me how to add the most value all right with all that out of the way let's dive into the mixed reality and AI markets the market for mixed reality also called spatial computing is expected to more than 4X in size over the next 9 years which is a compound annual growth rate of over 18% and I think this estimate is actually pretty conservative since it was made before the Apple Vision Pro came out as more people and businesses start using the Vision Pro more developers will build more games apps and services for mixed reality which gives people and businesses more reasons to buy new headsets which brings in even more developers this is called a virtuous cycle and it's how new technologies gain mainstream adoption over time but even though the Vision Pro is validating the market for mixed reality Apple obviously isn't the only player in the space I have to ask Apple just announced a mixed reality headset called Vision Pro for $3,500 available in early 2024 what do you think about this headset you know I I do think that this is a certain level of validation for the category you know virtual reality augmented reality mixed reality this is going to be a big part of the next Computing platform um I think having Apple come in and share that Vision will make a lot of people who are fans of their products um really consider that you know of course the the $3,500 price you know on the one hand I get it for with all the stuff that they're trying to pack in there on the other hand a lot of people aren't going to find that to be affordable so I think that there's a chance that that them coming in actually increases demand um for the overall space and that Quest 3 is actually the primary beneficiary of that although they're both mixed reality headsets the Apple Vision Pro and The Meta Quest 3 don't really compete since Apple's headset costs around six times more than meta and they have entirely different software ecosystems but what's really interesting is when you combine mixed reality and AI the AI Market is expected to more than 15x over the next 9 years which would be a staggering compound annual growth rate of close to 37% per year through 2032 and I honestly think that could be conservative as well since people and companies are constantly coming up with new use cases for Transformers oh God no not that kind of Transformer Transformers are the tea in GPT and they're a special type of neural network that can learn context and understand meaning by tracking relationships in data for chat GPT that means understanding what words typically go together to be able to predict the next next one but within one year of chat gpt's release Tesla switched how their full self-driving software Works to a similar approach their latest version fsd2 relies on transformer-based AI models to understand what the cameras are seeing and drive the car itself instead of having the rules of the road being programmed in by humans nobody saw that use case just a few years ago and it meaningfully changes how big the AI Market can get and I'm sure we'll keep seeing new breakthroughs in other areas like medicine or Material Science that will increase these estimates yet again that's why meta has been making very big and very public investments in many different areas of AI as they keep recovering from their metaverse flavored hangover meta has their own large language model called llama which competes with other AI models like open ai's GPT and Google's palm and they're currently training llama 3 they also plan on buying 350,000 Nvidia h100 gpus this year alone bringing their total data center GPU count to almost 600,000 if you count other systems like the new Mi 300X from AMD and meta has developed plenty of other great AI capabilities like a speech to text model called seamless m4t which can translate between nearly a 100 languages and these AI Investments aren't just for show meta stock has gone up by more than 4X since the end of 2022 and betting big on AI should keep paying off for meta in the short term by increasing advertising Revenue through better targeting and personalization as well as the medium term by adding differentiated AI features like Universal translation to all of their apps and of course in the long term by helping power and connect people in the metaverse if that's still on the table for them I talk a lot about the benefits of AI but let me show it to you in action I'm actually a really bad texter so I replace my iPhone keyboard with type AI a keyboard powered by chat GPT I just type in my messages like normal but before I hit send I ask type AI to check my grammar clean up my typos and adjust the tone of my message to fit the conversation and honestly it does a fantastic job did I mention I'm a really bad texter and because type AI is my keyboard it works in iMessage email slack Discord and every other app that I'm constantly making typos in dude not saying duck oh thanks type AI actually I should probably make that a little more friendly but seriously type AI saves me a ton of time and frustration especially when I'm trying to get through emails and keep up with group chats so whether you're a terrible texter like me or you just want to save some time while you're typing you can get type AI with my link in the description below here's the thing even though it looks like it Apple isn't just standing by while other companies capture the AI Market Apple has acquired more than 30 AI companies in the last 8 years which is almost as many as meta Microsoft and Google combined and while meta Microsoft and Google like to talk about all of the exciting AI projects they're currently working on Apple tends to stay quiet until right before they release a category killing product that's exactly what happened with the iPhone the Apple watch the airpods and of course the Apple Vision Pro and with Next Generation AI devices like Humane AI pin or the rabbit R1 one trying to replace smartphones altogether I wouldn't be surprised if Apple added a real AI assistant directly to the iPhone and The Vision Pro Apple even has their own internal AI model called Ajax Ajax could not only make Siri actually useful but it could give her superpowers like downloading and using apps or taking actions on the user's behalf even if they require multiple apps across multiple devices to complete and since Apple tightly controls every part of their eco ecosystem from their custom arm chips to which apps can be on the Apple ecosystem in the first place and how they need to interact Ajax has a huge advantage over other AI models that would either need to work on multiple kinds of chips or run on a server and have the device connect to it over the Internet my point is that investors shouldn't blindly mistake Apple's silence for a lack of action when it comes to AI this could be another area where their last but best strategy pays off big time all right apple and meta platforms are the only two companies in the Magnificent 7 with dominant positions in mixed reality and big opportunities in generative Ai and when there are only a few companies set to win multiple markets that are all growing fast holding them all is a great way to get rich without getting lucky but one quick bonus stock that I want to call out is Microsoft who's currently one of the leaders in generative AI thanks to their AI infrastructure on Azure and their Suite of co-pilots powered by open AIS GPT 4 Microsoft also has their own mixed reality headset for industrial applications called the hollow lens 2 and they're adding AI to these headsets in a pretty clever way in a nutshell the headset passes whatever the wearer is looking at to the AI model and when the wearer asks a question it accesses what they're looking at as part of the prompt then the answer gets passed to the user as a combination of text to speech in audio and a normal augmented reality display or a holographic overlay on top of whatever the user is looking at like I said earlier there are many different use cases for combining these two technologies and we're just scratching the surface of mixed reality and generative AI but whenever I invest in a company because of a specific product I like to make sure I understand how much it actually affects their bottom line Microsoft recently surpassed apple as the biggest company on earth and the hollow lens is such a tiny part of Microsoft's portfolio that they won't really benefit from the growth growth of the mixed reality market like apple and metal will with their Mass Market headsets that's why Microsoft stock is a bonus in this video the stock that I think really will benefit here is Qualcomm Qualcomm is a company that designs chips just like Nvidia or AMD but while Nvidia and AMD focus on building chips for servers and for desktop computers Qualcomm focuses on the edge and Edge AI is about to take off big time at a high level Edge AI also sometimes called on device AI is where our laptops and phones get powerful enough to run a large language model right on the spot instead of having to send the data to a server on the cloud companies like apple and meta really want to see this happen since running the AI right on the Apple Vision Pro or The Meta Quest means it can run way faster and it's more secure and it can work without the internet well the meta Quest 3 is powered by qualcomm's eighth generation Snapdragon XR chips which focus on using AI to enhance graphics do Advanced Eye tracking and gesture recognition to create more immersive and realistic mixed reality experiences and the Rayband meta smart glasses use Qualcomm Snapdragon AR chips to enable real-time photo audio and video processing as well as streaming inside that tiny form factor even the Humane AI pin that I mentioned earlier is powered by qualcomm's chips and you probably saw all of the awesome AI features on the new Samsung Galaxy s24 Ultra like Circle to search where you just circle something on your screen to search or reverse image search it or live translate which automatically detects the language of both speakers in a conversation and converts speech to text to speech on the Fly between them or the AI enhanced camera which combines Optical and digital Zooms for up to a whopping 100x Zoom that's right all of those zoom and enhan scenes from your favorite crime dramas are about to become a reality can you enhance the image from here can you enhance him right here can can you enhance it can you enhance it can we enhance this can you enhance it hold on a second I'll enhance well the Samsung Galaxy s24 Ultra is powered by qualcomm's Snapdragon 8 gen 3 processor in fact Qualcomm dominates the mobile processor Market with around of 45% share by Revenue which is more than Apple and Samsung combined Qualcomm stock has been on an absolute tear lately going up over 30% over the last 3 months I should also mention that they acquired a company called nuvia back in 2021 nuvia 3 co-founders were all lead Architects for Apple's custom chips and hold over a 100 patents combined now they're all VPS of engineering at Qualcomm and their newest Flagship chip the Snapdragon X Elite is based on nv's designs qualcomm's X Elite is one of the best performing chips on the market but it uses anywhere from 50 to 80% less power making it much more power efficient than current chips from Apple or Intel again my goal here is to get rid without getting lucky so if I hold this stock along with apple and meta I'm holding all of the big winners on the hardware side of mixed reality and AI at the edge and on the software side I'm looking at Unity software ticker symbol U got to love that ticker Unity software makes the unity game engine which focuses on making 2D and 3D cross-platform experiences that means developers can make a game or a simulation or another interactive experience once and release it on desktops game consoles Apple and Android phones and mixed reality headsets that's why unity's platform is popular with Indy game companies and smaller developers which I think will also Benefit Big Time from the productivity gains being unlocked by AI for example developers are starting to use large language models to write story lines and dialogue in games as well as using image generators to build 2D and 3D assets for their worlds today mobile games account for half of All games around the world and around 70% of all mobile games run on unity and they don't just work for games Industries like Automotive architecture and film all use Unity to develop interactive 3D experiences as well in fact Unity powered 60% of all AR and VR content in the world in 2022 Unity is the software platform of choice for The Meta Quest and Microsoft's holens and apple confirmed that the Vision Pro will also support projects made in unity right out of the box as well but this is a company where the price targets are really important I would put Unity on my watch list for now because as good as their software platforms are there's a lot of uncertainty about the company itself long story short Unity announced a very controversial pricing plan last fall that would charge developers every time their games were installed this pricing scheme was universally hated by the entire gaming industry from developers all the way to unity's own employees I cover Unity fairly often so I made a video saying that the company would collapse unless they fired their CEO at the time John retell and they actually did fire him about 3 weeks after I made that video and unity is still restructuring big portions of the company today that's why the stock made such a drastic turnaround before settling down as the entire Market watches to see what they do next and the next media company on my mixed reality watch list is Disney just like Unity Disney has some issues of their own like their CEO o Bob Iger retiring in 2021 only to oust his successor and return in 2023 or Bob's political Feud with Florida's governor Ronda santis or his Feud with Elon Musk over advertising on Twitter if somebody's going to try to Blackmail me with advertising blackmail me with money go yourself go yourself is that clear I hope it is hey Bob here in the audience actually maybe Disney's biggest problem problem is Bob Iger Disney's business has a lot of moving parts from theme parks hotels and cruise ships to what is arguably the strongest portfolio of media IPS on the planet Disney owns or has a big stake in Star Wars Marvel Pixar ESPN 21st Century Fox Hulu National Geographic ABC and ABC News the History Channel the list goes on and on it's actually pretty crazy how much of the world's media runs through Disney and Disney is part ING with apple to reimagine their content for the Vision Pro imagine exploring your favorite Star Wars planets or having your favorite Marvel scenes unfold around you imagine watching sports from any seat in the house or zooming out to see an aerial view and being able to select a player and see all their stats so Disney stock is another one for the watch list because no company on the planet has more media that the mass Market wants to consume in new and interesting ways from Sports and Cinderella Stories to Star Wars and superheroes and there are a ton of unique ways that Disney can leverage their massive Content Library to great success in the era of AI and spatial Computing I know this video is a little long but I wanted to be thorough since the Apple Vision Pro is about to unlock entirely new markets for chips Ai and mixed reality devices and the software and services that run on them and in my opinion the way to find the winners in these fast growing markets is to understand the science behind the stocks that's the best way to get rich with without getting lucky and if you feel I've earned it consider hitting the like button and subscribing to the channel that really helps me out and it lets me know to put out more content like this either way thanks for watching and until next time this is ticker symbol U my name is Alex reminding you that the best investment you can make is in you

Channel: Ticker Symbol: YOU

Views: 203,224

Keywords: apple vision pro, apple stock, aapl stock, aapl, mixed reality stocks, best mixed reality stocks, vr stocks, virtual reality stocks, best stocks to buy now, invest in apple vision pro, nvda, nvda stock, nvidia stock, amd stock, msft stock, msft, microsoft stock, chatgpt, gpt-4, openai, best ai stocks, meta stock, meta platforms stock, qcom, qcom stock, qualcomm stock, u stock, disney stock, dis stock, ticker symbol you, metaverse stocks

Id: f4djIqbt5ik

Length: 17min 50sec (1070 seconds)

Published: Wed Jan 31 2024