History Repeats Itself! Top AI Stocks to Buy Now

I'm excited to show you my favorite AI stocks right now and what kind of stocks to watch over the next few years your time is valuable so let's get right into it since there's so much hype surrounding generative AI tools like chat GPT and what they could mean for our future I thought I'd start this video in an unusual Place January of 2010 the latest smartphone was the iPhone 3 and the mobile internet was still in the very early Innings artificial intelligence was a big buzzword even back then but knowing what you know now would give you a huge Advantage as an investor since you could basically see the future and if you looked five years into the future then this is what you'd see the rise of the mobile internet really started with the companies making the chips themselves like Qualcomm and arm that's the first section of this chart then the iPhone 4 came out in June of 2010 which was the first iPhone with a retina display this was a big step up in terms of user experience for smartphones which means a big step up in their adoption but Apple wasn't the only huge winner for the mobile internet in addition to making many of Apple's displays Samsung also makes a lot of android devices making them an important part of the story I could never get a Samsung I'm creative did your Barista and you can't have a mobile internet without the servers and infrastructure to do all the heavy lifting for the smartphones and tablets and even the personal computers of the time as a result cloud services like Amazon's AWS and Microsoft's Azure emerged in 2010 Netflix switched to streaming only and in 2011 Spotify came to the United States and Microsoft launched cloud services like office 365. more and more services were moving onto the cloud which means they could be accessed from even smaller and less powerful devices and as a result the user experience got even better all of a sudden you weren't totally screwed when you lost your phone because your contacts and apps and photos got synced to the cloud then on top of these chips and devices are the software companies that we know and love Facebook Amazon Apple Microsoft Google you know all the stocks you wish you bought in 2010 and held until today I'm telling you that story because I think we'll look back at 2023 as the new 2010 with a brand new set of stocks that'll make huge moves over the rest of the decade so Nvidia Stock's recent explosion in price doesn't mean that you're too late it actually marks the beginning of the next chapter so let's use the same pattern to look into the future and find some companies worth investing in let's start with semiconductors well it's no doubt that Nvidia will be a big winner for years to come they're not the only Semiconductor Company in the AI space for one thing they don't make their own chips tsmc or the Taiwan semiconductor manufacturing company is a Pure Play Chip Foundry that doesn't make any consumer products of their own instead they support a wide variety of other chip designers without competing with them for example tsmc manufactures Apple's a series chips for the iPhone and the M series chips that go into app Apple's desktops MacBooks and iPads in fact Apple accounted for around 20 percent of tsmc's overall revenues last year tsmc has close to a 60 market share when it comes to making the world's chips but that number is even crazier than it sounds because around 90 percent of all advanced chips in the world are made by tsmc as well not just for Apple but for future versions of Tesla's full self driving chips and of course nvidia's gpus speaking of which tsmc has a special four nanometer process called 4N which is customized specifically for nvidia's new Hopper gpus as it gets harder to make transistors smaller and smaller I think we'll see many more specialized chip fabrication processes like tsmc's 4N some processes will focus on Graphics chips others will focus on optimizing CPUs and maybe others will be better for flexible server chips or data Focus chips and so on the thing is these specialized processes only really make economic sense in large volumes so as new AI applications start requiring new chip designs and architectures that should accrue to tsmc's benefit because they're really one of the only companies that can make such specialized chips at scale I think the stock market realizes this too which is why TSM stock rocketed up almost in lockstep within videos and of course we can't talk about tsmc without also talking about asml ASL is the only company on Earth that makes extreme ultraviolet lithography machines these are the machines that tsmc needs to make things like nvidia's gpus and Apple's chips each euv machine has over a hundred thousand parts and needs dozens of trucks and multiple cargo planes to be transported around 90 percent of the parts in these machines are actually made by hundreds of companies from all over the world with asml acting as the systems integrator and that's actually a good thing since asml doesn't need to be the best in the world at making every individual part and subsystem in these machines many of which need insane amounts of engineering to be built to spec for example these euv lithography machines have special mirrors made by a company called Zeiss these are the flattest mirrors on Earth they're said to be so flat that if Zeiss made a mirror the size of the United States the biggest bump in the entire mirror would be the size of a speck of dust it would actually be much riskier if asml was responsible for making all these complex components themselves and putting them all together because if one part has an issue the whole 200 million dollar machine has an issue instead they figured out a way to build up a massive network of exclusive deals with hundreds of very specialized suppliers because of this experts say it could take decades and billions of dollars for any other company to challenge asml's moat and since asml literally has a complete Monopoly on these euv lithography machines the increase in chip demand from this new era of AI applications should benefit them as well that's why their stock is also already On The Rise and speaking of stocks benefiting from AI MooMoo is a Silicon Valley based trading app built for advanced investors and they have a ton of great features to help you find great Investments and execute your strategies for example they have this awesome Concepts feature that shows you which companies are involved with different Advanced Technologies check this out you can search for chat GPT on the markets page to get a list of every stock that benefits from generative AI Apple Microsoft Google Nvidia tsmc asml and every company that I've been focusing on since openai released chat GPT to the public no wonder they have almost 20 million investors around the world and right now MooMoo is giving away up to 15 free stocks each valued at up to two thousand dollars plus a hundred dollar cash bonus and a free share of c3ai when you use my link to sign up and a share of Tesla or Google when you deposit five thousand dollars all you need to do is download the app using my link keep your funds at that level for at least 60 days and and enjoy up to 17 free stocks but this offer ends soon so make sure to get started today alright if we look five years into the future semiconductors are only the first wave the second wave would be the data centers and Edge devices that rely on them let's tackle data centers first we already know that Nvidia dominates Data Center gpus and Intel has dominated the server CPU market for decades but AMD has been slowly eroding Intel's data center market share in fact according to Counterpoint analytics Intel's market share is at an all-time low of 70 percent after repeated delays to their Sapphire Rapids chips on the flip side AMD hit a 20 market share in data centers at the end of 2022 up from around 12 percent just one year earlier that's a whopping 60 market share increase in a single year marking 15 consecutive quarters of growth in the data center market for AMD one reason for this is that amd's current server processors tend to be more power efficient than Intel's which means lower overall costs for the data centers that run them and amd's epic line of server CPUs can have up to 128 cores in them which means they still offer a lot of compute for the power it's also worth noting that Amazon Microsoft and Google are all designing their own data center chips to reduce their Reliance on third-party companies but I think these homegrown chips will end up disrupting Intel more than AMD thanks in part to amd's acquisition of xilinx the xilinx is a huge player in field programmable gate arrays and reprogrammable chips reprogrammable logic is becoming more appealing for data center applications that need updates after a chip is made and installed like for machine learning algorithms that get retrained and re-architected over time for example gpt4 the large language model behind chatgpt since fpgas can be reconfigured via code one fpga can serve many different purposes inside the data center removing the need for a wide variety of different application specific chips so more flexible chips and chiplets could further increase amd's market share for data center processors another reason I personally like AMD over Intel is because they have tons of optionality here's what I mean let's say that Amazon and Microsoft and Google do end up eating amd's launch on the data center side AMD is also the dominant chip maker when it comes to video game consoles providing the semi-custom chips for the PlayStation 5 as well as the Xbox series s and X they're also seeing growing demand in embedded systems AMD provides the embedded chips behind the infotainment displays in the Tesla Model S and model X and soon the model 3 and Y as well so even if AMD does lose some of their market share in data centers their chips could find their way into more kinds of devices especially as these new generative AI tools drive up the need to do inference at the edge and speaking of the edge devices the other company that I want to call out in this section is Apple it turns out that many of Apple's products are category killers in the markets they compete in for example the Apple watch is the number one smart watch in the US with a round of 45 market share and that number is getting close to 40 globally likewise if you combine the airpods and the Beats by Dr Dre Apple has about a 50 share of the US wearable headphone market and of course they just announced the Vision Pro mixed reality headset at their annual worldwide developers conference which I'm really excited to keep covering in future episodes I think this next wave of AI applications will make all wearables 10 times more powerful than they are today in fact I wouldn't be surprised to see tons of incredible AI powered apps for wearables over the next few years which would basically be giving their Wares superpowers like speaking every language and seeing through buildings what if Apple adds new sensors and an inference ship to the watch that lets you do things like ask chat GPT questions about your surroundings or your health or what if Apple tweaks their airpods to allow real-time translation between languages or turn turn Siri into a virtual tour guide that can help you navigate your local surroundings or what if they had all of these capabilities and more into the Vision Pro but the real thing to watch out for is how software and services are going to change over the next five years even though chat GPT feels like it's taking over the world it's important to remember that we've really just scratched the surface of what's possible with generative AI chat GPT and Microsoft's co-pilots are just the low-hanging fruit sure they're going to help us use the most advanced features and get the most value out of the apps that we already use today and that's awesome but I imagine that the software of the future will actually come with new and exciting features altogether for example Apple also announced a huge new partnership with unity software for their mixed reality content I've been covering Unity software for years now because they have over a 50 market share for mobile content and over a 60 market share for augmented and virtual reality there are already a ton of new generative AI tools for 3D assets and experiences I can't imagine how this partnership is going to change how we create and consume all sorts of content over the next few years and speaking of content creation another example on the software side is Adobe for example Adobe Firefly is a family of generative AI models being baked directly into adobe's Creative Suite unlike chat GPT adobe's Firefly is a co-pilot designed to iterate through hundreds of variations of prompts and generated images Now by just selecting an area of an image and giving Firefly a few words you can do everything from photo touch-ups to generating completely new parts of an image you can do things like keep the subject but change the scene keep the scene but change the subject and pretty much anything else you can put your mind to and that's just Photoshop what about dynamically generating the music and sound effects for a video that you just shot on your phone or changing the lighting for an entire scene and having the light correctly interact with every object or how about generating an entire movie storyboard from nothing but a script this isn't just AI helping us squeeze the most out of the software that we already use it's adding a ton of new capabilities altogether and I expect these kinds of things to increase adobe's margins pretty substantially because they're able to generate more assets to sell and more tools to use those assets while paying fewer people to make them likewise stock photographers videographers and musicians will also need to learn to use these tools to produce better assets than what the AI can generate on the Fly I can't wait to see what kinds of new software services and experiences generative AI will enable not just for computers and smartphones but also new devices like smarter watches and headphones as well as mixed reality and I'm excited to share all of my research into that with you so hopefully this episode helped you understand that the huge rise in tools like chat GPT and nvidia's gpus is really just the beginning and there will be many more big winners in the years to come not just in semiconductors but in data centers and Edge devices cloud services and all kinds of software and user experiences but there's one more huge AI breakthrough 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

Channel: Ticker Symbol: YOU

Views: 127,075

Keywords: nvidia, nvda, nvidia stock, nvda stock, nvidia keynote, openai, chatgpt, gpt4, gpt3, msft, microsoft stock, msft stock, goog, goog stock, google stock, artificial intelligence stocks, semiconductor stocks, tsmc, tsm stock, asml, asml stock, gpt-4, nvidia news, nvidia 2023, nvidia keynote 2023, ai stocks, best ai stocks, apple vision pro, apple vr headset, apple vr, apple googles, metaverse stocks, apple wwdc 2023, vision pro, aapl, aapl stock, apple stock, moomoo, moomootrading

Id: TWo9BtPL3Mk

Length: 14min 27sec (867 seconds)

Published: Thu Jun 08 2023