Transcription
Folks, you better get ready. In today's video, we're going to break down the latest on the market and plays, and then we're going to go on to one specific stock that I believe is the steel of a century. I think you would be a criminal to snap up this stock at current prices. This stock has a killer competitive business model, a lot of catalysts, an asymmetrical risk versus reward profile, and overall, of course, a great valuation. I'm going to make my case for this stock, and I'll let you be the judge. As always, if you're the one taking the ultimate risk, you got to be the one doing the ultimate frisk. Always do your own due diligence on all ideas presented.
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Okay, so let's start with market context. So, ever since November 30th, 2022, there's been a big disconnect between the stock market and US job openings. What happened on that date? Well, that's the day that ChatGPT was released. This marked the start of Wall Street waking up to the fact that the next growth opportunity for equities was actually in companies getting rid of jobs, not creating them. And ever since then, you've seen more and more companies get applauded for laying off workers and instead investing that money into AI infrastructure. And in past economic cycles when you saw just fractions of the current investment that's being spread into AI, well, you would see massive job creation, but not this one. Why? If you give $10 million to a tech company, that company goes and puts that money into a data center and maybe hires three people. Those centers will eventually help the company fire their current staff in different departments. Whereas, if you give a mom and pop traditional business that same $10 million, well, they may open a few more shops and hire dozens and dozens of people who then help the company to grow and hire more people down the road. So, the trillions of dollars in investment in AI is creating some jobs today, but not nearly as much as previous economic booms. And over the very, very long term, this investment will lead to widespread replacement. Over the next 5 to 10 years, the vast majority of new job creation is going to be way way way less than has been in previous economic cycles. And then long-term once AI gets very good, you're going to see massive job losses. And this is the calculus that investors and markets overall have started making since November 30th, 2022. At that point, investors started deciding to position very, very heavily into companies that are replacing offices with data centers and people with data software. And they've positioned correctly. Financial Times data shows that 80% of 2025 gains in US stocks have come from AI companies. And 40% of US GDP growth in 2025 has come from AI companies. And I actually think when the numbers are done for the entire year, it's going to be substantially higher than this.
Now, at the same time as this, cash is crashing. The people who actually do have jobs in this economy, well, the cash that they're earning, the value is going down. And the cash that they're saving, the value is going down. The trash USD when compared to the also trash euro is down 12.5% year to date. Central banks around the world are dumping USD onto the market, causing an influx of more dollars into the market, which will then make this trend way worse long term. The US government is also continuing to print at an extraordinary pace. And the Fed is returning to unleashing unprecedented levels of liquidity and easy money and incentivizing the massive, massive increase in liquidity. Incentivizing trillions and trillions of dollars in reserves that are parked in treasury bills and bonds to reenter the market and broader economy. And what's this going to do? It's going to cause the dollar to crash even further. Long-term, the everyday person is going to get screwed out of their job. And long-term, the everyday person is going to be screwed out of their dollar value.
So, what does this all mean in effect? Well, let me put it to you this way. There are two major trends that are happening right now. Number one, the AI arms race is taking over the economy will eventually cause massive job losses. And number two, the USD is rapidly eroding, will eventually kill savings of everyday folks. Now, what will happen long term? What does this mean long term? Well, shareholders and other smart asset holders will get the majority of the gains and regular folks without assets will see further buying power erosion. Their savings will erode. They will lose their jobs and eventually hopefully they get bailed out by government through UBI payments. AI and the crash of the US dollar are two separate things that alone would completely disenfranchise the average person in this economy. But we actually have both. And that's why I'm so fired up to come on here and tell you that you need to be allocating into smart assets. You need to be somebody that's going to benefit from this trend, not be destroyed by it. Most people might not have the interest or might not have the extra cash to even protect themselves from this. But if you're watching this, I'm assuming that you got at least a few bucks to start allocating and thinking very, very critically about the long term here because this trend is going to cause insane growth opportunities for folks that know about it and insane destruction for folks that don't. That's why we're working so hard to bring you ideas here and in the Discord.
Okay, speaking of ideas, let's get to work. So, we're going to go ahead and start with AMD. So, back on April 14th of this year, we made a video saying, "Look, AMD is an obvious buy. It's one that should be bought non-stop, and it's one of the most overlooked stocks out there. It's the runner up to Nvidia and is getting a lot of the insane overflowing demand because their lead times are way way better. And at the time it was trading at the $95 region. And if you look at it today, it just hit 264 bucks at highs. It's heading closer and closer to a 3x, which is beautiful. Now, a lot of times folks, we're going to make a call out on a stock and maybe it goes up immediately or maybe it doesn't and maybe it even goes down. And a lot of folks will judge the success of the call out based on whether it immediately does well, which is the worst way to judge a call out. The minute that the stock has one red candle, people jump ship and they're like, "Oh, this must be a scam stock." And they go and they chase some other new shiny stock, which then that one too starts selling off and they have to chase again a different stock. If you're somebody who consistently loses money in a bull market, it's probably because you have shiny stock syndrome. Always trying to chase the next runner without ever trying to think, okay, well, what's the bigger picture? Now, the reason I'm saying all this is because AMD is a stock that many folks considered a failure because it didn't go up right away. It didn't perform immediately like people wanted. However, long-term, and it wasn't even that long-term, well, the value became obvious to markets. So, anyways, what's the trajectory moving forward? Well, if you're in the Discord, you know that we see AMD as a $958 stock by 2030, which puts this stock at about $1.54 trillion in market cap. Quite the jump from today's market cap at $422 billion. We've also alerted calls on this multiple times over the last couple of years, and I highly recommend you take a look at those calls in the Discord. In terms of further calls, I suspect we're going to be making more call option alerts on this, specifically stretching out the next couple of years because we do see a decent amount of valuation to fill in.
Okay, next we got to talk about Nvidia. So, Nvidia this morning became the first $5 trillion company. And there's a saying in markets that say you got to always follow the money. But a lot of people that have been calling Nvidia an overhyped hype bubble simply haven't followed the money. Now, back on August 23rd, 2023, when Nvidia is trading at around 1/5th of the current valuation, we made a video explaining that yes, Nvidia is going up, but it has way, way, way more to go by sheer nature, that the earnings are climbing at the same, if not at a greater pace than the price, what you're actually paying for, the earnings, the actual earnings that you're getting per share. Well, that's actually a much better way to gauge if something's overvalued or not. And this is something that we've been saying for years with Nvidia. You can look at all of our public videos and those predictions have now aged like fine wine. That said, don't expect the same extreme growth rates that we've seen the last couple of years to happen over the next couple of years. Expect more maturing and more steadying out, but still nice outperformance growth when comping to the overall market. If you look at our Discord price forecast, by 2030, we see Nvidia hitting $339 a share. That's still a lot of upside, but it's nowhere near the risk-reward profile that we had back in 2023 and before that. On top of that, you got to keep in mind that the PE ratio today is trading within normal range for Nvidia. So, if you use the same metrics we used to judge Nvidia back in 2023, well, in 2025 at current prices at all-time highs, Nvidia still looks like a buy. That said, why do I think the growth rates are going to drop? Well, because long-term, I think what you're ultimately going to see is the scarcity that Nvidia is enjoying right now that allows them to charge whatever they want. Well, that's going to steady out a lot and chip costs long-term are going to fall. That's just simply how new technologies go, which means long-term growth rates are going to mature out a lot and and you're going to see Nvidia still be the top dog, but chips are going to become more of a regular commodity versus something that nobody can get their hands on.
Okay, next, Palantir. So, Palantir officially officially hit highs at 198 this morning, heading for a rush into the 200s for the first time ever. And this comes as Nvidia CEO just said that Palantir probably has the single most important enterprise stack in the world. Now, context here. Palantir is perhaps our most famous pick of all time. And the reason that this is a famous pick of ours is because when the stock was down 72%, it had just hit $7.28. Well, I made a very, very contrarian video on it. And I said, "Yes, it's down huge." But this is actually an insane opportunity. It's not something to fear. It's an opportunity. I presented the facts, not the fear. And this was back in 2022, and I continue to do so for many, many years. And by the way, I understand that now everybody thinks Palantir is great, but if you weren't around back then, you don't understand. Back then, everybody said Palantir was going to zero. It's a garbage meme stock. I know it sounds crazy today, but that's the story back in 2022. If you're somebody watching back then, you remember every article was like, "Oh, at $7, Palantir is overvalued. At $6, Palantir is overvalued. It's hopeless." Nowadays, a lot of those same writers are saying that Palantir is screaming buy at 198. Well, where were you when it was at 7? Said, at the same time, you got to understand when a stock is plummeting, when it's been plummeting, your body, your emotions, everything is going to tell you that that stock is a garbage scam. How could it not be? It's down. That's just simply human psychology. But the way to counteract this, and what we said back in 2022, and what we will say during down cycles for any stocks in the future, is you don't want to just look at the stock price. You want to look at the actual business itself. If the business is going like this and the stock is going like this and there's a huge valuation gap, well, that's an arbitrage opportunity. That's not a reason to panic. And that's why we made countless videos explaining why this was a buy, not just at $7.28, but virtually every price over the past few years. And we presented very, very evidence-based arguments and followed up with it again and again and again, building conviction over time. Even when Palantir had missed quarters, we said, "Well, look at the longer term trend." And I say this only because I know we have a lot of new folks that they think all of this comes easy. But that's not the case. A lot of this stuff was very, very difficult. And when you're on your own investing journey, please be prepared for the kinds of swings that we saw.
So anyways, what about Palantir moving forward? You have to understand that the big advantage of Palantir software is that it isn't bloatware that companies hire to act like they are using AI productively. It's actually something that boosts productivity dramatically. And that's based on many, many case studies. Palantir's AIP platform is the real deal. It helps companies and governments plug AI directly into real operations. They're running AI boot camps that turn clients into power users within days. The translation, well, they're not selling hype. They're selling usable AI infrastructure, which is saying a lot in today's society. This is also battle tested in high stakes environments. Palantir systems already power the US defense, intelligence, and critical infrastructure sectors. That means its AI is proven where failure isn't an option and where failure can mean the loss of lives. And so, in any situation where security, compliance, and reliability matter, well, Palantir is going to be the one getting the call. And then there's also massive stickiness through data integration. Palantir builds a full digital twin of a company's data and workflows and once their AIP platform is integrated well it becomes the nerve center of a organization's data operations. So it's extremely hard to rip out giving Palantir a powerful switching cost moat. What tends to happen and if you look at the contracts and all the data over many years is a company goes and they employ Palantir software. Palantir figures out how to best serve them and as the AI model trains and really really streamlines results well the company goes and spreads it out to more and more of their organization meaning that Palantir is now an essential nerve center for the organization and we just released our latest price target on Palantir yesterday in the Discord and I'll show it to you here. Basically, if it continues to hit the numbers that we believe the exponential growth that we believe and see is very very possible. Well, we see the stock heading towards $68 per share by 2030. This is assuming a 40x price to sales ratio which is quite the crunch from the current price to sales ratio by the way. So again I actually see the price to sales ratio coming down dramatically which means that Palantir is going to get cheaper for every dollar of sales but the price is going to go up dramatically because their revenue is going to scale up dramatically and long-term their profitability I think is going to be very very beautiful because software quite frankly is very very high margin.
Okay, next I got to talk to you about APLD Applied Digital. So, we've been very bullish on data center plays because of the scarcity that we are seeing with the Nvidia chips and AI infrastructure overall. And companies like APLD that actually have data centers stacked with these chips, in my opinion, have been long set to outperform. And we've been saying that all year. And APLD has been one of our biggest callouts in the space. This year, we screamed APLD was a buy at $4.53 back in April. And at highs this year, just recently, it hit over $40 and now it's cooled back down to the mid-30s. Now, if you go back to our Discord briefing on the 22nd, this is what we predicted happening. We said, "Look, you're going to see a push back. It's just a question of percentage down." I believe the case a scenario here is still the most likely that you're going to see a bigger pullback into the 20s before you see a sustained breakout to all new time highs. The bigger picture here is that the dip is going to be bought up. Why do I believe the dip is going to be bought up? Well, because data centers are again very, very scarce. There's endless money going into data centers right now. OpenAI themselves said they're planning on spending trillions upon trillions of dollars in acquiring AI data center compute and APLD is one of the small cap players that has the positioning to benefit from this wave. There's also Terra Wolf, ticker symbol WLF, back on August 19th. We explained that data center play Wolf was screaming buy at $8.78. We made another video on October 8th when it was at $12.30 explaining why it still has crazy potential and then it went up to $175 at highs and now it's been selling off again. Ultimately, what you're looking at with Wolf is a stock that needs to breathe, but also a stock that has substantially more upside once the dip gets bought back up. I think that the tidal wave of demand for AI data centers will continue to drive Wolf as it has, and I do think it is a better deal right now than APLD, but both should benefit from the rising tide of data center demand.
Okay, HOOD. HOOD. So, we've been big believers in HOOD since the $18 region, and it's climbed as high as 150. And the truth is their business model is absolutely dominating during this bull market. And more importantly, the massive retail trading increase in the cycle is going to cause massive massive increases in almost every metric for this company. And with all of the new products and services and innovations that they're trying to pioneer, I think that you have a lot more excitement coming for the stock and right now it is getting bought up from its current push back. And this is something that we said back on October 6th was going to happen. We posted in the Discord, "HOOD bulls have been in control for many months now with the stock firmly sitting within an ascending channel. The pattern has been tested multiple times with no breakouts yet. I expect the bears to eventually pull HOOD outside of the channel given the overall duration and aggressiveness of the uptrend. With that said, a few more pattern tests may be in order before this happens." And then that happened with the test of the lower channel trend line that is now breaking out. So, I think the important thing with HOOD is to keep in mind, look, long-term we love it, but it's also up a lot. And I don't like chasing. Chasing is ugly. Chasing freaks people out and creeps people out. And it's the same thing with the stock. I have noticed that when you chase a stock up, it gets creeped out and it goes right back down. So, don't creep out your stocks. Require require a good deal. Do not chase.
Next, SoFi. So, we've been huge fans of SoFi for years and years and years and screamed it was a buy as low as $6.50 back years ago. And when Trump got reelected last year, we said SoFi was going to be a big benefactor of the student loan forgiveness flip. But the overall justification for SoFi's bullishness has always been that the sheer number of users in the platform have been growing while their revenue per user has also been growing which is a great exponential increase. And SoFi further confirmed this at their recent earnings report that just came out. So what's the bigger picture on this? Well, if you look at our Discord price target forecast, we see SoFi at $157 by 2030. I'm expecting lending to grow to 13.5 billion. Financial services to grow to 7.5. Tech platform Galileo and such to $3 billion. Wealth and advisory and AI integrations overall to grow to about $2 billion and other sources to be around $1 billion in the miscellaneous segment. And this would support a $27 billion in total revenue by 2030 and thus support a $157 per share price. Moreover, I believe that SoFi is so underpriced that even in the bare case, it has upside to $56 with much weaker growth rates. Now, again, it is a little bit easy and obvious to make these kinds of predictions because the Fed is in a rate cutting cycle right now, which should really, really start lifting a lot of SoFi's lending segments as refinancing and lending demand go back up. But more importantly than that, what this is really based on is that SoFi's membership is increasing massively. And all of those are potential people that SoFi can sell new loans to, can sell different financial services to, can sell almost anything to, and continue to build more and more revenue per user. And that's why we've long been SoFi believers and continue to be. By the way, if you want to get all of our price target forecast and get them the minute that we post them, make sure to join us in the Discord down below, coupon code Halloween, for a spooky discount.
Okay, main entree. So, one stock that I believe is screaming buy right now is SMCI, Super Micro Computer. So, let's face it. Almost all of the best stocks in the market right now are trading at or near all-time highs. Many of them have farther to go. Sure. But if you are someone out there looking for a great deal in the AI arms race, it's very, very hard to find one, especially one that's well down from all-time highs. There's just not much fear anywhere. But there is one name in the AI arms race that I'd argue still has a lot of fear attached to it and you have an extra added potential premium if you can buy before the fear goes away. And that is SMCI. SMCI got priced for perfection early in the AI hype, then crashed as investors panicked and there were some short seller fear campaigns and so on and so forth. But now, if you're looking at it, I mean, the fundamentals are very, very strong. The demand is growing rapidly and the valuation is actually reasonable, especially compared to comps. SMCI is a great great deal. It's trading well below its all-time highs. It's on a consistent uptrend. It's got lots of proof of concept, and it's largely misunderstood by folks. Now, context first. No, this isn't the first time we've talked about SMCI. Back on February 6, 2025, we made a video explaining that, hey, yes, SMCI is down almost 75% from the previous year highs, but it's actually screaming buy right now. And yes, the stock has gone up about 56% since I made that video. But again, if you actually look at what this company does and how central it is in the AI arms race. I mean, if you compare it to similar companies, it's greatly greatly overlooked and it's greatly greatly misunderstood. 56% up on a recovery is very very different from 56% above all-time highs. And we still haven't recovered to its own all-time highs yet. The market right now is way more willing to invest in AI and again trillions and trillions of dollars are flowing into AI investment. So why does SMCI look undervalued right now in my opinion? Well, for starters, AI data center explosion. SMCI builds the high performance servers and cooling systems that power AI data centers are very centrally positioned in this. And as companies race to expand AI training capacity, well, demand for SMCI's hardware is likely to keep rising. They're at the center of the AI infrastructure arms race and the market just hasn't really fully caught on to that yet. Number two, they're still priced like a regular hardware stock, which is a big mistake. Even though SMCI powers the AI boom, it trades at a low multiple compared to peers. Analysts think the market's being too conservative. Some estimates show 40 to 50% upside if rerated like other AI names. I actually think it's way more than that. But Wall Street's valuing SMCI like it's 2020, not 2025. There's too much fear baked in here. Investors are worried about margins and accounting drama, but the fear is already priced in in my opinion. And if SMCI executes normally, that fear premium unwinds fast. This is a classic great business scary headline setup. There's also big upside if margins improve. I think they're going to improve massively. SMCI is shifting from standard servers to high-end liquid cooled AI systems. That mix could raise margins quite a lot. Right now, the market isn't paying for that potential. And that's the opportunity I see there. And they're partnered with the biggest AI players. They work hand-in-hand with Nvidia, AMD, and Intel to build next-gen systems fast. Their ability to roll out new hardware really gives them a speed and innovation edge. And when chip giants win, SMCI often wins alongside them. And then there's also hidden value here that a lot of people are missing. The noise around regulation, volatility has scared off a lot of investors, leaving the stock very, very overlooked. But behind the headlines, the fundamentals are very, very solid. Smart money loves these misunderstood setups because small execution wins can drive big upside. There's also high short interest, which means squeeze fuel. With heavy short positioning, even one strong earnings beat could trigger a squeeze, and that's extra upside potential on top of improving fundamentals, which is the perfect recipe for a sentiment flip. There's also margin of safety for AI believers. If you believe in the AI buildout, SMCI gives you exposure to the physical side, the servers, the cooling, the power. The stock has run up, crashed, and now sits in a sweet spot where risk is already discounted, but the stock has shown previous proof of concept. And in totality, if you look at our price target forecast that we posted yesterday in the Discord, we see this as a $384 company by 2030. So the amount of upside as this company grows in the space is substantial. Substantial for the patient, right? I'm not talking about this being something that goes up tomorrow or next day or next week. I'm talking about something for folks that have quarters or years worth of time span and are willing to do their own due diligence on the stock and build their own conviction, right? Because that's what it is at the end of the day. In any case, we're going to go ahead and alert call options leaps, which means farther reaching in terms of date of expiry call options, and they're going to be posted in the Discord shortly after I post this video. If you aren't a member yet, make sure to join with that Halloween coupon code linked down below. Have a good one, folks. We'll see you in the next video.