Transcription
2024 has been an amazing year for
artificial intelligence where it's
estimated that 72% of employees are
using AI in some capacity and whether
you realize it or not it impacts all of
us from how Amazon recommends us product
using navigation apps with realtime
traffic updates and sadly we also see it
in our customer service and seeing how
AI is in the early stages it should be
no surprise that AI companies are
expected to grow an average of 36% a
year for the next 5 years so if you had
invested $100,000 in AI companies today
with a 36% ker or compounding annual
growth rate it would be worth over
$465,000 in 5 years I've been saying it
for a while now but this is a once in a
generation opportunity for investors and
I hope that you listen to me 2 years ago
when I tried my best to share this out
regardless of where you're at in
investing I'm going to break down the
top AI companies to invest in for 2025
and of course I'll be following this up
in a few week weeks with the best AI ETF
for those of you that don't like
investing in individual stock now as I
often say I'm not here to withhold
information that's why I'm going to list
out each of the companies that I plan to
cover in the video right now and then
I'll give you my commentary on why
they're on the list in the first place
and one of them is on the list because I
expect a major pullback which will give
most of you a chance to get in I'm also
going to provide my bonus list of AI
specific IPOs that you'll want to keep
an eye out over the next year so the top
AI stocks that I'm discussing today are
asml paler Nvidia Amazon crowd strike
and Taiwan semiconductor and as I had
said I expect a pullback from one of
these now if that's all you wanted for
the video then I get it you won't hurt
my feelings if you ditch the video right
now and I understand if you don't want
to give me a like or a subscribe but I
hope that you hang around to find out
why they're on my list and definitely to
learn about those upcoming IPOs which
are initial public offerings or when a
company first list L it stock on the
public market the first company that
I'll speak to is Amazon which many of
you know they were my prior employer and
they were a delight to work for said
nobody ever where most everyone knows
them as an online retailer but the
majority of their operating profit
roughly 74% comes from their Web
Services Group which hosts other large
companies websites and operations like
Netflix Airbnb and Disney plus and I
think we all know about Amazon's
glorified push to have drones delivering
product this is an area I wouldn't get
too excited over simply because they've
talked about it for over 11 years but a
hidden area you don't often hear about
is their project Kyper which intends to
have over 3,000 satellites to provide
internet and Communications worldwide
but how does this differ from starlink
Kyper satellites will have Optical
intersatellite links for extremely
high-speed data Transmissions between
each of the satellites this will give
Amazon the ability to marry this up to
their Web Services Group to Service
full-on Enterprise networks and not just
individuals look at these satellit is a
method for Amazon to stretch it's
already growing AWS business even
further and let's not underestimate the
AI services offered from AWS to all of
its other corporate customers which is
only going to grow exponentially over
the next 5 years and if you weren't
aware AWS also has a partnership with
paler to host its Foundry software for
its customers but I'll speak to that
later on when we look at its performance
year to dat it's up 39% but the pte
ratio is high at a 44.6 but it's not too
czy czy High seeing as how the S&P 500
is at a 30 and now I want to look at the
financials where I'll change the
earnings and revenue to quarterly
because I want to show you the Q4 in
2021 the margin happened to be over 10%
then Q4 of 2022 well it happened to be
flat and Q4 of 23 was a 19% now what do
you think would happen if Amazon had a
positive margin in Q4 of 2024 I'm just
guessing that the stock would have an
amazing rally can it happen well well
yeah I certainly think so next I love
the debt to assets as it's literally
falling off a cliff which is exactly
what I want to see from Amazon from all
of their Investments that they've made
in itself over the past 3 years and the
cash flow in the lower left well it's
showing really good operating income
growth and the earnings per share well
it's consistently beaten expectations
the past five quarters these are exactly
what I like to see from an established
tech company all the financials well
they happen to be moving in the right
direction and it should be a great
investment long term but hey once again
just my opinion the next company is
paler which specializes in big data
analytics and AI integration enabling
governments and Enterprises to harness
Advanced tools like its artificial
intelligence platform also known as AIP
for realtime datadriven decision-making
and I often state that they offer the
most advanced platform that I have ever
seen and companies are touting how
they're getting an immediate return on
their investment within a few months and
I hope that you are one of my early
followers where often talked about paler
as a great investment and it's seen over
a 300% return year-to date but let's get
real for a second when we look at the PE
ratio of a
339 and recognize that it's running just
a little bit hot at the moment but let's
flip over and look at the financials
where the earnings and the revenue have
blown up in the past year where it
realized a positive margin for the first
time in 2023 and next to that we have
the debt to assets where it's taken a
steep fall which is perfect and the oper
in cash flow in the lower left is decent
and the Investments have fallen but
that's not really a huge deal and I love
how they've been beating the forecast
for the past five quarters in a lower
right but like I said earlier let's get
real for a second the PE Ratio is wildly
high and Palante here is getting some
great press from being added to the S&P
500 and moving from the New York Stock
Exchange to the NASDAQ and there's a lot
of institutional money that's flowing
into the stock but what happens if they
miss their next quarterly earnings or
only Come Close without a beat my gut
well it's telling me that paler is set
to have a little bit of a pullback in
early 2025 and that's a good thing it's
good because the stock price needs to
come back to reality and to give all of
you newer investors a chance to buy into
the company now I am not saying that a
pullback will 100% happen but I am
saying that there's a very strong chance
that it will and when it does we should
all pounce on the opportunity because
this stock is literally going to the
Moon over the next 10 years now I want
to cover a company that wasn't on my
list but they were a contender seeing as
how they're already up over 400% year-to
dat and that would be poet Technologies
which is also the sponsor of today's
video poet Technologies a publicly
traded company on the NASDAQ is
revolutionizing Data Center and AI
networking by addressing data transfer
bottlenecks latency and heat with its
patented Optical interposer platform
traditional Electronics rely on copper
wiring which consumes significant power
and it limits data transfer speeds
replaces these wires with efficient
lasers drastically reducing power
consumption increasing data speeds and
minimizing components on their
microchips this shift happens to lower
labor costs and the bill of materials
their innovation has secured
Partnerships with industry leaders like
Mitsubishi Electric luxshare and foxcon
whose clients include Nvidia apple and
Amazon poet's technology is fully
compatible with existing infrastructure
while adaptable to Future advancements
making it an easy and practical add-on
as the AI sector expands
poet directly tackles heat and bandwidth
limitations challenges every AI company
is striving to overcome positioning
their technology as a crucial solution
you can learn more about po Technologies
via my link down in the description our
next company is Taiwan semiconductor
manufacturing which is the world's
largest dedicated semiconductor Foundry
producing integrated circuits for major
technology firms like apple Nvidia and
AMD where semiconductors are estimated
to grow at 8 1 12% a year for the next 8
years and Taiwan semiconductor has over
61% share today and that isn't expected
to fall anytime soon and I believe that
most of you know that semiconductors are
the backbone for all of artificial
intelligence and it's the driving force
of that Revolution today when looking at
tsm's performance it's doing great at up
90% year-to date and their pte ratio
well it's actually a little bit low for
its sector at a 29.6 so that might equal
upside for all of us investors and when
we look at the margin and revenue it had
some dips in late 2023 fre but it's
quickly turned around and looking good
you'll notice their assets are climbing
but so is their liabilities it's a
business relying on heavy capital
expenditure and this is more added risk
than any of the other companies however
it is great to see consistent beats for
their earnings per share I'll also point
out that analysts have over an 18%
upside for Taiwan semiconductor for the
next 12 months overall almost every
company making money from AI has to rely
on Taiwan semiconductor for their
Hardware so it stands to reason that
it's a great choice because All Ships
rise with the tide our next company is
asml which is a Dutch multinational
corporation specializing in the
development and manufacturing of
photolithography machines essential for
Semiconductor fabrication including
being the sole supplier of extreme
ultraviolet lithography systems required
for producing Advanced microchips they
literally have over an 80% market share
in the equipment used by all
manufacturers of microchips so just to
give you a little bit of scope of their
importance and in looking at their
performance year-to date it's poor at a
4.5% and their PD ratio is pretty good
at a 36 and in looking at the earnings
and the revenue they're climbing granted
the revenue took a hit in 2022 and 2023
due to the restrictions of selling to
China but now they're on a good
trajectory debt to assets have climbed
with capex and liabilities taking a
recent dip which is good from here I'll
point out that they've consistently been
beating earnings per share forecasts and
analysts project the next 12 months to
be great for asml with over 25% upside
of all the stocks that I speak to today
this is the one no-brainer of the group
that's really all I'm going to say about
it the next company is NVIDIA where most
everyone knows how great they've been
for AI seeing as how they are up 182%
year to date but interestingly enough in
the past month the stock has dropped and
a key reason for that slowdown is
because they had major delays in
launching their next generation
Blackwell gpus of the B100 and b200 due
to design flaws and the intense demand
for customers is straining on their
supply chain all of these delays has
already slowed the stock growth and it's
expected to improve in December of 2024
and especially the first part of 2025
this will reflect positively in their
next quarterly earnings in February 2025
and that's why analysts are giving
Nvidia a 12-month forecast over 25% for
the next year I won't dive too deeply
into Nvidia look they dominate the
market with Superior Products they
recently fa some setbacks and they
created an opportunity for investors
like us to buy in ahead of strong
potential growth in 2025 I'm just giving
you a little background so you can see
that there's a little bit more room to
buy and grow before I list the next
company don't forget that I'll have a
quick recap of the top IPOs that may be
coming in 2025 which I think you'll want
to be ahead of the next company is crowd
strike which is a cyber security company
that provides Cloud native Point
protection and threat intelligence
through its AI powerered Falcon platform
to prevent and respond to cyber tax
globally but unfortunately many of you
may be familiar with the company because
they were a leading cause for so many
computer systems going down in the
summer of 2024 which caused the stock
price to plummet however they managed to
maintain their business and took a hit
to margin which you can see in Q3 of
2024 where it dropped to a netive
1.7% because I'm guessing they had to
incentivize some of their customers to
stay with them but on a positive note
they have very good debt to assets which
are dropping and the cash flow is
steadily increasing and like all other
companies I've spoken to they are
consistently beating forecast for
earnings per share in the lower right
this is another company where I'm dollar
cost averaging today to steadily invest
with crowd strike but I am waiting to
see if they get any lawsuits from the
outages or additional margin hits which
would show in their next earnings and if
they have any major hits against them
then you'll see a heavy pullback and
that would give us another good chance
to buy in more heavily now that's the
scenario that I see potentially playing
out for crowd strike now I hope you can
appreciate that in my commentary that
I'm not just saying bye today bye right
now bye bye bye you're missing out but
instead I'm trying to be levelheaded and
explain what I expect to see in the next
few months and how I'm going to adjust
my investments to take advantage of the
situation now let's touch on some of
those potential IPOs that may be coming
in 2025 where the first one will cereus
which specializes in designing and
building powerful AI computers notably
developing the wafer scale engine the
largest computer chip globally to
accelerate complex AI model training and
inference this is one IPO that has me
very excited if the valuation isn't
ridiculous because I expect this will
become a very hot stock once it's on the
market and it may be happening as soon
as next month the next potential IPO is
andril Industries which is founded from
a guy named Palmer lucky that created
the Oculus VR where he's turning the
defense industry upside down where he's
creating high-tech weaponry and defenses
where they focus on rapid Innovation and
attempting to provide solutions to
problems the government doesn't even
realize they need where their products
are easy on production and maintenance
and they offer software to support AI
efficiencies when this company goes
public they will quickly become a leader
within their industry now there are some
people that don't support defense
companies from a moral standpoint and
that is perfectly fine but after serving
12 years in the military I fully support
a company that makes our troops better
equipped for every situation and to have
an advantage over our adversaries and
the last potential IPO would be from
open AI where their chat gbt made AI
more mainstream and really it started at
all granted Elon Musk wants to block
their ability to become public and
for-profit but really I don't think
he'll be able to keep it from happening
open AI is already ingrained with so
many companies and users that I believe
their potential for growth is extremely
high as I mentioned in the beginning if
individual stocks aren't your thing then
I'll be following this up with the best
AI ETF within a couple of weeks thank
you so much for watching