Transcription
If you missed Envidia or Palantir and their enormous stock market surge, what I'm about to show you is 10 times bigger. We are facing one of the biggest technological and economic shifts of the last 50 years. However, most people will miss this new trend due to a lack of knowledge. What I'm about to show you next can change your financial future, so let's begin this video. If you had put €10,000 in Apple at the beginning of the mobile revolution in 2007, you would have over €7,000,000 today. If you invested €10,000 in Nvidia when Chat GPT started just 3 years ago, you would have over €130,000 or dollars today. And if you invested €10,000 in Palantir when Chat GPT started again 3 years ago, you would have over €240,000 today. Even if you put €10,000 in RAM memory stocks just 8 months ago, when we did a special on it in the video, as you can see here, on October 6th on the Sandis channel, when it was at $8 and is now at $1600, you would also have over €120,000 now. A single investment can change your financial future in a very short time. And I tell you this from personal experience. Personally, stocks like Constellation Software or Manis, which multiplied their value by more than 20 times since we invested, have changed our financial future, and it can do the same for you. And we are entering an era of technological revolution. What I'm about to show you next is much bigger than anything we've experienced before. You need to know this before we begin. Stock market investing is one of the best ways to generate wealth. This is indisputable. Normally, the stock market rises slowly, but every two or three decades, a major technological leap occurs, like the one we are experiencing today. And this changes everything because it greatly accelerates the wealth generation process if we are positioned correctly. This has happened with the industrial revolution, personal computers, when the internet appeared, when smartphones appeared, and it is currently happening with artificial intelligence. Now we are entering the next major shift that I will show you next. Jensen Huang, the CEO of Nvidia, has stated that this is one of the biggest revolutions, even bigger than the internet. Apple's CEO Tim Cook has also made equally powerful statements, and the parallels with the advent of the internet are enormous. In this graph, you can see how the evolution of the Nasdaq market since Chat GPT appeared is a mirror image of the evolution of Netscape, which was the beginning of people discovering they could communicate and find things on the internet thanks to search engines, which has a lot of similarity with this CHGP. Here you can see this other graph of the enormous similarity and how there could still be 2 years left of this trend according to this graph. Nobody remembers these companies, however, regarding that era of the internet, pets.com or America Online, Netscape, or companies like SAM Microsystems, are probably unknown to you. That's why it's important to be positioned within this new technological revolution in the right companies. Not just any type of company will do, even companies like Cisco Systems, which many people compare to Nvidia of that era, we saw that it had a very big revolution, but then what yielded results for practically 30 years or 25 years of null returns in the stock market and with very large drops. However, the companies that gained the most in that era, in those years, for making intelligent use of the internet, were Google, Microsoft, or Apple. These companies did not invent the internet; they used it, and now we will see where it is related to the new trend. Companies like Oracle, which did have a big surge in the year 2000 and a big drop, but then the following 30 years, unlike Cisco, have multiplied their stock market value by 150 times, 200 times. A single investment like this, as we mentioned before, can change your life, and you can have 10, 15 in your portfolio and sow your little seeds. Not all of them will work, but if even one does, it has a transformative effect, so pay close attention to what we are about to see next. What do these companies that earned so much in that era and in that technological revolution have in common before starting with this new era? And it is that they used that new technology; they did not invent it, they did not perfect it; they simply said, "How can we make business use to generate profits for shareholders?" Firstly, they used it for their own improvement, for their own business. And secondly, and most importantly, they used it for their customers, to offer them something that would save them costs or increase revenue. This is the only reason why a business customer will normally consume from you. The key question is currently, or the key is not to say which is the best artificial intelligence model because every day there is news about Gemini, about Chat GPT, about Anthropic, which will soon go public, and that is the wrong question. It was like the era of the internet, asking, "What is the best browser?" Well, nobody knew, and it really doesn't matter. The correct question is, "Which companies will benefit most from using artificial intelligence?" And also, on the other hand, "Which companies will facilitate this new trend shift?" Because artificial intelligence doesn't move on its own; it needs to be used, installed, and new uses sought. This leads us to the new era of artificial intelligence and, above all, what interests us as investors: new opportunities in the market and for companies. And this leads us to three new trends that everyone is talking about, the biggest tech CEOs that need to be watched for the next two or three years. Just as in the last 3 years there were those winning companies that delivered those enormous stock market results. The first is efficiency and cost savings thanks to the use of artificial intelligence. Now we will see examples of this. Secondly, new applications and functions that people still don't know exist because of artificial intelligence, just like when the internet was discovered. When the internet appeared, people had no idea that social networks would emerge and generate mega-companies like Facebook or Meta, YouTube, and others that would make their shareholders rich. So, these new uses and applications of artificial intelligence are appearing, and of course, the infrastructure. Just as when the railway appeared, tracks were needed, and their maintenance and construction of more tracks, or when the internet appeared, the construction of that infrastructure was needed. Currently, with greater adoption of artificial intelligence, this sector is growing and will grow more than even companies like Nvidia or Palantir. Let's go with the first point, talking about companies, sectors, and companies benefiting from efficiency and cost savings generated by artificial intelligence. The key points to look for here for you to identify good companies, thinking a bit, are companies that first have high costs and low margins. Why? When a company has, for example, an insurance company, a profit margin of 5% of everything it invoices. Yes, thanks to AI, it has a small cost reduction; it doesn't need to be revolutionary. Imagine it can save 10% of its costs by automating tasks and doing them more efficiently. This means that cost savings flow directly to profit, so the company starts earning 15%. This is a threefold increase in profitability. What will happen to the stock? At a minimum, it will multiply by three, but even if the market sees it as beneficial and applies a higher valuation multiple, then even up to six times. And if we add to this the compound interest that 2 or 3 years pass and the company keeps growing, and on top of those new revenues, it keeps having more profits, a greater multiplier, then it leads to things like we've seen before, multiplying by 8, 10, 15, 20 times. They must be companies with very repetitive tasks, where the company can save costs with technology and artificial intelligence, and very importantly, that the demand for their business is not altered by artificial intelligence. We will see examples, but first, this is very important to understand why the last 30 years have been exceptional in the stock market. This is the profit margin, which is key when we are going to understand this new trend of artificial intelligence. Here we can see the yellow line representing the profits of the S&P 500, the aggregate of the 500 largest companies in the world. And the blue line represents the profits of technology companies in the S&P 500. Okay, we see that when the internet appeared here, as you see in the red arrow, around 1994, the profits of technology companies and normal companies were the same, around 7%. What has happened thanks to the use of technology? First, the internet saved costs, which is evident for anyone who now sees a smartphone and mobile technology as well, not just the internet; it acts as a camera, calendar, organizer, email, many things that previously required being outside the internet world. And this has caused the profit margins of technology companies to go up to 25%. It has multiplied by four times, in addition to the revenue growth, which is why the Nasdaq has had an incredible surge over the last 30 years. Normal companies have also benefited. We see here that they currently have margins of 12%, 14%. Their margins have almost doubled, but it's helping them little by little. However, it has helped certain companies more, and this means we are entering a golden era of investment, contrary to the general belief that there is a bubble and so on. There may be short-term corrections, but over 10, 20 years, everything that is happening in the world is incredibly bullish. That's why this new era we are entering will make companies and shareholders capture the greatest benefit. If ordinary people on the street don't benefit from these processes. People today, 30 years ago, have more or less the same lifestyle, have seen technological revolutions or new uses change a bit, but in terms of their personal finances and wealth, if they haven't saved and invested, they have the same and the same debts. However, companies will dispense with large numbers of workers and increase their profit margins thanks to this technology, as has happened in the last 30 years. And this will make it advisable, or it is recommended, that more and more people should start investing, and more and more people are realizing that they need to have investment knowledge because safe investments like deposits, fixed income, don't even beat inflation. And in a world where even your job can be at risk, can be affected, protecting yourself by investing and benefiting from these companies is a smart way to protect your savings and make them grow. And if not, if people don't invest, they will be left behind. Let's look at examples of these companies. First of all, all stocks in general should benefit. We are entering an era where capital will be more important than human labor. Companies, for example, distributors, warehouses, imagine a warehouse where before a lot of workers did repetitive tasks of moving boxes from one place to another. That can now be done by robots with artificial intelligence, and companies in commerce or retail are already doing it to forecast demand based on multiple variables, sporting events, holidays, weather, all of this AI can do, it has enormous computing power, and the management of inventories or businesses is enormous. So that frees up a lot of capital, generates fewer costs, and ultimately means efficiencies and greater profits. A tremendously benefited sector will be banks and insurance companies, especially when people no longer go to offices. The main cost for banks is purely technological and human. And they have large numbers of people who spend all day doing repetitive tasks like, "Hey, to open a new account or for a new loan, send me your payslip, your employment contract, it has to be analyzed." AI can do that perfectly, and AI knows if that person is solvent or not based on the information in the banks' databases. Or for an insurance company, especially, for example, when accepting a new car insurance, the client sends photos, and an AI analyzes them. And this is already happening in American insurance companies, where there is no longer a person analyzing; an AI is doing it to see what price it can offer. Again, when there is a claim from a customer of an insurance company, who has had an incident, the same thing, they send photos, calculate the repair cost, the customer can communicate with an AI chat, and it offers them perhaps an alternative where they can take their vehicle. This is the classic example of cost savings, and two sectors that will be very benefited in the next 3, 5, 7 years, also for detecting fraud in financial companies, both insurance fraud, of which there is a lot, and in the banking sector or cybersecurity. The new applications appearing are enormous. Transportation companies, both road and rail. AI is providing enormous value in route optimization. Making a truck go on the correct route, where it will encounter less traffic, where on the return, instead of the truck coming empty, it comes with cargo, where it communicates with customers to inform them when transport will arrive, where it can find new customers, for the management of the warehouses of logistics companies themselves. There are many opportunities. I invite you to watch a video circulating on the internet, okay, of a company that has developed these robots you see here. It's impressive. If you see it, search for "robot working live" on YouTube, and you will be able to see it for over 200 hours. And these robots processed 250,000 packages. It's impressive to watch the video if you have access, because it behaves like a real person, managed by artificial intelligence, where the robot reads these labels and classifies these packages. Traditional robots could not do this task before because it was very complex and was done by humans, but imagine now that the management of these warehouses or distribution centers will start to see these robots that work indefinitely, that don't get tired, that don't take sick leave, that don't get sick, and that have enormous productivity. Almost at the level of a human already, but this will improve in the next three to five years. If we look at more examples, we are entering what industrial companies call Industry 4.0, where it is not only automated, connected to the internet, which is 3.0, but also AI provides predictive tools to detect failures in advance, preventive maintenance, highly automated companies with robots, and of course, software companies. Here we have companies like Meta, the parent company of Facebook, which has tens of thousands, over 50,000 engineers working. There are significant layoffs because AI is replacing these engineers, and these companies will also benefit. Facebook or Instagram also benefit because with AI, they can offer more efficient advertising to their advertisers because it will detect the perfect customer looking for that product and to whom the ad should be shown. Therefore, customers will be happier to spend on advertising, and this is already happening because Google, Facebook, and other social media companies are experiencing revenue acceleration, and this will also benefit them, and of course, the companies that will install AI. Let's not forget this. Digital engineering companies, digital services. Recently, in the last few weeks, companies like Salesforce, where initially the narrative was that it would harm them, like Google initially, before the big surge they've had, now this is changing in recent weeks because revenue is accelerating, and people feel that clients of these companies will depend on them, they cannot do without them, and that new functionalities, installing AI in these applications will help them at a cost level, and someone has to do all this great construction in the coming years. Therefore, IT service companies related to AI, I believe, can have a boom in the next five to ten years, just like what happened with the internet, when no company wanted to be left behind in the internet race, and they all rushed to install internet connectivity systems that eventually helped them. So there will be a wave where one or two clients start spending, and another sees that their competitor is saving costs, is investing in AI, and they will call these companies or these software companies and say, "I want this too, install it for me." And that causes enormous surges, acceleration of revenue, of margins, and also companies related to that AI infrastructure, not just semiconductor companies, but data center construction, data center maintenance, energy companies like Constellation Energy. In previous videos where we also did AI specials, we talked about Talent Energy. It's curious how it's only 10-12 times normalized earnings, when nuclear energy companies are at 20-30 times, data and data organization companies also so that companies can use AI, because now companies have databases with many errors where AI gets confused when finding things and therefore hallucinates, but if you give AI, even with how advanced it is today, purified, optimized databases, which requires very important prior work, then you can use it efficiently. Soon we will see examples of stocks in each of these benefited groups. But before that, let's look at a very popular stock that people don't see as benefiting from AI, but which I think will benefit in four different ways. And that company is Amazon. If we look at its stock performance over the last 5 years, it has lagged a bit behind the big tech companies. It has only risen 70%. Apple, Meta, or even obviously Nvidia or Palantir, which have risen 10-20 times, have risen even more. And this is also why, at least for me, for transparency, I have personally invested a significant amount in Amazon in recent weeks. Amazon, to start with, will grow in the coming years. Last year it earned $X per share, and this will become $12 per share. We are seeing very strong growth of 20 to 30% more than other large tech companies. And the four ways Amazon wins are as follows. Firstly, it will invest over $200 billion in AI infrastructure to become one of the main providers of data centers and artificial intelligence services to its clients, which, by the way, it already has. It simply doesn't have to invest in acquiring new clients, but rather in offering them these new products. And this creates a perfect symbiosis with the strategic investment it has made in OpenAI and Anthropic, the company that manages Cloud, which is currently the leading artificial intelligence model, even ahead of Gemini or Chat GPT. So it has partnered with two of the main players. Why? To force them to monetize that $200 billion investment they are making in data centers. At first, a few months ago, the market didn't like this, but you have to ask yourself one thing. Amazon historically, if you investigate, is characterized by having made extremely profitable investments, and when it has spent such a large amount of money, it has always obtained a very high return on these investments. So, it's a bit curious that the market was skeptical. Again, they have released a leading chip in the market, Trainium, version 3, which is already competing with Nvidia's. That's why the market is a bit skeptical about Nvidia; it's not rising in the stock market because people are starting to see that, "Yes, you used to have a very good chip product, but others are appearing." Just like in the internet era, Cisco made the best modems and routers, but other companies obviously appeared that eroded its profits. So Amazon has said, "Hey, I have the capacity, the engineers, the knowledge." And they have released a chip that is slightly less powerful than Nvidia's, but in terms of cost, performance, and the relationship between quality and profit, price it generates, it is probably better, and sales are growing tremendously. And it is also competing with Nvidia's TPUs, which Google has released, which is another philosophy of creation. Now we will see why Trainium isn't talked about much, but probably in the next year or two, you will start seeing a lot of news about these Amazon chips for training artificial intelligence. And fourth, and very importantly, Amazon will also benefit from AI in its own operations in the e-commerce business. First, in warehouse management, which is enormous, the amount of personnel cost they have in warehouses to manage Amazon, and in logistics transport, which is another of the big beneficiaries of AI. Second, at the advertising level, as we mentioned with Meta, because after Google and Facebook, Amazon is the third largest company in the world in terms of advertising revenue. As incredible as it may seem, people pay a lot of money so that when you go to Amazon to search for something, the ad that someone has paid for appears in the first positions. AI will optimize this significantly. And third, at the recommendation level, when someone comes to search for something, it shows them exactly the product the customer is looking for, anticipating what the customer will look for to increase sales within e-commerce and not just reduce costs. In this news, we can see Amazon's $50 billion investment in OpenAI, the Chat GPT company, and the investment of up to $25 billion in Anthropic to secure them and have them use its infrastructure. And of course, the issue of Trainium 3 compared to Nvidia. Here we see very important news about how big this is. We are talking about Anthropic announcing that, being the best AI on the market today for its Rineier project, it will use 500,000 chips. But they will no longer be Nvidia's; they will be Trainium's. That's why people are already saying, "Nvidia is the past, this is the future." And not only in this line but in other business lines that Amazon or Google have. Amazon's Trainium 3 means that Anthropic, which is currently the leader, will start using these 500,000 chips, and Amazon's manufacturing capacity is already sold out. That's the demand they are having with these chips that will rival Nvidia's. Amazon's CEO himself mentioned that for internal use alone, they were already billing over $20 billion with this business line, which is not talked about, but this revenue figure will reach $50 billion when it begins commercialization to external clients, according to the CEO. And that has already begun. Here we have the news of how Anthropic will start using these chips instead of Nvidia's. So, we are talking about a $50 billion business line. This has profit margins of 60-70%. We are talking about $30 billion in valuation at Amazon's current valuation. This could contribute to a market capitalization of over a trillion, which is almost 30% of the value that could come from this in the future for Amazon. And practically, the market is ignoring it. The market is also not valuing its stakes in OpenAI and Anthropic, or the potential cost savings, which we will discuss and try to quantify a bit. Here we see how Nvidia's famous Blackwell is a bit higher in terms of performance, but in terms of energy consumption cost, for inference, for use, integration with the cloud or Amazon Web Services, Trainium 3 is winning, and the market is demonstrating this with the demand it has. Where does Amazon win? As we said before, efficiency through e-commerce. What would happen? The question here is about cost savings at Amazon. What would happen if Amazon manages to reduce its operating costs by just 10%? That is, it doesn't have to eliminate all its workers, just 10%. This table is very revealing. This is the evolution of Amazon's employees over the last few years, from 2019 to 2022. Pay attention to what happens from 2023 onwards when AI appears. Amazon is stagnant. Suddenly, the number of employees has not grown. Human labor, which AI replaces, is 1.5 million workers. Okay? What has happened to sales, which we see in green for Amazon, which have grown by 12%, 11%? Before, in the past, if Amazon wanted to grow sales by 20%, look at what happened to employees; they had to grow by 23%, or even to grow sales by 37%, employees had to grow more, which means your costs and margins didn't increase. Your costs were even higher than your growth. But now it has reversed, look. +11, +12, +12, and suddenly you don't need more employees; it's stagnant; you don't have to hire anyone else. Okay, revealing. And here you can see that the operating costs of e-commerce, if we add the e-commerce operations of North America and the rest of the world, as Amazon's accounting presents it, we would arrive at costs of about $560 billion. It's a monstrous figure if you think about it. Okay, let's assume that thanks to the use of AI, Amazon saves $60 billion in costs. At the current valuation of 30 times earnings, because this would become profit instead of cost, it would mean an additional $1.8 trillion in value per share, which is $150 per share. The stock is currently trading at $270. The Trainium chips, if the market valued them at a trillion, we could see another $70-80 in possible value generation. I repeat, this is a theoretical scenario and so on, but plausible in the future, and it is not a recommendation to buy Amazon or anything like that, okay? The point is that even if this doesn't happen, we have seen that the forecasts are that Amazon will continue to grow very powerfully. Here you see news from Amazon itself, how it has made its most advanced logistics center in the world. In 2024, construction began with a component with 10 times more robotic technology. You can go online and search for videos of the new Amazon warehouses because they are already a reality. And you will see that they are full of robots managing boxes, robots that move pallets and customer orders around the warehouses with much lower personnel costs. And there are also advantages, as we said before, in the advertising segment and customer search. If we look at Amazon's advertising business line here, it has gone from invoicing $46 billion to almost $70 billion. It's growing a lot. And this line, Amazon doesn't say it, but the profit is almost 100% because it has no costs. That is, the customer comes, and Amazon shows them an ad, and the customer pays for that ad; it has almost no cost. It's a hyper-mega profitable line, and Amazon doesn't break down the profit of this business line in its reports so as not to give information to its competitors, but it's logical that it's tremendously profitable. When you search for, for example, a paddle tennis racket here, it appears, it says "sponsored" very small, so you don't notice, and advertisers pay to appear here because, obviously, many people, just like with Google, click here out of inertia and find it more interesting. And then, further down, you see organic results, which are from people who are not paying or Amazon's own products that are not paying. AI helps in both areas, both in showing organic customers better products, which are exactly what they are looking for based on what they have entered, because the AI will be trained on what they are looking for. The AI knows if someone has searched for this, this is the product they have bought, the next time someone searches with those words, it knows what to show them, and that makes the customer satisfaction when they enter Amazon to find exactly what they are looking for. And that will make people go and buy there and not at other e-commerce sites. That means more sales, more advertising revenue, lower costs. Okay? And curiously, the market is still a bit asleep regarding this, because we can see that Amazon went from trading at 70-80 times its annual earnings to just 30, meaning it's in the lowest valuation range of the last 3-4 years, curiously, but because the market sometimes doesn't look 2-3-5 years ahead at what can happen, so it's very interesting. Let's talk about these new sectors and examples of stocks benefiting from AI. First, as we said before, companies for construction and maintenance of AI infrastructure, companies like ISC which have risen up to $600. We invested funds in this company at $120. We also talked about it on YouTube from time to time. Fish Comfort Systems, we were looking at it at the beginning of 2025 when it was at $500, now it's at $1600, or companies like Vertif, which are dedicated to cooling systems because there will always be data centers, they will always generate heat, so systems are needed to cool these data centers, and that will continue to be the case. Now I will show you a company that manufactures these cooling systems, less known than Berti, but potentially more interesting in terms of its business. If we look at the valuation of these companies, we always have to compare. Because these are growth companies, we always have to see how much they will grow and what price the market is asking us to pay to join the party. So, here we have, for example, Comfort Systems, it will grow by 49% in the next 12 months, and the market is asking us for 43 times annual earnings. Now we will see how to know, and any of you here, even if you don't have much experience, how you can easily know if a company is expensive or cheap for growth, because these tables are very simple. You go to CHGPT and say, "Hey, make me a table with these three companies or these companies I've identified and tell me their valuation by P/E for the next 12 months and their expected earnings per share growth or EPS in English for the next 12 months to always compare future valuation with future growth," and it gets it from analyst databases and so on, which are usually quite reliable. Nowadays, this is very easy, okay? The person who doesn't invest well in the stock market is either the one who doesn't want to learn. Today, that barrier has been greatly reduced. Shortly, we will see a very interesting company in this segment. As I mentioned, data centers will also benefit companies like Google, Amazon, which we mentioned before, Oracle, or Microsoft, where initially the narrative of software replacing Microsoft was that it is now starting to change. The question, as we said before, is, how do you know if a growth stock is cheap? And for this, who is the best, or one of the best growth investors in history? This gentleman, Peter Lynch, who wrote a famous book, "One Up on Wall Street." And this is his fund. Investing with him would have multiplied by almost 30 times. It's exceptional performance compared to the S&P 500, which would have only multiplied by six times. And he became famous for investing precisely in these growth companies, in new sectors or new technologies. And here I have prepared this small infographic where what he did was compare that earnings per share growth with that P/E, with the current valuation that the market demands, and we divide one by the other. So, if it's 0.5 or less than 1, he considered the company to be very undervalued. Even if the ratio was one to one, he considered it a reasonable relationship and thus attractive. More than two, he wouldn't invest because he considered it overvalued. If it was, for example, 1.5, he would say, "Well, I'll buy a small position, if it goes down, I'll buy more, and if not, since it has less potential, I'll control my risk." And here you have a clear example. A company trading at a P/E of 15 and its earnings will grow by 15% has a ratio of 1.0, zero, so it's a quite reasonable valuation, not undervalued. Okay? Let's look at this with an example here regarding large companies. You have, for example, Google. For the next 12 months, its P/E will be 27, and its expected earnings growth is 31. So, if we divide 27 by 31, the ratio is approximately 0.9. It's less than one, so the valuation is even more than reasonable for people who see it as a bubble and so on, as long as these growth rates are maintained, it's very interesting. Another thing is if you told me, "Hey, Google is at 70 times earnings," which some companies in the market are at 70 and will grow by 30, then that has a ratio of two with two, it's more than overvalued in relation to what Peter Lynch says, okay? Here you can see Oracle, for example, the P/E to growth ratio, or Microsoft, okay? Another very interesting infrastructure sector, we've been talking recently about chips and memories, where there's a shortage of RAM memories; only three companies in the world manufacture them, and prices are rising a lot. Even so, there are two chip manufacturing companies that are very interesting. ASML is practically the leading company for machines to manufacture semiconductors and chips. So, it doesn't matter if Google wins, or Nvidia wins by having the best AI chips, or if Amazon wins; all companies will have to buy ASML machines to manufacture them. And TSMC is the same; it's the leading manufacturing company. This company, ASML, manufactures the machines, sells them to TSMC, and then TSMC manufactures for these three clients, and it doesn't matter to them whether they manufacture for Nvidia or Google, so these are companies that can be said to always win, as long as AI continues to advance. That's why the market finds them interesting, as well as RAM memory companies like Samsung, SK Hynix, Micron, or Sandisk, which we mentioned before. And the curious thing is the valuation. TSMC, due to the fear of Taiwan and so on, is curiously trading at only 23 times earnings, but its earnings per share will grow by 48% next year. This would give, if we divide 23 by 48, approximately a ratio that Peter Lynch would consider undervalued at just 0.5 times. And then we get into RAM memories. Why have they risen so much this year? Some with revaluations of 400% in just 5 months. Because the market is seeing that they are trading at very low valuations of six to seven times earnings, but look at the earnings growth they will have in the next 12 months: 500%, meaning they will multiply their earnings by five times. This gives a valuation ratio of 0.1 according to Peter Lynch, okay? We will have to see how long they maintain these earnings, but for now, there is no capacity, and they are key companies because, moreover, the more people use AI, the more RAM memories they need because they are crucial as we enter this phase where AI has not yet been built, but we are moving on to using it, okay? Let's look at other small companies related to AI that have a lower ratio than the market average or than the companies we've seen so far, but which are benefiting. And this company I'm about to show you was part of the class we did for this Alpha Method training recently this year, and we invited professors who manage hedge funds, specifically Evan Tindle, who manages a hedge fund of over $100 million, which can access these small companies, and he came to give a masterclass to the students with practical cases. Just like we do here on the channel, this is taken to the next level. Obviously, you provide a lot of value, you can ask questions, you have support, you have a complete training course, okay? And this shows you how just one class in an investment training course can provide enormous value and multiply the investment cost many times over, and discover new techniques, new market areas that you are not considering. He came to present this company called RS Technology, which is related to AI, but very few people knew about it. Here, why do I mark this date? Because this is March 12th, when the company was trading below 4,000 yen in the Japanese market. Since then, in just 3 months, it has risen almost 80%. This company has growth exceeding 20% or 25% annually and is currently trading at only three times earnings despite having risen 80%, and it is benefiting from AI. It was curious that when Evan Tindle came with the school's students this same March to give this class, this company was practically given away on the stock market. Why? Because the value of its net cash, its investments, the investments it had in other listed stocks, exceeded its market capitalization. That is, the market valued its business related to the manufacture of wafers for chips and semiconductors at zero. It is at that level of inefficiency that can be reached in these less-known companies by the market. Here you have the valuation process he showed the students. This company has a
participation in a company that is Grim, listed with this ticker on the stock exchange, owned 34%, although now its participation has decreased to 25% because RS Technology is doing something very interesting, which is selling these shares, this listed company, to repurchase its own shares or give dividends to shareholders. Then the company had liquidity. Well, in total, adding all this up, it amounted to a valuation of 9,000 yen, and the company was trading at that time, as I was saying, for less than 4,000 yen. What was the result? That as the market recognizes it, the company publishes the results and a new business plan where the market is already beginning to see that it is benefiting from AI, this went up to 7,400. So, currently, the 25% stake in Grim and RS's cash is almost equal to its market capitalization. This is the company in which RS Technology owns, the 25% that it is selling to make its participation effective. And if we go to Takear R, we see that RS Technologies has 300 million shares. This company recently sold 12,000 million shares, which means that participation is equivalent to 130 billion yen, and net cash at the end of this year will probably be 30 billion yen, which gives a value of 160 billion yen, and the current capitalization of reset is 190. Therefore, the investor is only paying 30 billion for its traditional business that generates 10 billion. That is why the net valuation is three times earnings, okay? And it is not the typical Japanese or Asian company value trap, because the company is growing and has been growing at more than 20% annually for decades. The main shareholder owns many shares and they are increasing dividend payments to reward the shareholder. Here we can see in this slide from Van Tindle how he demonstrated that the wafer business, which is the Spanish translation. Now we will see what this is. It is generating profits that have gone from 3 billion to almost 9 billion. It has tripled. You can especially see here that it accelerates from 2022-23, which was when AI appeared, the business is accelerating, just like net profit, which in less than 3 years has doubled from 3 billion to 6 billion, okay? So the company does two lines of business: wafer manufacturing and, above all, wafer recycling. These wafers. Here you can see this image. Here is where the chips of CPUs, GPUs, and so on are printed with these machines we saw earlier. Let's say it's like the blank canvas for the. So, this is a tremendously specialized and very complex industrial manufacturing process that very few companies in the world do. What happens is that because there is so much demand for chips in the world, the business of recycling these old wafers is very profitable, and it is even more profitable than producing new ones. That is why RS Technology's business is accelerating in the future because it is in this market niche related to AI to some extent. Here we can see the company's history, which is impressive. In 2015, it only billed 5 billion. This has multiplied by 15 times, to 75 billion last year. Profits have gone from one billion yen to 15 billion yen, also multiplying by 15 through organic growth and acquisitions or stakes in these companies. This company, just a month or two ago, that's why it started to rise, presented its new strategic plan supported by this AI growth and expects that from this year 2026 to 27 it will grow by more than 20%. And the following year, the same, solid growth is also expected. In just two years, the company will grow by 70%, just like companies like Amazon that we saw earlier were growing, but it is not at the same valuation level. Furthermore, Evan Tindel showed the students, in this case, from the school, how the company, he has done a very thorough job here of saying, in the Japanese mentality, they always promise less than they deliver, because for them it is like a public and social dishonor to promise you something and then not give it to you, okay? So, here we see how in previous business plans, the blue line and the orange line are what they ended up producing. They have always delivered much more than the company promised, both in terms of sales and profits with previous business plans. Therefore, it can be considered quite likely that the company will easily meet these objectives, which are already very profitable. These are growths of 15 to 20% before acquisitions and so on. Okay? And this again is equivalent to the profit generation of this business, this business plan that will generate almost 20 billion in operating profit and 13 billion in net profit in just 2 years. If the market is paying 30 billion, net cash in a few years could rise to 50 billion, then the company would again be almost with the stake of the Chinese company, the cash and so on, again the company is practically free or valued at what is technically called on the stock market, I don't want to say here, negative enterprise value. This means that other things, other assets that the company has, which are not the operating business itself, are worth more than its market capitalization due to the generation of profit accumulation. Okay? And the question I ask you is, would you like to have access to this type of special training and learn to generate these investment opportunities for yourself? I believe it has enormous value that the school brings you the best possible information. what we are preparing, there is still a little bit missing, it is impressive and there is nothing like it on the market, so stay very attentive because even if you have less time to invest, you have less knowledge with the new tools that we are going to give you, it will be tremendously easy. The special edition will return by popular demand, we haven't done it for a long time, more than 2 years, which will help you generate high returns with little capital if you are here, which is the situation for most people. Therefore, if you sign up for the waiting list, which you have in the link in the description or in the first comment, we will notify you and you will have special conditions. But not only that, in the coming months we will be generating special content for free if you are on this email list for those who are registered. They will not be public because sometimes more advanced topics are wanted for those who want to accelerate their process, and we will be there sharing that information. We are going to look at a little-known company in the data center cooling sector. We have already seen the enormous rise that other companies have had, and it is Modin Thermal Innovation or Modin Manufacturing, which is listed on the New York Stock Exchange with approximately 14 billion in market capitalization under the ticker MOD. Okay, here you can see their product range, what these cooling systems for data centers are like, for immersion cooling, where the processor system itself is immersed in water or coolant, for AI, water cooling, wind cooling as well, and they offer complete solutions. Here we can see where the company intervenes, which is practically in all areas of a data center to ensure viability. Recently, for 2000, in the next 12 months, what they call fiscal year 2027, in the data center segment, the company is growing between 60% and 80%. This is more than companies like Nvidia or Palantir that we mentioned earlier are growing, because we are entering this new phase, and it is a company with a good business and a bad business. And why is what I am going to show you next important? Here we have the bad business, which is cooling systems they make for trucks, the typical intercooler that goes here or radiator systems to cool the engine and so on, which, well, is a traditional sector that is not growing much right now and so on. Where is the good part? In what the company calls Climate Solutions, which is mainly for cooling systems or electricity generation companies as well. And this is the epicenter of AI, which is why it is growing so much. Here we can see that the bad sector, performance technologies, has seen sales decrease in the last year, not much, but by 3%. This drags down the entire company because it makes it seem like the whole company is growing less and benefiting less from AI than it is. The good news is that the company has recently announced that it will do a spinoff, it will divest this, it will say, "Hey, get rid of this, the market is penalizing me for this, and by doing this spinoff and separating this, I will show greater growth and the market will value me as an AI company." So, this is generating greater growth in the data center segment than Nvidia itself. Here we see how in the last quarter, this company in the climate solutions business, which is the good part, representing 70% of the company, sales are growing impressively by 87%. Data center demand is growing, data centers by 158%. These are truly enormous growths, and in terms of profits, they are also growing by 63%. And they talk here about how they have achieved significant progress, this transformation, not only with acquisitions but also with divestment. And especially here is the interesting part, a single client to manage all the cooling for their data centers, we are talking about supplying more than 4 billion dollars in cooling products between the years 2027 and 2029 from a single client, and they have many clients of this type. So, here if we see the expected growth for the next 12 months is 38% to 44%. But once it divests that bad segment, this company will grow by 60-70%, and that is more than other competitors in its sector, because we see here that Fix grows by 17% and Vertig by 51%, but of course, this company is at 38 times earnings, and the others are more expensive. And here you can again do the PEG ratio to see according to Peter Lynch the level of undervaluation or overvaluation. Therefore, I hope you have enjoyed it, that you have learned something new. If you share this with a friend who is investing in the stock market so they don't miss these new trends you are seeing at the business and AI level, you will surely be giving them a free, very good gift. Give the channel a like to keep learning and above all, tell us in the comments what you want to see in the future, if you like this theme of new sectors, new trends, how to surf the wave. And above all, remember, it is very important that these are not buy or sell recommendations, that these are my opinions. I try to make you think like investors and learn to invest in a practical way with different areas. What are the economic trends, how to value a company, how to know if it is expensive or cheap, but we do not have a magic ball to know how it will perform in the stock market. We do know that these companies will probably benefit in multiple ways, but you must always keep that in mind, and it is also what will give you satisfaction to do all this for yourself. Therefore, if you want to start accelerating the process, making your capital profitable, stay tuned to the channel, to future videos, and we will see you in the next video. Greetings and happy investing. Goodbye.