These AI Stocks are About to *Explode* | ChatGPT.

AI in the AI World you've got now Google

announcing the release of the chat GPT

competitor named Bard that'll apparently

be ready in coming weeks keep in mind

Google has been working on language

learning for a substantial amount of

time and one of the easiest ways you

could see that is if you ever use Gmail

and you're typing in Gmail you can

actually see the AI try to pre-fill in

your email for you in terms of hey just

press Tab and it'll pre-fill what we

think you're going to say next

there were reports that this Google

email generator could basically write

the whole email for you but they were

worried that if they showed how powerful

the Google AI chat was that people would

get freaked out this also comes after an

individual developer who worked on uh

Lambda which is the internal uh project

name for Google's artificial

intelligence Lambda standing for

language model Google developed uh yeah

AI basically Lambda anyway this uh there

was a particular developer who was

working on the project who leaked that

he worried the AI was so powerful that

it had actually become sentient now that

is kind of like your worst case scenario

if you've ever watched the movie iRobot

or if you've got any kind of fears about

robots taking over the world you don't

want to hear that robots or any kind of

artificial intelligence is becoming

sentient because it sends the signal

that they can think on their own is what

sentin means so that's that's it's uh

that'll be quite interesting to see how

Chachi PT compares to Google's Bard I

did think the name Bard was kind of lame

they could have come up with something a

lot cooler I kind of think of a Bard as

like going back into like Oblivion Elder

Scroll or something like really like I

don't know maybe even like a uh oh gosh

what was um what's the game called ever

EverQuest you know it'll run around as I

I don't know it just seems like an old

school kind of name so I'm not a big fan

of Bard uh but it's probably still

better than baidu's announcement their

bot is called Ernie

and their their stock was up like 13 on

the idea that they're also coming out

with some kind of AI chat bot baidu's

the Chinese one of the largest internet

companies in the world it's basically

the Chinese search engine it's kind of

like think of it like Chinese Google but

anyway so you've got Google coming out

with a competitor named Bard you've got

Baidu coming out with Ernie and you

still got chat GPT which is very

annoying to pronounce and I always want

to call it chat gbd but but anyway

I don't know it all seems crazy uh the

good news is the beneficiary out of all

of this is the consumer because it

should make search a whole lot more

functional especially if we can

incorporate like Microsoft is trying to

do chat GPT into Bing now that would be

pretty neat now if you can incorporate

chat GPT into Bing oh boy you can

actually make Bing a functional search

engine because right now it just doesn't

seem that great at all just my take I

mean maybe I'm being a little aggressive

here but just my take now a lot of folks

are are uh you know rightfully so

wondering hey you know what's a way to

get exposure to uh companies uh that

invest in this sort of AI technology how

can I get myself some some stock in this

AI uh and I frequently looked at

Microsoft as a potential opportunity for

that but one of the concerns that I have

is you have a relatively small exposure

uh to chat GPT and Microsoft mostly

because of the size of Microsoft so it's

really going to be dependent on what

Microsoft can do with this think about

it a 10 billion dollar investment into

chat GPT by Microsoft really represents

uh somewhere around let's see it's a 1.9

billion dollar company you're talking

about less than half of of one percent

basically going into uh this uh this

this particular company and it's it's

about one half of one percent so for

example every 100 you put into Microsoft

stock about 50 cents would go into chat

GPT and this has really led me to the

idea that I probably don't want to be

the person who's investing directly into

Google for the sake of getting exposure

to their AI or Baidu for the sake of

getting exposure to their AI or

Microsoft for the sake of getting

exposure to chat GPT I'd almost rather

invest in sort of the backbone

architecture I've talked about this

before so I don't want to seem redundant

but I'm a big fan of investing in Champs

and I really believe like the Wall

Street Journal says that chips are

probably the next gold now and that over

the next decade we'll see chips

essentially be uh sort of like the next

gold rush in America and in countries

throughout the world whether it's Europe

fighting for more chip manufacturing

which new factories are being built in

Europe you've got like an example for

example the Taiwan semiconductors is

building a factory I believe it's in

Germany it's somewhere in Europe I

believe it's in Germany to manufacture

Automotive chips like 20 to 28 nanometer

chips you've got uh multiple plants

being built in Arizona and massive

expansions coming to Taiwan

semiconductors plants in Arizona you've

got Intel potentially spending up to 100

billion dollars investing in chips just

in the Ohio region and and various areas

throughout America I mean you've got the

amount of money that you have flowing

into this is absolutely insane this is a

piece by The Wall Street Journal and uh

this is their current estimate I mean

there could be more announcements all

already but just based on projects

announced the Wall Street Journal sees

U.S semiconductor investments in the

next 10 years sitting at 186 billion

dollars that's just the United States

that's not even Global that represents

about the cost of around 29 billion

dollar gigafactories from Tesla so

putting that uh that sort of into

perspective it's it's pretty massive and

so that's where when I'm generally

thinking about AI exposure stocks I

think to myself boy uh you're the more

powerful AI gets the more powerful

compute processes you're going to

require and the companies that provide

that are your sort of picks and shovel

style companies which are all the way at

the beginning you can think about glass

manufacturers uh you could think about

uh chip manufacturing equipment

companies so uh for example you could

think of uh uh Carl Carl device for

lenses these folks stick a lot a lot of

money into glass and mirror production

that goes into the actual chip equipment

manufacturing with companies like asml

which has over a 90 market share for

advanced chip manufacturing then you

look at companies like uh Taiwan

semiconductors that buys a ton of these

chips Apple in their earnings call

bragging about how happy they expect to

be the major customer for Taiwan

semiconductors in for their Arizona

plant this is Apple bragging about

Taiwan semiconductors in their earnings

call that's actually pretty impressive

usually you don't actually see that take

a look at this right here at the bottom

of the earnings call what do you have uh

here it is uh I we don't know exactly at

this point what that'll be this happens

to be a production and chips Act and the

impact of that but we're all in in terms

of being the largest customer for Taiwan

semiconductors in Arizona and very very

proud to take part in that and Apple's

bragging about Taiwan semiconductors

right

so and then of course after you look at

chip manufacturers or chip manufacturing

equipment you want to look at chip

designers who are your big chip

designers well obviously uh Nvidia AMD

massive chip designers qualcomm's got a

little bit more exposure to sort of 5G

and mobile as opposed to maybe server

and data center like you might see at

AMD or Nvidia then you could look at a

company uh like like Intel who's gotten

completely rid of their memory Division

and they're essentially trying to

deprecate their PC Division and get into

really uh Enterprise and and servers uh

and and Intel potentially looking at uh

looking like a company that's just uh

potentially as uh as inexpensive as AMD

both of those selling for a relatively

low valuation whereas Taiwan

semiconductors in Nvidia selling a

little bit more expensively but the

amount of money that Intel expects to

invest in in Ohio is is insane and

they're either going to spend that money

and they're going to win or they'll go

bankrupt because they're a company that

has failed to adapt a lot of people get

frustrated when I mention AMD because or

when I mentioned Intel because they

think of Intel as sort of this Legacy

company that won't be able to adapt yet

what I think is so smart about what

Intel is doing is they're actually

building their manufacturing Fabs uh

fabrication plants to be agnostic of

what kind of chip architecture you're

using now if you're unfamiliar with that

there are basically Three core chip

architectures uh they're uh and one is

sort of Under the Umbrella of the other

but for the sake of argument we'll just

separate it out here so you have x86

which is really the Intel based chip

architecture then you have arm which is

a a risk machine that's actually what

the RM stands for and risk is a type of

Chip architecture and then there's risk

five which is more of your open source

version of risk which these are very

similar to each other arm is deemed to

be very good from mobile this deemed to

be better for Enterprise maybe and and a

PC at the moment but then again you've

got each side trying to interview to be

the best chip architecture but what

Intel is saying is look we don't care

what architecture you use we just want

you to hire us to make your chips and

this is why they're getting contracts

with the Department of Defense this is

why they're investing 100 billion

dollars into new Fabs in America because

they don't care if you want x86 chips

risk five chips or arm chips they don't

care what kind of architecture you want

they just want to make your chips and so

I I see Intel as potentially a decent

play over the next decade as long as

they can actually Garner uh that uh that

that manufacturing prowess now

interestingly Intel right now

manufacture some of their trips with

Taiwan semiconductors and so they are

really calling up asml to trying to get

to try to get as many of the new

ultraviolet uh machines that they can

get uh their lithography machines so

they too can manufacture Advanced chips

three nanometers four nanometers you

know by the end of the decade we'll

probably be down to one or two

nanometers by the middle of the next

decade we may be at half a nanometer and

at some point it's just going to come

down to uh not this transistor size

which is what nanometer measures uh

nanometers measure but rather uh just

who makes the most efficient chip and

that's where to Me Maybe rather than

investing in solely the designers you

also invest in the factories so again

that's where I think Intel tsmc but then

I also think Nvidia Apple uh and AMD is

your designers so so that's sort of my

take I'd rather be investing in that

segment than solely be dumping my money

into Microsoft and Google who are

substantially more exposed to the ad

business so those are some of my

thoughts although you're seeing

substantial Investments go into machine

learning and and potential uh future

uses uh at Facebook as well uh obviously

at divisions within apple as well so a

lot of great opportunities to invest in

artificial intelligence but I'm afraid

to just run into certain companies

solely because they say oh hey we we

have ai we don't want to stay away from

that so uh that's uh yeah asml

absolutely I see you in the comments

here yeah we've been talking about asml

asml has a an over 90 market share of

the advanced lithography uh device for

manufacturing these uh now they are

actually banned from selling their

newest model of advanced chip making

equipment to China China is obviously

very pissed about this asml is able to

sell their older generation lithography

devices to China which which they do and

they sell a lot of them to China but

China's like well we want the new stuff

too and now part of this is obviously

because uh China and the United States

have a lot of geopolitical tensions not

only do they have those tensions now but

they've had those tensions in the past

before China for example stole the plans

for our F-35 fighter jet and then a few

years later ended up announcing and

releasing a jet that was pretty damn

similar to our F-35 which is really

frustrating and annoying because it's

like hey you really are hacking our

stuff they've hacked into travel logs at

Marriott they've hacked into our Health

Care Systems China's really good at

basically trying to steal our stuff now

In fairness to try to catch up and some

might make the economic argument that

hey you know what maybe uh maybe that's

a good thing because it forces both

sides to innovate more but I I I don't

think anyone getting hacked by China is

necessarily something that we want to

even remotely suggest is a good thing

but these are definitely some of the

plays that I'm curious about now I'm

less curious about companies like uh

like for example Pinterest Pinterest was

absolutely like I look Pinterest is a

style of search engine so some people

say hey what about Pinterest for AI

right could could there potentially be

an opportunity in in search within

Pinterest to basically lead people to

spend money

and I hate to say it but Pinterest

scares me uh the reason Pinterest scares

me is I took a very brief look at their

earnings presentation and look at this

they grew Revenue by about 3.6 year over

year but they grew sales and marketing

by 66

in my opinion this is a way that you're

basically showing that the company has

no way of

any kind of operating leverage they have

no operated leverage operating Leverage

is where your Opex can stay stable but

you can actually grow your Revenue

that's what operating Leverage is well

this company has the opposite of

operating leverage basically to maintain

their revenue at near flat they had to

increase their sales and marketing 66

that's scary that doesn't send a good

signal to me now the company initially

dropped pretty decently after earnings

but it's since recovered uh it's

actually almost completely recovered to

about flattened the pre-market maybe

down as much as one percent but that's

not a big deal it initially fell over 2

ten percent and I think what's happening

in the market is you're getting a lot of

earnings that are happening and then the

earnings come out and companies or

investors rather institutions whatever

like oh that's not as bad as we thought

it was but it's still bad when you

actually look at the numbers relative to

other companies so I don't know for me I

stay away from things like Pinterest I

want chips that's what I want that's

where I think the big peepee is in chips

and Chip manufacturing and the beauty is

we're actually going through sort of

this chip trough right now where

everybody's ranting about how uh chips

are an oversupply and PC uh sales year

over year down 32 percent and everyone's

missing this is true Revenue has been

missing Taiwan semiconductors Samsung uh

AMD the numbers have been coming down

the stocks have actually been going up

though because the numbers aren't that

bad and these are amazing companies for

the next decade we just sort of have to

get through that sort of covid uh trough

if you will the postcova trough uh and

and for me I I can't see pricing power

anywhere else like I don't care what

software company you are you need chips

you need compute power and that compute

power is going to get more and more

powerful over time not only is that

compute power going to get more and more

powerful over time but the demand for

that computing power is going to get

more and more powerful uh you know I I

always run into this idea and this

challenge that at some point things will

just be good enough uh and maybe we

don't need a new iPhone every single

year right which we could make that

argument but boy oh boy you look back a

few Generations you look you go back

maybe three years on Apple laptops or

even computer regular PCS or iPhones

you're like it just can't run the stuff

as well as it used to or at least this

what it feels like and often this is

because we're getting more and more

intensive uh uh applications that demand

more and more compute power in terms of

what we're able to do the way we're able

to collaborate with other individuals

it's phenomenal there's so much

potential and so so excited about what's

to come especially I mean think about

the transition even to augmented reality

now a lot of people are like Gavin

augmented reality is BS virtual reality

is like what you the headset you buy for

Christmas and you use it you know one or

two days in a row and then you never use

it again yes fact true but eventually

augmented reality and virtual reality

actually won't give you a headache and

it actually won't suck and boy I can't

even imagine the kind of compute power

that we'll need for 360 Degree uh

actually quality uh virtual reality

relative to what what we deal with today

uh it's uh it's going to be pretty dang

impressive and it's going to require a

lot of compute power and of course

that's where you could also invest in

batteries because batteries will become

even more important as well so uh and

that's that's exactly why you know

almost as if On Cue you have uh Mr Steve

over here suggesting lithium explorers

have been running like crazy 50 moves in

one day and shouts out multiple

different nickel plays here like SPC fni

and ICU and copper plays like f d t and

ATX you know the interesting thing about

the Explorers is you're kind it to me

it's almost like you're you're betting

on gold explorers like oh I I hope the

person I bet on finds gold and then when

they don't they go bankrupt you know

it's like oh dear uh okay is there is

there a particular pickaxe for lithium

uh that's that's whom I want to invest

in or just invest in the battery uh

assemblers whether that's Panasonic or

even battery storage companies like

Tesla and phase Generac solar Edge uh

you know that that might be a way to uh

invest uh in that but then again you

know look even uh even Energizer I don't

think anybody's ever considered looking

at the Energizer earnings report but I

did uh and uh even energizers

complaining about higher costs for

nickel and lithium and how it's

impacting their margins so you know all

these battery manufacturers even though

they can put batteries together it

doesn't necessarily mean uh they're

going to be profitable putting their

batteries together so uh you know

something to keep in mind all right