Top 3 Tech Stocks I’m Buying Now (over Nvidia and Palantir)
Summary
TLDRIn this video, Winston shares his top three tech stocks poised to benefit from AI, excluding Nvidia and Palantir. He highlights Amazon's robust AI investments, including AWS offerings like Amazon Q and Bedrock, custom chipsets, and Alexa enhancements. Eli Lilly is noted for its weight loss drug Tepati, showing promise in treating sleep apnea and significantly impacting the obesity market. PayPal, despite underperformance, is recommended for patient investors due to its growth initiatives and share buyback program. The video emphasizes the potential for long-term gains and invites viewers to a free live training session for investment strategies.
Takeaways
- 📈 The speaker emphasizes three tech stocks that are poised to benefit from AI without being overhyped or overvalued, excluding Nvidia or Palante.
- 🔮 The speaker does not have a crystal ball, implying that while they provide insights, they cannot predict the future with certainty.
- 💰 The channel's focus is on helping viewers make more money from their investments, with the speaker being a long-term investor and a trader who achieved significant returns in 2022 and 2023.
- 📊 The speaker highlights Amazon as a stock with higher free cash flow than Nvidia, expecting significant growth by 2026, and discusses Amazon's various AI initiatives.
- 💬 Amazon's AI initiatives include Amazon Q, a business-oriented chatbot competitor to Chat GPT, and Amazon Bedrock, a suite of generative AI tools.
- 💻 Amazon is also developing AI infrastructure and chipsets, such as Trinium and Inferentia, to enhance its computing capabilities for AI and machine learning applications.
- 📈 The speaker suggests that the market sees significant potential in AI beyond traditional areas like GPU sales, indicating a broader view of AI's financial impact.
- 📉 The speaker provides a trading perspective on Amazon's stock, suggesting waiting for a dip as an entry point based on the current price pattern.
- 💊 Eli Lilly is highlighted for its weight loss drug, which also shows promise in treating sleep apnea, a condition that affects breathing during sleep.
- 🧪 The success of Eli Lilly's phase three clinical trials for its drug affecting sleep apnea led to an immediate positive stock price reaction, with analysts maintaining a buy rating.
- 📉 The speaker is bullish on pharmaceuticals like Eli Lilly for their potential in treating obesity and sleep apnea, suggesting an evolving landscape in these treatment sectors.
- 💳 PayPal is presented as an undervalued tech stock with a large user base and potential for growth, despite challenges from competitors like Apple Pay.
- 💹 PayPal's focus on profitable growth, aggressive share repurchases, and margin improvements are seen as positive signs for potential investors, with a $5 billion share buyback program indicating confidence in the company's value.
Q & A
What is the main focus of the video script?
-The main focus of the video script is to discuss Winston's top three tech stocks that are not overhyped, not overvalued, and are expected to benefit significantly from AI advancements, excluding Nvidia and Palante.
What is the speaker's background and what is their claim to success in 2022 and 2023?
-The speaker is a long-term investor, a trader, and an ex-banker who claims to have made over 100% return on capital employed in both 2022 and 2023, and is up around 40% in the current year.
What is the significance of Amazon's stock in the context of the video?
-Amazon's stock is highlighted for its higher free cash flow compared to Nvidia, expected growth to over 100 billion in free cash flow by 2026, and its active expansion in generative AI with various products and services.
What AI-related products has Amazon introduced that target business needs?
-Amazon has introduced Amazon Q, which is a chatbot competitor to Chat GPT designed for business needs, and Amazon Bedrock, a suite of foundation models within AWS for businesses to create chatbots, summarize text, and generate visuals.
What is the role of Claude in the AI market according to the video?
-Claude, developed by Anthropic, is positioned as a real competitor to Chat GPT and has been shown to outperform it on most metrics, indicating a significant potential in the AI market.
How does the speaker suggest evaluating the entry point for Amazon's stock?
-The speaker suggests looking at the stock chart for a potential entry point, waiting for a dip in the stock price, and considering buying in the low 180s or waiting for a bounce off the 175 support line.
What is the significance of Eli Lilly's weight loss drug in the context of sleep apnea treatment?
-Eli Lilly's drug, known under brand names such as Mounaro for diabetes and Zibotent for weight loss, has shown promising results in significantly reducing the severity of obstructive sleep apnea in obese adults.
What is the impact of Eli Lilly's drug on the market for CPAP devices?
-The success of Eli Lilly's drug in treating sleep apnea has led to a decline in the stock prices of companies that make CPAP devices, such as ResMed, as the drug offers a pharmaceutical alternative to traditional medical devices.
What is the speaker's view on PayPal as a tech stock with potential growth?
-The speaker views PayPal as an undervalued tech stock with a potential for growth, despite its underperformance in the past year, due to its focus on profitable growth, aggressive share repurchases, and a large user base.
What does the speaker suggest regarding the entry point for PayPal's stock?
-The speaker suggests that the current price range of PayPal's stock, bouncing between 58 and just under 68, could be an interesting entry point for a contrarian investor.
What is the speaker's final recommendation for investors interested in the discussed stocks?
-The speaker recommends that investors consider the long-term potential of the discussed stocks, particularly Amazon and Eli Lilly, and be patient with PayPal, potentially holding until at least 2025 for significant returns.
Outlines
🚀 AI and Tech Stock Picks Beyond Hype
The speaker introduces the topic of tech stocks poised to benefit from AI advancements, excluding overhyped or overvalued stocks like Nvidia and Palante. The channel's focus is on financial growth, with the speaker's background as a long-term investor and trader highlighted, including impressive returns in recent years. The speaker teases Amazon as the first stock, noting its significant free cash flow and AI initiatives, such as Amazon Q, Amazon Bedrock, and AI chipsets, positioning it as a strong contender in the AI space beyond traditional GPU sales.
📉 Stock Analysis and Entry Points
The speaker discusses the importance of entry points for stock investments, using Amazon's stock chart as an example. They suggest waiting for a dip based on the current price pattern before making a purchase. The analysis includes a mention of Trad vision, a platform developed by the speaker, which offers trend indicators for stock momentum. The speaker emphasizes that the advice given is not financial advice but their personal perspective.
💊 Eli Lilly's Breakthrough in Weight Loss and Sleep Apnea Treatment
The speaker shifts focus to Eli Lilly, a pharmaceutical company, and its weight loss drug that has shown promise in treating sleep apnea. The drug, tepati, has demonstrated significant results in phase three trials, leading to a reduction in the apnea-hypnea index. This has a direct impact on the stock price and market sentiment, with analysts maintaining a buy rating and a high target price for Eli Lilly. The speaker also notes the potential disruption in the sleep apnea treatment sector, as pharmaceuticals could replace traditional medical devices.
💰 PayPal's Undervalued Potential Amid Market Challenges
The speaker discusses PayPal as an undervalued tech stock that has underperformed in the past year but shows signs of growth potential. Despite challenges from competitors like Apple Pay and a slowdown in e-commerce, PayPal's focus on profitable growth and aggressive share repurchases positions it for a turnaround. The speaker highlights PayPal's large user base, consistent revenue growth, and strategic expansion into financial services as positive factors. They also mention a $5 billion share buyback program as a signal of strong cash flow and management, suggesting that patience until 2025 could yield returns for investors.
📈 Investing Strategies and Future Market Opportunities
The speaker concludes by emphasizing the importance of investing strategies that focus on long-term growth and making money work for the investor. They invite viewers to learn more about their trading methods, which have resulted in significant profits in recent years. The speaker also touches on the potential for AI stocks to significantly increase in value, hinting at the possibility of a 10x return on investment, and encourages viewers to join them for further insights and training.
Mindmap
Keywords
💡Tech Stocks
💡AI (Artificial Intelligence)
💡Overhyped
💡Free Cash Flow
💡Market Cap
💡AWS (Amazon Web Services)
💡Generative AI
💡AI Infrastructure
💡Monetization Strategy
💡Eli Lilly
💡Phase Three Clinical Trial
💡PayPal
💡Share Buyback
💡Operational Margins
Highlights
Winston is set to reveal top tech stocks poised to benefit from AI, excluding Nvidia and Palante.
The channel's focus is on helping viewers increase their wealth through investment strategies.
The speaker is an ex-banker, long-term investor, and trader who achieved over 100% return on capital in 2022 and 2023.
A three-step process for trading success is offered in a free live training session.
Amazon's stock is highlighted for its high free cash flow and expected growth, despite being undervalued compared to Nvidia.
Amazon has been expanding in generative AI, introducing various AI-targeted products.
Amazon Q is Amazon's business-oriented competitor to chat GPT, utilizing AWS's cloud infrastructure.
Amazon Bedrock offers a suite of foundation models for businesses within AWS.
Claude, developed by Anthropic and largely owned by Amazon, is a significant competitor to chat GPT.
Amazon is developing custom AI chips, Trinium and Inferentia, to boost its infrastructure for AI tasks.
Alexa is being upgraded with more sophisticated AI for more natural interactions.
Amazon aims to monetize AI advancements across consumer-facing platforms and potentially through technology licensing.
Eli Lilly's weight loss drug, Mounjaro, shows promising results in treating sleep apnea.
Phase three clinical trials for Mounjaro indicate a significant reduction in sleep apnea severity.
Bank of America analysts maintain a buy rating on Eli Lilly with a high target price due to the drug's efficacy.
The success of Mounjaro could disrupt the sleep apnea sector, affecting makers of CPAP devices.
PayPal is identified as an underperforming tech stock with potential for growth, despite challenges.
PayPal's focus on profitable growth and aggressive share repurchases signal a potential turnaround.
PayPal's user base and market penetration present opportunities for upselling and cross-selling financial products.
A $5 billion share buyback program indicates confidence in PayPal's undervalued shares and potential for shareholder value enhancement.
Margin improvements and operational efficiency are key focuses for PayPal's strategic growth initiatives.
Investors in PayPal may need to exercise patience until at least 2025 to see returns.
Transcripts
if you want to know Winston's top three
tech stocks that are not overhyped not
overvalued and are going to insanely
benefit from Ai and that are not called
Nvidia or Palante then you're in the
right place cuz Winston is about to
reveal all well maybe I'll do it for
him of course I have no crystal ball
here Winston ate it but I will give you
all the facts so you can come to your
own conclusions now this channel is
ultimately about one thing helping you
make more money from your money I'm a
long-term investor but I'm also a Trader
an ex banker and I made 100% Plus in
2022 and 2023 return on Capital employed
and we're up something like 40% so far
this year so just in June alone we made
$7,000 on my $30,000 teaching portfolio
if that's intriguing to you and if you
want to learn the simple three-step
process that allows me to do that in
just three hours a week join my free
live training at 8:00 p.m. eastern
time just by going to the first link in
the description or head over to Felix
friend. weinar and then you too will
have time to listen to your golden
retriever now stock number one this
stock has a higher free cash flow than
Nvidia right now it's expected to grow
from the current 45 billion to over 100
billion in free cash flow in
2026 yet the market cap is 30% % less
than Nvidia who am I talking about
Amazon of course they've been expanding
actively
in generative AI they've introduced a
bunch of products over the last year
that Target all aspects of AI and I'm
going to walk you through this number
one we've got the chat GPT competitor so
you got Amazon Q This is basically
Amazon's answer to chat GPT designed to
cater specifically to business needs
it's launched under the AWS Amazon web
services umbrella and it leverages aws's
computing power and Broad access to just
massive amount of cloud infrastructure
to offer conversational capabilities for
Enterprises second you've got Amazon
bedrock and this is not nothing to do
with bezos's bed it's a suite of found
ation models again within AWS that is
aimed at providing businesses with a ton
of generative AI tools so you can create
chat Bots you can summarize text
generate visuals in response to
inquiries and notably it integrates a
variety of models from different
developers including AI 21 Labs Jurassic
2 and anthropics Claw alongside Amazon's
own models like black Titan and Claude
of course is the probably the real
competitor to chat GPT and it's set up
by anthropic which is largely owned by
Amazon we then have ai infrastructure in
chipsets trinium and if inferentia which
sounds like someone's hideous daughter
um what are they they're
chips Amazon is developing these chips
to boost its infrastructure focusing on
training and infuence tasks and Ai and
these are custom designed chips built by
Amazon critical for supplying its own
high performance Computing demands and
machine learning and generative AI
applications we also have upgrades and
new apps so the Alexa upgrade recognizes
the need basically for more
sophisticated AI conversation so they
upgrading Alexa to be more proactive to
be more uh chatty in in a Smart Sense
and it enhances her AI models to provide
more natural interactions than than the
current capabilities so how are they
monetizing this well they're not really
just about expanding AI you know in
their General capabilities but they want
to create real viable monetization
strategies and that includes AI
advancements not across just consumer
facing side like Alexa and AWS but but
also in potentially licensing their
technology to other companies so the
broad implication here is that Amazon
sees
significant money in AI Beyond
traditional areas like GPU sales for
computing tasks although that alone will
make it in competitor too you know who
right but let's just circle back to the
chat gbt competition Claude which is
anthropics chat GPT if you will now
beats
chat GPT on most metrics and I'll put a
chart on the screen here for you so is
it time to buy the stock right now I
always like to look at a chart I'm a
Trader at heart so for me it's important
we get an entry point sort of right
although you could also just say I like
the company obviously it has to be your
your decision not mine and you're
therefore going to buy it on the first
of every month or something like that
that'll probably get you a similar
outcome but if you see the zigzag
pattern on the chart here what what do
you see we sort of are bouncing between
190 and 175 right now we hit our head at
190 little bit of a Down bit momentum
right now so I would probably wait for
the dip and either by here in the sort
of low 180s the recent dip or if you
have a little bit more patience wait for
a bounce off of the 175 line again which
is where the support will sit that's the
way I would look at that again of course
it's not Financial advice this is just
uh just my perspective on this and the
chart here comes from Trad vision. which
is a platform we build and one of the
key advantages of this are the the trend
indicator we have here in the background
which calls insanely accurately the
momentum of stocks so here it called a
cell right we drop here it called a sell
we drop and vice versa of course on the
rallies as well so right now it's sort
of coming out of the real bullish
territory into a little bit more dodgy
zone so it's basically telling you maybe
just be a little patient on this one
stock number two now you might argue
with me that this isn't really Tech
stock and I think I'll take you on on
that it is a fat loss drug yes it is a
drug manufacturer for the um
horizontally enlarged and it is Eli Lily
one of the largest companies in the
world their weight loss drug and I'm
going to mispronounce all of these names
it's called epetite apparently they have
shown a very promising result in
treating sleep apnea which is something
I'd never heard of but it's a condition
where breathing stops during your sleep
it's largely thought to have be a side
effect of obesity now let's dive into
the details here Eli Lily tepati also
known under brand names such as mangaro
for diabetes and zip Bound for weight
loss has now been shown to significantly
reduce the severity of obstructive sleep
apnea in obese adults basically means
you stop breathing in your sleep which
is not a good thing so if there was a
drug for it well you're going to buy it
the results from the surmount phase
three trials revealed a reduction of
63% in apnea
hypnia index what Ahi in short basically
it means 30 fewer interruptions to your
breathing per hour of sleep that's got
to be a good thing but before we jump
into the specifics let's just understand
what is a phase three clinical trial a
phase three is a critical phase before a
drug can be considered for FDA approval
it involves large scale testing to
confirm efficacy monitor its side
effects in compared to standard
treatments successful completion can
lead to a regulatory review and approval
which typically takes several months to
a few years
now this news had an immediate effect on
the stock price Eli Lily's shares saw an
uptake about 2% yesterday and then came
back down because the overall Market
sentiment was a little cloudy uh so
analysts basically pointed out that the
magnitude of the Osa resolution from
this taii zepeti treatment was
unexpected which basically means they
didn't think it'd be this good it's
freaking
amazing now here's where it gets
interesting for Market Watchers Bank of
America analysts have maintained a buy
rating on Eli Lily with a
striking Target price of ,000 treating
this Osa treatment efficacy which they
hadn't factored into forecast so it
suggests that the Market's pretty
freaking confident in terites Market
potential there is also a loser to the
story by the way which is makers of CPAP
devices apparently if you suffer from
this unfortunate condition when you
sleep you put sort of a mask on your
face which keeps the pressure up in your
breathing you know tubes and therefore
keeps you alive and you don't wake up
thinking you're going to die all the
time there a couple of listed companies
that sell those devices ResMed AR smme
is one of those their shares dropped 15%
um Medical Systems and adapt Health both
declined about 17 and 11% and they got
downgraded by City Bank City further
noted that glp1 the class of drug to
which T epetite belongs the general sort
of fat loss thingy is now viewed as a
viable treatment option for the 70% of
Osa patients who are obese this shift in
treatment power Paradigm could
significantly alter market dynamics in
the sleep apnea sector the sector I'd
only heard about yesterday so what does
this mean for you as an investor well
the landscape in the treatment of
chubbiness and sleep apnea is evolving
with Pharmaceuticals potentially
respacing traditional medical devices so
it's an interesting time to get in and
I'm very very bullish on LL and and fat
loss drugs generally because it's a heck
of a lot easier to pop a pill than to
change your trauma and mindset and all
the other things that actually caused
obesity in the first place let's have a
look at the LLY stock chart here and and
what do you see well you see a very
significant upward Trend so we had a
consolidation we had an upward Trend we
had a consolidation we have another
upward Trend and it looks to be
continuing and the more good news you
get like this the more it continues so
would I wait for some sort of pullback
no I don't think it's going to happen I
I mean of course it might but personally
I I I'm long on these kind of drugs LL
nvo I think the potential is enormous uh
and this long-term plan to make obesity
into a disease has pretty much been
successful now I massively disagree with
it I don't think people should be taking
these drugs I think we should be
addressing the psychological problems
that caused the Obesity in the first
place because that's actually what it is
whether people realize it or not and
then you wouldn't need to take any of
these horrible pills builds which will
have massive side effects undoubtedly
but if you throw those morals and
scribles out of the window and you're
just interested in making money I think
this is an interesting interesting stock
bearing in mind that Winston eight the
crystal ball stock num is Paypal a tech
stock that underperformed the S&P 500 of
the past year but it's showing some
signs of potential growth and I did warn
when I started talking about PayPal a
lot about halfway through 2023 that this
would need a patient investor who was
happy to wait until at least
2025 so just get into this for a moment
despite all the challenges facing PayPal
from Apple pay as a Slowdown in
e-commerce sales PayPal's focus on
profitable growth aggressive share
repurchases in my view set it up for a
turnaround it's trading at a PE multiple
of about 11 which is pretty low so it's
pretty much
undervalued and it's been investing at
least the last couple of month since the
new CEO has been around in growth and
that could therefore make it a very
attractive pick for investors who are
looking for a tech stock with potential
growth that's currently underperforming
the index as a whole and they have a bit
of patience so what what do we what do
we look at here what do we like we like
the user base we like that they have 400
million plus plus active users so it's a
robust engagement biggest Market
penetration of any e-commerce payment
platform out there and that gives
fertile grounds for upselling and cross-
selling newer Financial products and
services and advertising and revenue has
been growing consistently they've been
increasing the Top Line consistently
and the number of transactions per user
are actually increasing so they are
broadening out now into other Financial
Services um more
traditional offline Payment Processing
mobile payments and crypto offerings buy
now pay later and so on but even if you
are not impressed by any of that there
is a $5 billion share buyback program
just for this year they're spending a
little bit more than free cash flow
because they're sitting on a ton of cash
so they're basically saying we got a lot
of this stuff we don't really need it we
think our Shares are undervalued we're
buying them back ourselves so it
represents a direct way for the company
to enhance shareholder value by
improving earnings per share right less
shares means earnings per share go up so
share BuyBacks also typically reflect
positively on a company's balance sheet
and are appreciated by investors looking
for signals of strong cash flow and
strong management and a sheld of friend
friendly environment which is what we
really care about but the most important
thing is margin improvements so all
these strategic growth initiatives out
there but they are keenly focusing on
improving profit margins and so there
streamlining operations they're enh
enhancing efficiency and that's starting
to pay off if if you look at the least
recent quarterly financials showing
improved operational margins that's the
number I'm going to keep watching
and it's also just helped by the scale
of paper so the more transaction volume
they have the more they can actually
reduce operating cost per transaction
and their investments in Automation and
advanced data analytics and and all that
good stuff will allow them to reduce
costs and improve the bottom line but as
I said patience into 2025 is likely
required to make any money out of this
let me show you the chart and and and
tell you what I'm doing with this right
here's the PayPal share price and it's
essentially bouncing
around
between sort of 58
59
and on the high side we can connect
these here sort of just under
$68 so it's a zigzag scenario not too
dissimilar from the Amazon chat so what
what would be the logical conclusion
well when you are at the bottom end of
this here like we are right now then
that could be an interesting entry point
for a contrarian I'm not recommending
the stock as I say Winston ate the
crystal ball so we have no longer got
access to that piece of information but
I like it I think it's a cheap company I
think it's a cheap stock I think the
likely upside is greater than the
likelihood that PayPal's going to
disappear so if
you enjoyed this video and uh you
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fedix friend/ weinar I love you all for
watching if you enjoyed the video share
it with a friend and I hope to see you
on the next one Winston here just asked
me Felix which of the AI stocks do you
think is going to 10x what's the biggest
opportunity and then he had to lie down
because it was it was serious
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