Top 3 Tech Stocks I’m Buying Now (over Nvidia and Palantir)

Summary

In 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.