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.

Outlines

00:00

🚀 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.

05:00

📉 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.

10:04

💊 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.

15:07

💰 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.

Keywords

💡Tech Stocks

Tech stocks refer to shares of companies that are involved in the technology sector, including hardware, software, and services. In the video, the speaker discusses tech stocks that are poised to benefit from advancements in AI, emphasizing their potential for growth and investment opportunities.

💡AI (Artificial Intelligence)

AI is the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The video highlights how certain tech stocks are set to benefit immensely from AI advancements, showcasing AI's impact on various business sectors.

💡Overhyped

Overhyped refers to a situation where something is promoted or praised excessively, often beyond its actual value or potential. The speaker mentions looking for tech stocks that are not overhyped, indicating a preference for undervalued stocks with genuine growth prospects.

💡Free Cash Flow

Free cash flow is the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. In the context of the video, the speaker uses free cash flow as an indicator of a company's financial health and growth potential, specifically comparing Amazon's free cash flow with Nvidia's.

💡Market Cap

Market capitalization, or market cap, is the total market value of a company's outstanding shares of stock. The video uses market cap as a measure to compare the relative value of different tech stocks, noting that Amazon's market cap is 30% less than Nvidia's despite having a higher free cash flow.

💡AWS (Amazon Web Services)

AWS is a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments. The script mentions AWS as the umbrella under which Amazon launches its AI products, emphasizing its role in Amazon's AI strategy.

💡Generative AI

Generative AI refers to artificial intelligence systems that can create new content, such as text, images, or music. The video discusses Amazon's expansion into generative AI, introducing products that target various aspects of AI, including chatbots and text summarization tools.

💡AI Infrastructure

AI infrastructure encompasses the underlying hardware and software systems that support AI applications. The speaker talks about Amazon's development of AI-specific chips like Trinium and Inferentia, which are designed to enhance Amazon's AI capabilities and performance.

💡Monetization Strategy

A monetization strategy outlines how a company plans to generate revenue from its products or services. The video describes Amazon's approach to monetizing its AI advancements, including expanding beyond consumer-facing applications and potentially licensing technology to other companies.

💡Eli Lilly

Eli Lilly is a pharmaceutical company that the speaker mentions in the context of its weight loss drug, which has shown promising results in treating sleep apnea. The video uses Eli Lilly as an example of a company in a non-tech sector that is still significantly impacted by technological advancements in AI and healthcare.

💡Phase Three Clinical Trial

A phase three clinical trial is the third stage of clinical testing before a drug can be considered for FDA approval. It involves large-scale testing to confirm efficacy and monitor side effects. The script discusses the successful completion of Eli Lilly's phase three trials for its weight loss drug, which has implications for its market potential.

💡PayPal

PayPal is a technology company operating a worldwide online payments system. The video discusses PayPal as an underperforming tech stock with potential for growth, highlighting its user base, financial services expansion, and share buyback program as factors that could contribute to its future success.

💡Share Buyback

A share buyback is when a company repurchases its own shares from the market, reducing the number of shares available and potentially increasing the value of remaining shares. The script mentions PayPal's $5 billion share buyback program as a signal of strong cash flow and a commitment to enhancing shareholder value.

💡Operational Margins

Operational margins indicate a company's operational profitability by comparing its operating income to its revenue. The video points to PayPal's improved operational margins as a sign of its strategic growth initiatives and focus on efficiency, which could lead to long-term financial success.

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

realize this channel is all about

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money from your money so rather than

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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