Today's Buyers Are Tomorrow's Winners - Stocks To Buy Today

Summary

In this video, the speaker passionately discusses the transformative potential of artificial intelligence (AI) and its ability to provide access to the world's knowledge. The speaker believes AI will dramatically enhance decision-making capabilities across various domains, from investments to climate. To identify the companies driving this AI revolution, the speaker meticulously analyzes their research and development spending, considering it a telltale sign of future growth. The speaker shares a detailed spreadsheet tracking companies' financials, aiming to uncover the stocks poised to deliver the rewards of AI advancements. With an emphasis on investing in the future rather than chasing current trends, the speaker invites viewers to join this journey of harnessing AI's power for personal betterment.

Takeaways

• 👨‍💻 The speaker believes AI will give access to all the world's knowledge, enhancing one's intellectual capabilities and decision-making abilities across various domains.
• 🧠 The speaker wants to identify companies investing heavily in AI research and development, as they are likely to be the ones enabling this AI-driven future.
• 📈 Snowflake, Intel, and Meta are highlighted as companies spending a significant portion of their revenue on R&D, indicating their commitment to AI advancement.
• 💻 The speaker tracks companies' R&D spending as a percentage of revenue to gauge their potential role in the AI revolution.
• 🔍 Companies like Nvidia, AMD, and Supermicro are seen as crucial infrastructure providers, enabling the AI applications developed by other companies.
• 📊 A spreadsheet is used to analyze companies' financials, analyst ratings, fair value, and potential returns based on AI-driven growth projections.
• 🎯 The speaker aims to identify companies that are currently sacrificing short-term earnings for long-term AI capabilities, viewing it as an investment in the future.
• 💡 The underlying belief is that AI will significantly enhance knowledge accessibility and decision-making capabilities across sectors like investing, health, and climate.
• 🚀 Companies like Rambus and Cadence are highlighted as potentially undervalued AI plays due to their high R&D spending.
• 🔑 The key is to anticipate where the AI "puck" is going, not just where it currently resides, requiring patience and understanding of the driving forces.

Q & A

What is the main topic of the video script?

The main topic is artificial intelligence (AI) and its potential impact on accessing knowledge and transforming life. The speaker discusses investing in companies that are driving AI development and infrastructure.

Why does the speaker want to know which companies are buying products from companies like NVIDIA, AMD, and Micron?

The speaker believes that the companies buying these AI-related products are likely to be the ones that will provide access to the vast knowledge and capabilities enabled by AI. By investing in these companies, the speaker hopes to benefit from the transformative potential of AI.

How does the speaker determine which companies to invest in?

The speaker has created a 'cheat sheet' that tracks various metrics for companies he believes are involved in AI development. One key metric is the percentage of revenue spent on research and development (R&D), which he sees as an indicator of a company's commitment to advancing AI.

What is the significance of Snowflake's high R&D spending according to the speaker?

The speaker views Snowflake's 46% of revenue spent on R&D as a 'no-brainer' indicator that the company is aggressively investing in its future and AI capabilities. This high level of spending, despite negative short-term earnings impact, signals to the speaker that Snowflake is a player worth considering for investment.

How does the speaker's investment approach differ from simply chasing current high-performing stocks?

The speaker emphasizes that he is not interested in 'chasing the puck' (i.e., investing in companies that are already successful). Instead, he wants to identify companies that are 'going to where the puck is going' – those that are investing heavily in AI now to position themselves for future growth and transformation.

What is the purpose of the 'cheat sheet' the speaker refers to?

The 'cheat sheet' is a tool the speaker has created to track various metrics and data points for companies he believes are involved in AI development. It helps him analyze and compare these companies to identify potential investment opportunities based on factors like R&D spending, earnings, analyst ratings, and fair value estimates.

Why does the speaker mention the government awarding Intel $1 billion?

The speaker cites the government's $1 billion award to Intel as further evidence that Intel is a company worth considering for investment. The award is intended to support Intel's efforts to create semiconductor foundries in the United States, aligning with the speaker's belief that Intel is investing heavily in AI and advanced computing capabilities.

What is the speaker's overall investment philosophy as expressed in the script?

The speaker's overall investment philosophy is to identify and invest in companies that are actively investing in AI and related technologies, even if it comes at a short-term cost. He believes these companies are positioning themselves to provide transformative access to knowledge and capabilities enabled by AI, which will ultimately benefit investors who recognize and capitalize on this trend.

How does the speaker view the potential impact of AI on people's lives?

The speaker sees AI as a transformative technology that will provide people with access to all the knowledge in the world, allowing them to make better decisions and improve their lives in various areas, such as investing, food choices, and addressing climate issues. He believes AI will essentially enhance people's intellectual capabilities and decision-making abilities.

Why does the speaker mention the example of a hypothetical drug that could improve physical attributes?

The speaker uses the hypothetical example of a drug that could enhance physical attributes as an analogy to illustrate his perspective on AI. Just as he would want access to such a drug for a better life, he wants access to the knowledge and capabilities that AI can provide to improve his mind and decision-making abilities.