One of the world’s richest men with a $4.6 billion fortune has just made a big bet on a “tiny company fueling the $200 trillion Artificial Intelligence revolution.”
Investment strategist Adam O'Dell reveals we can now invest alongside one of the most successful tech investors in history, with as little as $25.
The Teaser
Who exactly is this person, what is their secret to finding companies that go to the moon, and why are they calling their latest investment “the next Google?”
Money and Markets' chief investment strategist Adam O'Dell promises to tell all and we're going to break it down, just like we did with his “A9 Gold Stocks” and “Infinite Energy” Software Pick teasers.
The “eccentric billionaire” Adam references at the start of his pitch is Peter Thiel, who as a 29-year-old invested $1,700 in a digital payment platform that turned into $55 million in just 3 years.
That company was PayPal, and now it's a public company with a $70 billion market cap.
Since then, Thiel has gone on to fund the likes of SpaceX, Stripe, Lyft, Facebook, SoFi, Airbnb, Spotify, and Open AI, the maker of ChatGPT through his Founders Fund venture capital firm.
He is also a backer of the Enhanced Games “Olympics on steroids”, which is just as cool.
All of these investments have pushed his net worth up to $7 billion by Forbes' last count and made him one of the richest people in the world.
Peter's Formula for Investment Success
On the surface, Peter’s formula for investment success looks pretty simple:
- Invest in a Tiny Company
- With a New Technology
- Disrupting a Big Industry
PayPal followed this exact template.
The company was a startup, it had a new technology, a digital platform for money that could be accessed anywhere there was an internet connection, and it was positioned to disrupt the global banking system.
However, what may look easy, is hard to execute.
This is where Adam comes in to give us the details about Peter’s current venture, one he calls the “next Google.”
The Pitch
There will be no bigger winner than this company in the AI revolution and all of Adam's research on it has been compiled in a special report called The Tiny Company Fueling the $200 Trillion AI Revolution.
If we want to get our hands on it, the catch is that we will need a subscription to Adam's Green Zone Fortunes newsletter.
An annual membership usually runs $299, but the current promotional price is just $49 and includes two bonus stocks (which we will cover here), unlimited access to an AI-driven stock-rating system to be able to identify opportunities in the Peter Thiel mold, weekly updates, a model portfolio, and more.
Silicon Valley’s Most Secretive Company
Adam's research shows that “Silicon Valley’s most secretive company” won’t be a secret much longer.
This is because it meets Peter Thiel's investment formula:
Peter’s “AI company” as Adam calls it, is tiny in comparison to other tech companies. So, even if it grows by 1,000% over the next few years, it will still be dwarfed by Nvidia, Google, and others.
The company is also a leader in a mysterious market most of the public isn't very familiar with – Closed AI.
This is just a way of saying its algorithms, data, and models are privately developed and maintained, rather than open source (Open AI).
Many new AI companies are like ChatGPT – Open AI. But Peter's new investment serves a very big customer, the U.S. government. Thus, its closed systems help keep the sensitive data of the government agencies it counts as clients private.
Lastly, the big industry it is aiming to disrupt is the AI market, which is expected to grow from $500 billion to $200 trillion by 2030.
It could also have a catalyst for its stock to soar into the stratosphere as well.
Getting Ready for Liftoff
Adam recommends scooping up shares between now and May 5th, if possible.
That is when this AI company will be holding an investor presentation. They will use this time to reveal any new contracts they have signed (which Adam thinks will be a lot) and new technologies they are developing.
There are no guarantees when it comes to investing, but Adam believes this $25 stock could easily turn into $100, then $200, and even $1,000 a share.
If Peter Thiel gets it right yet again, then his AI company could be on track for some truly historic gains. Let's find out its name and the names of the two additional AI investments Adam is teasing.
Revealing Adam O'Dell's Tiny Company Fueling the $200 Trillion AI Revolution
Adam has quite a bit to say about the tiny company that he's invested in, Peter Thiel is invested in, and he thinks we should be too.
Here are the clues that helped uncover it:
- The company is about 1/30th the size of Nvidia and sells for less than $25 per share.
- It has an edge in Closed AI, with 1,372 patents and patent applications backing its proprietary data models.
- One of only three companies the U.S. government trusts with their sensitive data, with its technology now being used to safeguard the U.S. nuclear stockpile.
The stock Adam is teasing here is Palantir Technologies Inc. (NYSE: PLTR).
- Palantir currently trades for just under $23 a share and at a $50 billion market cap, it is less than 1/30th the size of Nvidia.
- The company has 1,557 patent applications worldwide, with 1,372 patents being active.
- Palantir's data platform helps the National Nuclear Security Administration (NNSA) manage nuclear security by enabling it to measure the health of safety programs across the organization.
I will give my thoughts on Palantir, but what about Adam's two additional AI picks?
The One Company Perfectly Positioned to Win the AI Chip Race
- This company’s design tools are the “secret sauce” behind virtually every major industry player that tests and produces advanced chips. Its customers include Microsoft, Panasonic, and STMicroelectronics.
- Its CEO says “The demand for advanced chips continually exceeds what our customers can deliver. The race is on, and in that race, we are the key ingredients.”
That quote helped lead us directly to the pick, which is Synopsys Inc. (Nasdaq: SNPS). The company's CEO, Aart de Geus, said it during an interview with Bloomberg last summer.
$10 Stock Is A Backdoor Way to Profit from OpenAI.
- Adam says this company is trading for just $10 a share and has inked a close partnership deal with OpenAI, making it a backdoor way to profit from the privately held company.
- Its state-of-the-art AI data models rival that of the biggest AI companies, but it's a fraction of their size.
Pretty generic clues, but without anything else to go on, the pick here could be Sprinklr Inc. (NYSE: CXM). There's no way to know for sure, so take this one with a grain of salt, but CXM is trading for north of $10 with a market cap of $3.3 billion and it is an official OpenAI partner.
The Fuel of the AI Revolution Or Manure?
By and large, Adam has used his AI stock-rating system to come up with his picks, which we have previously reviewed here on Greenbull.
Others have also previously pitched the same stocks.
Here are my thoughts on each:
Palantir Technologies: I have previously stated that the stock isn't one I would chase at higher and higher multiples, given the low operating margins of creating custom software solutions for clients and I'm sticking to that.
Calling Palantir “the next Google” is an apple to mangos comparison, as Google is a consumer-facing application, while Palantir is a B2B data solution. It will never carry the same name recognition premium.
The stock is also currently trading at 255x trailing earnings, which is already taking into account a lot of the future growth Adam is talking about.
Synopsys Inc: At 62x trailing earnings, the company appears cheap compared to Palantir.
It may not be cheap on an absolute basis, but given its highly specialized semiconductor design capabilities, it has higher-than-average profit margins and ROIC metrics – both above 20%. So we would be paying a fair price for a high-quality business, with plenty of upside potential, given that the demand for chips is only due to increase.
Sprinklr Inc: Another business with a valuation of over 100x earnings, 110x to be exact. Its margins and return-on-capital figures aren't impressive for an enterprise SaaS platform, so I'm not chasing this stock either.
Quick Recap & Conclusion
- Adam O'Dell is teasing a way to invest alongside an eccentric billionaire, who has made a big bet on a tiny AI company.
- That eccentric billionaire is Peter Thiel, an early investor in PayPal, Facebook, Airbnb, and other startups that have hit it big, making him Silicon Valley royalty.
- All of Adam's research on Peter's latest big investment has been compiled in a special report called The Tiny Company Fueling the $200 Trillion AI Revolution.
- But you don't have to wait to read the report to find out what it is, because we were able to reveal Peter's latest investment as Palantir Technologies Inc. (NYSE: PLTR). We were also feeling extra generous, so we revealed one of Adam's bonus AI stock picks as Synopsys Inc. (Nasdaq: SNPS) and ventured an educated guess about the other, which could be Sprinklr Inc. (NYSE: CXM).
- Out of this trio of stocks, Synopsys offers the best value for the asking price.
What AI company will be the next Google? Let us know your picks in the comments section.