The most knowledgeable man in America, George Gilder, is teasing something he calls “the clearest shot at turning a $10,000 investment into a retirement nest egg“.
It's an “Ambient AI” Stock that is set to bring artificial intelligence from our screens into the physical world.
The Teaser
Microchips are the foundation of everything tech-related.
Economist, writer, tech futurist, pal of Ronald Reagan, George Gilder has had a longer run than most day-time soap operas.
To his credit, he's still going strong at 86. Publishing his namesake newsletter and putting out teasers like “Secret Supersonic Seven” and “10x Graphene Stock“, which we have reviewed.
George has had a thing for microchips for a long time.
In his 1989 book, Microcosm, he described how a new generation of silicon microchips would shrink computers from room-sized machines into something small enough and cheap enough to fit in every pocket.
He was right!
Since his call more than 30 years ago, microchips have made PCs, smartphones, and the AI tools we use today, possible.
A $10k investment in the biggest chipmaker at the time, Intel, would have turned into nearly a million dollars over the following decade.
George foresees something similar happening today and it ties back to a simple idea:
Every world-changing technology starts out centralized and over time becomes decentralized
He has a point, if we look at computers, they were once massive contraptions that filled entire rooms, but over time, they shrank into personal computers that anyone could own and use.
The same thing happened with the internet and artificial intelligence could be about to follow the same path.
Today, generative AI tools reside in massive cloud data centers owned by a handful of tech giants. But soon, they may be able to run locally, right inside our phones thanks to one tiny “Ambient AI” microchip.
The Pitch
The name of the chipmaker is only revealed inside a report called “The $6 Chip Powering ‘Ambient AI’: The Tiny Company Set to Dominate the Future.”
It can be ours if we subscribe to George's “premier investment research service“, Gilder’s Moonshots. The regular retail price for the newsletter is $1,995 per year, but for a limited time it is being offered for $995 upfront, with a 30-day money-back guarantee.
What in the World is Ambient AI?
This is the tiny chip set to power what George calls “Ambient AI”
But what exactly is this next iteration of artificial intelligence?
George describes it like this:
It gives ordinary devices the ability to perceive information, understand it, and act on it in real time, all without relying on distant servers or human intervention
What George calls “Ambient AI” is more commonly known as Edge AI.
This is the deployment of AI models directly on local devices for real-time processing and enhanced security rather than relying on centralized cloud servers.
Our power grid is one of the best use cases.
At the moment, power grids depend on massive, centralized control systems to keep electricity flowing smoothly. Thousands of sensors collect data and then send it to distant control centers where software decides when to reroute energy or compensate for sudden surges.
It's a mind-blowing marvel of modern engineering, but if something goes haywire, like a hurricane hitting power lines or a sudden voltage spike, your lights go out.
Edge AI solves this problem.
By embedding intelligence directly into the grid, inside sensors, substations, and local energy nodes, each component can “think” for itself.
So if a voltage spike does ever occur, it can isolate the issue and reroute power within milliseconds, preventing outages before they spread.
This is just scratching the surface of what Edge AI is capable of and all of it relies on a microchip that makes it possible to embed AI into devices in the first place.
However, these aren't your regular ol' Intel Inside chips, they are programmable chips, meaning they can be reconfigured, updated remotely, and adapted to handle entirely new tasks, all without having to replace a single piece of hardware.
One small programmable chipmaker is up and coming and firms across multiple industries are lining up for it's technology. Let's find out what it is.
Revealing George Gilder's “Ambient AI” Stock
George says this company's name is going to start showing up everywhere soon…starting with this teaser review.
- The company delivered the world’s first sub-5-nanometer programmable chip core on Intel’s most-advanced manufacturing process.
- It has landed contracts with the Pentagon and partnered with the likes of Intel and Honeywell.
- It's stock trades for $6 per share with a market cap of around $100 million.
George is talking about QuickLogic Corp. (Nasdaq: QUIK).
- QuickLogic is recognized as the first to deliver a sub-5-nanometer, programmable, customizable core chip.
- The fabless semiconductor company has a contract with the Department of War, a partnership with Intel Foundry, and a collaboration in place with Honeywell.
- It's market cap currently hovers around $240 million after appreciating by more than 110% so far this year.
The Single Best Opportunity in AI?
There are loads of newsletter teasers out there pitching “the best opportunity” in the market.
Most then go on to name a familar large-cap and call it a day.
George's teaser is different.
Not only does it name an understated area of growth, edge computing, but it also goes out on a limb with a microcap pick. Credit should be given where it's due and this is what teaser picks are all about.
Whether it truly is the best investment opportunity in AI is debatable, as defense tech and robotics also rank high on the list, but it is the least talked about, which makes it even more attractive from an investment standpoint.
Local compute is the future of AI by necessity.
At the moment, the biggest challenge to AI development is energy, as has been well documented, and as we have reiterated as well.
So any solution that is more energy efficient/uses less power will win, that is edge AI in a nutshell.
The question now becomes, is QuickLogic going to be one of the key providers of the solution?
There are a number of embedded FPGA (Field-Programmable Gate Array) makers, with AMD and Intel as the current market leaders, and other notables such as Lattice Semiconductor and Cerebras Systems also in the fray.
QuickLogic distinguishes itself by specializing in embedded FPGAs for extreme environments like aerospace and defense. It has been working on perfecting low power FPGAs since the early 90s and is founded by industry pioneers, so this isn't a fly-by-night that is trying to tap into a hot trend.
There's a lot to like from an operational point of view, but economically, there's also a lot to dislike.
QuickLogic earned a total of $14 million in revenue last year, cashflow is negative, and it has as much debt, $18 million, as cash on the balance sheet.
Paying a quarter of a billion for such a business is not recommended.
The market clearly likes it's expanded government contract and potential, but without a spectacular growth spurt, QuickLogic's market price lacks common sense.
Quick Recap & Conclusion
- George Gilder is teasing an “Ambient AI” Stock that is set to bring artificial intelligence from our screens into the physical world.
- What George calls “Ambient AI” is more commonly known as Edge AI, which is the deployment of AI models directly on local devices for real-time processing and enhanced security.
- One edge AI chipmaker is key to making it happen and it's name is only revealed inside a report called “The $6 Chip Powering ‘Ambient AI’: The Tiny Company Set to Dominate the Future.” It can be ours with a subscription to George's “premier investment research service“, Gilder’s Moonshots, which costs $995 upfront for the first year.
- Don't worry about reaching into your own pockets for this though, as we were able to reveal it for free! It's QuickLogic Corp. (Nasdaq: QUIK).
- QuickLogic is an established, reputable fabricator with an overly generous valuation.
Are you investing in edge AI? Tell us why or why not in the comments.