Futurist George Gilder is convinced that a revolutionary new computing architecture is about to make present day data centers as relevant as pagers.
He's calling it the “Trillion Dollar Triangle” and three companies are behind it.
The Teaser
Society today runs on data which relies on sprawling data centers.
George has been identifying technological trends since I was in diapers more than 40 years ago.
We have covered some of his most recent calls, including the Secret Supersonic Seven and 10X Graphene Stock, among others.
The ‘society runs data' thesis isn't theoretical.
Consider the more than 6,000 Airbus aircraft that were grounded by a software “glitch” or the recent data center cooling system malfunction that caused the Chicago Mercantile Exchange (CME) to shut down all trading.
Judging by this, you may say data centers are already on their last leg.
A big reason why is because the way computers process information hasn’t fundamentally changed since World War II. Despite the amount of data they process growing exponentially over the past half century plus.
The expectation is that it will keep on growing by around 30% annually.
It's pushing data processing power to the absolute breaking point and this is where George's “Trillion Dollar Triangle” comes in.
He calls it:
The most significant advancement in computer design since the microprocessor
So what is it?
George breaks it down as a technology that uses a silicon wafer as a single interconnected “super-chip.”
What George is taking about here is wafer-scale technology.
Not to be confused with waffle-making technology, these are massive chips the size of a dinner plate that are accelerating the processing power of artificial intelligence (AI) systems. It enables them to handle more data in minutes than present-day GPU-based systems process in hours or even days.
All while using up to 90% less energy.
Most who are in the know concur that “Wafer-scale technology represents a major leap forward” and we have the opportunity to get into it at the ground floor.
The Pitch
A special briefing outlines everything, it's called The Trillion Dollar Triangle: How Three Tech Titans Could Trigger History's Biggest Wealth Creation Event.
To get it, we have to take George's flagship research service, Gilder’s Technology Report, for a test drive.
It's ours for a deeply discounted $77 for the first year, with a 30-day money-back guarantee.
The Holy Trinity of Computing
If a technology increases capacity by 10x while reducing costs by 90%, it doesn’t just take a slice of the market.
It creates entirely new markets.
This is what Amazon accomplished when it created AWS and made cloud computing as omnipresent as lip fillers on Instagram.
George sees the same pattern repeating with wafer-scale computing, however, he believes the scale will be exponentially larger.
That's because cloud computing made information processing more efficient, but wafer-scale computing makes it fundamentally different.
We already know that wafer-scale technology is capable of scaling compute, but what three technologies are converging to complete the paradigm shift?
- Wafer-scale design creates single-chip supercomputers that process data at unprecedented rates.
- Manufacturing precision allows these revolutionary chips to be produced at scale.
- AI chip design eliminates the bottlenecks that currently limit computing speed.
This is the Trillion Dollar Triangle.
According to some, it's also the holy trinity of computing that will make the dream of artificial superintelligence a possibility for the first time.
Only three companies are currently developing, building, and shipping wafer-scale technology, that are redefining the limits of AI computing. Let's find out what they are.
Revealing George Gilder's Trillion Dollar Triangle Stocks
The clues in this teaser were thinner than a modern microprocessor chip.
Apart from what we already know, there was only one supplementary piece of information about the third and last pick, as we'll see.
Titan #1
- This company designs wafer-scale chips that process data at unprecedented rates.
There's no way to be sure, but Advanced Micro Devices (Nasdaq: AMD) may be George's first titan.
This is based on the fact that it's CPUs and MI300A accelerators power many of the world's most powerful supercomputers, including The El Capitan system at Lawrence Livermore National Laboratory (LLNL).
Titan #2
- The firm's manufacturing precision allows wafer-scale chips to be produced at scale.
Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) is the pick here.
TSMC is capable of making larger wafer-scale chips using its 16nm process.
Titan #3
- The last company's AI chip design eliminates the bottlenecks currently limiting computing speed.
- It is currently privately-held, with a pending upcoming IPO.
This sounds like Cerebras Systems Inc., which is still private and whose design embeds processor cores and memory onto a single silicon wafer, instead of multiple tiny chips.
A Ground Floor Opportunity to Get Rich?
Wafer-scale chips will likely become the standard over time.
However, George is convinced that Cerebras' prospective IPO will draw massive public attention to the technology and hasten it's adoption.
This means we can get in early now and “watch our portfolio explode upward” or buy shares at 5x, 10x, or 20x the prices available today, later.
I don't doubt that wafer-scale will be huge, as everyone and their over-invested VC is chasing better AI model performance.
The only thing I'm questioning is if AMD and TSMC are the best ways to play this technology, especially at 107x current earnings in the instance of the former.
Cerebras also recently withdrew it's IPO filing, with a spokesman just saying that the company hopes to launch its initial public offering as soon as possible.
So our near-term catalyst has been shelved indefinitely.
The saving grace is TSMC stock, which despite its whale-cap market value of $1.5 trillion, remains a decent buy at under 30x current earnings.
Some other wafer-scale tech plays worth a look include Axcelis Technologies (Nasdaq: ALCS), which is trading for 20x earnings and U.S.-based GlobalFoundries (Nasdaq: GFS), which is making a push into wafer-scale tech.
The investment from the private sector and federal government is there to create the next-gen chip supply and the demand for them, unlike some other AI tech, is sufficient.
This has created a solid long-term investment opportunity in a space where the biggest winners have yet to be decided.
Quick Recap & Conclusion
- Futurist George Gilder is convinced that a revolutionary new computing architecture he is calling the “Trillion Dollar Triangle” is about to make present day data centers obsolete and three companies are behind it.
- George is teasing wafer-scale technology, which is next-gen tech accelerating the processing power and energy efficiency of artificial intelligence (AI) systems.
- A special briefing outlines everything, it's called The Trillion Dollar Triangle: How Three Tech Titans Could Trigger History's Biggest Wealth Creation Event. All we have to do to get it is take George's flagship research service, Gilder’s Technology Report, for a test drive, at a deeply discounted $77 upfront for the first year.
- Only single-paragraphs were offered as clues, still, we've were able to reveal most, if not all, of George's Trillion Dollar Triangle stock picks for free. They are Advanced Micro Devices (Nasdaq: AMD), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), and Cerebras Systems Inc. (private).
- AMD is too expensive at more than 100x current earnings and a Cerebras IPO is uncertain. Leaving us with TSMC, which remains a decent buy at a P/E under 30x.
Will wafer-scale technology live up to the hype? Let us know your thoughts in the comments.