Futurist and seer George Gilder is teasing a brand-new, untradeable commodity that is being called “the new oil.“
One small “Wafer Chip Company” is at the forefront of this breakthrough, without which artificial intelligence would cease to exist.
The Teaser
Demand for this new commodity is through the roof, increasing 300,000x since 2012.
George Gilder's career has spanned more than 50 years, during which time he's seen just about every major advance in modern technology and economics.
This half-century of experience let's him look at what’s happening today and see how it will influence the future.
We have previously reviewed several of George's forward-looking teasers, including his Secret Supersonic Seven and “New You” Regenerative Medicine Stock.
This one is shaping up to be the most interesting of all.
After all, how often do new commodities come around?
However, unlike barrels of oil, bars of gold, or cubic feet of natural gas, there is no way for investors to directly trade this commodity.
This indicates that it is really a technology or perhaps some sort of component?
George confirms our suspicion when he says:
Artificial intelligence will forever change every aspect of life here on Earth.
But this technology is going to change AI forever.
The new commodity/technology is then revealed as Compute or “computational power.”
It's the single most important element because AI models require it in enormous quantity to learn patterns and make calculations.
Simply put, there isn't enough compute power to keep up with the current demand.
The Compute Squeeze
Some who are in the know, are saying that the compute power required to meet the growing demand from AI doubles every 100 days.
This finding is from 2018 and doesn't take into account all the progress that has been made since.
See, compute lives inside of chips like Nvidia’s Blackwell Graphics Processing Unit (GPU).
Currently, its the most powerful AI processing chip on the market.
Everyone and their deep-pocketed investors have been trying to get their hands on them, from VC-backed startups to governments, and the usual suspects of Amazon, Apple, Microsoft, Alphabet, Meta, and Tesla, which have spent billions of dollars trying to soak up all of the available compute power.
For example, Meta has stockpiled some 600,000 GPUs.
Microsoft is spending $80 billion per year on it's AI build out, and Trump’s lauded Stargate Project could require up to 1 million of these bad boys.
However, this is putting a major strain on supply, as even Nvidia is running into problems keeping up with the unprecedented demand.
This is where George's “Wafer Chip Company” comes in.
The Pitch
All the details on it are in a new special report called Wafer-Scale Breakthrough – the Key to Unlocking AI’s $23 Trillion Potential.
The only way to access it is by subscribing to George's “breakthrough” investment research service, Gilder’s Technology Report.
Normally, this would cost $249, but for a limited time, new subscribers can get in for $77, with a 30-day money-back guarantee.
AI's ENIAC Moment
A new kind of AI microprocessor will have just as big of an impact on the future, as the original invention of the microchip back in the '70s.
George remembers a time when computers relied on massive and complex hardware systems.
The early ENIAC computer took up an entire room. And it was massively expensive, costing approximately $500,000.
But then, in 1971, Intel's early 4004 microprocessor chip changed everything.
It's invention miniaturized the computer, making it smaller, faster, and cheaper than anyone could’ve imagined at the time.
This is what's about to happen to AI.
The Most Advanced AI Processor on the Planet
At the moment, companies like Nvidia are doing the only thing they can to increase compute power.
They’re stacking GPUs on top of each other in the hopes of generating chips that are faster and more efficient.
So far its been working.
However, at some point it will get harder for all of these layers of chips to communicate, defeating the purpose of stacking so many chips to begin with.
But what if you didn’t have to stack anything?
What if everything was in one place, with blazing fast computational power, while also requiring less electricity.
It exists and it's called a Wafer Scale Engine (WSE).
Essentially, it puts an entire computer system onto one single, massive wafer that is bigger, faster, and more efficient than anything currently available.
Comparing it to any other chip is like apples to tomatoes.
For example, Nvidia’s Blackwell holds 208 billion transistors and 16,000 cores.
The WSE holds 2.6 trillion transistors and 850,000 cores.
On top of this, because everything is packed onto one single wafer of silicon, there’s no need for communication between GPU clusters.
This means the potential of AI is closer to becoming reality than ever before, thanks to one company.
Revealing George Gilder's Wafer Chip Company
George only let's a few clues slip about the company with the breakthrough wafer chip tech:
- Shares of this company are not publicly traded. But it has filed for a standard IPO, which is expected to happen sometime this year.
- This is a small company, valued at around $2.8 billion.
- There is also a backdoor way to invest in this tech now, through another company that is already trading on the NYSE.
- It's a semiconductor maker that’s already producing these new, super-advanced wafer chips.
In the first instance, the company is nine-year old wafer chip designer Cerebras Systems Inc., which filed for an IPO on the Nasdaq back in September of last year.
According to CEO Andrew Feldman, the expectation is still to formally list sometime in 2025.
As for George's backdoor way to invest in the WSE technology, it's Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), the world’s largest semiconductor foundry and leader in advanced process technologies, which has a longstanding partnership with Cerebras.
Turn $1,000 into $2 million?
Anyone with the foresight to buy Nvidia shares shortly after the company's 1999 IPO and had diamond hands until today could have turned $1,000 into more than $2.2 million.
George believes we're staring down a similar opportunity with Cerebras today.
Is he right?
As noted, Cerebras is still private, pending an IPO. However, we do have some insight into the wafer chip specialist's financials, thanks to it's mandatory disclosure filings with the SEC.
What jumps out immediately is that Cerebras doubled it's revenue to $104 million for the first six months of fiscal year 2024, compared to all of fiscal 2023, while operating expenses only went up by 15%.
Similarly, net losses currently average about $120 million per year, but they have been shrinking.
Given Cerebras' $220 million in cash and working capital, along with it's rapid revenue growth, the company is amply funded. An IPO will also raise several hundred million.
Eliminating the need for distributed computing is huge for scaling AI. For reference, Cerebras' current generation CS-3 chip can support large language models (LLMs) of up to 24 trillion parameters.
ChatGPT's GPT-4, is estimated to have around 1.8 trillion parameters.
Cerebras could be the rare IPO worth buying.
As for the backdoor stock, I'll go out on a real limb (sarcasm), and say that TSMC will be the next trillion-dollar company.
It currently sits at a market cap of around $989 billion, so by the time you read this, it may have already joined the trillion-dollar club, and amazingly, it would still be undervalued.
Quick Recap & Conclusion
- Futurist and seer George Gilder is teasing a small “Wafer Chip Company” which produces a brand-new, untradeable commodity being called “the new oil.“
- The new commodity/technology is Compute or “computational power,” and without it, artificial intelligence cannot scale up.
- One company has a solution and all the details on it are in a new special report called Wafer-Scale Breakthrough – the Key to Unlocking AI’s $23 Trillion Potential. The only way to access it is by subscribing to George's investment research service, Gilder’s Technology Report, which costs $77 (normally $249).
- We were able to reveal the name of this pre-IPO company for free, Cerebras Systems Inc., along with the backdoor way to invest in it's breakthrough wafer chip tech now, Taiwan Semiconductor Manufacturing Co. (NYSE: TSM).
- Cerebras' current-gen CS-3 chip can support LLMs of up to 24 trillion parameters. More than any other chip on the market, making it a rare IPO to buy into when it comes to market. TSMC stock is also a good pick up at 25x current earnings.
What is the last IPO you invested in? Give us the good, bad, and the ugly in the comments.