Renowned tech prophet George Gilder and new visionary Ian King are teasing a powerful “Convergence X” that only happens once every 20 years.
The convergence is supposed to occur on October 16th and three “Convergence X” Stocks are where vast new fortunes will be created.
The Teaser
Host Chris Hurt glazes George and this teaser, saying “Convergence X” will create more wealth than any other event in the past 40 years.
George fancies himself an “Info-Theorist“, which is an accurate way to describe newsletter writers in general.
Some are longer on theory than factual info, but to be fair, George's have been pretty balanced, including his Wafer Chip Company and 10x Graphene Stock presentations, which we have reviewed here.
Getting back to this teaser…
Convergence X will have such a massive impact because it encompasses robotics, artificial intelligence, and technology we haven't even conceived of yet it to transform all industries.
This is coming from someone who accurately foresaw the rise of the microchip in the 80s, saying that “it would change the world.”
Anyone who heeded his advice and bought into stocks like IBM, Microsoft, and Micron early, would have made out like a member of Congress trading the market.
But it's not just George saying this either, Greenbull regular Ian King, who is riding high off of his 2024 Palantir call, also seconds George's prediction.
So, what exactly is converging to create the “bigger than anything before it” investment opportunity?
George says:
It's what comes after the microchip and replaces it.
Another 13 minutes of video runtime goes by after this, but nanochips are eventually revealed as the microchip's successor.
Dubbed the marvel of modern miniturization by some and coming in at just around seven nanometers (nm) in size, these chips are the world's most powerful technology.
Nanochips are on the brink of colliding with several other technologies, creating a super convergence or “big bang” as George calls it.
TSMC's next earnings announcement on October 16th could go a way towards this and three stocks stand to benefit more than others.
The Pitch
Revolutionary new products and services will be built on the back of nanochip technology.
The names of three businesses at the cutting edge of such innovations have been put in a special report called The Made in America Nanochip Boom: Your Guide to Convergence X.
It is ours with a subscription to Ian King's premier newsletter, Strategic Fortunes.
The going rate for it is currently $199 per quarter, but a special price of $49 is being offered to new subscribers for the first three months.
The Last and Greatest Convergence?
Nanochips make up one half of the first “super convergence”, but its far from the first time such an event has taken place.
The “X” in “Convergence X” stands for the Roman numeral for ten, with the rise of the personal computer and the internet being the last convergence.
If history is any indication, we're in for some good times.
As of last count, the digital economy accounted for approximately 15% of global GDP, which totals more than $16 trillion.
Nanochips have their work cut out to top this figure, but based on the other half of the convergence, which we're told is all the applications nanochips are used in, it may be a certainty.
This is how the math breaks down.
Artificial intelligence alone is expected to contribute $15 trillion to the global economy by 2030.
Although AI doesn't require nanochips to run, they are essential to making AI applications more efficient by enabling faster processing speeds and lower energy consumption.
Similarly, the $60 billion+ robotics industry doesn't need nanochips in every humanoid bot, but nanoelectronics do make robotics systems more efficient and powerful.
The same can be said about autonomous vehicles, health tech, and quantum computing. All trillion dollar markets in their own respect.
It probably won't be the last technological convergence of our lifetime, as new technology emerges every decade, but it could be the biggest, given the far-ranging use cases for nanochips.
From the Arizona desert, where TSMC built the most advanced chip manufacturing facility in the country to converted farmland in Ohio, which is the site of Intel's new $20 billion chip plant, and Samsung's new fab facility in the backwoods of Texas. The convergence is picking up steam and some stocks are emerging as the early winners.
Revealing Ian King's Convergence X Stock Picks
Chip components makers, key suppliers, and tech firms creating innovative new products that wouldn't be possible without nanochips.
Opportunities abound and Ian drops a few clues about what he thinks is the single biggest opportunity:
First Convergence X Stock
- This company makes something called ion implantation technology, which is essential to the nanochip manufacturing process.
- It holds over 800 patents related to this technology.
- Fortune ranked it as one of the fastest growing companies of 2024.
Ian is talking about Axcelis Technologies Inc. (Nasdaq: ACLS).
- Axcelis provides advanced ion implantation solutions to the semiconductor industry.
- As of last count, the company appears to be nearing 1,000 patent applications, with nearly 700 patents granted.
- Fortune ranked Axcelis #13 on it's annual list of the Fastest Growing Companies.
Second Convergence X Stock
- This next company makes the laser systems that help make AI possible.
- It controls around 80% of the market for laser light sources.
- The company's market cap is 1/70th the size of TSMC.
Coherent Corp. (NYSE: COHR) is the second pick.
- I wasn't able to find a specific market share figure, but Coherent is recognized as a global leader in the industrial lasers market.
- At a market cap of $17 billion, COHR is roughly 1/80th the size of TSMC.
Third Convergence X Stock
- Two companies control the entire global semiconductor test equipment market.
- It's one of the two companies that enjoys “a duopoly in chip testing.”
The last Convergence X pick is Teradyne Inc. (Nasdaq: TER).
- Teradyne and Advantest Corp. (Tokyo: 6857) are the two companies dominating the test equipment market for chips.
- The duopoly quote comes from a Morningstar article about Teradyne.
Make 500% in just a few years?
Everything in the Convergence X video presentation, from the thesis to the profit claims have been reasonable, which is totally out of character for an investment newsletter teaser.
If it nails the picks, it could pitch a perfect game. Can it pull it off?
It gets off to a good start with Axcelis Technologies. A solid pick with nearly 8x more cash than debt on its balance sheet, an above-average return on equity (ROE), and a decent price of 26x forward earnings.
Moving on to Coherent, the underlying economics aren't what Axcelis' are. With 3x more debt than cash, a below-average ROE, and lasers only make up 23% of the company's total revenue.
Lastly, we get back on track with Teradyne. The leader in the automated test and task market has 5x more cash than debt, a high return on assets (ROA) of nearly 10% for an industrial manufacturer, and a forward P/E of 24x.
Two out of three isn't perfect, but it's still Cy Young nomination-worthy.
The convergence is still in its very early days, but technology is being adopted quicker than ever before, and two of the three picks in the teaser are good triple-digit gain prospects over the next few years.
Quick Recap & Conclusion
- Renowned tech prophet George Gilder and new visionary Ian King are teaming up to cover a once-every-20-years “Convergence X” that will create vast new wealth.
- “Convergence X” or the convergence of nanochips with AI and other emerging technologies is just the latest in a string of technological convergences that have also included the personal computer and the internet.
- George and Ian expect it to be bigger than anything before and they have three stock picks to capitalize on it, which are only revealed in a report called The Made in America Nanochip Boom: Your Guide to Convergence X. A subscription to Ian King's premier newsletter, Strategic Fortunes is required to access it and it costs $49 for the first three months.
- But before you click through to the conversion page and fill out the payment form, you can get all three picks right here on Greenbull, for free. They are Axcelis Technologies Inc. (Nasdaq: ACLS), Coherent Corp. (NYSE: COHR), and Teradyne Inc. (Nasdaq: TER).
- Axcelis and Teradyne are businesses with solid underlying economics that are well positioned to capture early gains from the convergence of nanochips and AI.
Will Convergence X really be bigger than anything before it? Let us know your thoughts in the comments.