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Jimmy Mengel’s “God Chip” Company – 10,000% Gains?

January 14, 2021 by Theodor

Talk around the need for creating more powerful micro processing chips has been around for years, as technology is approaching a new era and several other sectors of the economy seem to be booming – from Artificial Intelligence to 5G, to robotics, and virtual reality. In his latest investment newsletter, Jimmy Mengel talks about this in-depth, pointing towards a company that is creating a new type of micro processing chip that “will retain U.S. dominance” and “could make early investors 12,795% returns on their money”. 

The company’s name and ticker symbol are revealed in a report called The “God Chip”: The Semiconductor Revolution for Five-Digit Gains, which is part of the newsletter subscription program The Crow’s Nest, for $99 per year. For that price, clients will receive the latest investment research, insider opportunities, as well as two bonus reports. For those who would like to learn more about the opportunity without having to open up your wallet, here is what we were able to reveal for free.

Mengel is the editor of two investment newsletters, including the Outsider Club, where he provides the behind the scenes story of mainstream financial news to his clients daily. 

He previously worked on a qualitative research project studying the Patriot Act, which helped him develop a new mindset regarding freedom and personal liberties and has been a frequent guest on CNBC. Mengel claims that his investment approach “is very different from that of your typical financial guru” because he has traveled around the world and talked to top CEOs, leaders, politicians, and businessmen. 

He claims to have predicted the “wave of legalization” of recreational drugs and saw marijuana’s potential to replace “dangerous opioids and become a leading form of medicine”, which allowed him to invest early in marijuana stocks and enjoy gains of up to 1,000X in a matter of months.  He has previously instructed his clients to invest in companies like Cronos, InMed Pharmaceuticals, and Canopy Growth Corp., which saw huge increases in their stock prices.


The New Microprocessor Opportunity

The opportunity behind Mengel’s “God Chip” comes courtesy of a fundamental tech shift needed to unlock around $17 trillion in new wealth. According to the author, “Artificial Intelligence, 5G, the Internet of things won’t be possible without it.”

He starts his pitch by saying that Silicon Valley is dead and that more companies are leaving Palo Alto by the day, deciding to relocate hundreds of miles away. As for the reason behind Silicon’s Valley collapse? Physics. 

Mengel’s big claim is that Moore’s law is dead and that companies need to find another way to make their microchips powerful to reflect the new technological reality. For those who are not familiar with the passage by American engineer Gordon Moore back in 1965, it refers to the perception that the number of transistors on a microchip doubles every two years, while the cost of computers is halved.

Moore’s Law states that we can expect the capability and speed of our computers to almost double every couple of years, while we pay less for them. However, many publications and scientists believe that the law can no longer be proven, as “traditional computation is dying”. The reason behind this claim is that silicon, the main material used for making conductors, will become inoperable if transistors get any smaller, which would cause the microchips to overheat and leak. 

Jimmy Mengel talks about a $1.5 billion project initiated by the Defense Department, called Electronics Resurge Initiative, and run by the Defense Advanced Research Projects Agency (DARPA). Through this project, and with the help of “one little company”, the fate of microchips has changed, paving the way for microchip technologies to advance even more over the next years. What Mengel promotes is investing in this company that allegedly is protecting its tech with over 14,000 patents and can disrupt the major players in the industry, such as Intel and Qualcomm.


The Microchip Company Being Teased

Ever since the beginning of his letter, the author talks about potential of 10,000% gains, enough to turn a minor initial investment into a decent profit that can change an investor’s life in only a few years time. According to him, this “God Chip will retain U.S. dominance” and that “surging demand for computing power could make you 10X your money”, as microprocessors “must become 1 million times more powerful” to take upon the future market’s demands. We have covered similar teasers here in the past, see: Chris Wood's Microcap Microchip Company and Shah Gilani's Hyperdrive Stocks.

  • Throughout the presentation, Mengel drops several clues about this company, starting with the fact that “one little company is at the heart of DARPA’s latest project. It’s figured out a completely new way to manufacture microprocessors.”
  • Another clue that we’re given is that the same “little company discovered a way to overcome the death of Moore’s Law… all thanks to what I call ‘God Chip’ technology.” he continues by saying that “it also found out how to make microprocessors 10 times more energy-efficient”, as well as having discovered “how to prevent electron leakage with its ‘God Chip’ technology”.
  • Mengel is convinced that “the company that invented the ‘God Chip’ paved the way for the next generation of technological achievements, such as: artificial intelligence, the Internet of things, and 5G.”
  • According to him, “if this company from Massachusetts captures just 0.5% of a market worth close to $80 billion, it’s stock could rise by 6,893% within 12 months.” 
  • Finally, he identifies the ‘God Chip’ technology as a material more reliable than silicon, which is a better conductor “when transistors become smaller than five nanometers”. The material allegedly prevents the electrons from leaking, making them more powerful and resilient.

The material he is talking about is graphene, which has “a honeycomb structure that can be used to roll up tiny tubes”. Mengel also says that “it’s the thinnest material ever found… and that it’s 200 times stronger than the steel used for construction”.

  • Through ground-breaking technology, the company teased managed to create what the author calls “3D chips that are expected to blow silicon chips out of the water.” He also claims that “this company surged by 932% already… but that this is just the beginning.” 
  • Finally, we are told that “the company teamed up with MIT” and “it’s a supplier to Apple, Dell, Raytheon, Lockheed, Cisco, and HP, among others”. 

Unfortunately, there are dozens of potential companies Mengel could be pointing towards, including Analog Devices (NASDAQ: ADI), or Skyworks Solutions (NASDAQ: SWKS). Each of these companies is known for manufacturing semiconductors and microchips and both are based in Massachusetts. Some of them even participated in DARPA projects but we cannot tell for certain which of the two is Mengel's pick.

Other companies like Samsung, Apple, and Google are also taking up the challenge, willing to develop the necessary graphene technology to manufacture their own microprocessors


Is Graphene A Good Investment Opportunity?

Since we couldn’t reveal the exact name of the company teased by Mengel, we will strictly refer to the graphene technology as a whole. More and more scientists and reputed publications mention that Moore’s Law can no longer be supported, seeking alternatives to the popular silicon transistors.

Graphene has proven the most reliable choice so far and rumors about replacing silicon have been making the news rounds since 2014. Understanding the market’s potential, many companies have jumped on board, including giants like Apple, Samsung, IBM, Google, Fujitsu, and even that former bellwether Xerox. These companies are now battling for patents that will allow them to create their own graphene-based microchips. 

Given this staunch competition, it is unlikely that a smaller, as yet unknown company will reach the maturity phase, and emerge as the ultimate winner in this race, even though some might eventually be acquired for their tech, which will create plenty of arbitrage opportunities.


Quick Recap & Conclusion

  • In his latest marketing newsletter, investor and advisor Jimmy Mengel talks about a new microchip technology which he calls the “God Chip” that could allegedly bring you profits of over 12,000%. 
  • He promotes a report named “The God Chip”: The Semiconductor Revolution for Five-Digit Gains, part of his investment newsletter program, The Crow’s Nest, sold for $99 per year. Those who want to subscribe will receive 12 issues of the newsletter, as well as the latest investment research, insider opportunities, and two other bonus reports. You will also get the name and ticker symbol of the company Mengel teases. 
  •  We revealed two possible candidates as Mengel's “God Chip” company: Analog Devices (NASDAQ: ADI), or Skyworks Solutions (NASDAQ: SWKS)
  • The technology he talks about enables regular silicon transistors that were the main choice of microchip creators since the 1960's, to be replaced with a stronger material named graphene, which is supposed to prevent electrons from leaking when transistors “become smaller than 5 nanometers”. 

What do you think about Mengel’s predictions? Do you think the Silicon Valley era is over? Would you invest in a company that produces graphene microchips? If you have any guesses or additional information on the company being teased, let us know in the comment section below this post please!


Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.

  • Your analysis is probably correct — graphene. Another entry in the arena of a new technology that will replace silicon semi-conductors is polymer photonics and a company with many patents and a head start in that field is Lightwave Logic, LWLG. Lightwave is newly listed on NASDAQ and its patented polymers are faster, use less power, run cooler than current technology and once adopted will become ubiquitous – a favored word of CEO Dr. Michael Lebby, Worth a look – now attracting institutional investors. Still early – not a lot of writers have picked up on LWLG but that's coming.

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