Silicon Valley insider Luke Lango is teasing a new investment opportunity that has the potential to go from tiny to $10 billion in the blink of an eye.
He calls them “Hyperscale Stocks” and barely one in a thousand people have ever heard of them.
The Teaser
There’s a reason there are more millionaires and billionaires inside a 10-mile radius in California than any other place on the planet.
Luke Lango was ranked the #1 stock picker in the world by TipRanks in 2020 and he's been riding that wave ever since, putting out a steady stream of newsletter teasers that we have covered here, such as the U.S. Government's AI Shortlist and xAI Supplier Company.
California's Silicon Valley got uber wealthy because of leverage.
I'm not talking about the debt kind where you pledge your first born to the bank.
Instead, it's the technological kind, where you leverage what others have already built to make yourself rich.
Google, Uber, Airbnb, and Booking.com are all classic examples of this.
Now, in Luke's eyes, the future will belong to those who can leverage artificial intelligence (AI) to collect, analyze, present, and use data.
Unlike Moore’s Law which doubles computing power every two years, AI training compute is doubling every three to six months, so it's a solid wager.
The infrastructure is already built.
So, all AI application businesses need to do is come to market and the superhighway is already there for them.
Meaning, AI startups have the never-before-seen potential to scale from zero to a billion dollars or more in a couple of months.
If Luke is right, that means we are at the beginning of one of the biggest and most explosive periods of wealth creation in history.
In this future, 10X gains in short periods of time are the norm rather than the exception.
The only drawback is that such “hyperscalers” move so fast, that it's hard to get into them early, which is where Luke comes in.
The Pitch
Names, ticker symbols, and details on such “hyperscale stocks” have been revealed in a new report called 7 AI Hyperscale Stocks to Buy Now.
All we have to do to get is give Luke's Innovation Investor newsletter a spin around the block.
The introductory cost is $49 (normally $199) and it comes with a 90-day money-back guarantee.
The Rules of the New Economy
There will be more disruption in the next 20 years than in the previous 80 years combined.
This is one in a series of bold claims Luke makes during his hour-long presentation.
Another is that:
Fifty percent of today’s Fortune 500 companies will die in 10 years and be replaced by startups we haven’t heard of yet
It's a lot to digest, but if you were around for the internet inverting the old industrial world, then the AI transition will be a lot easier to grasp.
Besides building on infrastructure that already exists and leveraging AI technology to do more with less, Luke is short on specific “rules.”
However, we did get a few examples of such businesses, including Copart Inc. (Nasdaq: CPRT).
The company invented a virtual auction technology, called VB3, that lets car dealers sell vehicles over the internet.
Since there’s no need to build software more than once. So as long as Copart simply keeps it's platform updated, they just sit back and rake in service fees on over 1 million car sales per year.
It's a big reason why Copart shares have soared 26-fold since their IPO in 1994.
Overall, Luke's index of 15 hyperscale companies have trounced a narrow version of the market over the past decade.
This index doesn't include AI applications, which are the most hyperscalable businesses ever created!
Luke is naming names and promising to give us several “Hyperscale Stocks” that we should buy right away.
Revealing Luke Lango's AI Hyperscale Stocks
The first small, emerging AI company is given away in the presentation.
Promises made, promises kept.
It's a breakthrough, e-commerce platform serving the entire U.S. real estate market that is a significant upgrade to the typical property transaction process.
The name of the company is Opendoor Technologies Inc. (Nasdaq: OPEN).
It was a big winner last year and could continue to outperform if a dovish Fed Chair is appointed.
But Opendoor was just the beginning.
Luke's next hyperscale stock is…
- A young AI robotics company is re-inventing how warehouses are run.
- Wal-Mart is an early backer and customer too, along with Target and Albertsons.
Symbotic Inc. (Nasdaq: SYM) is the second pick.
- Symbotic specializes in automation technology for the supply chain and warehouse management.
- Walmart, Target, and Albertson’s are all customers.
Luke was a little more vage about his third pick:
- It's building the “railways” for the future of AI computing power.
- The company is backed by Nvidia and other tech investors.
No way to be sure, but Luke could be talking about Applied Digital Corp. (Nasdaq: APLD).
- Applied's advanced data centers are the “railways” for AI workloads.
- Nvidia participated in a funding round for the company in 2024.
Unfortunately, this is where the clues came to an abrupt end.
Luke held back on the rest of his hyperscale stocks like a grade school kid hoarding his Lunchables.
10X Short-Term Gains?
Luke made a few big claims in this teaser.
The first one was that barely one in a thousand have heard about the “hyperscale stocks” he teased.
None of his picks were micro or even small-caps, so this simply isn't true.
The smallest, Opendoor, has a market cap of over $5 billion.
The next bold claim was that “50% of today's Fortune 500 will be replaced within the next decade.”
Turns out, there is some historical precedent here.
Fully, 52% of the companies that were on the Fortune 500 list at the beginning of the century, no longer exist today.
Mergers and acquisitions no doubt played a part, but the point is valid.
However, the companies Luke has picked to replace them, leave a lot to be desired.
None of Opendoor, Symbotic or Applied Digital are profitable as of their last reported quarterly earnings.
The one that is least levered and presents the most upside is Symbotic.
It has over a billion dollars in cash on it's balance sheet, only $31 million in debt, and a strong foothold in the lucrative warehouse automation space.
As for the others, Opendoor's business model of buying and selling residential properties could be affected by Trump's executive order preventing institutional investors from buying single family homes.
I like Applied Digital as a business, as data centers are essential to the AI stack, but there are better, more profitable names to buy in this space.
Frankly, I can see one or more of these businesses going under before becoming Fortune 500 components or returning 10x.
Quick Recap & Conclusion
- Silicon Valley poster boy Luke Lango is back and he's teasing “Hyperscale Stocks” that have the potential to go from tiny to $10 billion in the blink of an eye.
- Luke is talking about businesses building on infrastructure that already exists and leveraging artificial intelligence to do more with less than ever before.
- The names, ticker symbols, and details on a few “hyperscale stocks” are revealed in a new report called 7 AI Hyperscale Stocks to Buy Now. A subscription to Luke's Innovation Investor newsletter is required, which costs $49 upfront for the first year (normally $199).
- Clues were few and the teaser was long, but we were able to reveal several of Luke's picks for free – Opendoor Technologies Inc. (Nasdaq: OPEN), Symbotic Inc. (Nasdaq: SYM), and Applied Digital Corp. (Nasdaq: APLD).
- Symbotic is the least levered and has the most upside of all three, which isn't saying much.
Will AI expectations scale down or up this year? Drop your thoughts in the comments.