Tech analyst Luke Lango predicts that Elon Musk's x.AI artificial intelligence company will be his biggest venture ever.
Now, we can get in on it too, just like early-stage investors thanks to one company supplying it with a key piece of technology.
The Teaser
Elon Musk is the modern-day Thomas Edison.
This is Luke Lango's bold statement, which comes as little surprise since he's been on Elon Musk's jock for a while now.
We have previously reviewed his (Elon Musk) AI 2.0 Stocks and #1 AI Stock teasers, which to be fair, produced some decent picks.
By now, most of us are familiar with Elon's story.
Coming from a humble, mine-owning, South African family to being part of Silicon Valley's infamous Paypal mafia, to becoming the richest individual on earth thanks to a string of ultra-successful ventures such as Tesla and SpaceX.
However, Luke believes Musk's latest venture – x.AI, could be his biggest yet.
The Next Wave of AI Innovation
Underlying this belief is the wealth-creation engine known as artificial intelligence.
According to Bloomberg, generative AI alone could become a $1.3 Trillion market by 2032.
As you might be able to guess, it is a hyper-competitive field.
The likes of Microsoft-backed ChatGPT, Google's Gemini, Amazon-funded Anthropic, Elon's x.AI, and a host of other well-funded startups are all vying for market share.
This bodes well for us as consumers and perhaps investors as well.
The ability to increasingly augment our creativity, access new knowledge, and enhance our output, all while reducing costs, is a powerful thing with loads of demand.
Because of this, it is poised to take up more and more business IT spending, with a projected annual growth rate of 42% over the next decade.
If Luke is right about having pinpointed a way to invest in x.AI’s leading tech component supplier. It could be a backdoor way to capture the generative AI industry's above-average growth, with far more upside than investing in an existing tech titan.
The Pitch
x.AI is barely a year old. It’s still a private startup, which means you can’t buy its stock anywhere unless you're an accredited investor with some clout.
This is why Luke has put all the details on x.AI's key supplier inside a special report called How to Profit from Elon Musk’s New AI Venture.
All we have to do to get our hands on it is subscribe to the Innovation Investor research service at a discounted price of $199 for the first year.
The offer includes a 90-day money-back guarantee, three additional bonus reports, including one called Three AI Losers to Avoid, and one new tech investment idea per month.
3 Reasons Why This Is The Best Way To Play The Generative AI Boom
Luke makes his case for why his supplier stock is the best way to play generative AI.
Starting with Elon Musk himself.
#1 It’s a Way to Profit from Elon Musk’s New AI Venture
Elon has built quite the AI resume.
In 2011, he was an early investor in DeepMind, an AI company that was later acquired by Google. You could say, that if it wasn’t for DeepMind, Google wouldn’t even be in the AI business.
Elon then went on to co-found OpenAI in 2015, the creator of ChatGPT.
And now he's launched his own version of ChatGPT called x.AI, with former engineers from DeepMind, OpenAI, Google, and Microsoft.
Luke is putting all his chips on the table and betting that Elon will win the generative AI race. We can go along for the ride with Elon’s supplier.
#2 The Company is Smaller Than Nvidia
I would hope so since Nvidia is the second-largest company in the world by market cap.
Luke is on the money when he says “The biggest gains don’t come from the most popular stocks and the blue chips that everyone knows about.”
This is a point I have been hammering here by being a proponent of micro and small-cap stocks.
#3 The Company is Building The Next Generation of AI Tech
It goes without saying that AI requires a lot of computing power.
You can’t just run artificial intelligence on any computer chip. It has to be a special processing unit called a Graphic Processing Unit (GPU).
The most important and widely used AI chip in the world today is Nvidia’s A100 GPU.
However, Elon’s supplier is developing an AI chip that’s supposedly even more powerful.
It’s a “hotly anticipated next-generation AI chip that’s 25,000 times thinner than a single human hair.”
And Luke believes it’s this chip that’s going to power Elon Musk’s new x.AI.
Revealing Luke Lango's x.AI Supplier Stock
Here is what else we know about this supplier stock:
- It's already supplying Elon with a key piece of AI technology that makes self-driving cars possible.
- They own an AI chip facility 750 miles away from Silicon Valley.
- It is 1/10th the size of Nvidia and makes advanced Graphic Processing Unit (GPU) chips.
This company has been teased before by other newsletter writers, its Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM).
- TSMC has confirmed the commencement of production for Tesla's next-generation Dojo supercomputer training chips.
- The chipmaker is currently working on a new semiconductor plant in north Phoenix, approximately 750 miles from California.
- At a market cap of $889 billion, TSMC is only about 4x smaller than Nvidia and one of the world's leading semiconductor foundries.
Make Up To 12x Your Money?
If the value of TSMC were to increase 12x, it would be a gargantuan $10.6 Trillion business.
How realistic is this and over what timeframe?
Macro headwinds are decidedly in the business' favor, with demand for semiconductor chips growing by 30% annually thanks to the proliferation of AI applications.
I'm no AI expert, so I can't speak to the quality of TSMC's chips, but the business was started in 1987 in Taiwan, a microchip fabrication hotbed that today produces around 90% of the world's advanced chips. So, they are doing something right.
However, this is where the positives largely stop from an investment standpoint.
TSMC already has a 62% share of the global semiconductor market as of Q1 2024.
The chipmaker has still been growing revenue by about 18% annually over the past five years and free cash flow by 14% over the same timeframe. This is great for a business of its size, but hardly above-average in the grand scheme of things.
Finally, a price/earnings of 29x is just above the current market median of 25x, meaning no discount is available on TSMC shares.
I stated earlier before I knew what Luke's pick was that “this could be a backdoor way to capture the generative AI industry's above-average growth, with far more upside than investing in an existing tech titan.”
Well, TSMC is an existing tech titan.
It is a solid business overall, which will keep growing, but Luke's growth expectations don't align with the reality of TSMC's mega-cap status.
Quick Recap & Conclusion
- Tech analyst Luke Lango predicts that Elon Musk's x.AI artificial intelligence company will be his biggest venture ever. We can get in on it too thanks to one company supplying it with a key piece of technology.
- Generative AI could become a $1.3 Trillion market by 2032 and Luke predicts Musk's x.AI will be the leader of this emerging industry.
- Since x.AI is still a private startup and we can't invest in it directly, Luke has put all the details on x.AI's key supplier inside a special report called How to Profit from Elon Musk’s New AI Venture. It's ours if we subscribe to the Innovation Investor research service at a discounted price of $199 for the first year.
- Fortunately, you pay $0 if you read this review, as we revealed Luke's x.AI supplier stock for free as Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM).
- TSMC is a good business, with solid growth prospects, but it is already a mega-cap with far more limited upside than a small, scrappy business.
What do you think is the best way to play generative AI? Mention some in the comments below.
I already own this stock and just closed some expiring options I had on it as well. I love this company, but it is hardly a secret and we don’t need Luke to tell us about it…especially for $$.
Love your articles. Always on point.
Thanks for your info & opinion, Anders.
I agree with you about its being a fine company.
And that it’s already known and huge.
It also is vulnerable to China’s predations, which give me pause.
It is hard to believe that the likes of Luke Lango (and there are so damned many of them on the internet) are somehow allowed to do there ugly lying spiels. They would sell ice to Eskimos for a huge profit.
Thank god for honest people like you that sheds a light on these creeps.
I had to learn my lesson the hard way an bought into a couple of schemes before I realized just ho crooked they all are.
Thank you Greenbul Research for all you do.
Thanks for the kind words Andrew, we appreciate it.
Comments like this are why we do it.
I would not spend too much time, hope, or money on a Taiwanese company.
It is in the Pan-Pacific Earthquake zone. Together with the deadly ambition of the Red China, the company may disappear from the earth at any moment in the near future. It is way behind South Korea’s Samsung in manufacturing techniques.
It is also in the wrong place in the U.S. to build its factory, compared to where Samsung is building theirs in America. Samsung is not well known in America and it’s stocks are not easily tradable in the U.S. “Musk or Apple” should pick Samsung as their supplier rather than a small Taiwanese company. I wish good luck to Lango.