The Motley Fool has been teasing an AI stock claiming that a "CEO says this is worth 35 Amazons", but what is it? Well, if you're interested in finding out then you're in the right place.
In this quick review I'll be going over what we are told and piecing together the puzzle to expose the AI stock they are talking about.
The Teaser:
There are probably multiple teasers out there floating around, but what I came across what this, aptly titled "CEO Says This Is Worth 35 Amazons"...
This was basically a short teaser article that really didn't say much, but rather hyped up the opportunity more and more.
The next step was to provide my email and then I was directed to their video teaser, which talked about the tech revolution being "bigger than the internet", and this one particular company sitting at the forefront of it all...
Some of what the video stated includes:
- "Wall Street insiders are convinced that the coming tech revolution will be 'bigger than the internet'"
- Marc Andreessen said if he'd create a new hedge-fund he would "put all his money" on this remarkable company
- "five years from now, you'll probably wish you'd bought this stock"
- People are comparing it to Apple before coming out with the iPhone
The technology being teased here is AI, or artificial intelligence... and the company being teased is said to be positioned to profit greatly form the advances in this emerging technology.
Don't get too excited now... it won't be worth 35 Amazons..
The statement they use is misleading. They got this statement from ARK Investment's CEO, Catherine Wood, who said that “We think deep learning is going to be twice that. We think [it] could approach $17 trillion in market cap—which would be 35 Amazons.”
HOWEVER, she said this at an international summit when talking about deep learning... and was talking about deep learning in general... NOT referring to any specific company being worth $17 trillion... just to be clear.
*Note: Deep learning is a sub-field of AI and refers to how AI uses algorithms to learn from data and make informed decisions.
The Sales Pitch:
The team at The Motley Fool has put together a special report called "AI Disruption Playbook: An Investor's Guide to this $19 Trillion Market", and in this report all of the information is given about this company.
However, in order to get this report you first have to pay to subscribe to their Stock Advisor service. This is the same marketing lure they used with their "Death of the iPhone" pitch as well as their #1 Pot Stock they've been teasing.
But of course you'd rather find out the stock they are talking about for free, right? As mentioned, you're in the right place.
*Note: There is a different company being teased by The Motley Fool Australia. It's for an Australian company, not the one I'm exposing here today.
The AI Opportunity
There are all sorts of predictions out there for how big this emerging opportunity will be. Grand View Research predicts the market size of AI to be $390.9 billion by 2025, Gartner predicts AI-derived business value to reach $3.9 trillion by 2022, and I've seen predictions of this new industry adding as much as $19 trillion to the world economy by 2030.
The point is, AI is expected to be huge. It will likely be used just about everywhere, as The Motley Fool predicts - finance healthcare, entertainment and sports, travel, transportation, marketing... etc., etc.
What is AI?
Well, there's a good chance you already know, but here is a short (less than 2 minute) video explaining things well...
In a nutshell, AI is the simulation of human intelligence in machines, and "deep learning" refers to how AI machines can imitate the human brain to process data, create patterns, and learn like people do.
Mark Cuban, Marc Andreessen, Bill Gates, Elon Musk, and many others heavily invested in technology believe that AI will indeed change everything.
The point:
- It's going to be a big deal
- There is going to be a lot of wealth created
- and, most importantly for us, there are going to be some amazing investment opportunities
That's the prediction anyhow... and only about 99% of predictions are wrong (haha)... but seriously... there are going to be some great opportunities, and now let's expose this AI stock that Motley Fool is teasing once and for all...
The AI Stock Pick Exposed
Whether you call it Motley Fool's 35 Amazons stock or their "bigger than the internet" stock... we're talking about the same thing here.
Sometimes it can be a struggle piecing together the clues that they give us on the different stocks they are teasing, but luckily with this stock I was able to find a good match.
Some of the better clues given on this AI stock include:
- it's about 1/6th the size of Amazon
- it creates hardware for AI, and more specifically, processors - "their groundbreaking processors allow researchers to show computers thousands of examples all at once..."
- mentioned that venture capitalist Marc Andreessen was quoted saying “We’ve been investing in a lot of start-ups applying deep learning to many areas, and every single one effectively comes in building on [this same company's] platform"
- also mentioned that Marc Andreessen said if he'd create a new hedge-fund he would "put all his money" on this remarkable company
And that's all we need.
So what is the stock?
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1... beep, boop, bop... it's NVIDIA (NVDA).
- Yes, NVIDIA makes processors that are used in AI
- NVIDIA is smaller than 1/6 the size of Amazon - but the stats change and this is close enough
- Yes, Marc Andreessen was quoted in an interview saying “We’ve been investing in a lot of start-ups applying deep learning to many areas, and every single one effectively comes in building on NVIDIA's platform. It’s like when people were all building on Windows in the ’90s or all building on the iPhone in the late 2000s."
- And yes, also was quoted as saying that "We'd put all our money into Nvidia", when talking about what he'd do if he were to start a hedge fund...
Not only that, but it makes perfect sense with NVIDIA being one of the most teased AI recommendations out there.
NVIDIA is an American technology company based in California that manufactures GPUs (graphics processing units) for gaming and professional devices as well as SoCs (system on a chip units) for mobile devices and automotive computers. Much of the companies current focus is indeed on AI in the areas of cloud computing, autonomous driving, consumer devices and more.
All the clues point to NVIDIA as their pick.
Good Investment Opportunity or Pass?
If you look at any list of the best GPU processors you are sure to find ones made by NVIDIA ranked at the top. They are one of the top GPU manufacturers out there, alongside others like AMD.
But how important is this business really when it comes to AI?
Well, it's essential - not NVIDIA in particular, but companies that make GPU's.
GPU's are the predominant chip architecture used in deep learning to teach AI to identify images. They accelerate the learning process of AI when it comes to image recognition, being that they are programmable processors used to render high-resolution images.
Why is this important? Well, take this example...
An autonomous car needs to be able to recognize the difference between a person crossing the road and a car pulling out on it so that it can react appropriately. This all needs to be done in the blink of an eye, and high quality GPU's that render the images the computer sees are essential to the whole process.
Future Outlook
You can't always fall for the price predictions teased in sales material. Motley Fool's teaser makes it seem like you're going to be able to fly to the moon every weekend with your private space rocket if you invest in this company right now, but most price predictions for this company are much more modest.
That said, many analysts predict NVIDIA to lead the GPU part of AI and this could be a nice long-term hold.
You can always check places like CNN Business for their 12-month (rolling) price forecast of NVIDIA... but these aren't based largely on speculation like the forecasts of The Motley Fool... and speculation is what you need if you're trying to predict the future of a company in a new emerging industry that we've never seen before.
Quick Recap
- The opportunity being teased here is all about the emerging AI technology
- The whole "worth 35 Amazons" thing comes from a quote that was a prediction for the entire AI industry, and is not a prediction that 1 single company will be worth this much
- They claim that one single company is positioned to profit very well from the coming AI boom
- You can get all the information on this company in their report: "AI Disruption Playbook: An Investor's Guide to this $19 Trillion Market"
- In order to get this report you have to become a member of their Stock Advisor service, which costs money
- I've done the research and all clues they give point to their pick being NVIDIA (NVDA)
And now you don't have to buy into their service just to find out!
You're welcome!
However... it's worth mentioning that Stock Advisor is one of the very few services we actually recommend here at Green Bull Research - and there is a 50% discount on the membership right now.
For those who don't know, Stock Advisor is The Motley Fool's flagship stock picking service. It's a follow-along subscription service where subscribers are provided with investment recommendations on a regular basis - and it has a good track record.
I hope you enjoyed this reveal and found some value in it. Please share this post to help spread the word. And leave any comments/questions below...
Hi Anders, Chad here. I want to 'Thank You' for your article covering the AI related hype being pitched by…. I think everyone. Not only is it frustrating to read through all the teasers about how 'I will miss the world's greatest opportunity and my economic life will end in peril if I don't sign up now!!'
Nope, you systematically break through the overwritten bs and lay it down in a nice sensible way… My stock experience is about 2 mos long. and I really haven't wrapped my mind around AI yet, but I appreciate the effort you made here and just wanted to say 'Thanks.'
Chad Williams
Hi Chad. I greatly apprecitate the thanks. We try our best here at Green Bull to help out investors like yourself.
Love you Anders
Your due diligence is truly amazing. ?
Super job once again!
its already 780 a share. a common person cant play that game
The article said it’s 1% the size of Amazon not 1/6 and that it’s a Canadian company listed on the tsx. So not NVIDIA.
"That’s because another company (less than 1/6th the size of Amazon)…is producing a component so powerful that it is absolutely annihilating the competition."
This quote was taking from the Fools article. I googled it because I read it in the Fool teaser, that's how I found this article claiming its Nvidia
Thank you so much for your hard work in giving us this great reveal.
Thanks,very good input
Greetings, Thanks & Great job straightening that all out, leaking the pick which you sort of Have To in order to straighten it all out. “All of the AI will be worth”…. Now NVIDIA was a Huge pick & a Huge pick of the fools do you really think they have another Crazy Run in them in less than 15 Years? Also, you said companies like AMD, would that mean Intel & co also?
Thankyou really appreciate what you do and how its presented:-) May it please you to continue to do so:-)
Thank you!!!