Teeka Tiwari is back with the most important warning of the year.
According to “Big T” and special guest Sean Allison nothing is safe from what they are calling “The Final AI Shakeout” and they have a stock replacement strategy to 20x our money while reducing our risk.
The Teaser
The market is slowly starting to wake up to the reality that artificial intelligence isn't all sunshine and Nvidia GPUs.
What can we say about “Big T” that hasn't already been said. Investment analyst, crypto expert, double-dipper?
We have extensively covered some of Teeka's past exploits and picks here at Greenbull.
In this one, Teeka says we don't have to be MIT rocket scientists to know how things are going to play out over the next 12-18 months.
All told, global AI infrastructure spending could reach $5-$8 trillion between 2025 and 2030.
This crazy amount of spending is going to catalyze the next “AI Shakeout“, with Teeka using Nvidia, who else, as an example.
Back in 2015, most dismissed the stock as a video game chipmaker. However, some brave souls noticed that it's Graphics Processing Units (GPUs) could become useful to the infrastructure of another emerging technology…artificial intelligence (AI).
Those who followed their thoughts with action, and went out and bought Nvidia stock, could have turned $5k into more than $1 million, if they held on for the past decade.
Something similar is happening today, with three AI infrastructure companies believed to be the prime beneficiaries of the current data center buildout.
Just like Nvidia before, every single company developing AI needs their essential products.
I can't believe I'm saying this, but “Big T” is right.
This is classic AI layer cake logic, with infrastructure needing to be built before large language models (LLMs) and the applications that bring them to consumers can be developed and scaled.
This is how we can potentially make 20x our money, but how do we also simultaneously reduce our risk?
That's where Sean Allison and the “Stock Replacement Strategy” come in, which we'll go over next and how it ties in with the AI infrastructure picks.
The Pitch
The names of all three are revealed in a brand-new special report “The Top Three Winners of the Final AI Shakeout.”
We can get it by signing up to an exclusive, members-only website called “The Equity Accelerator.”
Instant access costs $495 per year and comes with resources, reports, live workshops, and email support.
What in the World is a “Stock Replacement Strategy”?
The same stock, during the same time frame, a $70k difference in profit.
How is this possible?
Two words: stock options.
It's the same thing we've seen in other teasers, just different marketing spin.
Teeka even brings in a special guest, veteran trader Sean Allison, to show how we can implement an options strategy when it comes to their AI infrastructure picks.
The strategy centers around Long-term Equity Anticipation Securities (LEAPS). These are derivatives and differ from options contracts in a few ways.
The most obvious, is that they are long-dated contracts that can last up to 3 years, leaving plenty of leeway when it comes to timing.
Second, they are like having a margin account, as allow they allow control of more shares for less upfront cost, amplifying potential gains. Hence the name, “stock replacement strategy.”
Lastly, they cost more in premium than short-term options because they offer more time until expiration.
More time, more potential gains, higher cost for the privilege of the first two.
The stock replacement strategy is also a plug for Sean's LEAPS workshop, which is included in an Equity Accelerator subscription.
However, none of it matters if we aren't in the right stocks.
Revealing Teeka & Sean's “Final AI Shakeout” Stocks
AI is being developed along several proverbial roads and these three stocks own those roads.
Nvidia's Secret Partner
- This company makes a material that is more energy-efficient than silicon.
- It is Nvidia’s Rubin chip partner.
This is Navitas Semiconductor (Nasdaq: NVTS).
- Navitas makes semi chips out of Gallium Nitride and Silicone Carbide, which is more efficient material than traditional silicon.
- The company has partnered with Nvidia, which will use its chips in Rubin's power infrastructure.
The Next Nvidia
- It specializes in technology that can store vast amounts of data.
- The company already supplies the likes of Google, Microsoft, and Amazon.
This sounds like Western Digital Corp. (Nasdaq: WDC).
- WDC makes high-capacity and solid-state storage drives (SSDs) for “AI hyperscalers.”
- It's customers include Google Cloud, Microsoft Azure, Amazon AWS.
The AI Data Center King
- It makes a metal that's critical for reducing AI data center downtime.
- The company is the largest producer in the world of this “AI metal.”
Copper is the critical metal that ensures efficient power distribution to data center servers and cooling systems, and the largest private producer of it is BHP Group Ltd. (NYSE: BHP).
Before logging off, Teeka also reveals a bonus AI infrastructure stock:
Eaton Corp. Plc (NYSE: ETN) provides power management solutions to utilities in more than 160 countries.
Make 20x with Less Risk?
Teeka Tiwari and Sean Allison aren't just teasing a way to beat the market, but how to do so with less risk, the holy grail of investing.
Do their claims and picks stack up against reality?
Yes and no, at the same time.
The massive investment in computing power has run up against a physical energy bottleneck.
Rising energy prices due to even lower supply hamper things further and makes prospective investments in BHP and Eaton Corp. a priority over semiconductors and storage drives.
Between the two, BHP presents the better value proposition. As a copper producer, it is as downstream as it gets, and it trades for 20x current earnings with a formidable 3.5% annual dividend.
From this standpoint, it also compares well against Navitas and Western Digital, which are more expensive, with less stable cashflow.
When it comes to the “stock replacement strategy” of using LEAPs, Teeka and Sean are right about one thing, they are an easier entry point to start trading options than traditional short-term puts and calls.
However, LEAPs are more appropriate for positions you plan to strategically trade, rather than long-term, decade-long holdings that can potentially 20x your money.
Overall, the teaser headlines are pure hype, as we're not making 20x our money on $100-$200 billion dollar monster-caps, even if we use LEAPs.
But multibagger returns are still possible with some picks, without the need to use options, which I'd say is pretty good for a Teeka Tiwari teaser.
Quick Recap & Conclusion
- “Big T” Teeka Tiwari and Sean Allison are calling for a “Final AI Shakeout” and they have a stock replacement strategy to 20x our money while reducing our risk.
- Major AI infrastructure spending is going to catalyze the next “AI Shakeout“, with the money primarily flowing into three stocks whose gains can be amplified by buying Long-term Equity Anticipation Securities (LEAPS).
- The three stocks are only revealed in a brand-new special report “The Top Three Winners of the Final AI Shakeout.” We can get instant access to it by signing up to an exclusive, members-only website called “The Equity Accelerator” for $495 upfront for the first year.
- But Greenbull readers can skip this step, as we were able to reveal all the picks for free – Navitas Semiconductor (Nasdaq: NVTS), Western Digital Corp. (Nasdaq: WDC), BHP (NYSE: BHP), and “Big T's” free pick Eaton Corp. Plc (NYSE: ETN).
- AI infrastructure spending has come up against a physical energy bottleneck and BHP stock is a good way to play it.
Will AI overcome the very real physical energy constraints? Tell us what you think in the comments.