Elon Musk is the name everyone is talking about.
He's the world's first trillionaire following the successful IPO of SpaceX, however what is going to make us richer is the “70x AI Agent” stock that Jeff Brown is teasing.
The Teaser
This isn't your typical AI agent like ChatGPT, it can do far more than simple searches and calculations, in even less time.
Brownstone Research founder and head honcho Jeff Brown is basking in the warm glow of being right.
He was an early proponent of Tesla, when others, myself included, didn't share the vision for an electric car company. To be fair, Tesla's current multiple reflects its autonomous driving and robotics future, but I digress. We have reviewed some of Jeff's previous Musk teasers here, including his “Orbital AI” Chipmaker Stock and Elon Musk's Silent Partner Stock.
Jeff has personally put this powerful AI agent to work himself and he's going to give us a glimpse of it in this teaser.
In simple terms, an AI agent is an autonomous system powered by a large language model (LLM).
The vast majority are online chatbots like ChatGPT and Anthropic's Claude. However, Elon Musk's is not.
He's taken the AI agent and “manifested” it, as Jeff puts it, into where it will be most useful…the physical world.
The first place Musk has installed his physical AI agent is in Tesla vehicles.
Full Self-Driving (FSD) or completely autonomous vehicles are becoming the core of Tesla's business, driving not one, not two, but three separate divisions that are the electric carmaker's future.
- FSD Software that powers Teslas
- Robotaxis
- Optimus Humanoid Robots
The first is currently an optional add-on in Tesla vehicles, while the latter two are in active trials prior to commercial release.
All of them rely on the “70x AI Agent” stock to function.
The Pitch
It's name, ticker symbol, and a full analysis are provided in a report called The One Company Elon Musk Can’t Live Without.
The only way to access it is with an annual subscription to Brownstone Research's Near Future Report investment newsletter. This costs $179 upfront (normally $499) and comes with a 30-day ‘ironclad' money-back guarantee.
The Critical Loop
In physical AI, nothing works without a critical loop.
Without it, the “70x AI Agent” inside autonomous cars wouldn't be able to drive and humanoid robots would not be able to see.
There's a lot of moving parts that make a physical AI system, be it a vehicle or a robot, work. But the most critical of all is the loop that connects perception, reasoning, and action.
It's what allows systems to interact with their physical surroundings in real-time, instead of relying solely on pre-programming to perform tasks. Essentially, it's what sets apart a sophisticated computer system from true artificial intelligence.
Several technologies stacked together make this possible.
Perception
Besides specialized cameras that capture both color along with depth/distance data, physical AI relies heavily on tactile sensors.
These tiny objects measuring as small as 1/2 an inch can detect and process object weight, friction, and resistance on their internal chips rather than external processors.
Reasoning
Moving beyond data processing, multimodal models (MMMs) are the “brain” of physical AI systems.
Unlike Large Language Models (LLMs) that only learn from text, multimodal models can process and understand inputs from text, images, audio, and video, simultaneously.
All are broken down into a unified language that the system understands and can act on.
Action
If AI systems were humans, action would be the muscle behind the brain and senses.
It requires high compute power in the form of graphics and neural processing units. The more of these a system has, the better decisions it can make with near-zero latency.
In a nutshell, Jeff's “70x AI Agent” stock helps Tesla's AI close the critical loop between the three most important functions of physical AI.
Elon's 70x AI Agent” Stock
Once autonomous robotaxis and Optimus robots hit the market, Tesla stock could 70x.
This is the premise on which Jeff's investment thesis rests.
It's almost unthinkable, but the company will definitely be more valuable once these segments are actually contributing to the top line.
The stock that will help get them there is referenced throughout the nearly 40-minute long video teaser, but when it comes to tangible clues, none were forthcoming. We literally got taken for a ride.
But that's ok, because among the dozen Chinese robotaxi and Optimus suppliers, two names stand out from the rest…
- Taiwan Semiconductor Manufacturing Co. (NYSE: TSMC)
- Gentex Corp. (Nasdaq: GNTX)
TSMC produces custom AI processors without which none of Tesla's physical products could function and Gentex provides them with biometric sensors, falling solidly within the perception category of the critical loop we talked about earlier.
Jeff also teases a “SpaceX Secret Partner” as a bonus stock. Nothing to go on here either, but this could be one of his previous picks:
- STMicroelectronics N.V. (NYSE: STM)
STMicro supplies SpaceX with core electronic components for its Starlink satellite communication systems and user terminals.
Turn $15,000 into $1 Million?
70x.
Over the past century, only a short list have stocks have returned more than 7,000%. One of these is Tesla, which has more than 100x'ed since it's 2010 IPO.
Meanwhile, the majority of stocks (51.6%) have produced negative cumulative returns.
Which category are Jeff's picks more likely to fall into?
Jeff is confident it's the former:
Statistically speaking though, it's the latter. However, as patent-protected critical technology suppliers with medium to high switching costs, they could fall somewhere between out of this world gains and negative returns. Especially when it comes to the least-known among them, Gentex.
For a manufacturer of high-tech electronic products, it's 15% profit margin is closer to a service-based business than an industrial concern.
Impressively, it also holds more than 1,700 active patents, most of which are related to automotive/aviation vision systems. This could be an increasingly valuable source of IP licensing in the upcoming autonomous era.
However, true test of whether a business is investment worthy is always the balance sheet, not projected growth, and Gentex's ledger is cleaner than the auto-dimming rearview mirror it invented. It is under-leveraged with $175 million in cash and equivalents against only $11 million in total debt.
Finally, when it comes to valuation, Gentex trades at a very reasonable 2.1x book value and 14x trailing earnings, with an annual dividend yield knocking on the door of 2%.
In the end, Gentex may not make us millionaires, but the small-cap could help us beat the market over the long-term on account of its relatively small size, solid underlying economics, and fair valuation.
Quick Recap & Conclusion
- Brownstone Research boss and Elon Musk fan boy Jeff Brown is teasing a “70x AI Agent” Stock that could make us richer than early Tesla shareholders.
- Tesla's future growth rests upon physical, autonomous AI and this is made possible by one critical supplier.
- It's name and ticker symbol are only revealed in a report called The One Company Elon Musk Can’t Live Without. The only way to access it is with an annual subscription to Brownstone Research's Near Future Report investment newsletter, which costs $179 upfront (normally $499).
- No clues to go on were provided, but we did highlight a few businesses that could turn out to be Jeff's pick as well as a bonus stock that was also teased.
Will Tesla's physical AI bets pay off big? Drop a comment below with your thoughts.