The “Nvidia’s Secret Supplier” Stock Dylan Jovine Is Teasing

Nvidia’s Blackwell is the most advanced AI Superchip on the planet.

But behind the scenes the company has been quietly working on a next-generation Superchip. One designed for the next multi-trillion dollar opportunity after AI and “Nvidia's Secret Supplier” Stock is the key that makes it work.

The Teaser

Blackwell is partially responsible for Nvidia becoming the world's most valuable company.

Former Wall Street executive and market veteran of over 34 years, Dylan Jovine, has tracked its rise and that of others.

Since launching in January 2018, Behind the Markets has delivered a 75%-win rate on all closed trade recommendations. We have reviewed several of these, including the Little-known Laser Stock and UFO Weapon Company.

However, Nvidia CEO, Jensen Huang, isn't resting on his laurels. He's already looking ahead to what he considers the “next multi-trillion dollar opportunity after AI.”

During the company's semi-annual GPU Technology Conference (GTC) earlier this year, Huang said robotics would be the next $10 trillion industry.

To prepare for this, Nvidia isn't building a humanoid robot that dances, like Tesla's Optimus.

Instead, it's made a new superchip called Thor to power robots and the entire robotics industry.

According to Huang, Thor is 20 times more powerful than its predecessor and 7.5 times faster than previous generation AI chips.

Dylan has bought into the hype and thinks this new superchip could catalyze everything from fully automated agriculture to minimally invasive surgery bots.

Indeed, Thor is all powerful.

Typically, you need a lot of different chips to build a robot. One for general computing, one to connect sensors and cameras, another to handle specific workloads, etc.

Well, Thor can do all of that…in just one chip.

It's gaining traction too.

Although robotics remains a tiny fraction of Nvidia’s massive business, it is growing rapidly, with it's combined automotive and robotics division reporting 70% year-over-year growth.

However, at a once unthinkable $4 trillion market value, Nvidia shares are not the most profitable way to play this emerging development.

That distinction goes to one Nvidia “Secret Supplier” that provides a critical component for both its Blackwell and new Thor superchip.

The Pitch

It's name can be found inside a new report called report titled “NVIDIA’s “Secret Supplier”: One Chip to Rule Them All.”

To get it, we'll need a membership to Dylan's flagship newsletter Behind the Markets, which would cost us $49 (normally $199).

It includes a bonus report, The Last Retirement Stock – AI Income for Life, which we previously reviewed here and a 30-day money-back guarantee.

Robotics ChatGPT Moment

A moment that makes robotics a part of everyday life is imminent.

At least according to prominent venture capitalist Vinod Khosla.

From a credibility standpoint, this guy has it. He's made a $10 billion fortune for himself from co-founding Sun Microsystems and early-stage investments in the likes of Uber and Door Dash.

Khosla says we’re two to three years away from seeing “a ChatGPT moment in robotics.”

In some ways, this is already happening.

For example, a company started by the co-founders of Skype has autonomous robots on the street delivering hot food, groceries, even industrial supplies.

Warehouse automation is also in full swing, with Symbotic supplying warehouse robots to Walmart and Target.

Right now, there is some chip supplier diversification, with aforementioned delivery bot startup Starship Technologies using Photonics Corp. chips and Symbotic being supplied by several chipmakers.

However, Dylan is 100% convinced that most robotics applications will end up running on Thor chips.

Most analysts seem to concur with this view, saying Nvidia is particularly well-positioned in this evolving sector due to it's incumbent status, with many companies that already use Nvidia products, likely to use Thor in one capacity or another.

But so is a second, more specialized chip designer.

Nvidia itself owns about 2 million shares in it and once tried to buy it out.

It's also Dylan's “Secret Supplier” Stock, let's find out what it is.

Revealing Nvidia's Secret Supplier Stock

The teaser is a long scroll with many repetitive sentences selling us the dream about “10x, 50x, even 100x bigger gains than just buying NVIDIA shares.”

After all that, here is what we know about the pick:

• It builds “AI brains” for robotics, which is core CPU architecture that tells the muscles what to do.
• Besides being a Nvidia supplier, it also supplies critical components to about 50% of all data center AI chips.
• The company has almost 7,000 patents protecting it's cutting-edge AI chips.

Despite Dylan insisting it is under-the-radar, the pick and not-so “secret supplier” stock is Arm Holdings Plc (Nasdaq: ARM).

• Arm designs foundational chip architecture that, as of mid-year, supplies around 25% of the data center market.
• The company has 6,800 issued patents, with an additional 2,700 patents filed and pending worldwide.

The Biggest AI Opportunity?

Overall, Dylan's teaser is familiar.

A supplier stock, that is about to be catalyzed by a big upcoming announcement, and the high-growth industry it serves.

In regards to the first catalyst, Dylan expects “a major announcement to catapult Arm's name onto the front page of every news outlet any day now.”

No idea what this could be as Dylan doesn't elaborate any further. But Arm did just announce that upcoming fiscal third-quarter results will top expectations, so there's that.

When it comes to robotics being the biggest opportunity in AI, there is some credibility to this.

Venture investments in robotics startups will top 2024 totals and global industrial robot installations are also up.

This bodes well for chip demand and Arm, but is some or all of this already baked into its stock price?

At a forward P/E of 85x, I would say so.

However, Arm is a business with some inherent competitive advantages, such as it's chip designs being more energy-efficient than counterparts like Intel and AMD.

It's underlying economics reflect this, with above average Return on Assets (ROA) of 6% and a sparkling balance sheet that shows over 7x more cash than debt.

If you're already an Arm shareholder, hold onto those shares! If you're thinking about buying in, look for a better entry point or be prepared to dollar-cost average down over time.

At a market cap of $160 billion, Arm is no longer an explosive growth stock, but it should continue to be a steady grower and hopefully, a future dividend-payer.

Quick Recap & Conclusion

• Dylan Jovine says Nvidia has been quietly working on a next-generation Superchip. One designed for the next multi-trillion dollar opportunity after AI and a “Secret Supplier” Stock is the key to making it work.
• The superchip Dylan teases is Nvidia's Thor chip, which is 20x more powerful than it's Blackwell predecessor, but it's based on one firm’s designs.
• The name of this company can only be found inside a new report called Nvidia’s “Secret Supplier”: One Chip to Rule Them All. It can be ours with a subscription to Dylan's flagship Behind the Markets research service which costs $49 for the first year (normally $199).
• It turns out Dylan's “Nvidia's Secret Supplier” Stock is not-so secret or under-the-radar, we were able to reveal it for free – Arm Holdings Plc (Nasdaq: ARM).
• Arm is a high-quality business with an inherent competitive advantage, but at 85x forward earnings, much of its future growth is already baked into the price. Buy the dip or dollar-cost average down.

Will robots be everywhere in two to three years? Drop your thoughts in the comments.