Veteran tech investor Jeff Brown is in Mount Pleasant, Wisconsin investigating a $100 billion Microsoft project called “Stargate.”
He believes it will help trigger a “New PC Revolution” and make a lot of people rich.
The Teaser
However, this isn't your grandma's PC, but something called “Artificial General Intelligence.”
Jeff Brown is the original founder and chief investment analyst of Brownstone Research, a business he left in 2023 and returned to this past summer after some corporate melodrama.
Putting all that aside, tech revolutions, like the kind Jeff is teasing here, have been pretty profitable.
For example, take the personal computer revolution in the 1980s.
Had we invested $1,000 in Microsoft when it launched its first version of Windows and had diamond hands, we'd have more than $3.7 million today.
Even IT networking and communications equipment suppliers like Cisco jumped high enough to turn $1,000 into more than $850,000 in the 1990s alone.
If you missed out on that PC boom, Jeff says not to worry because we now have a second chance.
This is due to a new batch of supercomputers that are the next generation of AI.
Exegesis AI
Inside “AI factories” from Nevada to Nebraska a new type of AI is being built that is so revolutionary, that it could soon make ChatGPT as obsolete as VHS tapes.
Big tech firms like Microsoft, Google, and Meta are all locked in a race to build as many of these factories as they can because they hold the key to “Exegesis AI.”
Billions are being invested for the chance to make trillions of dollars.
What Jeff calls “exegesis” which is a biblical term, is actually Artificial General Intelligence or AGI.
AGI has biblical implications because it is the “holy grail” of AI, which is said to be the moment when AI surpasses human cognitive capabilities.
To put it into perspective, AGI is growing so rapidly, that it generates enough terabytes of data to fill up the memory of 227,000 iPhones…every single minute.
The only thing holding it back is the computing power to process all that data.
This is where Microsoft's Project “Stargate” comes into play.
The Pitch
Jeff has put all the details on the project and how to profit from it in a report with a poor AI-generated image of Billy Boy on the cover called “How to Profit from Bill Gates’ New PC Revolution.“
All we have to do to claim this report is subscribe to a monthly research service called The Near Future Report.
Normally a one-year subscription to Near Future runs $499, but for a limited time, a 60-day money-back trial is going for $199 and it includes new tech investment ideas every month, four bonus reports, and a members-only website with features like an open position tracker.
What in the World Is Stargate?
An online search reveals that “Stargate” is a monumental initiative by Microsoft…and OpenAI.
The master plan is to build “a massive supercomputing cluster“ that will achieve artificial general intelligence (AGI) by the 2030s.
However, at this point, it is mainly speculation, as “Stargate” is still in the preliminary planning stage, with Microsoft still needing to expand its Mount Pleasant, Wisconsin site, and decide whether the supercomputer will be in a single building or multiple sites on the campus.
Another major challenge is all the equipment it will need to operate and the considerable power requirements for a full build-out.
We're talking servers capable of processing large amounts of data stacked on top of each other from floor to ceiling.
This is why the projected cost of “Stargate“ is expected to reach as much as $100 billion.
Microsoft alone is already spending around $50 billion a year on all its Azure data centers, chips, and networking equipment, so I see where this is going…besides existing data centers in the US needing to receive major upgrades, more data centers will need to be built to support such powerful AI.
As much as 100 times more data centers over the next ten years according to Michael Dell, creating an unprecedented boom, and Jeff says he's found a company that’s perfectly positioned to profit from this megatrend.
Revealing Jeff Brown's Stargate Stock
Here is what we know about the company that will be the biggest beneficiary of the race towards AGI:
- It has also been called an “AI sleeping giant.”
- The company is already providing key data center infrastructure to big players like Microsoft and Amazon.
- Every existing data center and new ones need this company’s product.
This sounds like Vertiv Holdings Co. (NYSE: VRT).
- Vertiv provides critical infrastructure and services for data centers while counting Microsoft among its customers.
- Every data center requires power systems, thermal management, and server racks, which Vertiv provides.
However, we're not done yet, as Jeff also touts another pick that has an even deeper Microsoft connection.
Jeff's PC Revolution Pick
- This company is helping Microsoft build new AI-powered PCs called Copilot+
- It's 16 times smaller than Microsoft.
These are pretty generic clues, but Advanced Micro Devices, Inc. (Nasdaq: AMD) is the likely pick here.
- AMD supplies Microsoft Copilot PCs with custom Ryzen AI 300 processors.
- At a current market cap of $255 billion, AMD is approximately 13x smaller than Microsoft.
Gains of up to 146,000%?
Jeff recalls how during the internet build-out, “some of the best infrastructure plays skyrocketed for gains of 2,600%, 70,000%, and 146,000%.”
He's expecting something similar with his current AI infrastructure plays.
Is he right?
Let's start with Vertiv, which we have already touched on as a pick of another financial newsletter purveyor, Dylan Jovine.
I mentioned in that teaser review that I liked the pick, but that waiting for a pullback in the share price would be sensible since the premium was a huge 88x current earnings.
Well, it's currently trading for 76x earnings, so baby steps are being made, but I still feel the same way.
As for AMD, it is positioning itself as the affordable and accessible alternative to Nvidia, which AI will need to flourish over the long term. Kind of like a high-tech Costco to Nvidia's Whole Foods.
Both will thrive as AI processing power demand grows and picking up some shares at this point wouldn't be the worst thing in the world.
Just know that the larger the premium you pay today, the longer the wait will be for an outsized return, as much of it is already baked into the valuation.
Quick Recap & Conclusion
- Jeff Brown believes Microsoft's project “Stargate” will help trigger a “New PC Revolution” and make a lot of people rich.
- “Stargate” is Microsoft's master plan to build “a massive supercomputing cluster” that will achieve artificial general intelligence (AGI) by the 2030s.
- Jeff has put all the details on the project and how to profit from it in a report called “How to Profit from Bill Gates’ New PC Revolution. All we have to do to claim this report is subscribe to a monthly research service called The Near Future Report for $199 for the first year.
- Fortunately, we were able to reveal Jeff's “Stargate” pick for free as Vertiv Holdings Co. (NYSE: VRT). Also included was a second “PC Revolution” pick, which could be Advanced Micro Devices, Inc. (Nasdaq: AMD), but there's no way to be sure given the limited clues.
- Vertiv and AMD are solid AI infrastructure plays, albeit expensive ones, trading at high multiples. Dollar-cost-average down if you plan to buy at today's prices.
What is your favorite AI data center stock? Share it with readers in the comments.
Gook quick analysis with current tie in. Good job
Great analysis and appreciate the insightful comments. Thanks