Weiss’ Nvidia’s ”Silent Partners” – The Next AI Superstars?

Weiss Ratings founder Martin Weiss and Michael Robinson are here to tell us the truth about Nvidia.

The chip giant is about to pivot its Trillion-dollar business and it is relying on an elite group of “Silent Partners” for their tech and expertise to do so.

We reveal who these partners are in this teaser review, for free.

The Teaser

Based on Martin and Michael's analysis, three companies are “the best of the best for investors to look at right now.”

Martin Weiss has a 50-year track record grading stocks, mutual funds, and financial institutions, which is longer than some of us have been alive.

He is also fluent in Portuguese, Spanish, Chinese, and Japanese, making for some interesting and maybe sometimes confusing dinner conversations.

Too bad he is not the one leading this presentation.

That is someone named Michael Robinson, who is the Director of Tech Investing Strategies at Weiss Ratings. He is not fluent in four languages.

Reading the beginning of Michael's teaser, I thought I could foretell what some of his picks were going to be.

However, it took me by surprise when he came out and named some of Nvidia’s silent partners that have been big in the news, like ASML Holdings, Taiwan Semiconductor, and Super Micro Computer.

Each of the aforementioned stocks has already seen triple and quadruple-digit gains over the past few years, so they are not the picks in this teaser.

Instead, Michael is convinced that Nvidia is about to revolutionize the AI industry again, creating a new wave of supply-side winners.

The Biggest Challenge Facing AI

Nvidia’s own leather jacket-sporting CEO, Jensen Huang, says Big Tech is going to have to spend over $1 Trillion to meet this challenge.

He's talking about Data.

Because without data, or more accurately, without the ability to process data, there is no AI.

As an eye-opening example, 2.5 quintillion bytes worth of data is now being created every day. That sounds like a made-up number, but it's real and it contains 18 zeros.

So it shouldn't come as a huge surprise that more than 90% of all the world's data was generated in just the last two years.

The problem is, where is all this data going to be stored?

This is Nvidia's next frontier and three silent partners are helping the computing titan pivot.

The Pitch

All three “Silent Partner” stocks are revealed in a series of special reports:

• Nvidia’s Silent Partner with 5.6 Billion Users Who Don’t Even Know Its Name
• Nvidia's Silent Partner That Conquered the Fortune 500
• The Silent Partner That Nvidia Calls “1 Million Times Better”

The only way to get our hands on them is with a subscription to the Disruptors and Dominators monthly newsletter, which costs $49 to join for the first year.

A subscription includes a 12-month money-back guarantee, twelve months of access to the newsletter, one year of premium access to 53,000 Weiss Ratings, including stocks, ETFs, mutual funds, and even cryptocurrencies, as well as two additional bonus reports.

The Age of Hyperscale Data Centers

Currently, there are more than 5,400 data centers just in the United States alone.

From New York City to Council Bluffs, Iowa.

However, what's needed isn't just more data centers so supply can keep up with demand, but a specific type of data center.

Ones that aren't just bigger, but have optimized network infrastructure engineered for large-scale workloads and built-in cooling facilities.

They go by the name of Hyperscale Data Centers or “Mega Data Centers” as Michael calls them, and they are six times more powerful than anything previously in existence.

As I type this out while sipping on my chocolate milk beverage the number of Hyperscale Data Centers worldwide passed the one thousand mark in the first half of 2024 and an additional 120-130 new Hyperscale data centers are expected to come online each year over the next decade.

This is all well and good, but where does Nvidia factor into all of this?

Michael believes this is Nvidia's “trillion-dollar pivot.”

From a business dedicated to graphic chips to a business that’s dedicated to chips and Hyperscale data centers.

Nvidia calls them “AI Factories” and it isn’t building these next-generation data centers alone. The company is quietly leaning on a new set of “Silent Partners” being teased here.

Let's find out what they are.

Revealing Nvidia's “Silent Partners”

More than three companies are partnering with Nvidia on its “AI Factories,” but Michael predicts his three picks will be the biggest “Silent Partner” winners.

Nvidia’s Silent Partner with 5.6 Billion Users

The only clue we get about the first of Nvidia’s silent partners is that it is not a household name, but its technology is used by more than 5 billion people worldwide.

There is no way to be sure given such general clues, but the only technology used by more than half of the world's population is mobile phones.

And the only confirmed “AI Factory” partner building solutions for the global mobile networks market is Amphenol Corp. (NYSE: APH).

Amphenol offers a full range of connectors and adapters, which are found in mobile phones and other mobile devices.

Nvidia's Silent Partner That Conquered the Fortune 500

All we get here is that “this is another company most people have never heard of, but it’s because average consumers have no use for its products at all and probably never will.”

The overwhelming majority of its customers are Fortune 500 companies.

This description fits a few Nvidia partners, like Dover Corp., WiWynn, and others. But no way to tell which one, on to the next.

The Silent Partner That Nvidia Calls “1 Million Times Better”

We get much more specific clues about this last pick.

It's the only company of its kind “dedicated to simulating the results of nearly everything engineers have created or might want to create.”

Customers come from a wide range of industries, such as auto, aerospace, energy, and transportation, and include Oracle, Porsche, Medtronic, and many others.

This sounds like Ansys Inc. (Nasdaq: ANSS).

Ansys is a developer of engineering simulation software for product design, testing, and operations. It also closely collaborates with Nvidia to continually refine and enhance GPU-accelerated simulation solvers, with Nvidia CEO Jensen Huang saying “By partnering with Ansys, we can solve problems a million times better.”

The Next AI Superstars?

All of these picks are backed by Weiss Ratings' algorithms.

The same algorithms that we're told have produced an average gain of 220% on 1,306 tech stock trades.

But how do they stack up from a fundamental standpoint?

Amphenol Corp: The company has good underlying economics for a commodity business producing fiber optic cables and connectors, with an ROA and ROE of 10% and 25%, respectively.

However, its debt load is 5x its cash reserves, and its stock trades for nearly 40x trailing earnings, putting it in a potentially precarious position should an economic downturn hit.

Ansys Inc: Its comparatively low profit margin (21%) and ROE (9%) figures for a SaaS business, combined with a valuation of 56x recent earnings immediately puts me off.

I like the Hyperscale Data Center macro theme and I'm all for taking moonshots on fast-growing businesses. But they must be great businesses and Michael's “Silent Partner” picks are not.

Quick Recap & Conclusion

• Weiss Ratings founder Martin Weiss and Director of Tech Investing Strategies Michael Robinson are here to tell us the truth about Nvidia…that it is relying on an elite group of “Silent Partners” to pivot its Trillion-dollar business.
• We learn that these “Silent Partners” are helping Nvidia build next-gen data centers called “AI Factories” and Michael has zeroed in on three in particular that are due to profit disproportionately.
• All three “Silent Partner” stocks are revealed in a series of special reports, but the only way to get our hands on them is with a subscription to the Disruptors and Dominators monthly newsletter, which costs $49 to join for the first year.
• The clues provided in the teaser weren't very specific, but we were able to reveal two of the three picks for free as Amphenol Corp. (NYSE: APH) and Ansys Inc. (Nasdaq: ANSS).
• Both businesses have above-average valuations while possessing below-average operating economics. They are easy passes at their current market prices.

What do you think is the best Hyperscale Data Center stock? Let readers know in the comments.