In Jeff Brown’s latest stock teaser presentation, he discussed his “Final Wave” prediction and two “special opportunities” he believes “offer vastly outsized potential right now.”
What’s it about?
In short, Jeff Brown told the host of the presentation, Chris Hurt, that while we’re in a time where “extreme caution is needed” and many tech stocks “could still sink another 80%,” he’s bullish on certain tech companies, and he teased two of his top picks.
Jeff Brown said that one company, which he called his “#1 AI Stock for 2022,” is powering the “world’s most advanced artificial intelligence semiconductors.”
And the second company he teased is his “#1 EV pick.”
So in this post, I’ll be looking into both of Jeff Brown’s picks. And based on the clues he shared in the presentation, I’m confident I know exactly what these are.
But first, let’s unpack Jeff Brown’s “Final Wave” prediction to better understand what he’s forecasting for 2022 and beyond.
What Is Jeff Brown’s “The Final Wave” Prediction?
Jeff Brown always seems to be pitching something, but I’ve followed his work for a while now and have come to the conclusion that he also shares some genuinely worthwhile insight.
So I always like to see what his latest predictions are.
And in his latest “Tech Minute” presentation with Chris Hurt (June 2022), Jeff Brown discussed his “final wave” prediction” about what he sees coming next.
In short, the discussion centered around the “next wave of price movements” Jeff Brown sees coming, which he described as the “final wave” in this recent “cycle of craziness.”
“What I’m talking about, rather, is the next wave of price movements in the market…
The ‘final wave’ in this recent cycle of craziness…
You see, back in 2020, we had the Covid crash. Stocks plummeted. Then, we had the rebound. But not all stocks ‘rebounded’ the same. That was the ‘splintering’ you mentioned earlier… where stocks like Zoom and Peloton crashed hard. While others fared much better.
Today I want to detail the next step, the next evolution in what I see coming.”
What does Jeff Brown see coming?
For one thing, Jeff Brown said he thinks the S&P 500 could fall 20% to 25%, but not until next year because he doesn’t believe the Fed will raise rates too aggressively before then.
“I do think there’s trouble ahead… The ‘S&P 500,’ for example, which tracks the 500 biggest stocks. That could fall on the order of 20% to 25%. That’s certainly no picnic, but it’s no ‘Depression 2.0’ either.”
“You see, many people expect the ‘big crash’ to happen any day now… I don’t think that’s the case. I don’t believe we’ll see that before sometime early next year. Q1 or Q2 2023.
Because, right now, Chris, what people fear will trigger a crash is the Fed raising interest rates aggressively to combat inflation.
But there’s no way the Fed will do that in any significant fashion. At least not this year.
Because, this is an election year Chris. Do you really think they want to force the market to crash another 20-25% leading into the midterm election?”
As a side point, there are several different variations of this presentation floating around, so the version you landed on may be slightly different from the one I found. But the general gist of what Jeff Brown discussed appears to be mostly the same.
Anyway, Jeff Brown also discussed how, while many people are buying the dip in beaten-down tech stocks, he thinks a lot of these could “sink another 80%.”
“Chris, right now, a lot of people are putting their hard-earned money into many of these so-called ‘bargain’ tech stocks. But the reality is…
Many of these could still sink another 80%!”
Brown didn’t share an exact timeline for that last prediction, but he did say there are some “legitimate bargains right now” in the tech space and suggested that sitting on the sidelines (in cash) means you’re “basically guaranteed to lose money” through inflation.
“There are opportunities right now. Great ones with similar potential. But if you’re on the sidelines, guess what? You miss out. The only thing you know will happen, for sure, is that your money goes down.”
“Chris, if you’re in cash right now. With the high inflation we’re seeing, you are basically guaranteed to lose money.
Think about it…
Say inflation is, using round numbers, 10%…
That means, in 5 years, roughly, you will have lost almost HALF your buying power!”
And finally, he said that the “era of passive investing” (i.e., betting on an ETF) is over and that we’ve entered the “era of the stock picker,” where investors have to pay more attention.
“This isn’t a market where you can ignore what’s happening. The era of passive investing… where we blindly put money, our faith in some big index fund, ETF. That is over… We’ve entered a new era. The era of the stock picker. And this is a time where you have to pay attention. Or, at minimum, follow somebody who does. It is absolutely, 100% critical.”
That pretty much sums up Jeff Brown’s latest prediction in terms of where he sees the market headed over the next 12 months or so.
He’s more or less predicting that we aren’t likely to see a “big crash” in the overall market in 2022 and believes certain companies offer “outsized potential right now.”
In particular, he focused on two major trends he’s following (AI and EVs) and teased a company he’s bullish on within each of these industries.
So let’s take a look at those now, starting with his top AI pick…
Jeff Brown’s #1 AI Stock for 2022 Revealed
According to Jeff Brown, his “#1 opportunity right now” relates to artificial intelligence (AI), a technology he says is helping solve “massive” problems the world is facing, such as the labor shortage, semiconductor shortage, and “healthcare troubles” (among others).
“Chris, my #1 opportunity right now is a technology solving massive, multi-billion (and trillion) dollar problems.
Problems plaguing us today like the labor shortage… the semi-conductor shortage…
It’s also starting to play a critical role in helping solve America’s healthcare troubles.”
“… I’m talking about artificial intelligence.”
Specifically, he said he’s talking about “AI 3.0.”
“Chris, what you’re probably familiar with, or think of when you hear ‘AI’ is what I would call AI 1.0 or even 2.0.
But, today, Chris, AI 3.0 is upon us.”
Until now, I’d never heard the term AI 3.0, and I’m pretty sure it’s something Jeff Brown made up (lol). Nevertheless, he provided numerous examples of how AI is changing the world and essentially “fixing” many of the world’s problems.
For instance, he talked about how numerous well-known companies are using AI in different ways. Like Walmart with self-driving cars, Dennys using AI-powered robots to serve food, White Castle using AI “flipping” robots, and robots in manufacturing. He also shared examples of how AI is being used in the agriculture, mining, and healthcare sectors.
It was pretty interesting. And if AI-powered robots can do stuff better, faster, and cheaper than humans, there’s a very high likelihood that this trend will continue. And recent events (i.e., pandemic, inflation, Great Resignation) seem to be accelerating this trend.
Of course, that doesn’t mean Jeff Brown’s pick is a golden ticket, but I was curious to know what his “#1 AI Stock for 2022” was. So I looked into his clues to see what I could find.
The first clue Jeff Brown shared was that the company is “powering the world’s most advanced artificial intelligence semiconductors.”
“Would you rather invest in one specific application of this trillion dollar trend…
Would you rather have a stake in the one company at the forefront of ALL the world’s most advanced ‘AI’ semiconductor chips… the ones powering all the most ground-breaking innovations?
Well, that is my #1 play, Chris. The company that’s powering the world’s most advanced artificial intelligence semiconductors…”
He also said the company is “sitting on” a massive backlog of orders:
“Right now, they’re sitting on a massive backlog of orders…
And he talked about some of the company’s top institutional holders:
“As of right now it’s an absolute steal…
That’s why JP Morgan, for example…
They’ve acquired 1 million shares…
BlackRock, they’ve got close to two million. And Fidelity, they’ve bought a whopping 3.4 MILLION shares.”
But it was really the following clues that led me to discover his pick:
“As New Street Research says, their technology ‘is the most difficult to replicate.’ They estimate it would take China more than 10 years to catch up.”
It’s so big that Quartz even called it ‘the linchpin in solving the world’s microchip problem’.
Because, Chris—right now, as we speak—they’re on the verge of releasing a new machine three times as powerful as their previous technology. CNBC says this new machine is ‘set to transform chipmaking’ and ‘investors (were) going wild.’
The above quotes appear to have been referencing ASML Holding N.V. (ticker: ASML). And as I compared this company to Jeff Brown’s other clues, it seems to match those, too.
What does the company do?
ASML is a multinational corporation headquartered in the Netherlands that manufactures photolithography systems, which are used to make microchips.
It’s not an AI company. Nor does ASML make microchips. Instead, it manufactures the machines that other companies use to make semiconductors.
And according to the company website, ASML is currently the only lithography equipment supplier capable of producing EUV (extreme ultraviolet lithography) technology, and chipmakers use EUV systems to make “the world’s most advanced microchips.”
What does any of that have to do with AI?
Pretty much every electronic device uses a microchip. So it stands to reason that as the market for AI grows, demand for more powerful and sophisticated AI-related products will grow, which means better chips will be needed to run them. And while ASML doesn’t make microchips, it manufactures the systems needed to produce them.
As for Jeff Brown’s other clues, according to Motley Fool, ASML has a backlog of orders worth 29 billion euros, which works out to roughly $31 billion US dollars as of writing.
So that’s a match.
The only clues I couldn’t verify were the ones about the institutional holders. Unless I’m missing something, which is possible, it seems like that clue only partly matches.
Still, ASML appears to be Jeff Brown’s “#1 AI Stock for 2022.”
And interestingly, this was also Jeff Brown’s “#1 Microchip Stock of 2022,” according to my research of a different presentation of his that I wrote about several months ago.
Of course, these are all just my guesses based on the clues he shared in the presentation, so I can’t guarantee I’m right about his picks, but ASML looks like his top “AI” pick.
Assuming my guess is correct, I can’t speak to exactly why Jeff Brown is recommending ASML, so if you want to know more, it’s probably best to see his research report. The one called “The $15.7 Trillion Revolution: The #1 AI Stock for 2022.”
Recommended: Go here to see my #1 rated stock advisory of 2023
What About Jeff Brown’s Second (EV) Pick?
For whatever reason, Jeff Brown “threw in” a second “#1” pick in this presentation. And this time, it’s a company operating in the electric vehicle (EV) charging space.
Here are some of the initial clues he shared about the company:
“But there’s ONE specific EV company I’m recommending above all else that, I believe, will directly benefit from the stimulus. And will greatly outperform all of the others…”
“It’s not Tesla. It’s not Rivian. It’s not Ford. Or any of the popular ‘EV’ plays many are flocking to today, either.”
“This company, right now, it’s almost like an EV company ‘in disguise’.
Basically, no one—no one in Wall Street, Chris, is pricing this as an electric vehicle play. And that’s a huge mistake. Because this company already operates in the space. And they’ve made it clear that’s where they’re shifting most of their resources…”
Based on that, Jeff Brown’s pick isn’t an “EV company” per se, but more like a company that operates in the EV space.
And according to Brown, the company has a “unique charging solution” for EVs.
During the presentation, Brown talked about how one of the major “sticking points” for EV owners is range anxiety. In other words, not knowing if their battery will run flat before reaching a charging station.
And Jeff Brown said his “#1 EV pick” has won an award for its charging station.
“My #1 EV pick just won an award from the U.S. Department of Energy for their unique charging solution.”
That’s a pretty specific clue, but he didn’t leave it there. Jeff Brown also shared some hints about the company’s market cap and how many shares top investors hold.
Chris, compared to Tesla…
It’s 113 times smaller!
That’s why Vanguard—which first bought 3.5 million shares before Tesla shot up 57X.
They’ve jumped ALL OVER this stock.
With more than 25 MILLION shares.”
What’s his EV pick?
This one was pretty easy to solve.
All I did was “Google” EV companies that have won an award from the U.S. Department of Energy (DOE) related to charging stations.
And the first one that popped up was BorgWarner (ticker: BWA).
According to pv-magazine-usa.com, the DOE granted BorgWarner $4.09 million to create a 36-month fast-track for developing a U.S.-made DC fast charger for EVs.
BorgWarner is a Michigan-based multinational automotive supplier that’s been around for more than 130 years. And while it’s not strictly an EV-related company, it does make auto parts for electric vehicles, which might explain why Jeff Brown said it’s “almost like an EV company ‘in disguise.'”
As for the clue about the company’s market cap…
BorgWarner’s market cap is currently at around 9.5 billion as I write this (June 2022), and Jeff Brown said his pick was 113 times smaller than Tesla, which is currently sitting at around 751 billion. So that clue isn’t an exact match.
However, BorgWarner’s stock has risen by about the same percentage as Tesla’s has fallen over the past month. And even though Brown’s presentation was only just released, it could easily have been recorded a month or so ago.
What’s more, Jeff Brown didn’t specify how he was comparing the two companies in terms of size, so it’s possible he was referring to some other metric.
In any case, BorgWarner matches everything else Brown said, including his final clue about Vanguard holding over 25 million shares.
So, Jeff Brown’s #1 EV pick appears to be BorgWarner (BWA).
Funny enough, two other finance gurus have teased this company as their top EV stock recently, too – Matt McCall of Stansberry and Dave Forest of Casey Research.
So it seems to be gaining attention among the stockpickers.
Nevertheless, if you want to find out what Jeff Brown’s pick is for sure and get all the details, he breaks down his recommendation in a report called “My New Stimulus Play: The ‘Secret’ EV Charging Stock with Electric Potential.”
But the only way to access that report, and the report I mentioned earlier, is to join Jeff Brown’s stock advisory service, The Near Future Report. So in the next section, I’ll give you an overview of what this service is about.
The Near Future Report: Is It Worth $49?
The Near Future Report is Jeff Brown’s flagship investment research (AKA stock picking) service, which is mostly focused on large-cap tech and biotech companies.
Jeff Brown is a former tech executive who’s worked for several large tech firms, including Qualcomm. And he’s the founder of the company behind The Near Future Report service, Brownstone Research. He also releases a lot of different stock teasers.
For instance, aside from the one we’ve discussed here, I’ve also written about his Apple Car “supplier” pick and his “CTX” biotech recommendation before that.
You can see Jeff Brown’s latest predictions and stock picks here if you want to know more, but the gist is that most of his picks center around tech and biotech.
And as a subscriber of The Near Future Report, you get access to all of the picks and research he shares with subscribers of the service each month. Subscribers also receive the research reports I mentioned earlier and get access to the service’s model portfolio.
How much does it cost?
The Near Future Report “retails” at $199 if you join directly through the Brownstone Research website. But every presentation I’ve seen, including this one, allows you to sign up for $49 (although the site says it renews at $129 after 12 months).
Is it legit?
I’m not a member of The Near Future Report, but I haven’t found anything to suggest it’s a scam. I’ve followed his Bleeding Edge newsletter for a while now, too, and have found it to be quite informative. Not to mention, I’ve covered over a dozen of his stock teasers, and from what I can tell, he is a genuine expert who’s recommended some decent stocks.
That said, I wouldn’t join expecting to get rich overnight. Nor would I sign up without knowing that, no matter how legitimate a service might be, it is always possible to lose money in the market. So there’s no guarantee his picks will make you money.
In this post, we discussed Jeff Brown’s latest stock market predictions, which he shared in an interview-style presentation with Chris Hurt on the Brownstone Research website.
For the most part, his prediction centered around the idea that, while caution is needed, he’s not expecting a “big crash” until “sometime early next year.”
Jeff Brown also teased two companies he’s interested in, and my research suggests that his “#1 AI Stock for 2022” is ASML, and his “#1 EV pick” is BorgWarner.
I’ll let you decide if you think my guesses are right or not, but those seem to be the closest matches based on the clues he shared.
Anyway, that’s my take.
I hope you found it helpful, and thanks for reading!