Martin Weiss, a well-known stock-picking ‘guru,’ has released a presentation teasing three stocks that he’s calling “Nvidia’s Silent Partners.”
According to Weiss, a “silent partner stock” is one that is “quietly profiting from a larger company’s deals.” And he claims he’s found three with huge upside potential.
He doesn’t actually reveal the stocks in the presentation.
Instead, he shares them with folks who join his paid newsletter service, Disruptors and Dominators, for $49. So, the whole thing is essentially one big sales pitch.
Nevertheless, Weiss did share SOME tangible clues about his “Nvidia’s Silent Partner” stock picks, and after doing some research, I think I’ve figured out what they are.
So, with that said, let’s unpack Martin Weiss’ prediction.
Then I’ll show you what stocks I think he’s teasing!
The “Nvidia’s $1 Trillion AI Pivot” Stock Teaser
There has been a lot of hype surrounding artificial intelligence (AI) over the past couple of years, and Nvidia’s stock has seen enormous growth as a result.
In fact, Nvidia’s stock has roughly 10X’ed in the past two years alone and it has become one of the largest companies in the world, with a market cap running into the trillions.
That sort of rapid growth is enough to make even the biggest Nvidia bulls concerned about a pullback, especially with many talking about the possibility of a recession.
But Martin Weiss doesn’t seem to think Nvidia’s growth is slowing down anytime soon.
Instead, he believes Nvidia is “quietly expanding” and pivoting to a business that he predicts could have “equal or even bigger potential” than its existing chip business.
“You see, while everyone is patting Nvidia on the back for its past accomplishments …
“Nvidia’s tech teams have already moved on to the next phase of AI they plan to conquer.
“While everyone sees Nvidia as just a chip company …
“Nvidia has been quietly expanding … and even pivoting … to another lucrative business, which we predict could have equal or even bigger potential.”
Source: https://web.archive.org/web/20240911001836/https://disruptorsanddominators.com/reports/DDD/silent-99-49-ext-2405/tx-1s
What’s he talking about?
In short, AI data centers.
During the presentation, Weiss explained that AI requires “far bigger data centers” to store and process data than what we already have.
And, as a result, the number of “AI mega data centers” needed to power AI will grow by an estimated 2,000% in the coming years just to keep up.
“To keep up with AI, new, far bigger data centers are desperately needed.
“And they’re needed urgently. Not next month. Not tomorrow. Right now.
“I’m talking about AI data centers that are six times more powerful than anything out there today,
“These are the ones that provide the vast storage capacity that’s desperately needed to handle the massive volumes of data that AI generates …
“That AI cannot EXIST without.”
[…]
“In fact, overall, these AI mega data centers are not just expected to grow fast. They’re expected to literally explode with growth estimated at 2,000% in the coming years.”
So, long story short, Weiss believes that Nvidia is “quietly” taking advantage of this trend by evolving from being a business dedicated to microchips to one that also owns and runs thousands of AI data centers. And this is at the core of his prediction.
“THIS is Nvidia’s big trillion-dollar pivot …
“From a business dedicated to chips … to a business that’s dedicated to chips AND … mega data centers.”
[…]
“Nvidia’s CEO calls them ‘AI factories.’ And his engineers have the blueprints in hand, ready to build not just dozens, not just hundreds, but thousands of them.”
Where does the whole “silent partner” thing come into play?
However, Weiss isn’t recommending Nvidia stock.
Instead, he’s recommending a few companies that he claims are working with Nvidia to build out new data centers.
And that’s where his three stock picks come into the picture.
Weiss claims to have found these so-called “silent partner stocks” that could see similar gains to other partners of Nvidia in the past, like TSMC and Super Micro Computer.
What are they?
Read on…
Martin Weiss’ 3 “Nvidia’s Silent Partner” Stocks
As mentioned, Martin Weiss teased three different stocks in this presentation, and I think I’ve figured out what they are based on the clues he shared.
So, let’s discuss each one now.
Stock #1 (Arm Holdings)
The main clue Martin Weiss shared about his first “Nvidia’s silent partner” stock pick is that the company’s technology is used by over five billion people globally, yet it’s still not a household name.
“The first of Nvidia’s silent partners I want to tell you about is not a household name and maybe never will be.
“But it’s absolutely amazing when you think about it because this company’s technology is directly or indirectly INSIDE the devices used by guess how many people around the world?
“If you’re thinking 100 million, you’re way off. If you’re thinking 500 million, you’re STILL way off. This company’s stuff is used by more than 5 BILLION people around the world.”
That’s not a lot to go off… but it just so happens that I recently looked into a different stock teaser from another guru (Alexander Green), who said a similar thing.
And that stock turned out to be Arm Holdings (ticker: ARM), a semiconductor and software design company whose tech is used in billions of devices globally.
What exactly does the company do?
From what I understand, Arm designs the technology that, according to the company, powers the chips inside almost every smartphone globally, including both Apple and Android devices. Since the 1980s, the company has shipped over 280 billion chips.
So, while I don’t know the exact number of people that use the company’s tech worldwide, it does appear to line up with what Weiss said, especially since the company is not a houseful name (which was his second main hint).
Stock #2 (Fabrinet)
Here’s what Weiss said about his second pick:
“This is another company most people have never heard of, but in this case, the reason is quite different. It’s because average consumers have no use for its products at all and probably never will.
“You see, this company’s customers aren’t average consumers. They’re big companies.
“And here’s the big surprise, among the 500 giant and supergiant companies in the WORLD, the overwhelming majority are among its prime customers!
“And now, Nvidia needs this company to support the massive buildout ahead of its AI mega data centers.
“This is one of the only companies in the world that can give Nvidia the specific support it needs to keep all its massive new AI data centers humming.
“The market for this company’s most important component is expected to more than quadruple in the coming years.
“If that happens, we predict the shares of this Silent Partner could go ballistic.”
Again, that’s not a lot to go off.
But my guess here is Fabrinet (ticker: FN), a company that specializes in manufacturing precision optical communication components, which are essential for data centers.
Why do I think this is his second pick?
Three main reasons…
- First, what the company does seems to line up with what Martin Weiss described. I’m no expert on what Farbinet does or what is required to build AI data centers, but at the very least, the company provides the kinds of services that would logically be needed.
- Second, Farbinet’s customers appear to include numerous Fortune 500 companies, including Apple, Cisco, and Nvidia itself.
- Lastly, the company has a long-standing relationship with Nvidia. Not only did Nvidia account for 35% of Fabrinet’s sales last year, but its said to play a “key role in Nvidia’s data center operations.”
I’m not 100% sure about this one, but based on the clues we have, Farbinet is most likely Martin Weiss’ second “silent partner” stock.
Stock #3 (Ansys)
Lastly, we have the following clues about Weiss’ third pick:
“Nvidia’s third silent partner is probably THE only company of its kind because it has the closest thing I’ve ever seen to a real-world, AI-based crystal ball.
“It doesn’t use AI to predict the economy or the stock market. Instead, it’s dedicated to simulating the results of nearly everything engineers have created or might want to create.
“Its customers are in a wide range of industries — autos, aerospace, energy, transportation and many others.
“Oracle, Porsche, Medtronic, BMW, Panasonic and nearly 20,000 other customers depend on them.
“It’s helping its clients pioneer the next wave of revolutionary tech ideas.
“And all this puts this company in prime position to benefit from the rise of AI data centers. And Nvidia needs them to fuse together cutting-edge technologies, something they’ve done time and again. So much so that …
“Nvidia already says that, with this company’s assistance, they can now solve some problems ‘a million times better’ than they did just 10 years ago.”
This one appears to be Ansys (ticker: ANSS), a U.S. company that develops engineering simulation software for customers across the globe, including those in the auto, aerospace, energy, and transportation industries (among others), as per Weiss’ clue.
What led me to Ansys was the quote Weiss shared about Nvidia, saying it could solve some problems “a million times better” thanks to the company he’s teasing.
That’s what led me to this article on the company website, which contains a quote from Nvidia CEO Jensen Huang about how Nvidia’s partnership with Ansys can help both companies solve problems for their customers that neither one could do alone.
So, putting it all together, it looks like a match.
Recommended: Go here to see my #1 rated stock advisory of 2024
Bottom Line
The only way to know for certain what companies Martin Weiss is pitching in his presentation about “Nvidia’s silent partners” is to join his paid newsletter, Disruptors and Dominators.
Because that’s how you get access to the research reports he’s put together about each company (the reports are basically bonuses that come with a newsletter subscription).
Still, by looking into the clues he shared in the presentation, I’m confident we’ve managed to uncover them right here in this post.
So, I hope you found this helpful!
Remember, as convincing as gurus like Martin Weiss can be, no one can predict what will happen in the stock market. So, even though he may be right about his prediction, it’s always worth doing your own research before rushing into anything.
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