Shah Gilani has released a stock teaser presentation centered around “ASI,” or Artificial Super Intelligence, where he recommended a bunch of AI-related stocks.
It’s all part of an ad for his $79 newsletter, Money Map Report.
And while I didn’t join his newsletter, I did look into his AI prediction and stock picks. And in this post, I will show you what I think his stock picks are.
So with that said, let’s get started!
Breaking Down Shah Gilani’s ASI Prediction
The gist of Shah Gilani’s prediction is that AI will be massively disruptive to the economy, and there’s huge potential in the data companies AI software needs to run and scale.
According to Gilani, we are approaching an event called the “singularity,” which is where AI transforms into ASI (Artificial Super Intelligence). And he claims that when this happens, AI could become “billions of times smarter than humans.”
“… scientists are working towards what’s called ASI – or Artificial Super Intelligence. And the final transformation from artificial intelligence to Artificial Super Intelligence is set to occur during a cataclysmic event called the Singularity.
“It’s the exact moment when AI becomes billions of times smarter than humans. Bill Gates says super intelligent AI – and I quote – will be able to do everything a human brain can… but without any limits.”Source: https://web.archive.org/web/20230912231718/https://pro.moneymappressinfo.com/p/MMRDSEXT/LMMRZ803/Full
Shah Gilani predicts that according to the “singularity clock,” (whatever that is), we could see the so-called “singularity event” happen within the next few months.
In other words, he’s predicting that we could see AI really shake things up in the economy before the end of the year (since the presentation is dated August 2023).
“And according to the Singularity clock… I believe in three months, we’re going to have the Einstein version – ASI.”
As always, I would recommend taking what is said in these presentations with a pinch of salt. These teasers are typically written by professional copywriters who are paid to write the most compelling narrative they can to sell more newsletter subscriptions.
That, my friends, is how this industry operates.
But that doesn’t mean the whole thing is complete nonsense, either. Shah Gilani has made some decent calls in his time, and he did make some interesting points in the teaser.
So, who knows… maybe what he’s predicting plays out.
In any case, Gilani’s prediction basically has two parts.
On the one hand, he believes that ASI (aka super duper AI) will “create a massive shock to the global economy” that will result in job losses. And on the other hand, he predicts that it will “be the greatest generator of new wealth in the history of humanity.”
“On one side, Artificial Super Intelligence will create a massive shock to the global economy. This will result in cataclysmic job losses and the near total disintegration of several large sectors of the markets.”
“… on the other side of the coin, ASI will also be the greatest generator of new wealth in the history of humanity – bigger than the computer revolution… bigger than the internet.”
The second part of that sounds exciting, but it’s also the same narrative pretty much every stock-picking guru in the industry is pumping right now, which I’ve learned the hard way is not a good sign. In fact, when everyone is talking about an investment theme, and all the stockpickers are hyping it up, that’s a good indication of what you may want to avoid.
And that’s why I was somewhat surprised by what Shah Gilani said next.
Here’s a snippet from the teaser (emphasis mine):
“… I need to warn you about the trap most investors are falling for hook, line, and sinker. Do not – under any circumstances – go out and just start buying AI stocks.
“Listen – this AI boom… it’s exactly like the internet bubble in the ’90s – back when we saw a critical new technology change the world overnight.
“Investors saw the trillions of dollars up for grabs and worked themselves into a frenzy – throwing cash at every business with dot-com in their name: Pets.com… Kozmo.com. eToys.com…
“Well, you know how that ended – bankrupt, bankrupt, bankrupt.
“You can see the same thing happening today with AI. I can promise you there are scam companies out there using this technology as a marketing gimmick to snatch up investor cash.
“So it’s impossible to know which company will be the next Microsoft and which company will be another tombstone in the graveyard of bankruptcy. Well, I didn’t fall for that trap in the ’90s – and I’m not going to fall for it today.”
I think he makes a really good point there.
Yes, AI is an incredible technology that is (and will likely continue) changing the world. And just as it will likely replace many jobs, it will create new ones, and we can only imagine what amazing new advancements we will see and benefit from as a result.
But that doesn’t mean buying AI stocks right now will make you rich!
That’s so important to understand.
There are so many factors that impact a stock’s price that are way outside the scope of the technology itself (the economy, inflation, interest rates, individual company performance, etc.). So you can still lose money betting on a company even if AI does take off.
Anyway, that’s the gist of Shah Gilani’s prediction.
And it turns out he’s not recommending your typical AI stocks. Most “gurus” I’ve seen are pitching shiny tech stocks or semiconductor companies.
But Gilani is recommending data companies.
Why? Because according to the teaser, AI growth is dependent on the growth of data companies. He describes data companies as the “fuel” that powers the rocket ship (AI) and that the data industry has “much safer investments.”
“Basically, if AI is a rocket ship, data is the fuel it needs to fly. That’s why the growth of AI and data line up so perfectly.
“The only difference is that while the new AI industry is split between risky startups and giant expensive stocks like Apple and Google… the data industry is stocked to the brim with much safer investments… and selling up to 97% less than big tech stocks.”
I don’t know if he’s right or not. But I did look into the clues he shared to find out what companies he was teasing. So let’s discuss that now.
What Are Shah Gilani’s AI Stock Picks?
Shah Gilani teased a total of seven different stocks in this presentation, but he only shared tangible clues about three of his picks, so those are the ones I focused on.
Stock #1 (“ASI Profit and Protect Playbook” Report)
The first clue Shah Gilani shared about his first pick was that the company has a market cap of around $30 billion:
“Back in 2014, the founder of this company essentially told the world how he would build a company that would become a monopoly in an industry that didn’t exist… by solving a problem most clients didn’t know they had – data management.
“At the time, critics laughed at him – but the only people laughing now are his stockholders. As of today, his company is worth $30 billion.”
Next, he talked about some of the contracts the company has secured:
“This March, the company secured a $100 million government contract for data management.
“And in June, they scored a $460 million contract with another government agency for data processing and AI advancements.
“They also recently partnered with Amazon Web Services to help customers of the potential $3 trillion company manage their data.”
And lastly, he talked about how the company’s stock has already doubled this year (2023) and revealed that it’s trading for around $15 a share:
“Naturally, the stock price for this company has already doubled this year. But you haven’t seen anything yet. Because of the AI takeover, my research shows this data company could grow from $15 to $185 a share by 2030. That’s a 1,100% increase.”
“And at $15 a share right now, this stock is a steal.”
What could it be?
It looks like Shah Gilani’s first pick is Palantir Technologies (PLTR), a Colorado company co-founded by Peter Thiel that specializes in big data analytics.
Why? Because it’s a data company (check) with a market cap of around $33 billion (check) that is currently trading for around $15 a share (check).
Furthermore, according to National Technology News, Palantir Technologies “won a $99.6 million contract with the US State Department” in 2023.
And according to a Palantir Technologies press release, the company was “awarded a contract from the US Special Operations Command” to the tune of up to $463 million.
So, Gilani’s first pick looks like Palantir Technologies.
Stock #2 (“Hold for Income” Report) – Iron Mountain
Here’s what Shah Gilani said about this pick:
“One asset in particular is ready to deliver a waterfall of passive income. Seeking Alpha calls this type of asset the physical epicenter of AI… the Department of Justice gives this asset a level-four security rating.
“It’s housed 220 feet under a mountain, blocked by a three- ton steel gate, and guarded 24/7 by armed security. And since 2020, this asset’s price has more than doubled right alongside the growth of AI.
“And because I expect ASI to launch in the next few months, my team projects this asset’s value could match that growth – and explode by over 3,200% by 2030. That would mean turning a simple $500 investment into an outstanding $16,600 windfall.
“And what really makes this asset stand out is how it’s required by federal law to pay you a hefty dividend. Right now, it’s boasting a 4.5% dividend yield that could grow exponentially as the company’s revenues skyrocket.”
In the first part of Gilani’s clue above, he talked about an “asset” that Seeking Alpha calls the “physical epicenter of AI,” and my research of that hint led me to this Seeking Alpha article about data center REITs (Real Estate Investment Trusts).
What’s a data center REIT?
A data center REIT is a company that owns and manages data centers.
And according to reit.com, they offer a “range of products and services” aimed at keeping servers and data safe, such as energy, security, and cooling services.
From what I understand, they work in a similar way to a regular REIT, but the type of real estate they focus on is data centers. Basically, they buy and lease data centers to companies that need to store their data, while also providing them with associated services.
As for the company itself, after researching data centers that are “housed 220 feet under a mountain,” I discovered this article about underground data centers that mentions a company called Iron Mountain, which fits that description.
Furthermore, it turns out that Iron Mountain is organized as a REIT, and its dividend is sitting at just over 4.1% (the stock has gone up since the presentation was made, so it was likely closer to 4.5% when Gilani recorded the teaser).
So, it looks like Gilani’s second pick is Iron Mountain (IRM), a U.S.-based information management services company.
Stock #3 (“Hold for Income” Report) – Digital Realty Trust
Here are the clues related to Gilani’s third pick:
“Finally, I’d advise you to pick up this third source of cash flow. It’s a company Seeking Alpha calls a stable return in an explosive industry.
“I consider that the understatement of the century, as this company has raised its dividend payment every single year since it went public. That’s 17 straight years – making this stock the ultimate income package.
“Of course… because of its connection to both AI and data, my research shows it could also grow an outstanding 5,480% by 2030 – another passive income play with huge upside.
“With all three massive income plays, you’re looking at a fire hose of cash flow over the next few decades – real money delivered to you on a quarterly basis.
“You can spend it however you want or reinvest that cash back into these stocks to compound your income growth and multiply your money.
“Of course, like I said… even with 17 straight years of dividends, nothing is ever guaranteed. But when it comes to steady cash flow, big dividend players like these are your best bet.”
The most tangible hint to start with was the one about how Seeking Alpha called the company a “stable return in an explosive industry.” Upon looking into that clue, I found this Seeking Alpha article about Digital Realty Trust, another U.S. data center REIT.
And aside from that, the only other tangible clue we have to go off is the one about how it has raised its dividend for “17 straight years,” which lines up. According to koyfin.com, Digital Realty Trust has increased its dividends for 17 consecutive years.
So, Digital Realty Trust (DLR) looks like a match.
As I mentioned earlier, Shah Gilani did tease several other stocks in his “ASI” presentation besides the above three I looked into, but those were the only ones that led anywhere.
The only other company he talked about that had semi-tangible clues to go off was one about a nuclear energy company he refers to as the “ultimate AI energy stock.”
“And there’s one nuclear stock I love. It’s primed for ridiculous profits. That’s because it’s the most politically connected company in the entire sector.
“And when it comes to nuclear energy, this company’s ability to sail through the government bureaucracy practically paves the way for its success. It’s even run by the former secretary of the Department of Energy.”
After looking into the above clue, however, I wasn’t able to find any matching nuclear energy-related companies run by a former secretary of the DOE.
Let me know what you think about this (or any of the others) in the comments below, though. As always, I love to hear your thoughts on this stuff.
Until next time, thanks for reading, and all the best!