Jeff Brown is pitching a group of AI data center stocks that he claims could be the “biggest stock market winners of the next decade and beyond.”
It’s all part of an ad for his $49 newsletter, the Near Future Report.
You’re meant to join the newsletter to find out what his picks are, but I looked into the clues he shared in the teaser presentation and managed to uncover a bunch of them.
So if you want to know what his AI picks are, read on.
What Is Jeff Brown’s AI Data Center Thesis?
Jeff Brown’s AI data center thesis revolves around the idea that AI will be a multi-trillion-dollar industry moving forward, which will require the construction of many new data centers in the U.S. since the current infrastructure is obsolete.
According to Jeff Brown, Musk, Zuckerberg, and Bezos will spend trillions on new data centers in the “next few years,” and it could make investors a lot of money.
Here’s a snippet from the teaser:
“Take a good look at this building right here…
“It’s as big as 80 football fields.
“It uses as much power as a small city.
“And it’s outfitted with the most advanced technology in the world.
“Your retirement is inside this building.
“That’s right, I believe what’s inside this building could easily help pay for your retirement.
“That’s because people like Elon Musk, Mark Zuckerberg, and Jeff Bezos – the owners of Tesla (and xAI), Meta, and Amazon – will spend over $1 trillion on buildings just like this in the next few years.
“They’re called data centers…
“And I believe the companies who supply these data centers will be the biggest stock market winners of the next decade and beyond.”
[…]
“But our current data center infrastructure is obsolete when it comes to AI.
“The vast majority are incapable of processing that much data at high speed.
“So, we have to build new ones…
“Specifically outfitted for artificial intelligence.
“These AI-capable buildings are called Hyperscale Data Centers…
“Some even call them AI Factories.
“Really, they’re massive supercomputers, filled with the most advanced semiconductors, servers, controllers, and energy infrastructure.”
Source: brownstoneresearch.com
As the presentation continued, Jeff Brown explained that there are only a “few companies” capable of providing the kind of equipment required to outfit these new AI data centers.
And he (more or less) said that the companies he’s recommending are among them, and that they could make investors a lot of money in the years ahead.
“I truly believe owning a small handful of the right AI data center stocks could pay for a handsome retirement.
“Today, I’m going to share more details about these special stocks.
“What I call the Backbone of AI data centers.”
Are data centers really that big a deal?
Well, first and foremost, there’s no guarantee you’ll get rich investing in data center stocks. So take the presentation with a pinch of salt.
However, that being said, AI does need to process massive amounts of data to function effectively. And it will likely need to process significantly more data in the future as the technology advances. Which means data centers are critical.
Here’s how Brown put it in the presentation…
“Whoever controls the data, controls the world.
“Because the more quality data you have to train an artificial intelligence… the better your AI will be.”
[…]
“This is where all the work is done with AI.
“Data goes in and AI software come out. That’s why some call them AI factories.
“And the amount of data is only going to grow in the coming years.”
As for his stock picks, Jeff Brown believes there are “three pillars” to AI data center investing, and each pick is aligned with one of these three themes:
- Chips
- Memory
- Energy
Ahead, I’ll break down the specific clues Brown shared about his picks and show you what stock I think he’s recommending based on those hints.
Jeff Brown’s AI Data Center Stocks Revealed
Stock #1 (Chips): “The Backbone of Data Centers: Nvidia and Two Other Stocks Set to Dominate AI”
Jeff Brown began this part of his presentation by publicly recommending Nvidia. However, he also said that, given Nvidia’s size, there are stocks with more upside potential.
According to Brown, there are two companies that help Nvidia “maintain dominance in the chip industry.” And he says they could “exponentially outperform” Nvidia.
“It’s Nvidia’s chips that will line AI data centers, no matter who is building them.
“Despite its incredible run, I think Nvidia is still a buy.”
[…]
“But there’s something a lot of people don’t realize about Nvidia.
“They can’t build all of these chips on their own. In fact, Nvidia doesn’t manufacture any of its own GPUs.
“Nvidia employs a small network of companies to help it maintain dominance in the chip industry.
“And it’s these lesser-known companies that could exponentially outperform Nvidia’s stock.”
Jeff Brown claims these two companies are “absolutely critical to Nvidia’s operations,” and that they will “play a major role in the AI data center buildout.”
Here are the (somewhat limited) clues he shared about each pick:
“One of these companies has found a cutting-edge way to help “push the limits of physics” for Nvidia’s future chips.
“This would speed up design and production of the chips.
“Meaning Silicon Valley billionaires like Elon Musk won’t have to beg for chips.
“With backorders beyond 12 months, this could only help juice Nvidia’s revenue.
“And Nvidia Partner stock #1 could go through the roof as a result.
“The second partner stock isn’t technically under contract with Nvidia.
“But their components match up perfectly.
“And in fact, this company and Nvidia’s GPUs are partnered together in nine of the world’s top 30 supercomputers.”
What could the be?
I think the first one is Synopsys Inc. (SNPS), a California-based electronic design automation company that partnered with Nvidia in 2023.
One of the main reasons I say that is Jeff Brown’s clue above about how the company found a way to help Nvidia “push the limits of physics” for their chips.
That clue led me to an article on datacentrenews.in, which pretty much confirms Jeff Brown was talking about Synopsys when he shared that clue.
Granted, that’s not a lot to go off. But when you look at what the company does and consider that it is an Nvidia partner, it looks like Synopsys is his pick here.
What about the other company?
The main clue Jeff Brown shared about this one was that it and Nvidia’s GPUs are “partnered together in nine of the world’s top 30 supercomputers.”
And unfortunately, that is too vague a clue to narrow it down. So I’m not sure what this one is. If you think you know what he’s touting here, let me know in the comments below!
Stock #2 (Memory): “One Stock Will Solve AI’s Memory Problem”
According to Jeff Brown, the “second pillar” of AI data center investing is memory.
In short, he explained that the speed of chips has increased so fast that it has forced memory processing capacities to increase as well, and he claims that very few companies can achieve the ‘High Bandwidth Memory’ that AI needs.
Which is where the stock he’s recommending comes into play…
“The second pillar of the AI data center is memory.
“Because the speed of chips has increased so quickly, it’s forced memory processing capacities to increase as well.
“The problem is… very few companies can achieve High Bandwidth Memory or HBM – which is a necessity for AI data centers which require high performance memory.
“But there is one company that is perfecting it.
“And right now, it can sell as many HBMs as it can produce.
“I think this company has the same potential to pad your retirement profits as Nvidia and the two chip stocks I mentioned earlier.
“In fact, it partners with Nvidia in its data center projects.”
I think the company Jeff Brown is teasing here is Micron Technology (MU), a U.S.-based producer of computer memory and computer data storage.
Jeff Brown didn’t give us much to go off here, but not many companies can make the kind of technology he’s talking about (high-bandwidth memory, or HBM).
And from what I can see, Micron is one of the leaders in this space.
They’ve also been working with Nvidia to supply their HBM3E chips for Nvidia’s Blackwell platform. And according to Markets Insider, it’s planning to ramp up production.
So, Micron looks like a match.
Stock #3 (Energy): “The AI Energy Saviors: How to Profit From AI’s #1 Problem”
The last company Jeff Brown recommended in his presentation was an energy stock.
In short, AI needs a lot of energy to run, and while Brown cited numerous projects big tech companies are working on to meet these energy needs, he claims that none of them will be getting built before 2028, so we need a solution now.
“Because of the processing speed and the sheer volume of data, the centers have to be cooled constantly. They require a cool, dry environment to operate.
“And they need a huge supply of power.
“In fact, the average hyperscale AI data center uses as much power as an entire city the size of Denver or Seattle.”
[…]
“Sam Altman, the founder of OpenAI, recently sunk $375 million into a nuclear fusion power plant.
“Mark Zuckerberg is experimenting with geothermal power in the Rockies for Meta’s data centers.
“To top it all, Microsoft just signed a deal to reopen the ill-fated Three Mile Island nuclear plant.
“That’s how desperate these folks are for more energy to fuel their data centers.
“All of these projects sound great.
“And eventually, they could solve Big Tech’s energy problems.
“But not right now.
“None of these projects are scheduled to start getting built before 2028… let alone produce any energy.”
The solution, according to Brown, is a company that can help data centers run more efficiently until new energy resources come online.
“… Big Tech has found a unique solution.
“To help AI data centers manage the energy output – before new sources of fuel come online.
“There is one company leading this effort.”
Here are the clues he shared about this company:
“… they won an award from the US Department of Energy for their one-of-a-kind data center energy solution.
“And that led to a coveted partnership with Nvidia.
“Their solution would allow data centers to run at 20% better energy efficiency right now.
“But as a member of Nvidia’s Partner Network, they now have access to technology that could rapidly improve their own innovations.
“And you can bet Nvidia will be calling them every time its chips are installed in a new data center.
“This under-the-radar stock has seen its revenue grow 50% in the last three years. And reported $2 billion in revenue in the third quarter of 2024 alone.”
Based on those hints, I think this one is Vertiv Holdings (VRT), a U.S. company that provides critical infrastructure and services for data centers.
Why do I think it’s a match?
- First, the company, in collaboration with Nvidia, secured a $5 million grant from the U.S. Department of Energy as part of the department’s “COOLERCHIPS” program. As the name suggests, the program was focused on reducing the running temperature of chips and, in the process, improve data center energy efficiency.
- Second, Vertiv joined the NVIDIA Partner Network as a Solution Advisor in 2024, so that matches Jeff Brown’s second clue about it being an Nvidia partner.
- Vertiv reported approximately $2 billion in revenue in the third quarter of 2024, which lines up with Brown’s clue about its revenue.
Recommended: Go here to see my #1 rated stock advisory of 2024
Bottom Line
So, there you have it – three stocks Jeff Brown teased in his presentation that have now been uncovered by looking into his clues!
I can’t say for certain that all of my guesses are correct, but they appear to be the best matches based on the clues he shared in the presentation.
How can you find out for sure?
The only way I know of to find out for sure what stocks he’s teasing would be to join his investment newsletter, the Near Future Report.
Is that a good idea?
On the one hand, Brown has recommended some decent investments over the years, and he’s very knowledgeable about tech-related investments. However, he’s also recommended his share of duds, so I wouldn’t expect all his recommendations to work out.
In any case, at least now you don’t have to join his newsletter just to get those tickers.
So I hope you enjoyed the post!
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