Tech guru reveals the cheapest way for investors to play the AI trend

Jo even now uh sator fund founder portfolio manager Dan NS Dan first I just want to get your thoughts the FED is back to being the friend of the market yeah I mean they they've been friendly to the market now you could argue since 2008 so nothing has really changed um but you're absolutely right they're not going through the fastest rate hike in history they've been on pause now for a while and we know that it's a matter of when not if they cut rates based on what J poell told us yesterday so an

d they're going to cut back on their quantitative tightening so definitely the FED has your back if you're an investor in this market so I'm loving this movement in Micron in part full disclosure because my subscribers own it okay it's always great to have the number one stock when you subscribers own it you know what I'm talking about but also this AI part of it right they they say it in the in the first thing they say it's it's all about AI it's turned that company around uh so listen the semi

conductor they've already made this garanto move are there any Bargains in that space at all you know you know Dan is like the best when it comes to technology but his gear always goes down uh we'll work we're going to work on Dan's gear uh the reason I brought up the semiconductors they have been absolutely on fire as everyone here knows and here's the thing you know you you hate chasing stocks but by the same token by the same token you have to to have exposure I don't know where you want to b

uy any of these things but I think you have to have some exposure when it comes of course to these technology stocks we're going to try and get Dan fixed and in the meantime we'll bring in a different Dan uh Dan flax who's uh again you talk about someone who in terms of an analyst on Wall Street who understands this Dan I always have to give you a props because you have long-term Vision you know a lot of our guests I mean me too I'm a tech I I I use fundamentals then I use techn then I use techn

ical analysis and then I use little behavioral analysis you're more of a of a fundamentals guy and I think that helps with the sort of crazy gations I can't tell you this year how many stocks we were stopped out of and then 10 days later they went through the roof you don't have to deal with that because you look at the fundamentals and I want to start with apple because Apple's a name that a lot of people are worried about you got the doj action today other things happening elsewhere you're not

really focused on that though are you Charles what we're focused on with apple remains its ability to ex Ute on their product Cycles demand in the near term is difficult China is is soft uh clearly we have uh there have been rumors around the doj lawsuit we have the news out today but if we step back and think about how this story in my view is going to evolve over the next 12 to 24 months I think you see better growth driven by product Cycles in iPhone in iPad which which has had a tough coupl

e of years you'll see new products Services remains healthy and so as we look into late this year and 2025 I think growth continues to improve most most importantly in my view is this is a story about empowering others the ecosystem is vibrant the ecosystem is vibrant and the irony of of empowering others uh that was sort of part of the theme for NVIDIA this week uh this AI stock Woodstock thing by the way did it go did it live up to the hype this AI Woodstock it did and and what the company has

demonstrated time and time again is the ability to innovate with the chips with the software continuing to attract new developers and and really broadening their reach so if you think about manufacturing environments as one example you have digital Twins and so that helps to to Really transform say how automobiles are built think about drug Discovery climate change fraud detection a whole really explosion of use cases that Nvidia really sits at the heart of and and we've got here folks the the

so-called magnificent 7 one of the things they all have in common is that they're all sitting on a ton of cash uh we've got Don NS back Dan I want you you and Dan flax to kind of share the stage here if you don't mind you talked more recently about the Magnificent 7 being the Magnificent 4 let's talk a little bit more about them because uh again the when we were talking I was talking semiconductors but the the frustration for me is where do I go what have I missed it all where can I find opportu

nity still at this stage of the game I think if you look at this longer term AI you only had chat GPT burst onto the scene in November of 2022 so we're you know for 14 months or so into this and if you go back and do the analogy of the internet when Netscape came onto the scene at the end of 1994 the first 14 months into that Rally from the end of 94 through February the NASDAQ was up 47% but to get to the peak it closed up 571 per. so you're really not that deep into this because it took the in

ternet bubble five years to reach its peak not to say that there weren't pullbacks along the way but I really think if you want to participate and you you're honest with yourself and you say ignore the stock prices for a second and look at the fundamentals Nvidia is a rare company of names that have beaten and raised for over a year now and it's only trading at 40 times earnings for 90% Revenue growth so it's actually believe it or not despite the fact that the Stock's up so much over the last y

ear or so it's still one of the cheapest ways to play the AI Trend because they're gobbling up market share whether it's microprocessors gpus networking chips Etc and they're really at the heart of it and so that's to me is my exposure to the AI trade for however long it goes on right and Dan flat uh I've got the the again the table up here uh they're all sitting on on a pile of cash uh so they're not worried about you know debt walls and maturities and all those sort of things but to to to Dan

nil's Point uh it it I remember I think it was 2008 NV video was on a cover of Forbes it's the company of the year right it promptly went down 90% stayed that way for a decade now they're all really getting their thing going you like all do you still like all of these names for the most part we we continue to own all these names Charles it's it's driven by The Innovation the aggressive levels of investment think about Microsoft or Google Amazon they're investing tens of billions a year in capita

l expenditures and R&D and that is in turn generating huge amounts of free cash flow but the key these companies is to experiment extend into new markets not everything's going to work so so Dan for you and the for you and our audience ride the waves the periodic times they may fall out of favor for a quarter or two hold in your mind hold on to them if you are a long-term investor correct selectively find the names that offer the most uh risk or most attractive risk reward over the next 12 to 24

months and and buy those and accumulate them over time hey Dan I want to give you uh Dan Nils I want to give you s there there's a name you mentioned on the show uh in late October uh impinge Pi is a stock symbol here's where you liked it here's where it is right now and the reason I love when you come on with these sort of ideas is you're you're moving out you're moving away from everything everyone else is talking about one of the things I've been trying to underscore there's a lot of ways to

make money in a bull market like this do you still like this name and is there and there other thesis out there that you're working on like this yeah I mean we're trying to look at it areas outside of the names that everybody talks about all the time and impinge is a great example of that where they're in the radio frequency identification Market which simply is you put a chip on anything you ship all around the globe and you're only tagging less than 1% of those items and now you've got chip t

echnology come down so much that I think you've hit an inflection point Amazon actually adopted this technology late last year after looking at it for probably a decade and so I think you've gotten to that level where you go wow this is a market that you could see 20% plus Revenue growth for arguably the next decade and you're still underpenetrated and impinge is a market share leader with 45% of the market and oh by the way they want a lawsuit where they're going to have to get their technology

licensed by the number by the other guy who has the other 45% which is nxp and it's massively acreative to EPs and nobody's ever heard of this company so that's the type of stuff we're trying to find where it's not the same thing everybody else owns and some place where you have EPS leverage because quite honestly a lot of that magnificent 7 you've got several of them where numbers have been going down for over a year and you've been lucky because the fed's been on hold yeah and by the way nxp

was one of the rare IPOs that worked out last year it's a name probably worth looking into we had a snapu here uh you can Google what that really means in the meantime I want to say thank you to both Dan Dan flax Dan Niles you are two of the best so we're lucky to have you kick this show off thank you both very much