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Artificial intelligence took the world by storm last year, where 35% of global companies are
utilizing AI in the workplace, and over 70% of those companies are researching how to leverage
AI further in their business. And one estimate has the global market size of AI in 2032 to be
over $2.8 trillion, which would result in a Kager or compounded annual growth rate of 19%
a year. To put that into context, if you invested $10,000 today and another $10,000 every year for
eight years with a 19% Kager, you'd have over a quarter of a million dollars. As an investor,
these are fantastic times to take advantage of this AI revolution, which is why I'll be
going over the top seven AI stock to invest in for the first quarter of this year. I say the
first quarter because I'm pretty certain that the landscape is going to be changing drastically in
AI throughout the year. And if you're new to the channel, I'm Brian and I retired at the age of 46,
which did happen to be about a year or two ago. And that was after working my corporate
jobs with companies like Target and Amazon. And if you're interested, I did cover a lot of my
journey in this video right over here and why I retired early. With that, let's get started with
the top seven AI companies that have my attention right now. And please know there is an extensive
list of AI companies to choose from, but I'm only highlighting the few that I think have long-term
potential or they make the most sense today. And I'll try my best to cover many of these other
companies in future videos. Now within the scope of AI, there's essentially three main areas of
focus for growth that I'm looking at. And that would be software, hardware, and web hosting
for the backbone of those large language models or AI chatbots. The first company to review is
CrowdStrike, which is a cybersecurity company that provides cloud protection and endpoint security,
threat intelligence, and cyber attack response services. Their threat detection and deterrence
is offered on their Falcon platform. And as AI tools become more broadly available,
then it's easier for those cyber attackers to gain more tools and resources. The demand and the
need for companies like CrowdStrike, I think it's only going to grow over time. And I truly believe
they're going to have a long runway of growth ahead of them. Over the past year, the stock has
gone up over 167%. But over the past three years, it's up only 6.5%. And it hasn't even met up with
its top price of $293, which it had back in 2021. So right there, we know that there's some upside.
An item to point out is that their revenue is over $2.2 billion, but they have a negative 8%
margin. They're only 13 years old, and they are on the verge of making profit. And once they do,
then I'm certain that that stock is going to take off. And given that their revenue growth has
nearly doubled the past few years, it has a lot of growth ahead of it. This is a company that I spoke
about a few times last year. And it truly helped out my portfolio where I look at it as a long term
fit for me. The next company is one that everyone should have in your portfolio. And that's Nvidia.
They're known for their graphics cards, but their GPUs for AI servers is where they are truly the
hottest ticket in town. So hot that it's estimated that they have a 90% share of all AI GPUs. But
despite all their recent growth, analysts still speculate that there is a lot of growth ahead of
them. And since there are only a few players in the hardware part of AI with such dominance, they
stand to be at the top of AI for quite a while. It's hard to believe that they had a 228% growth
last year, and it was at 277% over three years. And their PDU ratio is pretty high at 64.
But with the AI growth happening right now, I don't think anyone knows what the true ceiling
is. Even though I bought heavy into Nvidia last year, I'm still investing quite a bit this year
for the long term with cost value averaging. Now there happens to be a competitor to Nvidia
in the AI hardware space called Cerebris that has the industry shaken up because Cerebris
is creating the largest supercomputer for AI called Condor Galaxy, which is created with the
Cerebris' proprietary wafer scale engine, which is 27 million computer cores with 41 terabytes
of memory made from one large wafer. Now this is a company at the forefront of AI hardware,
but unfortunately, they aren't listed on the stock exchange. The only way to invest pre IPO
is through an investment firm or from today's sponsor Linkto, which is a platform dedicated
to democratizing access to investing in pre IPO fintech AI companies that aren't really available
to us everyday investors. Linkto's platform provides the resources to research several
different AI companies not listed on the exchange, and it gives its customers the freedom to select
the companies that they want to invest in, which isn't always the case with some of those other
investment firms. Linkto is already providing over 600,000 everyday investors access to private
investing. And my viewers get a $500 discount on their first investment using the discount code on
the screen, which is available for the next 30 days as a limited promotion. Links are in the
description below. The next AI company is UiPath, which is a software company that provides robotic
process automation. Their software can observe, map and optimize processes within a company. And
the beauty of it all is that they can bolt on top of a company's existing legacy system. From there,
it can provide near immediate results of automation with a relatively low cost. I
personally consult with larger companies all the time. And robotic process automation is extremely
hot right now because all companies are looking for a competitive advantage and ways to reduce
their costs. The company had a great one year return, but the three year at negative 66% is
horrible. And from looking at the PDE ratio, you can see that it is operating at a negative margin.
Their IPO was April of 2021, and it peaked at $84 and it's trading at about 27% of that today. It
has come down to near bottom levels. And this is another company that once the profits kick in, the
stock price is quick to follow. I happen to put this one into my bucket of long-term investments
where I don't go all in, but I do keep investing in it whenever the stock takes a little bit of
a dip. And at the end of this video, I'm going to provide you a list of my priorities when it comes
to investing in these companies. I'll follow that up with Arista Networks, which develops
manufacturers and sells hardware and software tools for data centers and cloud computing.
Essentially, they create the tools specific for managing and routing the communication of networks
and cloud computing. And as more companies build out or rely on AI cloud computing solutions,
then Arista Networks is going to have a strong growth trajectory. As for performance, they did
amazing last year with a 111% growth and their three year was also stellar. But with the beta
and the PDE ratio being relatively low, they're almost a value in the growth sector of AI. This
is sort of my Cinderella within the group that not everyone is talking about. I happen to talk
about a fair amount last year and I pounced on the stock and they've been a stellar performer for me
in the short term. The next company is my prior employer, Amazon, where they have a lot going for
them with regards to the health sector, their ad revenue, AWS, and their large language models for
companies to train their own AI. This is where the need for computers to leverage Amazon's AWS for
cloud-based AI models will result in many years worth of growth. Currently, AWS makes up about
13% of Amazon's revenue, but it accounts for 74% of the operating income. And on the retail side,
their ad revenue had over a 26% growth in 2023. And now that Amazon's going to be putting ads on
their prime shows, then I expect that their ad revenue is going to jump drastically this year.
In looking at the performance, the one year is decent at 69%, but the three year is abysmal at
a negative 5%. And when you look at the fact that the stock is way below its high of $185, I believe
the next two years are going to be stellar due to the upside in margin. Keep in mind that they took
massive layoffs last year and they killed most all of their physical store formats. They trim
all the fat last year and they've refocused their investments going into 2024. Before moving on,
if you like my content, please help out my channel by hitting that like button. And better yet,
it'd be great if you'd consider subscribing. Next, I'll follow that up with Palantir,
which is a company that provides the most complex AI operating systems to tackle real world high
stakes problems where their Foundry platform is a secure and scalable data fusion and analysis
platform where it can take in structured and unstructured data to allow users to interact
and analyze complex information on the fly. They offer the most comprehensive and complex AI system
that I've ever seen. And any company that leans into their Foundry platform is going to create
a massive competitive advantage. I am genuinely impressed with their platform and I've worked on
some very complex AI pricing models while I was at Amazon that I guarantee most all of you interact
with today. Believe me, Palantir's AI systems are top tier. As for Palantir's performance,
it was up 157% last year, but down quite a bit over the three years. Despite their beta and
P to E ratio being the highest of anyone on the list today, they're going to be a major player
long-term with an AI. Several analysts downgraded them recently and that's okay because it opened up
a major buy opportunity for the rest of us. And this is another one of those companies that I'm
not going to go all in, but I do keep investing on it regularly because I do think that they're going
to be great over the long term where no other company really offers the same AI solutions that
they do at the same level. And I'll follow that up with Microsoft. And it seems weird to be calling
out some of these huge companies to be at the top of the growth chart with AI, but many of them are
creating the tools and the infrastructure for other companies to leverage their AI
tools for consumption. And with Microsoft's Co-Pilot launching just a month or so ago,
it is for larger companies where it costs $30 per person per month. And that may seem excessively
high, but if Co-Pilot can help write documents, design a PowerPoint from a set of bullet points,
or analyze Excel documents with the touch of a button or summarize teams meeting notes with
calls to action and follow-ups, it will easily provide several hours worth of productivity
per person per week. And I've spoken to a few people that are using the AI Co-Pilot
and they've referenced it to being on a drug. Now that they're on it, they can't imagine not having
it. One article speculates that Microsoft plans for 20% adoption of Co-Pilot by 2026,
and it's going to bring in $10 billion a year. But what if that number jumps to 30 or 40%? I
think it's impressive that Microsoft was able to completely change their model and infuse AI into
their office products, all within a one-year timeframe. They literally need to write a case
study about how that all went down because I would love to know. And as for performance,
they're up 64% in one year and up a total of 75% over the three years. And when you look at the
low beta and P to E ratio in conjunction with the dividend, Microsoft is a value proposition right
now. And as I mentioned earlier, I am going to show all those different companies on the
screen and how I am prioritizing them within my investments. I appreciate you watching the video,
and I do have a link to some affiliates that are giving away free stock potentially worth thousands
of dollars if you sign up with their stock trading platform. It helps support the channel and hey,
you may wind up getting a few hundred dollars worth of stock. Thanks so much for watching.