Revealed: Colin Tedards “Elon’s Final Move” Stock

Colin Tedards of Brownstone Research is back with a new teaser.

This time he claims to know a backdoor way to Pla Musk's private AI startup.

He's calling the entire presentation "Elon's Final Move."

Colin even goes so far as to say this AI venture will create 10 times more American millionaires than Tesla did.

Of course, he wants you to pay to learn the name of the stock, but he left enough clues in the presentation to figure out the name of the company he's pitching.

I reveal it below and give you information on the stock so you can determine if it's worth investing in or not.

Let's get started now!

Breaking Down The Teaser

This stock presentation is a quintessential stock teaser.

You have a famous billionaire like Elon in the title, the promise of millions in returns, the idea you're getting a "secret" backdoor investment, artificial intelligence, etc.

Colin really used all the hacky methods of selling a stock picking service with this one!

This is a long presentation, and what it boils down to is that Colin is pitching chips.

However, Nvidia is too big to pitch now, so Colin is deciding to pitch a "smaller" chip company.

The company is AMD, and it's still absolutely enormous, with a market cap of over $200 billion.

So there is not exactly a "secret" company here.

The idea is that AMD will provide the chips needed to make Elon's future AI projects run.

But with a company the size of AMD, supplying Elon with chips isn't going to make that big of a difference.

Elon is just thrown in there to get your attention.

So, is AMD worth investing in?

Let's explore that now.

Elon and AMD

It is possible that AMD will be supplying Elon Musk's AI companies with chips, but there is no official confirmation of this yet. Here's what we know:

Evidence for AMD supplying chips:

• Elon Musk's new AI company xAI reportedly purchased roughly 10,000 graphics processing units (GPUs) in July 2023. GPUs are hardware essential for developing and running advanced AI systems. While the specific supplier of these GPUs has not been confirmed, AMD is a major producer of GPUs and has previously worked with Tesla on AI chip development.
• AMD has a strong track record in supplying chips for AI applications. Their GPUs are widely used in data centers and research institutions for AI training and inference.
• Elon Musk and AMD have a history of collaboration. Tesla, another company led by Musk, has partnered with AMD to develop its own AI chip for self-driving cars.

However, there are also some factors that could suggest AMD might not be the sole supplier:

• xAI has not publicly disclosed its chip suppliers.
• Musk has expressed concerns about relying on a single supplier in the past. He has stated that it is important to have multiple suppliers to ensure access to necessary resources and avoid potential disruptions.
• Other chip manufacturers, such as Intel and Nvidia, are also major players in the AI hardware market.

Therefore, while AMD is a strong candidate to be supplying chips for xAI and other Musk ventures, it is impossible to say for sure until official confirmation is provided.

Here are some additional resources that you may find helpful:

• What to Know About Elon Musk's New AI Company, xAI: https://time.com/6310076/elon-musk-ai-walter-isaacson-biography/
• Tesla is working with AMD to develop its own A.I. chip for self-driving cars, says source: https://www.cnbc.com/video/2023/12/06/amd-set-to-unveil-new-ai-chip-to-challenge-nvidias-dominance.html

Pros of Investing in AMD

Here are the pros of investing in AMD:

Strong Competitive Position:

• Gaining market share: AMD has been steadily gaining market share in both the CPU and GPU markets from its main competitor, Intel. This trend is likely to continue as AMD continues to release innovative products.
• Technological leadership: AMD is currently ahead of Intel in terms of chip process technology, giving its products an edge in performance and efficiency.
• Diversified product portfolio: AMD offers a wide range of products, including CPUs, GPUs, data center chips, and gaming consoles. This diversification helps to mitigate risk and provides opportunities for growth in different market segments.

Excellent Financial Performance:

• Strong revenue and earnings growth: AMD has been growing its revenue and earnings at a rapid pace in recent years. This is expected to continue in the future as the company expands its market share and benefits from new product launches.
• Profitability: AMD is now a profitable company with solid margins. This gives it the financial resources to invest in research and development and pursue new growth opportunities.
• Strong balance sheet: AMD has a strong balance sheet with low debt levels. This gives the company the financial flexibility to weather any economic downturns and make acquisitions.

Other Advantages:

• Leadership: AMD has a strong leadership team led by CEO Lisa Su, who is widely respected in the industry.
• Strong partner ecosystem: AMD has built strong relationships with key industry players, such as Microsoft, Sony, and Google.
• Exposure to high-growth markets: AMD is well-positioned to benefit from the growth of high-growth markets, such as artificial intelligence, cloud computing, and gaming.
• Potential for share price appreciation: AMD's stock price has the potential to appreciate significantly in the coming years, as the company continues to grow its business and market share.

Cons of Investing in AMD

Here are the cons of investing in AMD:

Market Dependence:

• PC market: AMD is heavily reliant on the PC market, which is currently experiencing a slowdown. This could negatively impact AMD's revenue and earnings in the near future.
• Cryptocurrency mining: AMD benefited from the boom in cryptocurrency mining in recent years. However, this market is now in a slump, which could hurt AMD's sales.
• Data center market: While AMD is making inroads in the data center market, it still faces stiff competition from Intel.

Manufacturing Risks:

• Fabless model: AMD relies on third-party foundries, such as TSMC, to manufacture its chips. This makes it vulnerable to disruptions in the global supply chain.
• Process technology: While AMD is currently ahead of Intel in terms of chip process technology, Intel is rapidly catching up. This could erode AMD's competitive advantage in the future.

Other Potential Risks:

• Competition: AMD faces intense competition from established players like Intel and Nvidia, as well as emerging startups. This could limit its future growth potential.
• Valuation: AMD's stock price is currently trading at a high premium to its earnings, which could limit future upside potential.
• Economic downturn: A global economic downturn could significantly impact the demand for AMD's products.
• Management execution: The success of AMD's future growth strategy will depend on the execution of its management team.
• Geopolitical risks: The ongoing trade tensions between the United States and China could disrupt AMD's supply chain and business operations.

AMD vs. Nvidia

Both AMD and Nvidia are leading players in the graphics processing unit (GPU) market, with strong track records and promising futures. However, there are key differences between the two companies, which impact their prospects as investments.

Here's a breakdown of the pros and cons of investing in each company:

AMD:

Pros:

• Strong growth potential: AMD has been consistently outperforming the semiconductor market, with double-digit revenue and earnings growth in recent years. This growth is driven by increasing demand for its GPUs in gaming, data centers, and other markets.
• Value proposition: AMD's GPUs offer a compelling price-to-performance ratio compared to Nvidia's products. This makes them attractive to budget-conscious consumers and businesses, which could further boost AMD's market share.
• Diversification: AMD is less reliant on the gaming market than Nvidia, which gives it more resilience to downturns in the gaming industry. AMD has a growing presence in data centers, where it is challenging Intel for market share.
• Strong financials: AMD has a strong balance sheet with ample cash reserves and minimal debt. This gives the company the flexibility to invest in future growth opportunities and weather any economic downturns.

Cons:

• Smaller market share: AMD currently has a smaller market share than Nvidia in both the graphics card and gaming markets. This gives Nvidia a competitive advantage in terms of scale and resources.
• Less brand recognition: While AMD's brand recognition is improving, it still lags behind Nvidia, which has a stronger brand image among gamers and consumers.
• Execution risk: AMD has a history of overpromising and underdelivering on its products. This could damage its reputation and investor confidence.

Nvidia:

Pros:

• Market leader: Nvidia is the undisputed leader in the graphics card and gaming markets, with a dominant market share in both segments. This gives Nvidia significant pricing power and economies of scale.
• Strong brand recognition: Nvidia is a well-known and respected brand among gamers and consumers. This gives the company a significant advantage over its competitors.
• Technological leadership: Nvidia is known for its innovative technologies, such as DLSS and RTX, which provide significant performance improvements for gamers.
• Strong financials: Nvidia is a profitable company with a strong balance sheet. This allows it to invest in research and development, which will help it maintain its technological leadership.

Cons:

• High valuation: Nvidia's stock price is currently trading at a high premium to its peers. This makes it a more risky investment than AMD.
• Reliance on gaming: Nvidia is heavily reliant on the gaming market for its revenue. This makes it vulnerable to downturns in the gaming industry.
• Limited diversification: Nvidia has a smaller presence in data centers and other markets compared to AMD. This limits its growth potential in the long run.

Ultimately, the best investment choice between AMD and Nvidia depends on your individual risk tolerance and investment goals. If you are looking for a high-growth, high-risk investment, AMD may be a better choice. However, if you are looking for a more stable, lower-risk investment, Nvidia may be a better option.

Conclusion

So that's the end of my overview of the latest teaser from Colin Tedards.

He's pitching AMD for its potential to supply AI chips.

I've given you a lot of information so you can determine if this company is worth investing in.

So, what do you think?

Do you believe Colin when he says AMD will create more millionaires than Tesla?

Let me know in the comments!