One week…
That was the difference between making a 697% gain on tiny semiconductor testing company Aehr Test Systems when it snagged Tesla as a customer…
…and making a 1,330% gain.
On July 16, 2021, Aehr had an earnings call with investors. And it announced it had landed a “major Fortune 500” customer.
It didn’t explicitly say this company was Tesla. But Aehr’s CEO, Gayn Erickson, mentioned Tesla 11 times on the call.
He was hinting heavily that Aehr would be Tesla’s chosen partner for testing the chips going into its EVs.
And investors got the message…
Aehr had a market value of just $130 million at the time. That was just 0.1% of Tesla’s $620 billion market value.
And when a company that small snags a partner so huge the profits can be explosive.
Take a look…
Investors who saw how the “Tesla Effect” would cause profits at Aehr to shoot higher… and bought shares… had the chance to make 1,330%.
Folks who hesitated, and invested just one week later, made 697% – less than half that return.
It’s a crucial lesson for us as investors.
To make the kind of gains that can radically improve our financial position, it’s not enough to be right about a stock.
We must act fast… and buy at the right moment.
If we give into inaction, we’re cheating ourselves out of potentially life-changing profits.
And that’s the situation we’re in today as investors with the artificial intelligence (AI) boom.
There are dozens of small, under-the-radar stocks like Aehr primed to explode higher as a result of strategic relationships with larger AI companies.
But to earn those gains, we can’t wait around. We have to act NOW… before it’s too late.
Nvidia makes the H100. It’s the premiere chip for AI systems.
These chips are the “brains” behind AI.
They’ve been largely responsible for the series of breakthroughs in AI we’ve seen lately.
And investors have been piling into Nvidia shares as a result.
The company has more than tripled its market value from $352 billion to $1.1 trillion this year alone. And shareholders are sitting on 197% gains over that time.
But as I’ve been showing you, the biggest gains are over for Nvidia.
At a $1.1 trillion valuation, Nvidia’s best days of growth are behind it.
That’s just basic math…
A $1 trillion company needs to add $10 billion in market value to move its stock 1% higher. By contrast, a “small-cap” stock worth $1 billion has to add just $10 million to have the same effect.
Nvidia is also priced for perfection. Its shares trade for a price-to-sales ratio of 34. That means you pay $34 as a shareholder for every dollar of sales the company makes.
Investors only have to pay about $8 for every dollar of sales its nearest rival, Advanced Micro Devices (AMD), makes. That’s a 4x markup for Nvidia.
I’m not saying Nvidia’s shares won’t go higher. I’m saying the days of rapid triple-digit returns have come and gone.
But just because we’re not investing in Nvidia doesn’t mean we can’t profit from its success.
That’s why I’ve been recommending smaller companies that are key suppliers of Nvidia at my Exponential Tech Investor advisory. These stocks are on the cusp of profiting from the “Nvidia Effect.”
One AI micro-cap I’ve been researching could deliver gains as high as 30x as a result of this effect.
And there are other tiny AI-related companies no one is looking at that have the potential to return as much as 50x, perhaps even 100x, if you know how and where to find them.
But these opportunities won’t last long.
If you’d waited a week or more to buy the tiny Tesla supplier, your gains would’ve been cut in half… or more.
And the same thing will happen with the smaller companies that are integral parts of Nvidia’s supply chain.
In fact, investors are already quietly building their positions in these tiny companies.
Take my No. 1 Nvidia Effect recommendation.
It’s a specialized testing company for Nvidia’s GPUs – similar to what Aehr does for Tesla.
And investors are starting to pile in.
Over the past three weeks, shares in this company are up 9%. That compares with a 5% drop in Nvidia’s stock price.
Just like with AEHR, every day you wait is a wasted opportunity.
That’s why I hope you’ll join me at 8 p.m. ET tonight for my first major event at Brownstone Research.
I’ll show you the full potential of the Nvidia Effect and how you can profit.
I’ll also share details of my No. 1 Nvidia Effect recommendation. This company’s market value is just 0.2% of Nvidia’s. That means the upside is much higher – potentially 10x… or even 20x returns.
If you haven’t already, it’s not too late to reserve your spot with one click here.
I know I’ve been pounding the table on this opportunity all week. But I don’t want you to miss out.
I’ve been investing for 20 years now. I know windows of opportunity like this don’t come around often. When they do, you need to strike. Otherwise, the opportunity will pass you by.
And that’s what tonight’s event is all about – showing you how to act on this rare opportunity.
Here’s that link again to sign up.
I look forward to seeing you there!
Regards,
Colin Tedards
Editor, The Bleeding Edge
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
