Join Bill Gunderson, president of Gunderson Capital Management, broadcasting live from Longboat Key, Florida, as he analyzes current market conditions and forecasts future trends. In this episode, Bill discusses the ongoing bull market and its implications for investors. He also explores global politics affecting the market, including potential shifts in oil imports and how these could impact trade. Additionally, Bill dives into the latest advances in AI technology and its place in the investment landscape. From rare earth elements to nuclear energy, discover the latest industries promising growth potential. Bill shares personal insights and expert opinions on identifying market
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He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
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And welcome to the Thursday. It is October the 16th. This is Bill Gunderson, president of Gunderson Capital Management. And I’m here with Barry Tide, our chartered financial analyst and certified financial planner, broadcasting live from the beautiful St. Regis Hotel in Longboat Key, Florida. Oh, boy. It doesn’t get any better than this, Barry. The market is up a little bit. It’s in the green today. The NASDAQ’s up, oh, about 60 basis points. The NASDAQ’s up 130, 22,800 as it closes in on another all-time high. The S&P is up a quarter of a percent. It’s up 17 to 6,688. And the Dow Jones Industrial Average is up 56 points this morning. That’s 18 basis points. Now it’s up 81 to 46,334. Gold is up again. Another new high on gold. It’s having a banner year, obviously. Gold is at 4,266 after just recently breaking the 4,000 level. And silver. recently broke the $50 level. It’s at $52.18. Oil is up a little bit. There’s some news out of Russia or Japan and India on Russian oil. And Bitcoin is down a little bit. Bitcoin’s at $110,000. So welcome to today’s Best Stocks Now show. with professional money manager Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based only money management firm. And I’m here with Barry Kite, our chartered financial analyst, certified financial planner. And we continue to have this bull market in place for now. From my perspective, it’s been going on. Yeah, from my perspective, it began in 08, actually March of 2009. And it’s been going up ever since because earnings have been going up ever since. And earnings are expected to continue to go up in 2026 and in 2027. And the market is trading on those earnings expectations, albeit at some very rich multiples, which make the market vulnerable at this point in time. We had a so-so day yesterday in the market. Not a lot happening today. But today we’ve got quite a few earnings reports. Taiwan Semiconductor has reported. And we’ve got news on the China trade front. And other things, rare earth as usual, nuclear as usual, AI as usual, which seems to be grabbing a lot of the headlines. But before I begin, I did get a chance. My father used to tell me, you know, my sister lives down in this area. And their favorite place to go was Burns Steakhouse up in Tampa. And my father always said, Billy, that’s the best. And I finally got to go last night with the crew I’m here with. It was something. You’ve got to go there once in your life at least, everybody. The whole upstairs is devoted just to dessert. They have a dessert bar up there where you get a private little table and and your own waiter, and it’s just a dessert menu. And then, of course, the downstairs. Do you know that their wine collection, Barry, I was doing the math on it, I think it’s like $80 million in water.
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It’s got to be, yeah.
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It’s unbelievable. It’s just unbelievable. What are you going to do with all that stuff? What if there’s an earthquake? Is it insured? I don’t know.
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I would imagine a portion of it certainly is insured, but the question is how much is that note each year, you know, premium payment each year, right?
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And it’s kind of a whimsical place in a way. It very much is, yeah. But I certainly enjoyed it and had a great time there. And, of course, I’m going to join a board of directors this morning for about an hour and give them a few tips on marketing in this neck of the woods. And tomorrow I’m speaking after my nephew speaks. I talked with him a lot last night about what’s going on in AI. Him and one of his students have written a paper called It’s very similar to, you remember Intel and the speed of the chips, and they actually had a gauge for that. at how fast the chip rates were accelerating at. What was that called? I can’t remember the name of it right now.
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Yeah, but it was showing the personal computer the power of it, how quickly it ramped up. I’m trying to remember what it was.
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And it had a name. It was the founder of Intel that invented that kind of an index. Well, they came up with an index of the speed of A.I., and how quickly these models have sped up over the last several years. And the paper has been widely circulated, and now they’re getting interest to come speak at Anthropic and also at, you know, the other big one, OpenAI, Sam Altman’s group. to go out there and speak on this index that they’ve come up with. So he’s a smart kid, man. He’s not a kid anymore. I think he’s 57 or so, and I spoke a lot with him last night. So anyway, it’s an interesting world. And, you know, I spoke to him about how, you know, Rory, since I’ve been in the business in the late 90s, I have seen it all. The advent of the personal computer, the advent of the Internet, the advent of the iPhone, the advent of, you know, gaming, the advent of graphics chips, the advent of artificial intelligence. I mean, it’s really just been unbelievable to watch. what is going on. And now we’re getting into the realms of rare earth and nuclear and portable nuclear reactors. I don’t know if you saw that story, if you went over that, about how the Army now, because of the advanced weaponry, they can’t run it on diesel generators anymore. You know, if you’ve got a missile launcher out in the battlefield somewhere, it’s running on a diesel jet, they’re going to need portable nuclear reactors. And, you know, that bodes well. And Rory said, you know, Bill, he spent a day at my house maybe a year ago or so and watched me go through charts. He said, Bill, everything that you said about nuclear and AI and rare earths, he said, I’ve watched it actually come to pass during that period of time. And I said, well, you know, Rory, I’m just in the news every morning. I get up before most people do. And I go over all the news items that I can possibly assimilate in a few hours. And then I look at all these charts every single day and watch breaking news on them. And I see the earnings reports and whatnot. So that kind of keeps you on top of what’s going on. But it is very labor intensive. But it’s also something that I enjoy greatly, obviously. And I love keeping the audience. I would like to think that we’ve got one of the best informed audiences out there. You know, we’re not talking about annuities, and we’re not talking about private debt, other than warning you about private debt.
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And I put our client base up against any in terms of stock knowledge or market knowledge, for sure.
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Yes. And, you know, Salem is… Offering me some more markets out there. You know, a lot of time is available now with the passing of Charlie Kirk. So you never know. We could be coming to a market near you very soon. Well, on the world front, we’d like to begin there at the Globe. Trump says India, President Trump says India will halt Russian oil imports. Now, that would be a big victory. He was pretty mad at Modi. with them buying Russian oil. I mean, you can’t be making deals with the U.S. on the trade front and wanting our business and in the back door letting in Russian oil and doing business with Putin, which is funding the killing of Ukrainians and the funding of his war. That’s been a sticking point. To me, that would be a big victory. And the other one, I didn’t know that Japan was buying. Of course, Japan doesn’t have any oil. That cost them dearly in World War II. But the U.S. expects Japan to stop buying Russian oil also. And you know who’s negotiating these deals? I just have the most admiration for Scott Besson. What an asset he has been in all the different areas that he has been involved in, in smoothing the waters and working things out and also being tough. With these countries, we are really fortunate to have a guy who made plenty of money in the private sector, you know, come to work in Washington and be involved in all the things he’s been in. So we’re very proud of Scott Peston, a fellow Charlestonian. We’ll be right back. A lot of news on AI and nuclear today.
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I’m your native son. I’m the train they call the city of New Orleans. I’ll be gone in 500 miles when the day is done.
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And welcome back here to the second quarter of today’s Best Stocks Now show. You know, the relation with China and the U.S., it’s still pretty heated. It’s very much heated. I can’t see where they’ve made much progress, but Besson has been kind of teasing, hinting that there may be something break here soon. And, you know, yesterday he made the statement that we don’t care if the market goes down. We’re going to stand tough with China. So there’s another risk that you can think about with your portfolio. But a lot of companies are moving out of China. Microsoft aims to make most of their new products outside of China beginning next year. So, you know, China’s got to be feeling the pinch here. And I know that the trade and the amount of commerce that they’re doing, the amount of exports that they’re doing, has dropped pretty dramatically. So we have a lot of leverage, and their leverage seems to be the rare earth minerals that they’re kind of banking on and using, obviously, as leverage against us. The average price for a new car just topped $50,000. Now, I remember, Barry, when the average price of a condo was $50,000. Wasn’t that long ago? I don’t remember what I paid for my first condo. It was under $100,000. Now you can barely buy a car for that. So $50,000 now is the average price. Crypto stocks. The short interest on crypto stocks. Okay, we’re talking… Strategy, Coinbase, Core Scientific, Mara Holdings, CleanSpark, BitFarms, Hive, and all of these. I still believe that that’s one of the biggest bubbles in the entire market is the digital assets. It’s a very controversial area. I know a lot of people very much believe in it. and are heavily invested in it and have made a lot of money in it. But I’ve just seen, you know, when biotechs and small industrial companies really aren’t making it with their current business model, they’re adopting a new business model of owning one of the cryptocurrencies. Okay, not necessarily Bitcoin, even some of the lesser-known cryptocurrencies And I just see, I mean, when you’ve got a stock in a company that is pretty much solely based their success or failure on the price of the underlying cryptocurrency, that’s not a good place to be in from my standpoint. And I worry a lot about the digital currencies. Critical Metals raises $50 million in a public equity private investment in a public equity through a private investment in public equity the funding comes from a fundamental institutional investor signaling strong market confidence now why i bring up critical metals i own a little bit in my trading account and it’s done very well but that’s pretty much the play on greenland of course you remember all the interests that trump had in greenland and uh His son flew over there along with the late Charlie Kirk and others looking at developing those markets in Greenland for rare earth. But critical metals, CRML, is basically the play there. Anyways, they believe that the Tan Breeze project in Greenland holds a 4.7 billion metric ton rare earth deposit. Carmel, let’s see how it’s doing today, CRML. And there was word that the U.S. was going to invest in it, but as far as I know, they haven’t. Now the stock is down 2.2%. But this is a stock that was trading in the $1.30 area several months ago, and now it’s $22 per share. and a market cap of $209 million. So it’s still a very risky micro-cap stock. NIO faces scrutiny after one of the largest sovereign funds in the world files a securities fraud lawsuit. And guess what it’s about, Barry? Inflating revenue by over $600 million through deceptive accounting methods related to its battery leasing operations. So that’s one of the major EV car makers in China, and that’s, of course, the risk you have investing in China. Now, the market doesn’t seem to think there’s much to the story. The stock’s only down 1% today, but that’s a pretty serious charge of inflating those revenue numbers and just reporting whatever you want to report.
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Yeah, what they’re probably doing is kind of if you have, say you’re leasing batteries over time, they’re probably recognizing all of that revenue now. even though they’re not going to get that revenue over, you know, it might be paid over a five-year period, right? Right. We’re booking it now. It’s got to be some type of revenue recognition issue would be my guess.
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Yes. Now, the warning part of the show. I always try to warn against things that I just don’t like. Coinbase launches a U.S. Bitcoin yield fund for accredited investors. Okay, Barry, what is an accredited investor?
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Yeah, accredited investor is you’ve got to meet certain thresholds to be even able to invest in it, whether it’s net worth, combined net worth minus your home or income. The point being is the assumption there is, I guess, if you meet those thresholds, then you’re wise enough to make your own decision in terms of investing in something that could be fairly risky, right? Yeah. And potentially illiquid. I don’t know about this particular vehicle. It sounds like there may be some liquidity to it versus staking your crypto coin or token.
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Well, and you asked the question, how do you generate yield from Bitcoin? Well, here’s the risk part of this whole thing. They’re going to, inside this fund, USC BYF Yield, the U.S. Bitcoin Yield Fund, They’re going to generate income from a combination of Bitcoin private credit lending. There’s that private credit thing. That’s where they’re getting the yield from. And trading of Bitcoin. Now, how reliable is that income stream? And how risky is that income stream? But I guarantee you, this will be a hot product because it will offer a yield that is above market. And that, to me, that risk is just off the charts as far as I’m concerned. Coinbase is a very large publicly traded company. Caliber Companies, here’s their new business model. They acquire Chainlink tokens worth $2 million. They’re the first listed company to publicly adopt a treasury strategy anchored in in link this is another one of the out there in the netherlands hinterlands of the digital assets that’s their strategy this is that speculative area of the digital uh market that i think is in very big trouble going forward we’ll be right back so much and he won’t play what they say to play
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This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
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And welcome back here to the second half of today’s Best Docs Now show. Moore’s Law, that’s what I was trying to think of.
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very famous, uh, uh, formula or, uh, a, uh, you know, an equation which states that the number of transistors in an integrated circuit doubles approximately every two years. And of course it’s been pretty much true. It did slow down around 2010, slightly below the pace predicted by Moore’s law. I’d like to see that updated, uh, and where it’s at today, uh, with the Nvidia chips. And the AMD chips also. That would be an interesting thing. I’ll ask the academic from Harvard today and see if he’s got any insight on where Moore’s Law stands today. But like I say, they’ve created an index on the speed of the language models that the AI companies are using. And, you know, the other thing, I know this to be true. I was talking with Rory last night. He doesn’t think that any of these AI companies, the private ones, OpenAI, Anthropic, number one, there’s going to be one big winner. You know, everybody’s got their own little model. Elon Musk has Grok, and there’s Anthropic, and there’s OpenAI, and they’re making all their money through subscriptions to even the professional versions of the artificial intelligence, but When he looks at their models of revenue and the overhead, Barry, the price of the information that they’re obtaining, he doesn’t see how they’ll ever be profitable models. So take it for what it’s worth, but there’s a kid that’s got a Ph.D. from Stanford and worked alongside Clay Christensen at Harvard, and I agree with him. What is the cost of that information when you’re going out and scanning all the information we have in the world? Well, and power.
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Yeah, throw the power part in there. I mean, they used to say Bitcoin spent a lot of energy, right? Well, now AI, you think AI spends a lot of energy? Well, yeah. You say for what, right?
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The cost of that information that most of us are getting for free, And, you know, how much are they going to generate in revenue to offset the cost of obtaining that information? So, anyway, that’s something to watch going forward, whether or not OpenAI, which people are throwing hundreds of millions of dollars at Sam Altman and OpenAI and Anthropic and a lot of these private equity… that’s available now to the general public has exposure to those companies. Well, even they have a ton of risk because they still have to be profitable, earn a profit at some point in time, just like any other company. And it’s really questionable. Oracle continues to become relevant again. You know, a lot of companies have been left behind, left in the dust by the rapid advancements that we’ve had in medicine. And in this whole AI technology, Oracle, it took them a while, but I think that they’ve all of a sudden become a big, major, relevant player. They are revealing a new AI data platform, new partnerships at the AI World event. And I really like the way that the stock is behaving here recently. We do own Oracle, again, in our premier growth portfolio. And I think that they’ve made some very good decisions recently. That’s another thing in the business world. I’ve seen some bad decisions. I think Time Warner buying America Online back in the year 2000 was one of the worst decisions. Here’s one recently. Jack in the Box, I remember maybe a couple years ago, they bought Del Taco. I said, why would you buy? That’s a garbage company with garbage food. Well, Barry, they paid $548 million for it, $585 million, all cash. Cash is precious at a company, and they’re selling it to Yadav Enterprises for $115 million in cash. So they’re going to have to book a loss of about $400 million on that deal. So whoever the exec was was saying, you know, I think we should buy Del Taco.
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bad decision cost them a lot of money i mean you know when we don’t taco i’m not gonna lie you know the kids uh whenever we find one of those particularly on the west coast it’s like the kids like it because and i think it’s funny because it reminds me of you know the original taco bell or right what taco bell used to be it is it’s just garbage there’s never anybody in there and i just you know i i well you know i look at decisions that
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private people make on their companies and whatnot, and I think that’s just not a very good decision. Okay, when we were in Cleveland, I really wanted to find, they have a horse track there, Northfield Park. I never could quite find it. I didn’t have a lot of time, but MGM is buying that. Oh, no, they’re selling it. They’re going to sell the operations of MGM Northfield Park. Guess who’s buying it, Barry? Private Equity. So now, you know, through your big wire house brokerage firm that’s going to sell you and give you exposure to the private companies, private equity markets, MGM is unloading it. And guess who’s buying it and taking the risk off of MGM’s back? Little people, private investors that are invested in the private equity fund that’s buying it. Claire Vest Group. And that’s another discussion I had with my nephew Rory last night is about the amount of money that private equity has. Now, I’ve seen this in the real estate investment trust. There was so much money being thrown at the real estate investor to go out and buy, especially when the private real estate trust became available. They make bad deals. When there’s all this money going around, they are… pressured to make deals. And they make bad deals. And you know, private equity is it’s little guys money that have invested in the private equity firm and the private equity firm is making big fees off of that. And of course, if there’s any profits, they’re going to take a big chunk of those profits, but they’re offloading that risk. They’re a middleman. onto private individuals. I certainly would not invest in a horse race track in today’s world. With PETA out there, it’s a dying sport. The only thing, it is a racino. They have slot machines and whatnot. But that’s just an example. Another warning that I would give to you is don’t invest in these funds that they’re putting together on private debt and private equity. Is there not enough public debt and enough public equity that is totally liquid and transparent that you have to invest? And, you know, they’re using the guise of this is only available, I mean, to our investors. You can’t buy this except if you get it through us. Well, you know, you’ve got to understand that there’s a ton of risk involved here, and they’re offloading that risk onto you. Personally, I like liquidity. I place a big high value on liquidity. There’s nothing worse than an investment where your money is tied up. for years and years and years, and you can’t even access. It’s the old Mark Plain. I’m not so concerned about the return on my investment. It’s the return of my investment. Bill Gunderson is a big believer in liquidity. Here’s your biotech of the day, Praxis, P-R-A-X. This one is up. It was up 128%. Right now it’s up. Two hundred and forty seven percent. Holy cow. How did we miss this, Barry? Praxis Precision Medical is trading at one hundred and ninety. It’s up one hundred and forty dollars a share. You know, that has a big influence, too, on the on the ETFs, the biotech ETFs, which I think is the best way to get exposure to biotech. It’s highly risky, but you’ve got to be very, very diversified in that area.
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Yeah, you want your eggs in a lot of different baskets there because you don’t know which one’s going to pay off.
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Well, the hit rate is about 1 in 100. I’m going to throw that number out. That’s the Gunderson Law, right? You have Moore’s Law, you have Gunderson’s Law. But the Boston-based biotech announced that it’s experimental therapy. Ulexacaltamide… succeeded in two late-stage trials for essential tremor, the most common type of movement disorder, which I get when the market goes down 200 points or more. I start to tremor and shake and get mad. Maybe a little bit of this will help, but there’s your Stock of the Day practice. When we come back, a lot of AI stuff to get out of the way and talk about. We’ll be right back.
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And welcome back here to the final segment of today’s Best Docs Now show where I’m broadcasting live from the St.
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Regis Hotel.
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on Longboat Key, which obviously got hammered, Barry. I mean, they’re still cleaning up. And how long ago was that hurricane? They were two weeks apart, number one.
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Probably about 13 months ago, I would believe now. And this area was really the eye of the hurricanes.
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And I went and visited my sister. I saw her home. She’s back in it. She’s got a brand-new kitchen, brand-new flooring. She says it really doesn’t matter if it’s two feet of water or three inches of water. It still is very, very destructive. And she lives on a canal that is influenced by Tampa Bay, and the Tampa Bay came up like it’s never done before. And for the first time in 50 years that she’s lived there, was inundated with about, she told me, I think, 20 inches of water. And it was out of her home for 12 months. And I’m still seeing a lot of cleanup. But what a beautiful Longboat Key, gorgeous area of the world. You know, I have a lot of respect for Wedbush. As I look at the firms and talk about the Wall Street firms and whatnot, 90% of them are doing the same old thing that everybody else is doing. They’re buying Johnson & Johnson, which, by the way, is going to start facing lawsuits now in the U.K. over talc. Talk about some bad decisions that they’ve made and some bad things that have happened to them that you can’t even put a price tag on the exposure that they have from talcum powder. They couldn’t even get talcum powder right. and, you know, causing mesothelioma because it had asbestos in it, right? And so that’s a big problem. But Wedbush does not focus on IBM and AT&T and Verizon and Procter & Gamble and Kimberly-Clark and, you know, like all the others do. That’s 80% of Wall Street, in my opinion. Wedbush likes to stand out from the rest and talk about stocks. that are actually growing and vibrant and flourishing in today’s world. They just got back. Dan Ives, obviously, is a big spokesman for the tech world and for Wedbush.
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And for Apple.
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Which I believe is based in Los Angeles. Loves Apple. Yes, they love Apple. They love Elon Musk.
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And bright suit jackets.
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Yes, colorful guy and usually right, okay? I like to follow people that are usually right. And he says that their visit to Asia shows bullish sentiment for the AI revolution, accelerating chip divan for NVIDIA. And, of course, you’ve got Taiwan Semiconductor reporting earnings today who benefits from everything because they make the chips. Taiwan Semiconductor, I’m surprised it’s not up more. Their earnings were up 36% year over year, or their sales were up 36%, and their earnings are up 45% year over year. That’s massive for $1.5 trillion. Is that what they are now? Yeah, $1.5 trillion company in TSM, Taiwan Semiconductor. They reported earnings. They had good earnings. The stock is about flat right now, but it’s had a great year. They noted that the demand over in China bodes very well for Taiwan semiconductor manufacturing, AMD. I sent that chart out yesterday to the subscribers and the clients that want those alerts that I sent out. That chart on AMD is very, very powerful. And all of a sudden, they’re in the game big time. AMD is expecting 62% growth in earnings next year versus this year. Now, that’s the sign of disruption is when you’re bringing in earnings like that, you’ve got something that others don’t have, and you’re disrupting that little space. And I’ll tell you who else climbed aboard the train, I think, here recently is Broadcom. And that’s a powerful chart right now on Broadcom. They’re expecting 38% growth in earnings next year over this year. And they’ve made some big advances in even faster chips. And therein lies the cost of the information to get the answer that we’re looking for. The cost to receive that information is astronomical. When you figure how much computing power and how much energy it takes to get that answer. Isn’t that incredible? It’s just unbelievable, the times that we live in right now. And the talent drain continues. Apple executive between their AI-driven web search project is leaving for meta. And I would say that just like others got left out of the race for search when Google took command of search. Yahoo had it for a long time, had the command of search in the early days. And others, I remember Ask Jeeves and several other search engines.
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Ask Jeeves is the one that comes to mind in terms of, you know, it’s almost like Jeopardy, right? Ask it in a form of a question.
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Yes, that was the early days, really, of AI was search. And now you’ve advanced to this level we’re at now. I don’t see Apple catching up. I mean, they’re too far behind. They’ll always have their Apple users that might use their search, but they’re losing their talent in that area, which is one of the fastest-growing areas of the market, to competitors. And Meta is trying to stay in the game. You know, Facebook is not exactly what it was at one time. It seems like the demographics on Facebook are a lot older than what today’s Generation X and Generation Z are using, and he’s trying to stay relevant in the AI search world, and he’s grabbing a lot of the top talent in that industry. Now, whether or not they’ll end up being a big player in AI remains to be seen. So anyways, it’s an interesting world that we live in. I try to keep you current on it. Obviously, we invest in a lot of the very best of the best in areas of this, and not just that, but in pharmaceuticals, drugs, Lilly with their weight loss drug, any industry. I don’t care what industry it is. There’s always disruptors and leaders, and there’s laggards, and you want to invest in the leaders and not the laggards. All right. If you’d like to get four weeks to the newsletter, the app, the live trades, go to GundersenCapital.com. If you’d like to talk to us about portfolio management and financial planning, we try to be very good at both of those disciplines. Give us a call at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
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This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
