so if you had bought $11,000 in Nvidia 5 years ago it would be worth around $30,000 today nvidia's stock rise has been historic but if investors only focus on this one Mega stock you may be missing the bigger opportunities that are just getting started there are four AI companies flying under the radar quietly dominating key areas of the AI market and their stocks are set to sort these stocks could double triple or even 5x while Nvidia takes the spotlight so let's get into it so Ray Doo one of the most success ful investors of all time has a core principle he operates on which is to embrace reality even if it's scary and act on it and the reality is AI will never be less powerful or less widespread than it is today so to embrace reality as investors we need to understand a company's products and not just their numbers massive growth happens when a company has the perfect product in a quickly growing Market before that market appears like Nvidia which is why I'll also be applying my 5 years of experience advising Fortune 500 compan on AI Technologies to give my opinion of each company's products and not just their stock price one of the big reasons Nvidia stock price has risen so rapidly is that they are by far the leader in providing AI chips to Data Centers but there's a whole Market of data center accelerators that are riding the same W with the market expected to 3x over the next 5 years giving it a 27% compound annual growth rate so we'll start by covering two stocks that play in the data center accelerator Market starting with the company that has the single largest Monopoly in the AI space asml focuses on Extreme ultraviolet lithography machines a technology vital for the creation of Next Generation AI processors imagine trying to print an image onto a grain of sand that's basically what creating a modern computer chip is like so extreme ultraviolet lithography sounds like a digimon but it's a specific method of printing circuits that asml completely dominates so let's break down their technology extreme UV lithography so if you remember back to physics class UV light has a shorter wavelength than visible light asml machines use UV light to effectively print incredibly tiny details onto microchips and circuits literally smaller than the wavelength of light and in the modern AI space smaller is pretty much always better so these UV printed chips are the brains behind every AI processor made today and asml is the only company in the world that can build the machines that make them asml Secret Sauce is their intricate network of suppliers where they pull the over 100,000 parts for their machines from and let me tell you these machines seem like they're taken straight from Star Wars we're talking mirrors flatter than Diamond microscopic explosions of metal that generate electromagnetic pulses it's a really cool piece of technology but more importantly it's also really hard to build so hard in fact that no one else can build them and even as SML themselves don't manufacture all of the 100,000 Parts themselves but Warren Buffett says that one of the biggest factors when he selects a stock is whether or not they have an economic moat asl's Monopoly is a textbook example of a moat as it would take years and tens of billions of dollars to replicate their technology but as I was researching I was a little confused about how they could have a monopoly when all these other companies are making their parts that go into their machines so here's what I learned if the euv machine is like a four course meal asml acts like the chef sourcing the best ingredients from the best suppliers adding in a little bit of their own homebuilt technology and assembling the final recipe this means that even though asml only manufactures around 10% of the parts in their machines they're the only company in the world that is capable of assembling the final machines by pulling from suppliers all around the world giving them an effective Monopoly on the space and one that's not likely to go away in the next few years so because asml product support the likes of Nvidia Intel tsmc demand for their machines will continue as long as these chip makers continue to grow and the price of the stock will very likely be closely correlated with the demand for AI products making this one of the purest best plays if you're bullish on the future of AI but while asml is a small company relative to Nvidia at 10% of its size let's look at an even smaller company at 10% of asml size for a smaller potentially higher reward stock vertiv Holdings is a $32 billion company but their small size doesn't tell the whole story of this Stock's potential with the price increasing over 90% year-to date despite a lot of other it stocks dropping in price verv is special in that they're not creating AI Hardware or AI models instead they're creating the critical infrastructure for data centers using AI so think about this as the internet and AI grow data production is skyrocketing since 2021 internet data has been growing at a rate of 23% per year compounded and this is only going to accelerate with AI back when Google first launched we saw an explosion in the number of websites due to the ease with which we could surf those sites so it's a bit of a chicken or the egg did Google create the ability for all these websites to exist or do these websites exist causing the need for Google but now with artificial intelligence and tools like R A We can surf data in the same way that you could surf the Internet so AI Spurs on data growth in two ways by making it easier to consume that data via Ai and number two anyone on Twitter or Reddit will tell you AI makes it easier to generate new content and data so more AI means more data more data means more demand for powerful efficient data centers and this is where verti really shines they offer two key Solutions which will break into products and services and then we'll wrap in their earnings to help us get a better picture for the company as a whole so first let's talk about their products Verve is is a leader in creating modular data centers these are essentially pre-engineered plug-and-play infrastructure solutions that businesses can deploy quickly this allows companies to test and scale AI operations with way less friction than starting from scratch but here's the thing with AI it's not just about building the data centers it's about managing the heat that they produce now getting rid of excess heat doesn't sound that exciting on the surface I mean what do you do you point a few fans at the computer but it turns out as processing power increases logarithmically with Mo's law there's another um law you can factor in called more power more heat so here's why this is becoming a bigger and bigger deal Nvidia has started outpacing the speed of Moors law with their Blackwell GPU being one, times faster than gpus from 8 years ago so because of this insane increase in performance heat and not just raw power is a major factor in how fast a chip can actually go which is why nvidia's CEO Jensen called out vertiv specifically for their ability to help customers deal with the exploding power and cooling requirements of their chips without vertiv cooling solutions many AI data centers wouldn't be able to operate efficiently not bad for a company 1% Invidia size but vert's products alone aren't going to get them to a 5x $150 billion market cap their services are also keyy to their success as AI continues to advance many companies don't have the internal expertise to manage these sophisticated systems vertiv is stepping in with AI Consulting where they have reference designs and architectures that they can give to companies looking to ramp up and start hosting some AI gpus they also provide services like Predictive Analytics which could turn out to be their most successful Venture of all see maintenance of data centers is both very important because downtime is money and it's extremely complicated verti helps monitor customers data centers predict when downtime is going to occur and advise companies on how to fix problems before they become a major impact the potential in this area is huge especially given their Partnerships with Hardware designers like Nvidia to help their customers get the most out of nvidia's products vert's only limitation on growth right now seems to be just hiring enough people which is why they brought in a new HR Chief but organic orders were up 57% year-over-year and the company is positive free cash flow so all we need is to see those growing number of orders turn into payments for customers one interesting number I want to call out with verv is their bookto bill ratio which shows how many orders they're bringing in compared to how much they're billing which sits at 1.4 meaning they're bringing in more orders than they can fulfill today this suggests they may have future Revenue growth but investors should watch to make sure that they can actually meet that growing demand so data center growth Nvidia power and cooling requirements and demand for AI architecture expertise are triple Trends acting as an engine for this Hidden Gem of an AI stock but as great as verv is positioned it is nothing compared to a company that I think is the most underrated AI stock in the market since they're creating some of the best AI models in the world without the same level of hype as Chad gbt so we're getting to the point where AI models are becoming a part of everyday life for many businesses even a lot of YouTubers use AI for brainstorming or coming up with different Creative Concepts AI is the closest thing we have to Steve Jobs's concept of a bicycle for the mind and this sponsor tube magic is creating the AI tools to make YouTube creation easier tube magic allows you to perform keyword research on things like search volume in competition looks like chat GPT and AI are in the news or you can use their magic score which automatically finds the best keywords for video ideas guess it's Nvidia tube magic also lets you generate video ideas based on any channel and can even give you a starting point on a script now I'm old school and I like to write out every detail of my videos by hand but even then tube magic can optimize your videos just put in an unlisted video link and it will generate title description and optimize tags they really hit on all the different parts of video Creations since it was made by YouTuber Matt Parr who's been doing YouTube since he was 14 and runs the make money mat Channel as well as over a dozen other channels there are a bunch of big YouTubers already using this tool and you can try it completely for free using the link in the description so check them out using the link in the description and now let's look at the stock that is creating the AI model that these kind of companies are built on top of so up until now we've seen a much larger rise in Hardware stocks like Nvidia than in software companies designing AI models just like the computer hardware makers got rich in the 1980s and 90s before the software internet companies got big in the 2000s and 2010s so if Nvidia is making the infrastructure The Big Three AI model makers are Microsoft with their open AI partnership giving them access to chat GPT at a $3 trillion market cap Google gole market cap $2 trillion and the smallest one meta at a $1.5 trillion market cap now I like all three companies but for the price here's why people are missing the incredible power meta is rapidly gaining over the AI ecosystem explained using a product demo in analogy and a number so first product demo I'm a solution architect for big Enterprise companies and I get a chance to try out all kinds of aite tech but if I just tell you that meta's free AI model llama 3.1 is beating out Google Gemini and even chat GPT not quite as convincing as if I just show you so I'm going to run this demo in AWS you could also easily download the model or run it pretty much anywhere you want so all I have to do is go in here select which model I want to use from one of these open- Source options here some of the big competitors in the space are anthropic and AI 21 Labs so let's go to meta llama 330b this is their biggest model doesn't look like they have the latest one on here yet and I'm going to write a prompt I'm going to ask the AI to answer questions to this fifth grade quiz I'll go ahead and run it and then at the same time I'll ask chat GPT to do the exact same thing so we can see chat GPT goes ahead and starts giving answers right away I think anybody who's used it for a while would kind of expect this and then if we switch over and look at how llama answered it actually answered even faster and it gives us the same answers as we're getting from chat GPT so I'm not saying that llama 3 is better than chat GPT but what's crazy here is this is open source I could download this and run it on my phone without ever connect conting to the internet theoretically if I wanted to now this model is too big for me to run on my computer but if you had a really high-powered gaming machine or you were a company that ran your own data center you could run your own llama 3 Model without giving any data to Microsoft or chat GPT and what really stands out to me is how this shows that meta understands the value of their AI models is not in the model itself but in being the platform that other people build applications and software on top of so next in analogy the AI stock market today is just like the smartphone market of the 2010s there was a time when the value of a smartphone was in the hardware of a phone but today all the value is having your phone as a platform for your other products why else would Google be willing to face a nearly billion doll lawsuit to have control over their supposedly free Android operating system and app store or apple with their Walled Garden App Store heck meta even admitted that their whole metaverse headset was their way to get in on the next next platform of the future after they had previously failed to launch their own mobile phone platform and were at the mercy of the platform owners like apple so there were three phases to the mobile phone stock market step one Hardware makers get rich making smaller and smaller chips step two platform makers get rich making better and better phones and step three software makers get mega Rich using the new technology of these phones as a platform and we're starting to see the same pattern in AI step one hardare makers like Nvidia and the stocks that I've already mentioned make the infrastructure for AI step two the AI model creators build the platform they'll make some money but the real value comes in step three where the companies that own the platform that can use software to take advantage of these AI models will outperform and last point with meta a number 350 million that's the number of llama model downloads that we've seen across their different AI models big and small making meta the leading open- Source AI model creat and since you can't download chat GPT or Google Gemini the most downloaded AI model in the world which might not matter as much for the massive AI models your Gemini 1 and a halfs your GPT 40's but as we see a shift to smaller and more efficient AI models that don't rely on massive cloud data centers to run downloadable AI models have a pretty clear Advantage we've seen time and time again that free software nearly always beats out paid at scale and meta is showing that they're willing to play the long game by building free open source AI now so that they can monetize it later meta AI is on track to be the most used AI assistant in the world by the end of the year and they've already Incorporated advances in AI partially driven by open- Source contributions to improve the quality of recommendations on Facebook and Instagram to drive engagement and that's not to mention them launching an AI Studio to entice creators to their platforms over other platforms like Tik Tok and YouTube so I'll wrap meta with a point from Mark Zuckerberg we're in the business of building the best consumer and Advertiser experiences to do that we need to have access to the leading technology infrastructure so if we want the most robust ecosystem of tools open source is better for Developers for meta and for the world more broadly it seems a little strange to say it but meta seems like they might actually be the good guys in the AI space today so there's one piece of this whole AI Patchwork that we've neglected to talk about so far you need the hardware Tech you need the AI models that use the hardware but maybe most important you need to enable people developers and users to access that AI Tech quickly and efficiently so most so-called AI applications today with a few notable exceptions are still in the experimental phase with a lot of people just building glorified chat Bots one reason for this is chat GPT is the only good AI app that most people have seen But cloudflare hopes to change that so I want to focus on four four products cloudflare is using to enable the future of AI apps the first is cloud Flare's AI Gateway if you think of Nvidia as building the roads you can think of cloud flare as controlling the traffic it's one thing to have the raw power of AI but you need the infrastructure to actually distribute it to make it accessible fast reliable all around the world Cloud Flare's AI Gateway is like an air traffic control system for AI workloads ensuring that these models reach their destinations without a hitch so here's a peak behind the curtain of how AI apps are actually going to be built this is cloud Flare's developer platform so with a few clicks I'll set up an AI Gateway this can restrict traffic analytics logging setting up a process to continually fine-tune your model Cloud FL is way ahead of the field here and thinking about how AI will mature Beyond Simple chat Bots or proof of Concepts into actual production apps that have hundreds thousands or millions of users but let's say I wanted to create an AI app well I'll set up an AI worker let's say I want it to tell me what's in an image and I'll deploy it so this app doesn't care what AI model I use I could use one from Microsoft from Google from meta within seconds I can start accessing these AI tools all within Cloud Flare's Network which includes 95% of all internet users within 50 milliseconds of their Network so imagine building an AI application in New York and having it run smoothly in Tokyo without setting up massive infrastructure or dealing with latency issues this is happening now with companies using Cloud Flare's platform to fine-tune models and process AI data faster than ever it's the same shift that happened when we move from static websites to Dynamic applications and Cloud flare is playing a key role in this next AI driven Evolution so why does this matter for investors well in the same way that Nvidia rode the wave of demand for AI Hardware Cloud flare is poised to ride the wave of AI distribution and security Cloud Flair's Vector database vectorize is another key piece of the puzzle it allows you to do things like build recommend engines or realtime search now other companies have this too but Cloud flare just makes it so much faster and easier than trying to pull in a bunch of different tools from a bunch of different companies for example even if I were to use Microsoft Azure which has one of the biggest clouds in the world they don't own their own Vector database service I'd have to find a third party Cloud's put a lot of thought into making sure that people can build a full AI application directly using their tools but it's not all about speed it's also about security see FL has also built the world's first AI firewall protecting AI applications from malicious attacks so in a world where AI is becoming increasingly integrated directly into critical Industries protecting that is pretty important so investors should note cloud flare isn't just making AI faster and easier it's also focused on making it safer which is kind of a core part of cloudflare's business the company also has some pretty great stats behind it growing at 46% compounded since 2018 with very strong gross margins but the real key here is how how quickly Cloud flare is positioning itself for the next phase of AI deployment which like we've seen with every Tech Trend that's come before eventually becomes one of the biggest areas of growth for the stock market but as important as AI is it's not the only growth Trend in the stock market right now so check out this video on my top nine growth stocks in the stock market to buy now and I'm trying to see if we can raise the highest quality beef in the world and