Sam Altman’s $70B AI Boom: 4 Stocks Getting Paid

Sam Altman is building a $70 billion-a-year AI empire, but the biggest winners might not be the OpenAI investors. Instead, they will be the companies getting paid to build it all out. I'm talking about the mass investment in new AI data centers, leading to a wide range of winners from those who provide the electrical systems to powering them to service to run the AI state-of-the-art cooling systems and the memory to make it all work. Now, today I'm going to share four stellar stocks that are in the thick of the AI revolution, each pointing to serious upside in the months and years ahead. That's because one of them is set to enjoy stunning 70% earnings growth going forward, while another is blowing that 70% growth right out of the water, and one has already signed on to supply OpenAI project with steep upside targets placed by top Wall Street analysts. Today, I'll break down all four of the stocks to show you exactly how they're cashing in on Sam Altman's AI spending boom and why this points to serious outperformance for shares now. And as per usual, I'm saving the best stock for last with the strongest investment case of them all. So, be sure to stick around all the way to the end. If you like finding the companies making money behind the biggest market trends, then please hit that like button. It tells me to make more videos like this in the future. And I should probably tell you who the heck I am. I'm Steve Reitmeister, but all my friends call me Righty. I'm a partner at wallstreetzen.com, where our quant rating system analyzes a wide array of data points to separate the best opportunities from all the noise and nonsense. Okay, now let's talk about that $70 billion figure I threw out earlier in the video. It's something called the run rate, right? To get this rate, you take the most recent month of revenue and you multiply it by 12, right? What happens in the year ahead. OpenAI's run rate hit roughly $50 billion at the end of September, and the company has told investors it expects it to ramp up to $70 billion a year by the end of this year and keep accelerating from there. Now, to put the scale of this boom in perspective, some estimates suggest OpenAI alone accounts for roughly half of Oracle's enormous backlog of future contracted revenue. Now, the takeaway is simple. Sam Altman has turned OpenAI from a research lab into an enterprise software powerhouse that is feeding lots of other companies. But, while too many investors wait for the IPO, some of the best opportunities to capitalize on OpenAI's success are already unfolding right now. We are getting to review for them in the video today, starting with Invent with the symbol NVT. This is the company that makes the electrical connection uh protection and liquid cooling gear that keeps all those AI data centers from literally cooking themselves, right? All that heat that's generated. A single rack can draw as much power as a dozen homes, and almost all that energy turns into heat. Old-school uh air cooling simply can't keep up. Invent's liquid cooling pulls that heat straight off the chips. As Sam Altman's buildout accelerate, that technology has gone from a nice-to-have to an absolute necessity. Now, this surge in demand is already landing on the bottom line for these shares. This past quarter earnings jumped nearly 70% from a year ago. It is truly shocking growth for a company this size. Even more impressive than the 70% growth is the size that earnings beat the past two quarters, truly blowing Wall Street expectations out of the water. Analysts at the top Wall Street firms have most certainly taken notice of all this growth. This explains four buy and six strong buy recommendations on shares. Even better is a wider range of a higher fair value targets, including the 40% upside call from one of the top ranked analysts at Citigroup, right? That 40% may prove to be low if they keep up their massive earnings beat trends. Now, let's pop the hood on our Zen Rings Quant model. It analyzes every stock across 115 different fundamental, technical, and AI factors. Then, it boils it all down to an intuitive letter grade of A through F. Indeed, the higher the grade, the higher the expected returns for those shares. Beyond that, we also break down uh each stock into seven underlying component grades to flag each stock's unique strength and weaknesses in key areas like growth, value, momentum, sentiment, and more. Indeed, Invent earns our coveted A rating, which amounts to a strong buy recommendation. That title is greatly deserved as A-rated stocks have historically beaten the S&P by nearly 3 to 1 over the past 20 years. Now, let's look at those stunning component grades. The AI factor score is in the top 21% of all stocks. Now, this is our use of AI to find the most timely stocks and we're looking pretty good on that front. Then there is a big jump in the top 13% of all stocks for growth and sentiment. Now, the latter tells you the smart money crowd is already moving into these shares. And the standout grade is the top 10% showing for financial strength. That points to operational excellence that has a way of showing up again and again in future earnings reports. Now, of course, no stock is perfect. One risk to consider here is that Invent's fortunes ride on the pace of data center construction. If that building boom cools off even just a little bit, then so too will this stock. But with AI CapEx still ramping up big time, then the trend is Invent's friend. That explains their explosive growth and explains why Wall Street is pounding the table on shares, not to mention the top scores in the Zen Ratings Quant Model. This makes Invent the perfect stock to kick things off in our video today. Our next pick is nicely heating up as well, given its focus on powering these data centers. All right, now, before I get to that next stock, here's something that might interest you. I put together of three stocks I believe could double in the year ahead. I've located them all using the same Zen Ratings Quant Model I'm using in the video today. You can get these three tickers for free by visiting wallstreetzen.com/double or scan the QR code showing up on your screen or clicking the link down description. Now, just pause the video for a moment and claim your copy right now. Okay. Our second stock is a company that's literally wiring up these data centers. We're talking about IES Holdings with a symbol of IESC. Now, when a new data center goes up, somebody has to run the power to every single server rack, wire the cooling, and connect it all to the grid. That is why many think of IES as one of the master electricians of the AI boom. This surge in demand is showing up in their quarterly reports in a big way. That is how a 23% increase in revenue leads to a greater than 70% earnings growth. Indeed, profit margins are powering up as well. And with new AI data centers being announced every single week, their order pipeline is only getting longer pointing to ample growth ahead. Amazingly, with all this growth, Wall Street is kind of sleeping on the job here. There's only one covering analyst. Gladly, he knows what time it is leading to a strong buy recommendation with a target price about 50% above current levels. Gladly, when Wall Street coverage is minimal, we can look under the microscope of our Zen Ratings Quant model thanks to the full 115 factor review. That analysis places IES in the top 4% of all stocks leading to that coveted A rating. As you might expect, the component grades are also very strong here, right? That starts with growth in the top 13% of all stocks. This foreshadows more growth and more earnings beats ahead. Then we make a big leap into the top 3% of all stocks for the sentiment score. But the most impressive grade is the top 1% showing for financial strength. That is based on 26 different measures of company health and operational excellence. Now, one risk to consider is that IES runs a project-based business. That means that results can be a little bit lumpy from one quarter to the next. But right now, that doesn't seem like a problem. Just something to keep in mind as we go forward. Indeed, the power is on over at IES. And as Altman and his friends spend more on data centers, IES is ready to benefit. That is why their upside potential looks so attractive right now. Now, a quick ask before we move on to our last two stocks. Simply, if you're getting value from this video, then go ahead and hit subscribe and that notification bell. That's because I publish data-driven stock analysis like this every single week and I hate for you to miss any of my next videos. All right, our third stock today is one of my favorites in Hewlett-Packard Enterprise with the symbol HPE. Now, you know the name, but you probably don't know how central they have become to the AI revolution. Hewlett builds a lot of the uh AI server racks that OpenAI scale workloads actually run on and through its recent Juniper acquisition, it now supplies the high-speed networking that ties those thousands of uh GPUs together into one giant computing machine. That puts the company right in the middle of two of the fastest-growing budget areas in all of technology right now. The proof of that last statement shows up in their massive earnings growth of 150% year-over-year, right? 70% of the last stock was pretty impressive. This just blows it away. That is exponentially higher than most companies, period. Let alone a company bordering on $100 billion market market cap, right? This is amazing growth. Even with all that growth, shares are still surprisingly inexpensive. That shows up in their modest forward PE of 13.6 when the average company is trading much closer to a PE of 20. Wall Street is fully aware of what is going on here with two buy and 10 strong buy recommendations on board. This includes target prices pointing to ample upside ahead. Now, the Zen A rating. Again, that traditionally points to ample share price outperformance in the months ahead. Let's walk through the component grades to see how well this stock shines in the light of the Zen Ring's, right? Value's in the top 23% of all stocks, that's not just about the PE we talked about, but that's across 21 different value measures. Sentiment, the smart money indicator's in the top 15% of all stocks. Momentum is top 12%, meaning that these are very timely shares and the standout grade, as it should be when we're talking about growth, is the top 2% showing for growth, which bodes well for more growth and more earning speeds ahead. The only concern with a Hewlett-Packard is what happens with AI CapEx. Any weakness there will flow through these shares as it will with many other stocks. But right now, there are few areas stronger and few companies better tied in than Hewlett-Packard to harness the demand into profit growth and share price appreciation. This is why I added uh Hewlett-Packard to my Zen Investor newsletter portfolio. Now, consider if they deserve a spot in your portfolio as well. Now, before we get to the last stock, which may be the best of the bunch, I got one quick thing for you. If you want to stay a step ahead of the pack, then join me live every Monday. That's when I share my updated market outlook and trading plan to outperform. It's also where I unveil my trade of the week based upon our proven Zen earnings quant model and my greater than 40 years of investing experience. Now, it's a free event, but you do need to register. You can do that now while streetzen.com/live or click the link down in the description below or you can scan that QR code you see popping up on your screen. Just pause the video for a moment to sign up. I'll be patient and wait for you. And then I look forward to seeing you there on Monday. And hey, even if you can't make it live this Monday, then you should still sign up. That's because we send a replay to all registrants to watch whenever it's more convenient for you. Okay, and now let's talk about the highest-rated stock in the video today. The single company controls more than half of the world's supply of memory that makes AI possible. And it's signed on to feed OpenAI's Stargate project. That company is SK Hynix with a symbol SKHY, one of the three largest memory makers on the planet. All this demand is flowing right out of Altman's build on and into the company's order book. They've already sold out their memory production well into next year, and they signed a letter of intent to feed OpenAI's massive Stargate project directly, right? So, they're a clear winner in this case. And get this, SK Hynix only started recently trading on the NASDAQ. Just we're talking about back in July. So, for most US investors, this is kind of a brand new name. Yet, they are becoming more aware in a hurry thanks to the recent monster earnings beat. Nearly double expectations. And here's the kicker on valuation. Even after it's run higher, shares trade in a forward PE of Get ready for this. 5.4. Oh, we're talking about truly dirt cheap valuation. Wall Street is not messing around. All nine covering analysts are pounding the table with buy and strong buy recommendations. Not a single hold or sell in the bunch. There No one is flinching on these shares. Even more impressive is their fair value targets up to 100% above current levels in the year ahead. That's what you get when you blend massive growth with stunning value. I already stole some thunder from this next section, but yes, SK Hynix is the highest ranked name in the video today according to the Zen Rings Quant model. Not just A-rated, but actually in the top 1% all stocks analyzed. So, maybe calling it A+ is a bit more accurate. They are also the number one ranked stock in the entire semiconductor industry topping more than 60 of them companies. We're talking about Micron and Nvidia and the like better than them all according to the Quant Rings model. Now, to get a ranking that high, a stock has to be truly well-rounded. That shows up prominently through their strong roster component grades. Starting with momentum, the top 21% all stocks. Growth uh steps it up from there in the top 12% foreshadowing more growth ahead. Our AI factor grade is also top 12%. That points to shares being very timely right now. Sentiment is top 6% telling you the smart money is already well clued into these shares. And as we come down the home stretch, we have a top 5% showing for financial strength. And the standout grade in the top 2% all stocks is value. Yes, more attractive than 98% of the stocks we analyze. This is a broadly appealing stock. It is is appealing as it gets. The obvious risk is that memory is a deeply cyclical business. It booms and it busts and shares swing hard with each movement in the cycle. But right now the cycle is beyond robust. The AI [snorts] boom has the production sold out for the foreseeable future leading to a combination of growth and value that rarely comes around. This explains why Wall Street loves this stock and it explains why the Zen Rings loves this stock too. The only question now is how much you love this stock and if you have room for it in your portfolio. So there you have it. Four top rated ways to get paid by the AI boom without ever owning Open AI shares. And here's the thing to remember, whether Open AI goes public or not or whether even Anthropic goes public, the spotlight on AI spending is not fading away anytime soon. The suppliers to this revolution are going to get paid either way. So one more thing, the Zen Rings are updated every single day. So gladly you can get those ratings for free on their quote pages at wallstreetzen.com. Bookmark the site now so you can check those latest ratings before making any crucial buy, hold or sell decisions. All right, now I want to hear from you. Which of these four stocks is your favorite and why? And is there any key AI supplier I left out that deserves a spot on this list? Drop it on the comment section below and let's talk it through. And if you want to keep finding potential winners then you might like my recent video featuring five timely buy the dip stocks. The video is popping up your screen right now. So go check it out.