These 7 Stocks Will Cash In HUGE on OpenAI Astra

If you haven't used the latest version of chat GPT, your understanding of AI might be a little outdated. See, OpenAI released a new model called Astra. And this is not another incremental upgrade. These models are going from just simply answering questions to reasoning, research, coding, using computers, and increasingly just doing the work themselves. They're improving faster than most people realize. And every time that we adjust what AI can do, the next generation moves the line once again. And if that continues, the opportunity becomes much bigger than ChachiBT. See, more intelligence means more usage, more usage means more compute, more infrastructure, more capacity, and potential billions of dollars flowing through the companies powering it all. But the value won't be spread evenly. A handful of businesses are positioned to capture an enormous amount of it through more demand, more revenue, and more growth. So today, we're finding those companies, breaking down the financials, and figuring out who could be the biggest winner from OpenAI's rise. I put together a list of companies that I believe are the number one names that I'm going to be investing in based on how well Chacht is doing and dominating in their space. Really growing much faster than Anthropic. They don't have total revenue higher than them, but the growth rate as of late has been extremely exciting. This new model was launched on September 3rd. ChachiD6 Astra. In that time, people have already been able to create some pretty unbelievable educational tools, games, different ways of showing off the power of GPT Astra and what it could have done in just a few hours of using this software. On top of that, people are, like I said, creating games, using it to connect to tools within Blender to show off how it ends up modeling 3D images and create that into actual games using Unity or Unreal Engine, creating the graphics and the audio that you're hearing right now. It's a far way off from Grand Theft Auto, but I think it's that pace of innovation that a lot of investors are getting really excited about. For example, if you can see the benchmarks on GPT6 Astra versus even Fable 5.1 or even since their latest model GPT 5.6 Soul, a lot of these benchmarks have made unbelievable steps higher. The rate of change for reasoning, not just across Chat GPT, but across all the models that have been released as of lately. As you can see, they've sort of created a frontier trend line for how these have been increasing in their intelligence over time. And ChachiPT Astra actually broke above that trend line. And in fact, it was such a large break, it was the largest break above the trend line that we've seen since they started tracking it just a few years ago. And as you can see, this is not only going to then accelerate the curve even higher, but people believe that these models are going to get more intelligent over time. And this is one of the first of those major breakthroughs that we've seen in a while. This is now leading ChachiPT and Tibo being one of the executives at OpenAI said Astra was probably our biggest competitive advantage while not being generally available. Since we had it, our productivity has jumped so much that we've shifted some of our plans 6 months ahead and we'll be shipping them at Dev Day instead of mid next year. Dev Day is on September 29th this month. So it's coming up very very quickly now as people are speculating we are likely to see things like chatpt 6 soul terra and Luna and in fact this message is even a little bit late because they've already released image 2.5 and that has been a major success to make sure our current users have an incredible experience and continued access to Astra Tibo says we are going to have to pause subscriptions of our $200 pro plan. These put the most strain on our systems and we wanted to take the smallest step that allows us to continue giving the broadest access possible. All of our other plans and APIs remain available. There is no impact to existing accounts and we are working on adding more capacity as fast as we possibly can. This is what OpenAI is doing. They don't want to just bring on an endless amount of customers that they would have to give a subpar product to which is what a lot of people believe that Enthropic was doing. and this focus on their customers even all the way back since we launched chat GPT 5.6 6, Soul, Terra, and Luna, we have started to see a resurgence in website traffic. So, this is really focused on consumer level customers, which has been eating away at Gemini's growth rate here, along with the myriad of other large producers as well, like Grock, Perplexity, Copilot, that sort of thing. It's not just about the consumer level. We're also looking at things like Codeex growth. And Codeex growth since the launch of ChatGpt Work, which was part of 5.6, 6. It has just exploded. And in fact, this growth doesn't even include this just goes to August 29th. This is not inclusive of the Astra launch, which based on Tibo's comments is actually exploding much higher and it's essentially just going parabolic right now. This was an old statement from OpenAI talking about how they need to plan out to essentially 30 gawatt of compute by 2030. At the end of 2025, they were at 1.9 gawatt worth of compute. So they need to scale this aggressively and the fact that they're pausing current subscriptions means they might actually be ahead of schedule because they have not been able to secure capacity as fast as new customers have been able to come online. So these projections might even get sent even higher and that buildout based on Blackwell prices which is roughly $50 billion per gigawatt or Vera Rubin buildout which can be anywhere from 80 to hundred billion could be anywhere between a $ 1.5 to a3 trillion buildout from one company by 2030. This brings me to the question, which stocks are going to benefit the most? Not just by the AI buildout, but specifically the open AI dominance that we're seeing right now. And that brings me to Microsoft as being the number one pick. And unlike usually in a lot of my lists where I don't end up putting them in order, this list is in order from importance to least important in terms of the companies that we'll be showing off here today. Whenever it comes to open AI, we ended up getting a leaked cap table via Forbes that ended up showing off back in April that Microsoft has a $228 billion holding of OpenAI based on a $13 billion cost base, which a lot of this is not even assuming that they haven't made additional rounds, which we know that they have. So, this could be even larger. But this has essentially returned them over a 17.6x 6x just based on OpenAI's valuation at 852 billion which was back in April. A long time since Chacht 5.6 Soul, the launch of work or even the launch of Chach6 Astro which is seeing the highest amount of growth that they've ever seen as a company. So the likeliness that they end up seeing a valuation increase is going to greatly benefit Microsoft being the largest single holder larger than even OpenAI Foundation alone. I mean, Microsoft essentially is the biggest proxy for this company. Microsoft in general, whenever you're looking to buy this business, is not just a standalone being an OpenAI proxy. They have their own businesses and those businesses are bringing in $90 billion a quarter, growing at high teens growth rates. They're increasing their overall operating profit and now at over $40 billion a quarter. And the rule of 40, the combined rate of their adjusted IBIDA and their revenue growth rate is now sitting at over 75%. The rule of 40 is stated that way because they believed that software as a service company, SAS businesses would do exceptional if they could break above that 40%. So it doesn't matter if you have 20% growth rates and 20% adjusted EBIDA margins or 30% growth at a 10% margin. If you're getting above 40%, that's a really good rate. They're at 75% almost double the recommended amount. On top of that, specifically speaking to OpenAI, who is a large purchaser of Azure products, the Microsoft Azure cloud growth is now sitting at the highest rate that we've seen in an extremely long time at 43% year-over-year. And the comp that they base that on was growing at 39%. So these are not low comps that they're growing that rate at. Also inclusive of that, as you can see, their backlog for Microsoft has exploded over the last three quarters, now sitting at 684 billion. A major part of that was a very, very large signing from OpenAI. They even said even without open AAI, commercial bookings grew 18% when excluding the impact from OpenAI, driven by strong execution in our core annuity sales motion and reflecting broad customer demand across geographies and customer segments. Bookings increased 10 to 11% in constant currency when including Azure commitments from OpenAI. With this explosive Astra growth, could we see OpenAI come back and ask for even more? That's the important part here. Microsoft as of yesterday just said they plan a 3x data center expansion between 2026 and 2032. While they're sitting on 12 gawatt today, they want to get to over 38 gaw. That is a $1.5 trillion buildout from one company. Let me go ahead and repeat those numbers again. On top of this, if it didn't make you any less bullish, this 38 gawatt target excludes cloud compute rented from Neocloud such as Coreweave and I'll also include Nebius in there as they've signed a $19 billion deal with them as well. So very big deal as being one of the largest companies that is partnering with OpenAI. Cash from operations. This business is a cash generating machine. $55.4 billion of cash being generated at this business and they're spending that on data centers. $35.8 billion spent last quarter, an increase from last year of 110% and that rate is going up. Yet, unlike what we see from a lot of the other major businesses here, they're actually free cash flow positive. $19.6 billion after capital expenditures still going in cash to Microsoft. The craziest part is they said although they are investing to meet their growing demand, we expect to remain free cash flow positive in fiscal year 2027. That's wild. Although we're seeing a lot of growth and they're investing back to grow continuously into the future and they will remain positive in their free cash flow rates, they still are trading at a 27 times price to earnings which is cheaper than the S&P 500 and forward looking 24 times price to forward earnings which is much cheaper than the S&P 500. For stock number two, we have Broadcom AVGO. Now, if you guys know this company very well, you'll know they are extremely close with OpenAI. They have now committed to making the next version of OpenAI's custom A6, which is codenamed Jalapeno chips, which they're saying are on track to deploy 1.3 gawatt of OpenAI's own chips by 2027. Together with OpenAI, we are in deep development of their next XPU beyond Jalapeno. So the version two is already being worked on and it is approaching tape out. Essentially the idea of a prototype of this chip is in the works right now and they're saying in 2028 we have line of sight of OpenAI to deploy 5 GW of Jalapeno chips and its successor generation of the next version of its XPU. They're saying that this would make OpenAI their second largest XPU customer behind Google. In addition, we are in development with OpenAI on a third generation. This is a very very long commitment with a company that has just proven that they can put out amazing products that is making customers sign up and making obviously a lot of money like what we saw from OpenAI. As OpenAI announced last week, Halapeno outperforms the Grace Blackwell Ultra in performance by one latency throughput and then thirdly power. It is also comparable to Vera Rubin GPUs in running OpenAI specific workloads. That's very exciting. So Broadcom, whenever you're buying a company that's so closely tied to the companies that are trying to compete against Nvidia, you're talking about the Googles of the world, Microsoft, Meta, but specifically in this case, OpenAI, they are producing $29.5 billion in revenue at the fastest growth rates that this company has seen in multiple years. On top of that, this growth is coming specifically from their semiconductor solutions. So that growth of OpenAI is going to have the largest impact on Broadcom outside of a lot of the other software sales that is also contributing to this business. Roughly about $9 billion a quarter. This is leading the company to higher and higher profits. Not only are we seeing them bring in almost $16 billion of operating profit a quarter, but it's at the highest margin that this company has ever put out on top of the fastest growth rates. Inclusive of that growth is a lowering in their margins. Whenever we're talking about research and development or sales general and administrative or even their stockbased compensation on top of all of that growth, that amount is getting lower and lower as a percentage of their overall growth. That's the exciting part. Their rule of 40, remember it's called the rule of 40. They're at 147. You're roughly almost 100% higher than where the benchmark is even set to be at. This company is growing extremely well and their margin is very very high. In terms of cash, this is where the company gets a little bit interesting and people get a little bit conflicted about Broadcom. They are sitting on roughly $24 billion in cash, growing extremely quickly, but their debt is roughly around $68 billion. So, they have a lot of debt on the books as well. So you have to take in mind that while the cash is extremely high and growing very quickly, they do have a lot of debt, but that can easily be paid off if you're having segments of your business growing at over 130%. The bottom line for this company as we flow the revenue all the way to the bottom line, we're seeing $13 billion of net income, 44% margins, way, way higher than the S&P 500. And yet the forward earnings on this company is sitting at 21 times, even lower than Microsoft. And whenever you're talking about a company that is tied extremely closely to OpenAI success, Broadcom is going to have to be very very high up on that list because they're developing their next version of XPUs. Free cash flow wise, they're also looking very good. Just like Microsoft, this company is also going to want to remain extremely free cash flow positive. They're not actually developing and producing the chips. They're just sort of making the designs and sending them off to fabs like for example TSMC. So they are extremely free cash flow positive $13.6 billion a quarter going to the bottom line 23 times forward price to free cash flow way way cheaper than the S&P 500. Oracle just showed off earnings yesterday. This one I think is one of the most interesting names whenever it comes to the businesses that are directly tied to OpenAI success. While they don't have equity in OpenAI the way that Microsoft does, they have Stargate, massive, massive infrastructure projects way larger than Microsoft that they want to build out specifically for OpenAI. $500 billion 10 gawatt commitments that are already breaking ground. A lot of GPUs are already being set there, but it's being rolled out in phases. This is allowing the backlog of Oracle to be even higher than Microsoft. $664 billion of future potential growth. That growth is being expected to be advertised over 8 years now. So you're assuming even higher annual earnings per year than how much they're putting up in revenue in general per year today is how much we're expected in future growth. Not even inclusive of all the existing customers that they already have. Yet the growth rate that we just saw from August of 2026 is that they are putting up 29.6% 6% growth or nearly $20 billion in revenue. Net income $4.7 billion, 24.6% margins. That's also spiking up as the company continues to grow much faster on the back, by the way, of extremely high debt, similar to what we saw from Broadcom, but it's actually starting to come down. We might have hit the top here, which is a really good sign for Oracle. But the fact that they're growing their topline so much in the future commitments, which you're going to need to have a lot of debt, a lot of capital to be able to start building, this is the risk in that business. Now, over 90% of that debt is set in fixed rates. So, they know exactly how much they have to pay and that won't be adjusted via if we end up seeing rate hikes in the future. These are fixed rate loans, and so they know how much they're going to pay. Now, it's just about using that money to end up and going building those data centers. And that's exactly what we're seeing from capital expenditures. 28.5 billion dollars of capital expenditure spend. This is breaking ground, building up the data centers, filling them with chips for future revenue that's expected for years to come. This, however, unlike Broadcom and Microsoft, is a negative free cash flow business because they're being very aggressive in that buildout. They are currently not generating new cash. They have to put out a lot for future revenue, but they're excited about where this company will be after 2028 and beyond, looking all the way out into the 2030s. Because of that debt situation, because of the uncertainties of this business, the company's price to earnings ratio is a much different situation from the other companies that I've already shown. You have PE ratios at 23.3 times and forward PE at 17 1.5 times. Much much cheaper than where we're seeing those other companies. It's because of that debt. But if they are partnering with OpenAI and OpenAI can pay them back for the data centers that they're setting up for them, which is what we're seeing right now, it gives the market a lot of certainty that Oracle will be able to get paid on that RPO if OpenAI can continue to dominate. Another company that's just like Oracle is Coreweave. Being a part of the infrastructure buildout, Cororeweave is actually showing off a higher performance whenever it comes to the latency and the actual ability for being able to set up clusters extremely quickly, have great pricing, great amounts of security. This company is actually scoring higher than Oracle, higher than Nebius, higher than Microsoft Azure, which by the way, all three of those companies are in gold rank as well. It's not like any of them are too far separated on this list, but Cororeweave is considered the number one position and actually highlighted from Nebus as being their dedicated partner, the one that they look to to show other companies how to design a data center. And they of course are a strategic partner for Stargate and saying that they are also going to be a part of that $500 billion investment. Coreweave is a much smaller business. They're not bringing on $20 billion a quarter. They're bringing on somewhere closer to 2.5 billion, but the growth rate is much different as well. 112% growth rate on their revenue as of the last quarter. And the expectation going forward is that's actually going to be the low end of their growth. As we're going to accelerate that growth rate next quarter to what's expected from Wall Street, 160%, next quarter, 200% growth. So that's a 3x year-over-year. and then continuing to stay in that 100 plus growth rates all the way till we see June of 2027. So by next year, this company that's expected to produce $2.5 billion of revenue this quarter, which is what we did. Now we're expecting for next year $6 billion a quarter. That level of growth rate, assuming that you can do it profitably and you want to continue to make that grow, turns adjusted IBIDA from 1.5 billion to 3.7 billion yearover-year. That's the level of growth and profitability that you can bring into a company whenever you're solely focused on building out data centers and you partner with companies like OpenAI which for example Coree has done and they actually have outside of the Stargate commitments $22.4 billion of RPO with OpenAI specifically not inclusive of Enthropic which they also work with and Meta and Microsoft and a myriad of other large customers. Their rule of 40 is at 171%. Much higher than that rule of 40, actually closer to about 5x what that rate should be at. The problem with Cororeweave is very similar to the problems that we see at Oracle. They have $5.5 billion of cash. They also have $51.6 billion in debt. Now, the fact that a $50 billion company can even get $51 billion in debt goes to highlight the strategy of partnering with companies like Microsoft in OpenAI. that the bankers who are underwriting these loans are not necessarily betting on coreweave to pay back their loans, but they're essentially like payroll loans. They're saying, "We want our payments from those data center checks coming directly to the bank before they even come to you. So then we can guarantee our payments." And Cororeweave said, "Brilliant. We know that we're going to get paid because we're partnering with companies that are doing extremely well." So just like these other businesses, they are aggressively spending on future capital expenditures and setting up data centers. Now, the most interesting story about Cororeweave right now, which I think is going to distill across Nebus and Oracle and all of the other companies that we're going to talk about, is that chips are lasting longer than we ever would have expected. We recently signed an A100 contract. This is an old chip from Nvidia back in 2020. They said that they've extended this deal all the way to 2029, essentially saying that these chips can last 9 years. But the depreciation schedules of Cororeweave and Oracle and Microsoft and Nebus and all of these other Neoclouds or hyperscalers is roughly around six years. So they're actually expecting these chips to last multiple years longer than what they initially have expected back whenever they bought these chips in the first place. They also said based on their success that they've seen so far, they are improving their exit error or annualized run rate of revenue to $19.5 billion of 2026. They're saying that they're improving their guidance on the amount of active power. That's chips that are set up, plugged in, customers are paying, everything's perfectly done. If they can improve the amount of active power, then you can improve your amount of guidance for revenue and potential earnings afterwards. That's exactly what they've did the most recent quarter. Core Weef continues to outperform the rest of the market. And yet the price to sales on this company and the reason why I'm using price to sales is we have to look at this as a comparison of how much revenue they're able to bring in not just purely earnings because core is a very young business. They are not profitable. They're essentially a startup that needs a lot of capital to continue to grow and that capital is affecting their ability to stay profitable right now. But that doesn't necessarily always mean that they'll stay unprofitable. Look at a company like Amazon that was unprofitable for 20 plus years until they became one of the largest and most successful businesses in the world. The reason why Amazon is on this list is the same reason why Microsoft's on this list. They have a direct stake in OpenAI. Now, they have a $39.7 billion holding in OpenAI, which they've already made roughly 2.6x their money, but they also have $35 billion more contingent on OpenAI IPOing onto the market. The only reason why OpenAI would be willing to do that bet is because they want to IPO. So, all of these companies on this list are here to benefit greatly. OpenAI on top of partnering with Amazon just purely to gain capital from them, they've also extended their $ 38 billion multi-year agreement to an additional $100 billion. So now OpenAI is signed up over the next eight years similar to Oracle of $138 billion of AWS specifically using Tranium OpenAI's own custom silicon chips. So a competing product to what we see from Nvidia and that is allowing their company to expand their growth. So, Amazon for the first time in a while is really accelerating in their growth rates, putting up over $200 billion in June of 2026 alone, that quarter. Now, this is spread out amongst a lot of different segments. Amazon.com, as you know, is a website, an e-commerce seller. They are big advertising play. They have Amazon web services. They have physical stores. They have a lot of separate businesses. But it's AWS that I want to focus on because this segment of their business is growing faster than ever. breaking through growth rates and only expected to climb further. A lot of which is tied to OpenAI. Even the margin on that growth is now coming up to all-time highs as well at 39.4%. The only recent other high was March which we saw one spike of 39.5%. This looks more resilient here as they sign longer and longer contracts for things like let's say A100s over the next 9 years after the depreciation schedule. That's complete profit. Net income on Amazon can be a little bit deceiving. $62.6 billion last quarter, a huge spike in earnings, which is not necessarily directly related to operating profit. This is not all margin. They've actually bookmarked $53 billion of market gains marked here as nonoperating income because of their investments with companies just like OpenAI. And specifically in this case, that huge aotment is due to their investment in Enthropic as well. They're not picking a winner. They're picking all of the winners. And that's allowing their RPO as well to climb up very quickly. Now over $496 billion for Amazon Web Services, which just one year ago was only 195 billion. We're almost seeing OpenAI have more commitment than where Amazon was in RPO just one year ago. On top of that, you can also see their long-term assets. This is from their investments in things like enthropic and open AAI also end up skyrocketing year-over-year. This has gone from 87 billion up to 284 billion. Very exciting. Similar situation that what we're going to see across all the neoclouds and hyperscalers is that debt is going to be outpacing cash right now because all of these companies are believing that the future revenue that they're going to make is going to be higher than what they can make today. So they're not focused on the overall economics of today. They're going to take on higher interest expenses, but it's for a later and brighter future. I like Amazon because they're focused on the success of the future of the business. And that's why they're betting over 77% growth in capital expenditures, 44.2 billion. Now, that's much higher than Microsoft Azure or Oracle. The problem is is that Amazon doesn't break down how this actually is being built out. See, they also have warehouses for their e-commerce businesses. And so not all of this is for data centers, but obviously the reason for the large increase in capital expenditures is from data centers specifically. They said to put their growth into perspective for AWS, the 3 years after AWS launched, it had $ 58 million in run rate. In the first three years of the AI wave, AWS's AI revenue run rate is now over $15 billion, nearly $260 times larger than where they were whenever they initially launched the legacy version of AWS. And they said due to tranium and their own chips business both on the XPU side and the CPU side, they said if our chips business stood alone today and we sold chips produced instead of just using it for AWS that this would be a annual run rate business of over $50 billion. So Amazon has a massive opportunity here. Next up we have Nvidia, ticker symbol NVDA. Now, most of you guys know this is my largest position in my entire portfolio. And another reason why they're on this list, I mean, it's pretty obvious. They are the largest chip producer and the number one beneficiary of everything artificial intelligence. They also have a 3.5% stake in OpenAI, which likely due to the article from Forbes actually says that this might not have been paid in cash and most likely was paid in potential GPUs in the future or even potential compute credits. So right now they're about flat on this investment because it was made at the round that made them an $852 billion valuation company. So they're not up on this investment, but they wanted to do that to get in before IPO. Nvidia, as most of you guys know, is growing at an just unbelievable rate. 106% year-over-year, $96 billion of revenue. This is broken down across many different factors. not only their hyperscaler customers which makes up for the large bulk of their revenue in chip sales but also in the neoclouds and sovereign AI as well. By the way, OpenAI works very very closely across both of those sectors. So the growth is tied into both hyperscalers and companies like coreweave which we have on this list as well. And then on top of that they also have their growth which would be sort of excluding OpenAI for robotics OEMs automotive gaming that sort of stuff. But that is by far the slowest segment of their entire company. OpenAI is betting on these two major sides of the business growing very very fast. The reason why I like Nvidia margins are improving. The overall expenses continue to fall over time. This is making their revenue turn much quicker into net income as it flows down into operating profit. Now at 63.7 billion, a brand new high 66.2% operating margin. On top of that, you include the revenue growth and the IBIDA margin and we're seeing 173 higher than any of the other companies that we've taken a look at so far in terms of a rule of 40. Total net income is sitting at a 62% net income margin or a 59.6 billion net income. How much they're paying actual tax on right now. Their total cash because they're not actually building out the fabs. They don't really have any debt unlike many of the Neoclouds and hyperscalers that we've shown off. So they have $99 billion in cash in very small amounts. I think it's somewhere along the lines of 20 maybe $25 billion in debt right now for which they could pay off in a single quarter. They've also put an outlook for next quarter that they believe that they're going to do $108 billion in revenue, which I'll talk about why that's a little bit low, but my red line here indicates a reason to believe that that will be low. None of that is coming from China. And China sales have opened up in Q2 and now we're going to get a full threemonth quarter of China sales potentially happening for the H200's at extremely high gross margins of 74%. Now I wouldn't take that guidance lightly as every single guidance not just from what Nvidia has said but even Wall Street themselves has been extremely inaccurate but to the downside every single quarter they have been able to beat and raise on their expectations of this company. Even as recent as last quarter, which happened on August 26th, we saw a beat on revenue by 4.4% and EPS surpass 6% on their actual earnings. They said that they believe that the cloud industry backlog is now greater than $2 trillion. Capex by the top five hyperscalers alone is expected to reach 800 billion in 2026 and 1.3 trillion by 2027. Now, I don't say this just to highlight Nvidia. I say this to highlight all of the companies that we've talked about in this list. OpenAI and Enthropic need to continue to do very well for this capex to be realized as revenue. You want to build out those data centers and then you need to make sure that there's customers there that will actually be renting out those chips. This open AAI success, anthropic success is how those hyperscalers get paid. And if those hyperscalers get paid, Nvidia gets paid because then they come back for more. So I'm not just believing that they're going to do 108 billion next quarter. I believe that there might, and this is pretty conservative, do 110 billion and over 92% year-over-year growth rate. Next quarter, I'm believing 125 billion in terms of their guidance, which would lead them to grow year-over-year by Q4 of 2027 at 83 12%. Very, very fast, much faster than a lot of these names on this list, even though they're the biggest company in the world. The surge in AI demand says Colette, the CFO of the business, is driving a global infrastructure buildout supported by an expanding and diverse set of growth opportunities spanning hyperscalers, AI labs, AI natives, enterprises, and sovereign customers. We expect to grow revenue by approximately 70% in fiscal 2028, which to give you the lowdown on that is essentially their like calendar year 2027. And this is a supply constrained outlook. If we were to do the math based on the growth rate that I see for the next two quarters and then bring that over to what we're expected to see next year and by the way on a supply constrained outlook we are looking at a company that could be producing $700 billion in total revenue that is high margins 74% gross margins at just an unbelievable amount of growth. Now Jensen said we have a lot of visibility right now upstream and downstream. It is the case that we have never forecasted or never guided to a year in advance. Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%. They actually came out later on and said if we were not supply constrained, we'd do over 100% year-over-year growth rate. So, they are very supply constrained. We are going to continue to work with our supply chain to increase on that limit. So, they want to try to get to that 100%. Yet the company's PE ratio lower than the S&P 500, 27.6 times. Forward, we're looking at 18.3 times. One of the cheapest companies on this entire list and one of the fastest growing and highest margin businesses in the entire world. On top of that, they are free cash flow generative. They don't build out their fabrications. They don't have to buy the chips from anyone else. This is pure cash going to the bottom line. And we're looking at a forward price to free cash flow at 20 times, half the rate of what it is this year, which is an expectation that free cash flow is expected to double over the next 12 months. For the last name on this list, this is a a little bit of a stretch. I don't think that they are going to win out on OpenAI's development nearly as much or directly as these other names. But I'll tell you why it's on this list. Not only are they the fastest growing Neocloud that you can find in public markets, probably the most successful and making by far the biggest splash in public markets today, but they do have direct relationships with OpenAI from some of their subsidiaries. Click House, a minority stake owned by Nebus, has surpassed $350 million in annual recurring revenue, which is up 40% since May. As AI agents drive demand for database and observability infrastructure, OpenAI's usage has reportedly grown 10x with Clickhouse over the past year to more than 30 pabytes of data per day or roughly 30 trillion events daily. OpenAI has shifted parts of its log management workflow from Data Dog to ClickHose over the past year. So this business that is owned 25% by Nebus represents a $3.75 billion stake of ClickHose for Nebus which is roughly about 6% of Nebius's valuation today and that was as clickouse was valued at roughly $15 billion. Arrocotti, the CEO of Nebius, came out and said, "We're likely to see massive valuation increases on Click House and AVide, another company of theirs that they also have billion plus dollar stakes in. But essentially, they're saying by next year this company could be worth 304 billion and that's only going to increase our stake." He said, "We are fortunate enough to have a 25% stake in Click House and our ownership in AVID. These non-core businesses, these stakes are worth multibillions of dollars as of today. This is great, but it's less interesting by itself. Most importantly, we truly believe that these stakes will significantly increase in the midterm. That's the important part. On top of that, Nebius has signed multi-billion dollar agreements with multiple large companies. Specifically, the one that I'm highlighting, however, is Microsoft. Microsoft is very, very closely tied with OpenAI, and largely a massive amount of that compute is going to go directly to OpenAI. So if they're going to get paid on that buildout for which they've already completely done, every single tenency of that buildout for Microsoft is already completed. Now it's just about collecting the checks. Those check collections have accelerated. As you can see, this company just from June of 2024, so that's 2 years ago, has gone from making the business $14.5 million a year. Next year it went up to 105 million. The year after $582 million. If we look year-over-year for next year, Wall Street's expecting them to 5x again, going from 582 million to 2.57 billion in revenue, another 400% growth rate, a 5x, they believe that this company is growing and has extremely high adjusted Ibida margins, 41% but three quarters ago, they were negative adjusted IBIDA. So that acceleration in profitability is what we need to focus on and Wall Street only expects that to continue as they believe adjusted IBIDA over the next year will get above 50% on top of 5xing their overall growth. So adjusted IBIDA is looking to go from 236 million to 1.35 billion. One of the biggest red flags for any of the NEO clowns, their largest expense is depreciation and amortization. $260 million worth of DNA. The important part however in the success of Nebius is how quickly can they get this expense down while still growing in their overall base and that could be measured via depreciation and amortization as a percentage of revenue. You can see this getting down to 50% which is I mean just unbelievably high but it's lowering that rate deceleration that we really want to see. We want to see growth in revenue outpace depreciation and that's likely to be what we see especially as core we've ended up highlighting that the A100 chips are lasting longer than what they expected. If we see similar stories come out from Nebus that's everything that we want to see rule of 40. You're not going to see a higher number in this video. You might not see another higher number in the history of stock markets at 495% rule of 40. More than 12xing the rule. It's pretty wild. But Arotti, the CEO, said most importantly, we could sell all of our capacity. And in fact, they've come out later and said, we have orders coming in for Q2 of 2028. They said, we're not taking them. We believe that there's terms that could be set to sell shorter term deals to really important clients that need it today. The reason why you would sell shorter term contracts, typically up to 6 months, is because they're willing to pay more. Instead of paying $20 million per megawatt, we're collecting 40 to $50 million checks on short-term deals. You can see that here. The average contract sold in Q2 a little over 20 million. The Q3 short-term contract deals that they're getting over 40 million, which is leading their payback period just based on Q2 at 1 year and 10 months. Imagine what those short-term deals, how quickly you could pay back your debt and pay back the actual cost of the data center. We're looking at less than one year in terms of a setup here. Another very interesting part about Nebius is their cash to debt situation. We've got eight billion dollars in cash. It's a very good situation that Nebus is in there. Most of the time they end up getting their customers before setting up new clusters to pay high amounts of prepayment. They're essentially saying, "You want us to build something, pay for it ahead of time." On top of that, they are getting a ton of debt, $10 billion. But comparatively to businesses like Oracle or comparatively to businesses like Coreweave, the cashto debt ratio is nowhere close, the high majority of their debt could be paid off tomorrow just based on the cash that they have on the balance sheet, not inclusive of any new revenue that actually comes in from customer growth. So they are in a very different situation. Margins are expected to increase. Growth is at 454%. Strong balance sheet. guidance is reiterated at getting to $8 billion of an annualized run rate by the end of the year. They're hitting it out of the park at every single angle. I've shown you guys many different NeoClouds, many different hyperscalers. We ended up taking a look at Coree. Their price of sales was roughly around six times. Nebus' is at 45 times, 45.7 times to be exact. right now they're much more expensive but their actual execution on their growth looks much better. This looks like truly the best name in the business but they are very expensive. So it's really a matter of which one you want to buy in terms of do you want the fair valuation wonderful business or do you want the potentially smallest name what looks to be bestin-class but also you're paying for that execution. I wanted to add this quote in really quickly. We launched our first capacity auction. It was very successful and clearly at the highest price we've ever seen for Blackwell generation of chips, 15% above the highest price that we've ever charged. This gives us a strong signal for the value of this capacity in the market in real time. They're essentially saying, hey, no one's created a chips or compute futures yet. It's not really become an asset class, so we're sort of doing it ourselves. And this is actually allowing them to sell capacity higher than what they would have sold just in the open market. So this new auction system is actually allowing them to get even better pricing. And that just goes to show you or reaffirm the execution difference between Nebius and many of their competitors. They continue to try new ways of selling compute, partnering with companies like Palunteer, proving their exemplar cloud with Nvidia. They're doing everything right. Ladies and gentlemen, those were my top stocks for companies that are going to benefit from OpenAI. Whether that's direct equity investments, direct compute investments, or potential subsidiaries that are also betting on OpenAI success, these are some of the most interesting names that I could find based on Chad GPT6 Astra, which I would not underestimate. If they continue to dominate, we could see an inflection point in OpenAI's ARR like what we saw in Enthropic. And you can quickly see that this company's valuation will appreciate to over 1.5 potentially breaching or getting close to over $2 trillion for OpenAI if they can prove to sell to customers enterprise level models. That's what Anthropic proved. And now OpenAI is following suit with amazing amazing models. Now, we'll just wait to see for dev day if they can even push their progress even faster than Enthropic once