I Just Made A MASSIVE Bet On The AI Trade (Here's Why)

All right, what's up everybody, and welcome back to another Friday here in the stock market. Well, today's video is going to be a little bit different than normal because instead of taking a look at the charts or taking a look at the news, in today's video, we're going to be switching it up a bit, and I'm going to be talking to you all about a change that I just made over in the public portfolio a couple of hours ago that I am very excited about. And I'm not talking about a small change. I'm talking about a $10,000 bet that I am taking in the stock market right now that I think can produce some absolutely fantastic returns and some fantastic gains over the long term, I guess, as long as my thesis is correct. And if you know me, you know that I don't make changes very often. I'm not the sort of investor who's always buying into new things and selling out of things. No, I usually just have my stocks that I like, I buy them, I give them time to compound. That's where I found my success. So, when I get the opportunity to finally make a go, take a punt, and make a trade that I think can perform very well, it gets me going. It gets me jacked. It gets me excited, and I'm pumped to talk about it for you all today. So, I'm sorry it's a little bit of a different video, but I do think you guys are going to enjoy it nonetheless. So, let's go ahead and let's jump straight on in. So, when it comes to the change that I made in the portfolio, it's actually not a change in the $430,000 portfolio that I show you all the time. Because what I've decided to do is actually open up a brand new portfolio over in the Robinhood account called Hyperscalers. Now, some of you are already going to know where I'm going with this, and some of you are going to hate it, and some of you are going to love it. But all I ask, give me the video to explain myself, and then leave me your thoughts down in the comments below so we can debate or agree down there. But with that in mind again, I decided to create a brand new account called Hyperscalers, and my game plan is to create a bit of a mini portfolio, my own version of an ETF, basically, that only holds the Hyperscalers that I believe have very, very good chances of succeeding at their current mission. Now, if you don't know what a hyperscaler is, in the simplest terms, hyperscalers are these companies such as Amazon, Microsoft, Google who are investing hundreds of billions of dollars into AI infrastructure, building out these massive data centers, and then renting out those data centers to companies like Anthropic or OpenAI, and creating a ton of revenue off of renting out that compute power, okay? And the reason why I've decided to go in with hyperscaler specifically is because people hate them, right now. They hate them right now. People think all of this money that these hyperscalers are spending is going to end up being a waste, that they're just going to burn all of their cash, they're going to go into debt, it's going to be terrible, and it's not going to work. And people hate this narrative. And if you know me, you know that I love buying things that people hate. And so, I've decided to go in and create a trade, create a portfolio. It's going to be a $10,000 trade specifically for hyperscalers. Now, I was going to kind of just walk you through it all in the video, but what I decided to do is why don't I just go in and read you all my Discord post earlier from TH Capital because I basically break down the whole entire game plan, and this will be a good way for me to kind of walk you through everything really quickly, okay? So, earlier today over in the Discord, when it comes to the the public portfolio, I announced that I was making a major portfolio change. I said, "Over the last 2 weeks, I have been considering going against the grain when it comes to hyperscalers and CapEx. And the seminar that we did this morning with Connor Kenny pushed me over the edge." At the present moment, the market is not digesting the CapEx from companies like Amazon, Google, and Microsoft well at all. The fear is that this spending will fundamentally break their businesses and ruin their financials, which is why several of these names have sold off hard. And if you do go look at how these stocks are performing, they have been getting absolutely battered. I mean, go look at this, right? Look at Let's look at Google for example. Even after Google's fantastic earnings report that we got, this thing has just been getting absolutely smashed. Currently down 21% from its all-time high. Same thing goes for Microsoft. If you look at how Microsoft has performed since 2025, it's getting absolutely battered, currently down 30%, and actually the same thing goes for Amazon. From its all-time high to now, Amazon is also down about 17%. So, they have not been performing well, and they have been selling off hard because again, people are scared that all this money that they're spending building out this AI infrastructure is going to be a waste and ruin their financials. I, however, believe that within the next 3 years, something will change. Either these companies are wrong about the spend, they pull back, and they go right back to being extremely profitable because think about it. Amazon is Amazon, right? Amazon has one of the best businesses, if not the best business in the entire world, Amazon. They got Amazon Prime, they got the arbitrage platform, they got they got all this stuff, right? Or think about Google. I don't need to explain to you how good Google is. Or think about Microsoft. I don't need to explain to you how good Microsoft is. Outside of all of this AI infrastructure that they're doing, they have good businesses that got them to where they are today in the first place. And if they're wrong, and they have to just pull back and go back to doing what they're doing, they can become extremely profitable companies a few years later easily. Now, they may go into some debt, and they may need to end up paying that off, and that might be difficult in the short term, but in the long term, I believe that if they have to pull back on all this infrastructural buildout and it's not worth it, they will get it back together quickly, and there will be a great opportunity there. The other side of it is that they're right. And these investments that they're making into CapEx, into AI infrastructural buildout, turns out to be one of the biggest winning bets in history. One way or another, these are the biggest, best companies in the world, and I'm betting on them figuring it out while everyone is mad at them. So, the core of this bet is just me saying, "You know what? I think one way or another, whether this goes how they think it's going to go, or this doesn't go how they think it's going to go, I think they're going to figure it out in any way. While their prices are down, and when they figure it out, I think their prices are going to go right on back up at some given point depending on how the situation goes. My thought process is this, right? I have a very simple thought process. The people behind Google, the people behind Amazon, the people behind Microsoft, I'm willing to bet that they know more about this market and the direction that they're going in and whether or not they're going to make a return on the money that they're investing, they know more about that than I do, than you do, than most of us do. And the fact that some of the best capital allocators in the world, some of the best investors, the best business and businessmen and women in the world are all betting on the same thing and investing hundreds of billions of dollars into it, jumping on this opportunity, it makes me go, "You know what? They might just be right." And while everyone thinks they're wrong, they might end up being right. And that's the bet that I want to take. I want to bet that they're probably going to end up figuring this thing out and they're going to make it work. And the worst-case scenario is that if they're wrong and it doesn't work, that they can work their way back to being where they are today. Now, the reality is if they are wrong, prices are going to fall much worse from here. So, I'll get into that in a second, so which is the reason I'm not going in with all of my money right now, but I do believe that even in the worst-case scenario, which they are wrong, Microsoft can go back to being Microsoft, Amazon can just go back to being Amazon, Google can just go back to being Google, but they will have all of this experience and all of this AI infrastructure to power the previous version of their business anyway. So, I think they're going to be left in a better position one way or another. It's just a time horizon thing to see when they get to that better position if they're right or if they're wrong, okay? But continuing on, okay? So, as I mentioned before, one way or another, these are the biggest companies and the best companies in the world and I want to bet on them figuring it out while everyone is mad at them. So, as a result, I have decided to create a new hyper scalar portfolio. You can almost think of it like a hyper scalar trade and less is a hyper scalar portfolio, but it's within the public portfolio and it will start with $10,000. And this is my plan to fund it. I will be closing my Robinhood managed account, which I seeded with $5,000, which is currently valued at $5,400, and also injecting $4,600 of my own capital. So, as many of you know, I did give Robin Hood $5,000 of my own money last year. They've turned that $5,000 into roughly $5,400. I'm basically just closing that down. There's no need for me to pay them to manage an account for me. I just wanted to see how it would do. So, I'm taking that $5,400 out. I'm putting it into this Hyperscalers portfolio, and I also funded this account with $4,600 myself. So, of course, that gives me my $10,000 position. Now, I made it very clear, and I want to make it very clear. I believe that this trade and this Hyperscalers portfolio will probably get way worse before it gets better. And these positions could be in the negative literally for two or three years before I find a really good return. But I'm young, and I'm willing to take this calculated risk in my portfolio. Because my thought process is this, right? Right now, people hate the idea of the amount of money that they're spending, and they're only going to spend more. They're only going to go into more debt. They're only going to smash their cash flow even more. They're going to end up having to fund this thing somehow. It's not It's not stopping anytime soon, and people aren't going to stop hating it anytime soon. And there's a very real world in which you see these Hyperscalers continue to see their prices fall over the short to mid term. Very reasonable to assume. On the other side, if they stop doing it, people are going to say, "We told you that was a terrible idea." And their prices are probably going to drop anyway. So, the reality is that there is a very real world in which all of these Hyperscalers, which I'm about to go into in a second, continue falling from here. I'm aware of that. I know that. But at the end of the day, what I'm not going to do is try to time this thing. I'm not going to sit here and pretend like I know when Google's going to bottom or Amazon's going to bottom. I don't know. How am I supposed to know? Yeah, I've been in this market for 9 years, but that doesn't give me magical powers, like I'm supposed to just randomly know when things bottom. I I no idea. So, my game plan is to go in and jet $10,000, know mentally that it's probably going to continue lower, and build in that position over what could be a year, 2 years, or 3 years. Because when they figure it out, which I'm confident that Google, Amazon, and Microsoft are going to figure it out, I'm going to make some real, real capital gains, real returns on this thing. So, this is what I'm going to do. I'm starting off the portfolio with three positions: Amazon, Google, and Microsoft. Now, I considered Meta. Some of you are probably wondering. I did consider Meta, but Meta's more focused on using their AI infrastructure build-out for themselves and not so much for others. They're not renting out their compute that much. They're not making much money from it. And I know they just announced it and blah blah blah, but they're well far behind Amazon, Google, and Microsoft in this capacity. And so, it just doesn't align well with the beginning of the portfolio. Not to say I won't add them, but for this first beginning part, these are the three that I've chosen: Amazon, Google, and Microsoft, because they are actually using their compute to earn revenue from other companies, and that's what I like. Now, I also am heavily considering Oracle. Some of you know I have been considering Oracle a lot recently. The only reason I've not is because Oracle Oracle's situation is a little bit different, and the debt that they are taking on is pretty rough. It is kind of bad. Like, if you go look at how Oracle has been going it's They do have the backlog to support it, but if you just look at the amount of debt, I mean, it's flying. It's flying. So, they're the ones I'm a little bit more spooked about, especially as their free cash flow is continuing to fall. So, I'm not sure. That's one of those more high beta plays. I'm probably going to do it knowing myself, because I do like to take risks. I'm not decided yet. I'll keep you updated. So, I'm going to start off with these three: Amazon, Google, and Microsoft. Considering Meta, considering Oracle. Probably Oracle before Meta. I'll let you guys know. And the way in which I'm going about it is I'm seeding it with an initial purchase, $750 into Amazon, 1,000 into Google, 1,500 into Microsoft. Now, the reason I did it in this order is because this is the order of beating that they've taken. Amazon has taken the least beating, so I'm putting in the least. Google's taken the second beating, it's like the middle beating, so I put in the middle amount. Microsoft is by a far taken the worst beating since this whole thing started, so I've gone in and put more into them, right? I mean, if you look at Microsoft right now, the thing is literally down 30% at the time of recording, 37% at the bottom. So, it's taken a beating. The ones that are down the most get the most investment because I'd rather buy things a lower that they're getting, okay? So, I seeded them with initial purchase, 750 Amazon, 1,000 Google, 1,500 into Microsoft, okay? That gives you $3,250, I believe. It gave me three shares of Google, three shares of Amazon, 3.9 shares of Microsoft, as you can see. And then it leaves me another $1,400 from the amount that I injected in terms of capital myself. From there, I'm going to do a weekly dollar cost average of $1,200 broken up in these same ratios across those stocks unless something happens. Like if Google crashes a lot or comes a lot, maybe I'll put a little bit less or a little more, I'll update you. But in general, for the next 4 weeks, I'm going to invest $1,200. That's going to put me at $8,000 total invested with $2,000 left over. And of this $2,000 remaining, I will just look for opportunities. You know, if we see Microsoft fall off a cliff even more, you know, Microsoft to say $319, I'll start investing a lot more. I'm just saving some cash aside to be flexible. So, if it pumps or if it dumps, I have options there. And my goal is that over the next 4 to 6 weeks, I will have deployed the full $10,000. And then going from that point forward, every time I invest into the market, I'll add a little bit more. You know, I might add $2,000 the next month, $5,000 the next month, whatever. And if this turns into a 30 or 50,000 dollar play, fantastic because I just believe that they're going to figure it out. And look, I get it. I get it. I know it is a bit of a risk because when you go look at Google, for example, they're going to spend 205 billion dollars over the next year. They don't have that. So, they're going to have to go in the debt. They're going to have to raise money. They're going to crush their balance sheet and really leverage their company in a way that is dangerous. On this bet that this AI infrastructure is going to work out for them. So, I know this is a risk. I know it's a risk. I'm vastly aware of that. But, I sit back and I think I'm 25 years old. What's a little risk without What's a little reward without risk? What's a bit of risk versus you know, without reward? I think if I'm going to take a bet anywhere, betting on the best people in the world to figure it out is a dang good bet. I honestly think I have a 70-80% chance of this working. That's my honest opinion. And I'm not telling anyone that they should do it. Taking risks in portfolio, that's on you. That is so much nuance to that. You Not saying you should, you shouldn't, right? I'm just saying for me personally, $10,000 going into some of the best companies in the world, Google's, Amazon's, and Microsoft while people literally hate them, it feels like an obvious long-term play to me. And look, there is a world in which this $10,000 turns into $4,000 for a little while. We could see them fall 40, 50, 60% if this goes the wrong way. But, guess what I'm going to do? I'm going to add more. I'm going to add more. And I'm going to add more because I'm confident eventually they're going to figure it out and eventually they're going to return. And when that time comes, I will have been able to make 50, 100, 200% gains on some of the biggest companies in the world. Think about that. If I wanted to make a 100% gain in the market, I used to have to go and look for like these penny stocks and these risky things. The fact that I think I can do a 50, 80, 100, 200% gain depending on how this goes from a Google or an Amazon or Microsoft is crazy to me. If Microsoft itself just goes back up to its all-time high, we are talking about a 50% gain, 45% gain. And the reality is it's probably going to go lower before it goes higher. So, what if Microsoft comes all the way back down to say 260 and then it eventually does rally back up to an all-time high? That's a 100% gain on a Microsoft. Are you kidding me? That's the sort of risk I'm willing to take as a 25-year-old here in this market. And look, I've been in this market 9 years. I made a bunch of terrible mistakes and this might end up being one of them, but I'm willing to take that battle on and that's why I've decided to take on this new position, to take on this new portfolio. So, I'm I'm gassed about it, dude. I'm just I'm jacked about it. I'm so pumped. I can't wait to see how it plays out and I can't wait to update you all as it goes. Because again, you know me, I don't really make the most exciting I don't do things that are very exciting. In my version of exciting is buying the biggest companies in the world. So, I know for some of you this isn't really exciting at all. But for me, this is exciting cuz a lot of the money that I made even in the public portfolios and things like VOO. $62,000 gain here in VOO. Like, it feels good, but who cares? It's VOO, you know? So, this is me stepping into something that's more of a realm of risk for me and I'm dude, I'm pumped about it. So, I'll keep you guys updated as it plays out. I'm going to be on the hunt for opportunities to buy, as I mentioned before. I'm starting off with these three, already got those purchases done and then I'm going to look to potentially add Oracle and Meta into the future. Now, the way that I'm going to going to go about those opportunities is just watching the price. I'm going to go in and I'm going to look in Microsoft and I'm going to say, "Okay, where are we at on the HCI, you know, on the weekly, for example?" If I see this weekly HCI come down into like minus three, minus four, minus five for some reason, yeah, you bet your butt, I'm going in and I'm buying some more Microsoft. Or if we see Microsoft really start to rally from here and say it pumps back into the plus three, plus four, plus five territory, I'll probably just stop buying and give it time to dump again, you know? So, I'm mostly, when it comes to the extra 2,000, just going to be keeping an eye on the charts for Microsoft, for Google and for Amazon. For example, if Google continues a little bit lower to minus three or lower on the HCI, I'm probably going to deploy pretty heavily into it with that 2,000 because I think there's a great opportunity. Or if Amazon finds itself to minus three, to minus four, minus five, that as well. So, a lot of what will determine if I buy and when I deploy the 2000 will come down to what the HCI is reading. So, I'll just keep you updated as their HCI's keep updating on the weekly charts. And if you don't know what the HCI is, it's just a meter. When the meter when the price goes up, the meter goes up. And when the meter hits the red territory, this is sell territory. When the meter goes down, this is buy territory. So, basically when the meter goes down enough that they enter into buy territory, that's when I'll start buying. You can access the HCI. I have a link down below. It's in the TH Tool Kit. It's a part of my tool kit that I developed. So, feel free to check that out, okay? So, I'll keep you updated as it does play out. And yeah, we'll see how it goes from here. Of course, if you guys didn't know, the Discord that I was reading from today, um this is the Discord that is associated with TH Capital. TH Capital is my personal platform where I released courses on like introductions to the stocks, technical analysis uh for beginners and intermediate. This is a 4-hour course, fundamental analysis, that's also a 4-hour course, the portfolio building course, that's a 2-hour course. Um you also get live events like the one we did this morning where we actually went over taking risks as a stock investor. This was the seminar that convinced me to go in on this trade, right? So, you get live events, you get updates on my portfolio, when I make moves, when I'm buying, when I'm selling, what I'm doing, all of that's available for you there, okay? So, you have the tool kit to check out, you have TH Capital to check out if those are things you're interested in. But, nonetheless, I will be here every step of the way making videos, making live streams, letting you guys know when I'm buying and all that sort of stuff one way or another. So, let me know your thoughts down below. I love You guys know me. I answer every single comment in the comment sections. So, let me know your thoughts down below. Do you love this idea? Do you hate this idea? Do you have a similar bet? Kind of what are you doing and what are your thoughts? I love to chat with you there. I'll uh yeah, update you pretty soon. Big video coming tomorrow, educational video, so stay tuned for that. And I can't wait to see you all in the next one. Peace out, everybody.