Cathie Wood is Buying The Dip on These AI Stocks!

Hey, welcome back subscribers to our weekend big stock buyer series where this time we're going to be looking at three falling stocks that Kathy Wood just bought the dip on this very week and it was more than $20 million worth of purchases again just in these three stocks alone and just over the past week. That's a giant amount in such a short amount of time. Now, because Kathy does love to invest so much in innovative or kind of disruptive tech, well, each one of these is also a very big play on the future of artificial intelligence, too. Now, I did leave out Tesla and SpaceX from this list just because like everybody already knows that she's always buying those stocks. And I also left out Meta since I just did a whole dedicated video on them, too. But these three are a little less talked about. One is definitely an AI giant, but the other two are much smaller, more speculative plays. So, it should be a good kind of variety here to run through. As always, I will be sharing my own opinion on each one of these stocks. And I'll even let you know if I approve of the purchase and whether I would consider buying the dip myself on any of these two. So, it should be fun. Let's go ahead and jump into it. Oh, and um if you don't mind, could you please uh just take a quick moment to hit the like and the hype buttons down below? Really helps keep my channel alive. Means so much to me. So, thank you guys for that support. I really do appreciate it. Okay, now with that said, jumping into purchase number one here. Well, we actually have an absolute giant in AI, and that is Taiwan Semiconductor, ticker symbol TSM, which uh Kathy just poured over $15 million into over the past week alone. Now, to be fair, TSM is not really crashing at this point. The other two definitely are, which I'll show you here in just a second. Giant drops on the other two. Uh, but TSM is generally a phenomenal performer that rarely ever crashes. However, it did at least dip over 15% this past month. And only a couple days ago, it was actually down even more by about 22%. Which really isn't a, you know, huge crash compared to the other two that we're going to look at. But it is, I think, a just a big enough dip here to catch Kathy's attention. and um she probably just saw that as a very rare opportunity to be loading up on shares again, which you know, anytime that uh you can get a discount like that on such a high quality company, it's probably a good time to buy. And yeah, I will just tell you guys right off the bat that I do actually approve of this purchase. This is the largest chip manufacturer in the entire world. they generate around 70% of the entire global supply and you know whenever another AI giant like Nvidia, Apple or AMD who are always you know rising on so much hype well whenever they design a new chip uh they send those designs right over to TSM who gets to collect some really high margin fees for each one of them that they build. And with us being like, you know, smack d right in the middle of the whole AI boom right now, everyone is scrambling to get their hands on as many chips as they can to build out all of these massive data centers uh really all all over the world at this point. And in fact, um it's projected that spending on AI infrastructure alone could jump to around 3 to4 trillion by 2030, which TSM, you know, would be a direct beneficiary of. Now last year for example sales and profits jumped over 30 and 40% respectively while analysts project even more growth to come in the future years and I don't doubt that it will you know for one second. In fact the company is seeing so much demand right now for their newer more energyefficient 2nanmter chips that management actually raised their fullear um revenue guidance to over 40% growth which is you know pretty crazy for a company that's already this big. and they're now using all of those profits to expand their operations even further. In fact, one of the most kind of bullish points about TSM is in how they are really, in my opinion, just diversifying really well and expanding over to the west, even pouring another $100 billion uh to expand their manufacturing plants in Arizona, which brings their overall commitment there to over $265 billion in total. Now, as gigantic as that spending, you know, may seem to you, it's actually one of the smartest moves that I feel they can really be making right now. As the biggest fear I would say by far with this company has always been their geographic location over in Taiwan, where any, you know, direct conflict with China could be terrible for their business. Uh, but moving some production now over to the States actually helps lower some of that risk. And the partnerships with the West just keep on expanding, too. I mean, they're even building the chips now um that go directly inside. I believe that there was a figure of like over 90% of the US Air Force's uh precisiong guided weapons are using TSM chips and they're even launching a brand new um space chip division to power satellites too. So, you know, they're actually a very important player in I would say like the entire world kind of uh chips economy. And in fact, the only concern um that I can think of right now myself is simply that there is just maybe a a little bit too much demand for their chips. Uh, which yeah, that's um not ever really something that you would consider as a negative, but when you already hold so much market share and you're struggling to build chips fast enough to supply all of these power- hungry companies out there, you're going to see those customers really start to look elsewhere to get their hands on more supply. And that's where rivals like Intel and Samsung, you know, could potentially start to use that opportunity to steal some market share wherever possible. And Samsung, for example, just signed recently a new deal with Tesla. And Apple might be looking at Intel for their chips, too. Again, I think the market is more than large enough to support multiple players here. And because of all their growth, TSM's valuation is actually still uh very reasonably priced. They've got a PEG ratio of less than 0.7, which is also close to half that of the sector median. That is pretty damn cheap for a company of this caliber. So, yes, I approve of the purchase here. And I would actually be buying some myself if I didn't already feel a bit overexposed to AI and chip stocks as it is. I have so many in my portfolio. But, you know, I actually used to own TSM. Fun fact, um it used to be one of my largest holdings for years. Uh some of my most old school viewers might remember that. And um although I sold that stock for a big profit, um I honestly always regretted selling it and and just kind of wish that I would have held on to it like super long term. But hey, maybe uh you know, maybe I'll be jumping back into it at some point here in the near future. We'll see. I do I do uh like the stock at at the moment. Okay, now uh moving on here to purchase number two. Well, we have a much smaller uh highly speculative much more uh speculative um stock here that's actually been tank tanking hard ever since IPO and that is Pony AI, ticker symbol uh Pony Py, which Kathy just bought over um like $600,000 of uh this past week. And yeah, since debuting about a year agoish, um the stock has already lost like over 70% of its entire value from the top. Now, uh for those that don't know, Pony is actually a Chinese company, but it's one that was actually co-founded in I believe Silicon Valley and now maintains kind of a dual presence as a leader in autonomous driving technologies and specifically for robo taxis and robo trucks and other services related to that kind those kind of technologies. Um but the catch is that they don't actually build their own cars. Rather they operate in what we consider to be like a a much more um like asset light type of business model focusing mostly on building the AI software and the the robo taxi kind of platform for vehicles uh which are then built the vehicles are then built in partnership of course with like major automakers like Toyota. And while the stock has been getting hammered uh their actual business is growing at some pretty high rates here. Uh last quarter, for example, their sales jumped triple digits, while their robo taxi segment specifically uh climbed nearly 400% up to $8.6 million. And I really feel like that's where all the hype is for this stock is really in their robo taxi potential, even though they do do other stuff as well. Um but their actual like fair charging fees jumped over 450% too. So you can really start to see some of that stuff take off for them. Uh plus they also have a robo truck division. and that one grew 31% um to over $10 million and an intelligent solutions segment that soared 246% up to more than 15 million and they can do some stuff in logistics and and other areas too and so there there is some potential there as well. Um, and although the company is projecting to carry a fleet of over uh, I believe it's like 3,500 robo taxis deployed, they're hoping to deploy um, across 20 different cities globally by the end of this year. And already in some major cities of China, the the company actually reports that they've reached now what they call unit economics break even. And that basically just means that the the fair that they're charging, you know, a customer is now like finally covering the operational costs of that specific vehicle, which is a big milestone for a robo taxi company like this, a startup kind of. So, um, why then is the stock crashing so hard if if they've actually been growing and there's some positives to look forward to? Well, it really comes down to the expenses, I would say, and the risks involved with a stock like this because even with all that high growth, uh, Pony is still losing a ton of money on the bottom line, which oftent times is more than they even generate in sales. Now, that should obviously be changing as their revenues begin to skyrocket in future years, which analysts are projecting. Uh, but even then, analysts also still project negative cash flows for years to come, too. Now overall though analyst projections are a bit of a mixed bag I would say because when it comes to the actual stock price today well it sits way lower than even the lowest price targets. The stock price today is lower than than the lowest price targets and on average analysts are also projecting like tripledigit returns over the next 12 months. So that's actually pretty bullish. Now um I don't know what to make of that overall myself. Um, this is a company that is clearly having to spend a ton of money on R&D and their major market is in China, which I feel does hold a ton of like geopolitical risk too and is not an easy market to even keep track of to begin with. Um, so for me, it's just a bit too speculative at the moment. I I can see why Kathy would want to take a chance on it, but you know, in our current climate with how shaky the world economy is right now, I'm trying to invest in much safer companies as much as I can. And a speculative, you know, kind of Chinese robo taxi kind of startup company stock is just not quite that, right? Like it's not going to be the safe one of the safer options out there. So um even though it could be um great long term and I wish the best for anybody who is a shareholder of that company of the stock but I already own Google, I have Amazon, Nvidia, GM, uh Tesla, even BU from China. So all of those give me more than enough exposure to the autonomous driving market. So for me personally, it is a pass. Okay. Uh that's going to bring us now though to the final stock of the list and coming in at purchase number three here. It was in a pretty big AI energy play and that is X Energy, ticker symbol XE, which Kathy just purchased over 5 million more dollars worth this past week. And now looking at the chart here, we can see what a rough ride it's been for XE, losing well over half its entire value this past year. But for as bad as the charts look, I actually think X Energy will have a decent future in nuclear energy. As a developer of what are called advanced small modular reactors or SMRs, which run these ones in particular run on their own proprietary fuel called Tiso X, it uses ceramic coated particles to withstand much higher heat without melting. And that makes them, you know, generally much safer options to other forms of nuclear fuel out there. And the big reason why everyone is actually talking about um X energy so much right now is because they not only have the backing of Amazon who even owns uh I believe like around 20% of the entire company and that is like some of the best backing that you could ever hope for as an energy supplier because Amazon is literally the largest cloud you know data center provider in the entire world. So having them by your side, that's a huge benefit to have. And in fact, uh the Department of Energy even projects that we're going to need around I think it's like around 400 gawatts of new nuclear capacity by 2050 just to keep up with all the insane demand from data centers. Okay. So you got Amazon by your side. You see all this explosion in data centers. Yeah, that's that's going to be a a big um you know, kind of bullish point for them. But on top of that, well, X Energy was just selected by the White House, too, to work directly alongside other tech giants like Microsoft and Nvidia under a brand new $200 million federal program to speed up the deployment of nuclear reactors for AI data centers. And in this program, the government will also help these companies [clears throat] apparently, you know, like cut through red tape so they can design, license, and construct all these new reactors much faster and cheaper, too. Uh however, there is a reason for why the stock has been crashing by so much. And that is simply just the reality I would say of X Energy still not having an approved reactor out in the field today. And in fact, they don't even expect to have their first reactors ready until I believe like at least 2030, which is a tough pill to swallow when you're still losing so much money on the bottom line. But do I approve of the purchase year? Well, for Kathy Wood, sure, why not? Uh it is a spec play, but I've seen her buy much riskier stocks than this in my opinion. And um having the backing of again literally the biggest cloud provider in the world is just already like a great sign for X's future, which is probably why analysts are also so bullish on the stock right now at these levels, projecting tripledigit returns um over the next 12 months. But for me personally, it is still a pass for similar reasons to the others. I just already have um pretty much I would say like I have uh almost all of my nuclear bets already kind of in place in my portfolio with other stocks like Next Era and Duke who are you know my larger safer place and then I have Oaklo for my more speculative high growth play in SMR's um nuclear energy. So I just don't really need X Energy in my portfolio at the moment. Who knows, you know, if it keeps crashing like this, I might take a small bite of this one myself, too, because yeah, I do think it's looking pretty attractive here. And I and of course, I think, you know, nuclear is shaping out to really be, I would say, the clear future of energy. Um, at least as far as I can tell. You guys can tell me if you if you feel differently. But hey, uh, there you have it, guys. Those are the three falling stocks that Kathy Wood is buying the dip on. Let me know what you all think about them down below. And most importantly, do you agree with my own takes on them, too? Why or why not? I would love to hear your thoughts down in the comments. But e either way, I just hope you enjoyed the video. Thank you so much for stopping by, my friends. I hope you're all having a great week, weekend, and um I will catch you in the next one. Got more videos coming for you. All right, take care, my friends. Bye-bye. [music]