If You Missed NVIDIA, Jensen Just Showed Us What's Even Bigger (3 Stocks to Buy Now)

Nvidia taking on AI safety. These three stocks [music] could really benefit. Joining us today is Luke Lango with Investor Place to go over three names in this whole AI safety discussion that could have a huge future ahead of them. Luke, I'm excited to get into those three names. But first, let's talk about the news of the day, what everyone is talking about. A really big announcement from Nvidia this morning. >> Yeah, I mean, Jensen's doing his best to put on the boxing gloves and fight back against the doomers. I was actually at the the All-In Summit in Los Angeles a couple weeks ago when Trump called Jensen Wong live on stage and that was the Monday after Daario wrote the post saying AI is going to kill the or not kill the world but we need to slow down before it does and it was like this coordinated counter punch against against the doomerism. So what you're seeing right now is this big tugof-war between what do we do with AI? Do we slow down? Do we not slow down? Do we regulate? Do we not regulate? And Jensen is putting all of his weight, $5 trillion worth of weight, uh, all of Nvidia behind the we shouldn't slow down camp. We should keep going. And the way to do this responsibly is to build tools ourselves that self-regulate. And if that is the path forward, and I think it increasingly is becoming the more likely path forward, that's a big win for the whole AI trade. It means no slowing and it also means more money spent on things like evaluations, on safety tests, on peerreview systems which Elon Musk has proposed. So I think it's a really big positive news event for AI bulls. >> Yeah, I think you're absolutely right. Jensen is just trying to address those doomsdayers out there. But I know he's not the only one. There are some other AI giants, the leaders of these massive companies that are taking some positions on what the future of AI safety looks like. And I know Elon Musk is one of them. and you recently really dove into his opinions on what's happening with AI. >> Yeah. So Elon is in the we need to slow down a little bit but we need to do it by ourselves. No regulation, no red tape. And the reason he wants to do that is because I think his move is to vertically integrate artificial intelligence into one house. So Anthropic and OpenAI are leading the race but they are on screens. They are keyboard type and keyboard talks back to you, right? It's not off the screen. Elon is trying to leapfrog them by going off the screen, by integrating Optimus humanoid robots and cyber cabs and the XAI Gro model and the data centers in space. By putting all of that into one vertically integrated in-house manufacturing facility, he can leapfrog the competition even with an inferior chatbot, if you will, because he has all these other moving parts, which I think in the long run are going to contribute more to the economy than, you know, an app on your phone. So, that's sort of what Elon is in the process of doing. When I was actually at the all-in summit, Elon did essentially say, you know, implied wink wink cough cough nudge nudge that Tesla and SpaceX will merge soon. And when they do, that's when this whole mission, I would say, really gets started. And so, I'm really excited about that next wave of AI, that physical manifestation of AI wave that I think is coming with Elon Musk leading the charge. >> Yeah. If you want to dive into that conversation on what's next for physical AI and what Elon Musk is doing and what it will mean for investors in the future, scan the QR code or click the link in the description to get that special offer to look at those reports from Luke and his team at Innovative Investor. Again, just talking with you here, Luke, I can tell you are all about that next wave of technology and what's going to be the next thing. And that's what I love about having you on the show is we get to talk about the future and what's next. And I think this area of AI safety really is that next big sector. It's a sector that's going to see a ton of investment. Let's talk about what Jensen has said about this sector in the future. >> Yeah. So, I think that's where a lot of people get get it wrong here is they read these, you know, slow down things and say, "Oh, less spending, the trade's dead." It actually means more spending, right? Right? Like if Elon Musk says, "We need a peerreview system and we need evaluators inside each of these labs." And that means that every time OpenAI creates a model, now Anthropic and XAI are going to check it. That means more compute. That means they need more servers, more GPUs, more CPUs, more networking. They need more equipment. And so all of this discussion really is it equals more spending, equals more firepower for the for the core trade. And I think the the AI safety part of it, the that additional marginal compute that comes online, that's probably the the big winners of 2027 are in that AI safety vertical. And Jensen has been very upfront about that, saying, "Yeah, if we continue down this path, we're going to need more of X, Y, and Z." So, you really don't need to do too much research. You just need to listen to what these guys are saying. >> Well, that is exactly the stocks that we are going to get into on this list today. Talking about those three stocks that could be the next big thing. They have the most potential for upside ahead. And I'm really excited to dive into your list today, Luke. Let's get to the first stock that you're looking at. >> Yeah. So, again, like I said, you just got to listen to what they're saying. And Jensen Wong has said that Marll is the next trillion dollar company. Nobody knows more about the inner workings of building data centers and adding compute than Jensen Wong. They are the epicenter of the boom. They are the $5 trillion behemoth behind it all. And so, when that guy says this company is the next trillion dollar company, that's not, you know, guy me at a casino saying, "Hey, put it all on black," right? It's no, this is a very legitimate and then when you dig into the bullcase for it, it makes a lot of sense because Marll does custom chips, Marll does networking, Marll does switches. These are all the biggest bottlenecks in that buildout right now. And when you talk about safety, if we add a whole entire new safety vertical to the infrastructure buildout, then we're going to need a lot of networking components there and a lot of custom silicon in that. So that is that's Marll and I think they are the next trillion dollar company in this boom. I am with Jensen Wong. That's not a hard thing to say. Yeah, it's a it's a easy person to follow along with what what their belief is in. Marll is a company that's been so interesting. You look at their chart, they've had a ton of growth in the last year, explosive growth. They're one of those AI names that investors have really done incredibly well on this year. How much more growth could be ahead of them? I think a lot of times retail investors especially will look at that growth and say, "Well, they've already run up so much. I don't want to get into a stock that's run up this much already." Right. >> What's your take on Marll's future growth potential? A great way to answer that question is looking at the charts of any kind of leading AI stock, infrastruure stock like Marll because the charts are stock got away, came back a bunch and is now rebounding. To me, that's like the perfect setup. I think this is the shopping season because you had stocks that went up like Marvel 100% 200% 30% in a matter of months and they pulled back 30 to 40% but maintain their long-term trend lines. They're above their 200 day moving averages. they're upward sloping and now they're bouncing and curling right above those and it looks like this is a really good rebound opportunity in a lot of those names. So to people who are concerned about oh it's it's run away so much. No, now is actually a great time to buy the rebound in a lot of these names and Marbell is at the top of my shopping list. >> Let's talk a little bit more about the the potential growth if we do see more of an investment from all over AI into that safety into that let's make sure that what we're building is safe and let's make sure that we're testing all of these things. which area of that testing component or really that kind of new industry would Marll to fulfill >> the networking side. So what's going to happen is you're going to see a shift in the focus of new compute from training to inferencing. So if we slow down the frontier, which is what they're all talking about, that is the pre-training vertical of compute. Pre-training is all about GPUs and accelerators. So it does probably mean actually less demand drivers for something like Nvidia but it means more demand drivers for the inferencing side of things which is actually servicing the models to you and that is all about networking and that is all about orchestration orchestration layers and that's CPUs. So I think the two kind of subverticals of the data center buildout that do the best over the next six to 12 months are going to be CPUs and networking. Marll, not so much in the CPU game, but very, very big in the networking game. And I think that's where they're going to add a lot of value to the safety buildout, if you will, over the next 6 to 12 months. >> All right. A really great first stock to look at. I know you said this is at the top of your list, but there's some other great names to look at. What's the second stock that you're looking at right now in the safety story? >> Yeah. So, sticking with that CPU and networking um playbook, CPUs, I really like ARM. The first wave of AI was all about training and training's all GPUs. And the CPU was neglected. Nobody thought you needed a CPU. Just train on these GPUs. But now that we're getting into actually servicing these models to the masses and everybody's using them and we want them to think and reason and be efficient, we do need orchestration. You need these GPUs to talk to one another and be efficient to talking to one another, which means you need an orchestrator. There's a new orchestration layer in compute. That's the CPU. So now suddenly there's this resurgence of the CPU uh as being important to the AI compute buildout. This is why Intel stock has had a big run. This is why AMD stock has had a big run. I mean all-time highs for AMD. Um and I think that ARM is the [snorts] highest torque name in that world because they are just launching their first AI CPU because they used to be a licensing business just licensing. They had the technology and they would license it out for CPUs and AI chips and all that stuff. But now they're actually launching their own AI CPU. Sometimes being at the right place at the right time is all you need. They launch their AI CPU right at a time that we are inflicting more CPU demand. I think that's a stock or a company that reports massive growth over the next two to three years and the stock follows suit >> at right place, right time. You can't underscore how important that is in the market sometimes, not just the product itself, but when they're actually launching it. So that's a great look at that one. And also right place, right time for investors who are looking at adding ARM. You talked about AMD being at all-time highs. I know we've heard from several of you watching our videos. Our one of our regular analysts, Thomas Hughes, very bullish on AMD and people are hating that recommendation right now because the stock has already run up so much. Well, ARM ARM's chart looks a little different. We're not at that that top of that 52- week high. We've pulled back again much like Marll. >> Yeah. So, I would say I mean I love AMD. So, I'm not I'm not going to bag the AMD pick at all. We we own AMD in our portfolios. We think it's a fantastic, fantastic stock. But the ones that are at the top of our shopping list right now are those charts where you had massive growth, big pullback, preserve the long-term uptrend, you're basing, and now you're U-turning. That's that's ARM. That's Marll. Like, that's where you need to be shopping right now. Chasing the all-time highs, I think it's not a bad strategy, but I do think that a more optimized way to get bigger returns over the next 12 months is to find those those rebound stories that are happening right now. and uh ARM chart is like just pull up. It's a very good-look chart from a rebound perspective. You could see how it could really double or triple from here. >> Speaking about uh rebound stories, I think now is a good time to remind you to take a look at the special reports that Luke and his team have done on Elon Musk and SpaceX and really the entire infrastructure that he is building around the future of AI, which is uh AI in the body of something else. And it's something that Elon's team is really excelling in right now. And this really could be a huge growth potential for investors who are looking for that right now. So scan the QR code or click the link in the description to take a look at that area where it's a perfect rebound opportunity setup too. Not so much in the safety story though. We have another stock to talk about in the safety story. Luke, let's get on to that last stock on your list today. >> Yeah. So the again CPU networking, CPU networking, CPU networking. So we got the CPU play. The networking play that I like. My preferred networking play is Momentum. Lit 400 foot view high level networking is essential to data centers because you need the GPUs to talk to one another. Typically, you use copper to have these GPUs communicate with one another, but copper is not super fast. And so, now a lot of these copper cables are getting upgraded to photonics and optics and fiber. And that is where Lumenum is. So, Lumenum has the kind of one two growth punch of one, we need a lot of networking for data centers, and two, whatever networking there is out there in current data centers, we need to upgrade it from copper to optics, photonix, fiber, etc. So you have that onetwo punch which I think is going to power a lot of growth for the company over the next 5 to 10 years as long as it's built out last. And that's why the stocks are doing well. But the new tailwind that comes into the fold is is with safety because again with safety what you do is you shift from pre-training to inferencing. And inferencing is all GPUs talking to each other. That's all the inferencing is. And so the more they talk, the more bandwidth you need for them. The highways need to get bigger and that's what momentum builds. So the more this safety stuff becomes front and center and you have to prioritize it, the more the bigger highways you need in the data centers and momentum is the top provider of those highways and it's the highest growth player, major player in the space. So there's so much working for this stock right now that I think again talking about the shopping list rebound plays. This one hasn't come down like Arman Marll. It's kind of based at a high but it hasn't gone anywhere in a couple months. And to me this is a consolidation before a breakout. So, it's a great time to accumulate before that next leg higher in the stock. >> And this is an area of AI investing even before the safety discussion that we were having. I think the way that you described the way this company fits into the safety story is really interesting, but it's a name that got a lot of excitement earlier on, maybe even a year ago, and like you said, it's kind of slowed down in excitement. Why do you think we've seen that? Do you think that this is an area where people just feel like you've already built in all the growth that this company's going to see, or is there more growth ahead that they're missing? No, I I don't think that I mean the estimates on all these stocks continue to go up, especially in the optics space. You look at momentum's EPS estimates for 2026, 2027, 2028, they continue to go up and to the right. There's no change in the fundamental story. The reason the stocks have been choppy is because of macro stuff. Iran war 10ear treasury at 5.3% to at 95. It creates a big liquidity crunch. And when you have that that much of a liquidity crunch, it's tough to bid stocks up. The reason the stock's been going sideways is because you have the earnings pulling it higher and then you have multiple pressure from the 10-year at 5.3 pulling it lower and that tugof-war has been netting it out. And so that's why the stock's been stuck. Our thesis is that that macro stuff can and well clear up very soon. There is just massive political and economic incentives to end this conflict. And when that does happen, this is the sort of stock that's on a launching pad and it goes up 50 60 70% in a matter of a couple months. So that's why we're really bullish on momentum here. the underlying fundamentals have remained very robust despite a choppy stock and so long as you have belief that that choppiness can end because the macro improves then I think you got to be a buyer of the stock and that's where we are today >> and one of those macro discussions though to talk about with this is those constant headlines the doomsdayers that AI is going to kill us all that headline that uh has continued to pop up and it doesn't seem to be going away anytime soon what do you think that that could have an impact on these stocks shortterm and long term I mean is there that doomsday approach of maybe AI does slow down and we do see a push on the brakes on some of these names or um is there maybe a a possible catalyst with some of that. I just want to address the doomsday perspective on some of these names. >> Well, I I do think they're genuinely concerned. I know people that work at OpenAI, that work at Anthropic, that make these models. These people are scared. Like, let's take off the tin foil hat. It's not a conspiracy theory. It's not a Chinese scop. Like, this is they're scared. They really are. They're good people that are scared. Now, what you have to understand about that though is that when you get so wrapped up in a certain pursuit, you tend to hyperbolize what's going on with that pursuit. Like when you're a kid and you're playing basketball, I was a basketball player and you lose, you know, the Saturday 10 and under AAOU game, you feel like your entire world is ending and you tell your it's all going to I hate everything and then it's it's just a game, right? But to that kid at that point in time, it's life or death. And so that's what's happening with these researchers, right? is they this is what they do. This is their entire life. They are genuinely scared but they are hyperbolizing the impact it will have on a global scale. So I think that's what's happening underneath everything. But I also think that uh the execs are using this as a uh reason to frontr run impending legislation. So the Trump administration is not going to regulate but people hate AI. If you look at the betting markets, it's supposed to be a blue wave in the 26 midterms. 28 early betting markets there also shifting very far left. So I think these guys see regulation coming in 28. And so as opposed to having you know dad come down with the hammer and destroy everything. They're trying to shape up before dad comes back. And so they're trying to be on their best behavior. We're going to self-regulate. So when the regulations do come, it's like you don't have to be that harsh on us. Like we we shaped up dad. We're we're better kids now. And so I think that's exactly what Elon's doing and it's exactly what Sam's doing. If you notice, Elon Musk hasn't said diddly squad about politics in the last six months because he sees he sees what's going on. And so I think that there is this front running of, you know, the the current backdrop has two years. What do we do after AI's got 200 years? What do we do over the next 198? And so that's what they're trying to frontr run right now. And I think that actually can be perceived as a tailwind for durability of the AI trade. >> So fascinating to hear your take on this. I think it's a good advice for investors to remember that it seems scary right now, but the fear isn't the whole thing. I also love the discussion on regulation. I just had a conversation with Joel and Rob from Alimemetry Research on exactly that.