The One-Stop Future Shop
Great Ones, welcome to Great Stuff’s Picks 2022 edition part two.
Yesterday, I dove headfirst into my predictions for which stocks are gonna rock 2022 in a blaze of glory. If you missed my first pick … first, shame on you. Second, click here to read all about Advanced Micro Devices (Nasdaq: AMD) now!
I’ll wait. No, seriously. I’ll wait. Whistling…
All done? Right. So, I hinted that AMD only had one semiconductor company to worry about in its quest for next-generation domination … and it ain’t Intel.
Some of y’all have great ideas on AMD’s leading competitor for the future. Several of you suggested Taiwan Semiconductor (NYSE: TSM), and that’s not a bad idea.
But TSM is a diehard semiconductor manufacturer — not a designer. So, while TSM is a great investment for all the work it’s gonna get from making AMD chips — considering TSM is AMD’s primary chip foundry — it’s not gonna lead us all into the future with innovation.
Great One Jim P. really thought outside the box and offered up Micron Technology (Nasdaq MU). But alas, Micron is a one-trick pony. It makes memory storage chips, such as NAND and other types of flash memory … and that’s it.
Sure, its products are important. But Micron isn’t gonna compete directly with AMD. Like … ever.
Not surprisingly, many Great Ones hit this pick right on the nose, including Joji L., Rick L., Sushi P. and James S. (Good to see you’re still alive, brother.) So, let’s get to it:
2022 Great Stuff Pick: Nvidia
Nvidia (Nasdaq: NVDA) is such a solid 2022 stock pick that it almost feels like cheating to recommend it. Literally every analyst and their mother is recommending NVDA stock right now as part of their 2022 outlook … and for very good reasons.
Doesn’t Nvidia just make chips for pretty graphics? What’s the big deal?
It’s true that Nvidia got its start making graphics cards for hardcore gamers. But that narrative became old hat about three or four years ago. Since then, things have changed dramatically.
For instance, Nvidia’s graphics processors used to just power pretty pictures and sophisticated 3D graphics on smartphones, laptops, PCs and tablets. They still do, but they used to too.
Now, however, Nvidia semiconductors are crucial in mining cryptocurrencies like Bitcoin and Ethereum and support the blockchain technology all crypto runs on.
(By the way: Tomorrow’s based Great Stuff 2022 pick could make you rich off the crypto boom without ever touching cryptos or a crypto wallet. Know what it is? Let me know at GreatStuffToday@BanyanHill.com.)
Furthermore, Nvidia’s chips have even found their way into high-powered data processing centers and now compete directly against chips from AMD and Intel in the corporate market.
The company also has its hands in the EV market … and not just for pretty display graphics either.
Nvidia is a leading player in the AI and self-driving vehicle market, making both the chips and software necessary to digest complex sensory data and make hands-free driving and reactive AI possible.
In fact, Nvidia helped get Tesla started in the whole self-driving market way back in 2016.
Now, I covered pretty much all of these factors back in May 2021 when I first recommended NVDA stock to Great Stuff Picks readers.
But, Great Ones, all of that pales in comparison to the opportunities that lie ahead for Nvidia.
Wait … bigger than blockchain and data centers?
Exactly so. I’m talking about the metaverse. This is where it all comes together for Nvidia.
If you want your metaverse to have that Neo “Woah!” factor from The Matrix, you’re gonna need amazingly realistic visuals and virtual 3D environments.
If you want those visuals to be more than just pretty pictures on a wall, you’re gonna need high-powered AI to make them all interactive, intelligent and intuitive.
If you want any of the metaverse’s data to make any sense whatsoever, you’re gonna need massive data centers processing that gargantuan amount of information.
If you want to buy literally anything in the metaverse, you’re gonna need blockchain processing and cryptos for digital currency and digital security.
And, if you want all of those things in one single, solitary investment … you want NVDA stock. You need NVDA stock.
I mean, you can literally list off any of the major tech buzz words of the past decade — crypto, AI, EV, data center, metaverse, etc. — and Nvidia has a market-leading solution or product ready to go.
It’s why Nvidia has seen average revenue growth of more than 30% for the past five years. It’s why that revenue growth has exploded in the past year to an average of 67%. 83% revenue growth in the first quarter. Are you kidding me?
If not for the semiconductor shortage and global supply chain issues, Nvidia would’ve seen even bigger growth last year. And once those bottlenecks are gone? Whooo, doggy. Even the Federal Reserve will struggle to print money faster than Nvidia.
Currently, Wall Street’s highest price target for NVDA is $400. I think that’s pocket change. That’s Nvidia without its tumultuous ARM Holdings acquisition. If the ARM deal goes through — and Nvidia gains dominant access to the mobile market via ARM — $500 is a more realistic price target.
Getting ARM would finally complete Nvidia’s toolbox for the new millennia metaverse.
So, we’re talking a potential 33% upside without ARM and a potential 65% upside with ARM. Can you say: “Win, win more?” Sure you can.
The bottom line here is clear: Buy NVDA stock.
Editor’s Note: Did Paul Just Discover The Gateway To The Metaverse?
Paul Mampilly has identified a cutting-edge technology that experts project will soar more than 12 times over the next few years … and it’s helping to pave the way for today’s hottest stock market trends, like the metaverse.
Don’t miss out on the one stock that could ride this tech into the future.
If you missed your chance to reserve Ford’s (NYSE: F) all-electric F-150 Lightning pickup truck the first time around, now’s your chance to live your EV trucking fantasy … again.
Ford just announced that it will double its annual production capacity for the F-150 Lightning to 150,000 vehicles a year. That’s still not enough to cover the 200,000 reservations — and counting — that Ford’s already received for the Lightning, but it’s a static-y step in the right direction.
The news comes just a day before General Motors (NYSE: GM) is set to announce the Chevrolet Silverado electric pickup truck, which should start rolling out sometime in 2023 (supply chains and production capacity willing).
Personally, I think it’s messed up that both Ford and GM are only targeting about 600,000 electric vehicles (EVs) globally by 2024 … especially when Tesla (Nasdaq: TSLA) delivered more than 900,000 EVs just last year.
If those two aren’t careful, they’re going to “cautious” their way out of the EV arms race. But then again, Americans still need to show U.S. automakers they’re ready to adopt EVs, and we’re still a long way from electricity … or hydrogen … becoming the status car quo.
No, not that kind … get your head out of the gutter, geesh.
My main man Laurent Grandet over at Guggenheim clearly agrees, as he upgraded the soft drink server to buy from neutral and raised his price target on KO stock to $66 from $61.
The reason for the upgrade? I’ll let Grandet take it away:
Adding to Grandet’s grandiose argument is the fact that emerging markets — which make up 20% to 25% of Coca-Cola’s total sales — are rebounding much faster than developed markets despite ongoing COVID-19 complaints.
Whether those emerging markets eventually hit a sugar crash remains to be seen. But for now, Guggenheim’s upgrade was enough to send KO stock nearly 2% higher on the day.
It finally happened, Great Ones: After flirting with the milestone for months, Apple’s (Nasdaq: AAPL) market cap finally topped the $3 trillion threshold on Monday only to teeter and end the day with a stock market value of $2.99 trillion.
…am I supposed to be impressed?
For the record, we’re talking pennies shaved off Apple’s $182 and change share price, but those pennies add up when you’re a mammoth company with billions of shares outstanding.
Apple aficionados have pushed the tech giant $2 trillion higher since the early days of the COVID-19 pandemic, hyped by Apple’s sugar-plum promises of augmented reality tech and a possible electric car.
Should Apple deliver on said car in the future, it’ll just make the one model until the end of time — but it’ll come out in a variety of new colors every year and eventually ditch its charging port to feel like real innovation. I’m not salty. No siree.
Wait, go back to the wireless EV charging. I think you’re onto something…
A trading card SPAC investment didn’t shake out as intended? Ironic…
Legendary sports collectible company Topps has had an off-again, on-again relationship with the public markets … much like the market’s relationship with SPACs overall. And a baseball card SPAC at that? Talk about two great tastes that don’t taste all that great together.
After its $1.3 billion SPAC merger imploded last year, Topps has finally met its soulmate in the sports e-commerce company Fanatics, which “industry sources” say is buying out Topps for about $500 million.
For the record, Fanatics is only snatching up Topps’ name and sports entertainment business, not its candy and gift card goodness. (You’re safe, Bazooka bubble gum.)
Fanatics already has trading card licenses in place with the National Football League Players Association and NBA, but with Topps also comes an even bigger bounty of licensing deals, with everyone from UEFA and Formula 1 to MLB, UEFA and some other acronyms.
Fanatics also plans to use Topps trading card tact to pounce on the NFT market because why wouldn’t it? Ah. I knew those NIFTYs would show up again…
Are any of you Great Ones into collectibles — digital or otherwise? Let me know in the inbox here.
Toyota (NYSE: TM) just threw its hat into the self-driving car ring, announcing the development of a fully autonomous operating system called Arene that will help it compete with Tesla and other industry rivals.
The Japanese juggernaut won’t roll out Arene — Come on, Arene, too loo rye ay — until sometime in circa 2025, but hey, Wall Street loves its early-bird announcements. And today’s news was no exception.
Looking ahead, if Toyota combines its upcoming Arene tech with its hydrogen fuel-cell-powered Marai mid-sized sedan, it might have a real Tesla competitor on its hands. But then again, Toyota’s been fighting against EVs recently … so the jury’s still out on whether this is a long-term win for TM.
Fortunately for Toyota investors, the company’s OS news — combined with the fact that Toyota upped its sales by 10% to 2.33 million vehicles in 2021 — was more than enough to lift TM’s share price by more than 6% this morning. And that deserves a little celebration, don’t you think?
All together now!
Oooohhh, come on, Arene. Give TM investors that green…
Psst … hey, you virtual Great Ones. Out there investing on your own.
Oh no, not Pink Floyd again.
No, no, I’ve got the stuff you need. That great stuff.
Metaverse plays — with an extra scoop of the “meta.” Right here, in my clichéd sketchy overcoat.
I’ve always wanted to wander down a dark alley … whatcha got, Wall Street?
Drbul claims that Nike’s “already dominant market share should continue to grow as it keeps scaling online and innovates with new footwear and apparel products in the new year.”
So far, so good, so normal. People do buy shoes online — shocker. But that’s not all he wrote.
Guggenheim also pointed toward Nike’s other digital ventures as a major tailwind for the new year … namely the metaverse. Yes, you read that right.
Nike is the best idea for a metaverse play? That’s cute.
I think you’re forgetting the actual metaverse-building metaverse plays out there, but OK Gugs, you go with Nike. (Note to self: Never use “Gugs” again…)
Great Stuff Picks investors, everyone who read our metaverse investing guide, all y’all who read today’s introduction … what’s the number one way to get in on the metaverse right now? Say it with me:
Anime NFTs on DeviantArt?
What? No, stop that. Nvidia. (Waves hand: You want Nvidia.)
Do Jedi mind tricks not work via email? There’s a reason why Nvidia took the top spot on Great Stuff’s list of five metaverse plays to, well, rule the metaverse. Note how Nike is not one of them.
I mean, I can kind of commend Nike for pulling a “How do you do, fellow kids?” and getting into the sneakerhead NFT game. It will probably make bank, and I won’t be surprised when it does. Stranger things have happened in the metaverse; just ask digital pet rock investors.
And if Nike actually thinks its Roblox gaming foray with the ever-so-cleverly named “Nikeland” will win over some younger shoe-buyers, then great. You do you, Nike.
But when you compare Nike’s light dabbling in the NFT murky waters to the sheer prowess of Nvidia’s multi-market, cross-sector chipmaking domination … what is there to even compare?
The metaverse needs computing power. Data-crunching might. Graphics-processing oomph! In other words, chips — and lots of ‘em. This is what will make the metaverse literally work. Period.
Nvidia’s even hustling into the metaverse on the software side of things, too, with its new Omniverse platform that “simulates physically traveling from one virtual world to another, combining apps and tools to help speed up metaverse expansion and adoption.” (I can’t believe I forgot to mention that up above … Nvidia is just into so many things it’s insane.)
Now ask yourself: Does the metaverse need Nike NFTs? I mean, really? Nike NFTs wouldn’t even work without companies like Nvidia.
And Guggenheim wants Nike to be my metaverse salesman…
Let me know your thoughts on the metaverse, Nvidia and all the new NFT hotness. Your email might even be featured in this week’s edition of Reader Feedback — the first of the year!
GreatStuffToday@BanyanHill.com. We’d love to hear from you! In the meantime, here’s where else you can find us:
Until next time, stay Great!
Editor, Great Stuff