The AI Investment No One is Talking About

[@Nanalyze]

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[@Bicepmonkey]

Great video Joe. Quality education as always 👍🏻

[@Nanalyze]

That's really good feedback to hear, thank you! Joe P.

[@glitchlife4639]

One of my rules is that I will not touch a company until it has been active and traded on the public markets for at least one year, this includes SPAC mergers. And only after it has been publicly listed for a year will I dive into filing’s and research it to see if there is anything of interest. I have learned this the hard way early on in my investing career. This is rule #4 in my will not touch list.

[@Nanalyze]

That's a great rule! For SPACs you can extend that timeline to a decade and probably not miss out on much. ;) It's great to hear people establish objective rules and follow them. Good job.

[@Dementia.Pugilistica]

Great rule. The SPAC craze of the bubble really made this evident to me as well. And doing endless backtraces of other company stocks... they pull back more often than they rise steadily from IPO and they often are mispriced

[@SuperLeafyman]

Didn’t even finish the video before I full ported my Roth, thanks Joe

[@Nanalyze]

Oh boy ;)

[@themusic6808]

A recent IPO I’d love to see you cover is UL Solutions. An Underwriters Laboratory certification has been one of the global gold standards of product safety science testing for over 100 years, most products you interact with on a daily basis requires one. Huge moat and there’s AI & technology involved as products such as software, medical devices, consumer electronics and smart products require a UL certification.

[@Nanalyze]

Thank you for taking the time to spell the thesis out. If any Premium members see this and find the stock compelling, please raise on our Discord server. That's becoming the gateway for new entrants :)

[@azulsimmons1040]

It's already up to 8 billion valuation. Everything shots up now when it comes out if it is associated with AI at all.

[@Nanalyze]

Much worse examples than this one to be honest. This hype does nobody any favors.

[@sr-wn3vn]

can you please do a video on siemens and their EDA solutions in US market

[@Nanalyze]

Siemens is a conglomerate so investors aren't likely to get much exposure to their EDA solutions. Do you know if they constitute more than 10% of revenues (or net income)?

[@riffsoffov9291]

It looks like their revenue from EDA can't be as much as 10%. From their 2024 Q3 presentation, Electronics & Semiconductors is 10% of "revenue exposure" (to the nearest 5%), and it looks like that's just for "Digital Industries", with other slides for Smart Infrastructure and Mobility. Using numbers from the earnings release, Digital Industries was 27.7% of Industrial Business, and there's a tiny bit of Financial Services revenue as well. I've heard their M&A has been making them more digital-focused, but it doesn't look like their EDA will hit 10% of revenues anytime soon. Profit from Digital Industries was 37.0% of the profit from Industrial Business. I haven't found what percent of Digital Industries profit was from Electronics & Semiconductors, and I don't know what percent of revenue or profit from Electronics & Semiconductors is specifically from EDA. I expect revenue and income from EDA are too small for Siemens to break them out.

[@Nanalyze]

@@riffsoffov9291 Now that's a quality comment, thank you. Exactly how we approach these things. Figuring out what exposure you're getting first.

[@dangerbuoy]

I like the note about AI not necessarily representing a competitive advantage much longer- or at least until everyone is using it (which does feel eminent). And… I won’t totally proselytize from my soap box but US office > UK office. UK writers tend to do well with premise but struggle with character and relationship writing. Whereas the US is sort of the inverse. Which is why the David Brent gimmick feels a little tired by the end of the fairly short UK version but the US show can have masterclass episodes like “The Dinner Party” relatively late in the show’s run.

[@Nanalyze]

Joe P. here. This is come excellent banter. I admit I though the UK office wasn't funny at all. Then after living in the UK for a while I watched the series from end to end and thought it was spectacular. Peep Show is also another must-see UK show. To be fair, I need to give the US Office a proper watch. :)

[@dangerbuoy]

@@Nanalyze Now we’re talking! Peep Show is total brilliance. All time great in my book.

[@Nanalyze]

@dangerbuoy You are spot on! Most people in the States have no idea.

[@Escapoholic]

I personally like Luminar Tech better. Less risk and better growth potential

[@Nanalyze]

Not sure what Luminar has to do with this presentation but we last touched on it here: www.nanalyze.com/2024/05/whatever-happened-lidar-stocks/

[@ashishmaharaj5483]

As a CFO would put it - No bang for the buck, I'll pass :P

[@Nanalyze]

Would be interesting to see what ROI a firm might be able to realize with better accounting/reporting software. Pretty difficult to quantify perhaps.

[@maltlickytexas]

❤

[@Nanalyze]

Good old @maltlickytexas. Doling out more love than our parents. ;)

[@PremiumCollector.]

Are the cheerleaders in the room with us, Joe? 😆

[@Nanalyze]

You'll know them when you see them ;)

[@no_good_reason_to_bother]

too much competition.

[@Nanalyze]

Also TAM might not be all that unless they focus on adjacent offerings.

[@shefudgrupa]

accounting and AI. the most yawn combination.

[@Nanalyze]

You're not wrong.

[@kingzparadise474]

That’s usually a good thing

[@SuperLeafyman]

@@shefudgrupa bullish