NVIDIA Insiders Say You Need to Own This AI Stock! Arm Holdings Explained?

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2:41Start your summer rhythm with Starbucks. Try the new tropical butterfly refresher from Starbucks. let's talk about arm uh we have posted that i know that's been a lot of attention about that so arm uh it's had a stellar couple of weeks you know you had the stock call well not stock call you had the options call um two weeks ago you are university and you talked about that so uh and that option is up 300 but talk break down not just the option but like arm as far as what is on for people that don't even know what it is why has it been running like and why is it you know the hot stock of the moment yeah so shout out to everybody that's in it i call it the the army the arm army now um that's fire a lot of people in that um so shout out to everybody number one that pulled up to the class and executed on that some people did a lot better than i'm doing which is which is i love because i'm like all right they went shorter term but i speak on it a lot a lot of times you'll do research on companies and then every now and then you'll get validated with that research and so you know when we had the opportunity to go to nvidia uh in april you know doing research on the semiconductor space understanding where arm is i remember we were sitting there and they were asking questions and one of the things that was prompted was all right who's makes our memory who's doing the motherboard here's our gpu this is what it looks like oh this is ARM.

4:12They're the architecture for this. And I was like, oh, okay, here comes the validation. And so I want you to think of it in terms of NVIDIA will take them as a company, right? They design ARM manufacturers. Now, because they manufacture or create architect, I shouldn't say manufacturer, TSM does that. Because they architect the design, they're able to do that almost for any company, right? So when we're talking about the AI revolution, Arm really doesn't have a CapEx, right? They're actually building architecture for NVIDIA. They're building it for Apple. They're building it for Qualcomm. And pretty much, I mean, a lot of the semiconductor space, the part that makes them so attractive is that they charge royalties.

5:00And we know royalties, like when we listen to music, right? Like how did you get your royalty check? meaning how much did you make over each album sold? So think of it like that. Arm is making royalties over each chip that is sold. So imagine if they're making the architecture for Blackwell, if they're making it for Vera Rubin, if they're going to make it for Feynman in the future. That's millions of chips that, number one, they're going to get money off of creating the architecture. But then number two, they're going to get royalties on top of each cell. and so i'm like wow this sounds like it's a brilliant model bro you should definitely have in the portfolio for a couple of reasons now when they reported they had a blowout quarter but the royalty rate got a little bit underperformed what people thought but that doesn't mean it's not going to keep continuing to growing because again look at their partners think about this if we got design we got architecture and what does that architecture actually do well that actually creates the language for that gpu right so the language and the rule book of how that gpu is going to perform that's arm's responsibility so they can build apple they can apple can use them for architecture to build their m series ship nvidia is going to use them for their number one gpu but the best part is that they're also now doing it for the cpu why is that important on friday 3 23 right when we want to talk about a run sometimes so we invested in that two weeks ago based on that story.

6:30The CPU story is a very interesting one because ARM's architecture is all over AMD. It's inside of the story. 3.23 on Friday, NVIDIA says, we're about to change the face of PC. The next era is upon us, right? Microsoft does a simultaneous tweet. ARM does the simultaneous tweet, which means partnership is on the horizon. Last night, if you watched, Jensen said the next evolution of the PC is here. Who's the architecture? ARM. Who's the main? It's going to be Microsoft. Who's the compute inside? It's NVIDIA. Think about that in terms of AI now, not just being an application, but actually being the hardware that you're now going to buy.

7:15It's going to change. And the vision of how they're looking at it is, okay, the same way that everybody had a personal computer in the 90s and early 2000s, that was great. And you use that for certain functions. going forward, they're going to look at personal compute as the engine that now powers your household, right? So your agentic AI will be running from a central station that is the TPU. Completely different look at how the revenue is going to grow, but a definite look into the future of AI and how ARM is going to play a role. And so we were in this at 230. I've got it. It actually fell down the next day after earnings we've been seeing the story build the cpu starts to build the gpu story has already been here arms at the centerpiece of it so that's why we added it to portfolio and it's been going absolutely insane how's it treating you good shawty come on listen you got all right man i know you're on your demure cool vibes but man's good what's that good um yeah shout out to everybody that's um are we in it long term yes so this this would be a prime example we go out far further on a leap right so now we're out to i believe june of 17 which gives us from a tax standpoint this is now long-term capital gains because we bought it in may so that gives us over a year and a day Now, as we watch it grow, right, people keep asking, when do I stack?

8:48When do I stack? Well, there's a couple of thresholds. I'm looking at a pretty good appreciation. So if we got into 230 close, has it passed 330, which would be$100? Well, it's done that. It got there pretty fast. Does it get to 400? So let's watch where it moves over the next couple of weeks. We might be able to stack here, but this is what I'm saying. Hey, number one, do we have a long-term? Do we have shares, number one? Do we have a long-term leap? Can we win in between? And that's how we're building this out. So we go out first, and then we try to figure out the rest after. How are we going to staff?

9:21Really important, the power of partnership. So those who know, Apple had an integral part in the formation of ARM early. So look at them missing out there. Yes. But like you said, Microsoft partnering. So when I'm beating up on Apple and I'm like, hey, you missed out. The company that is benefiting greatly from this AI wave, they helped invent, and then Apple's not benefiting from it. But Microsoft is. NVIDIA is working together. ARM is working together. My favorite metric, though, is profit margin. Even though some say that they disappointed, the profit margin reportedly is as high as 97%. That's a company long-term.

10:00You can't bet against, like, to be honest, 55 to 60 is amazing. 97 or 92 percent is absolutely blockbuster um so i like it long term like it short term and i love that all the greatest companies on earth are finding ways to work together and like you said the personal computer is transforming from just a personal computer to the start i think of agentic revolution on the consumer side which gives nvidia a Microsoft, Arm, AMD, a technological moat that no one will be able to break down for at least a 10-year period. Ernest, what's up? Look, if you're building a business today, your website isn't just a digital business card.

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15:48And the easy answer is that we're nowhere near there. That's like five to eight years where it's fully photonics and that's what everybody's using. And even when that does get here, we've been waiting for that story, right? That's why we talk about momentum. That's why we talk about coherent. That's why we talk about fabricant. We already, we know that story's coming. So we're going to be invested in that story. right now this story is going to be here for a while in their prime position like you said the revenue is one thing the royalty thing i was just like all right yeah i haven't seen that and i love it i think the other interesting part and you brought it up is that imagine if nvidia would have had apple as a partner instead of microsoft what what do you think the landscape would have looked like if it was arm apple and nvidia and this is the new compute and this is the inference and inflection point and you imagine go ahead yeah no go ahead no no i'm gonna make a point but you go i'll let you finish but even despite them having all of these misses they hit an all-time high of 315.

16:55so i think apple would have probably been at 550 but the ecosystem is so powerful and profit margin is so strong even misstepping on siri not making it a better version of whatever agentic software you like the partnership with arm the missteps with nvidia they still hit all time high yeah yeah and damn so say explain exactly what happened that NVIDIA, what he said? What Jensen said? No, no, no. We went to NVIDIA. Oh, so I didn't want to say his name. Shout out to Rambam. And really quick before you go, how much he emphasized it. That's what I was listening for. Yeah. How excited he... We were in two different groups, right?

17:42And so in between groups, I have conversations with him just to pick his brain, try to, again, get validation on the research that I'm looking at. So as he's asking questions, the first thing he talks about is what GPU are we using and who's manufactured and everybody got TSM. And then when he talked about memory, everybody was on board, right? That story was pretty flushed out in a detailed manner. It was Micron, got it. And then when he talked about the architecture, he said, oh, this is ARM. If it's not in your portfolio, it needs to be. yep okay right and so when somebody asked in terms of with all the demand can you guys keep up with the manufacturing we said well that's why we have partners like tsm and amcor right because whatever they they've partnered with them to help offset some of this demand and so it's no coincidence that in the may class the two companies i'm talking about our Amcor and on.

18:45Why? I've heard it. I've done the research. I just got validated again. Alright, let me share this. To give full context here, we had a deal for Black Friday and part of the deal was anybody that purchased the bundle, we took a group trip to NVIDIA. Two. Two cohorts. We took 50 people the first time, 50 people the second time. And we took them to NVIDIA headquarters in Silicon Valley. They spent the day at NVIDIA. They got panel discussion from NVIDIA's team. We took a tour. We got educated on the GPUs and the technology, the whole nine yards. So in the cohort group, one of the key people at NVIDIA, he said, long story short, he said that if you don't have ARM, you probably should look at, you know, get an ARM in your portfolio.

19:40And he explained why. and now so I say why do I say that sometimes

19:49relationships the relationship will take you further than information or talent you don't have to be sometimes you could you could just be at the right place and be provided it has nothing to do with school you went to it has nothing to do with how talented you are it has nothing to do with anything cultivating relationships and making sure you're around the places that you need to be and you listen and then of course you take action off of listening because if you gain the information and you don't do anything it's just entertainment but if you actually do something with it that's important so why do I say that again relationship relationships relationships Get in the right door.

20:41Make sure you stay close to people that know what they're talking about. Mm-hmm. Vitally important. You can watch a thousand hours of - YouTube University. Yep. Relationships. And if I can say this - No, go ahead Ian, I'll go after. When people are speaking, same with Nova Grants, listen to the passion in which they speak the thing that caught my attention when he brought that up the time before he never emphatically said anything then when we finally see him again a second time almost with the same love that he has for nvidia it's like that this is and i'll one of the ones he spoke down upon i won't speak on that but the one he emphatically spoke on was this one you have to be mindful of when people are inside of a ecosystem who knows how vitally important something is to take heed to it and then follow up and invest in it yeah i was just going to add that it's important to have the the the prior knowledge too right because 100 people went and maybe more people heard but how many people were aware of what he was even saying to execute on it.

22:05So that's why it's important to really understand the story. That's why I keep reiterating the word story because it's important. Understanding that story, and when you hear it, okay, I got it. Now, how do we know about ARM? Like you said, Apple, but if you go back in the research of NVIDIA, they once upon a time tried to acquire the entire company. Yes. Right? I think this is like in 2022 or 2021. they tried to they actually had to i think the government had to step sec stepped in and said you cannot do this you cannot do this can you imagine that they actually were were able to acquire the entire company and so that's the first time i've become familiar with the company when i hear him say it i'm like oh this we got to go do the research figure out the research right but that validation was needed sometimes you're in the lab like he knows now i text him like every more than now, like 6.30.

23:01When you're in the lab and it's just you and you're trying to figure out, oh, I need something. What is it? There's a piece. Oh, there it is. Validated. Perfect. Let's go act on it. Having the knowledge, but acting on it is so important. You can get rich from relationships. Shout out to everybody that keeps putting drum in the chat. Yes. Yes, drum. Yes. There it is. We said it. Yes. But the thing also is that the biggest hurdle from getting rich from relationships is just not being an idiot either. No, that's a big thing. That's a big thing. It goes back to the Ronald Wayne Apple you misstepped and left the Holy Trinity for sure.

23:45You did. Yeah, for sure. For sure. Because it's like everybody wanted to be Pablo Escobar but Gustavo had cash. Like you don't always got to be the number one person. You don't got to be the superstar. You don't always have to be the most intelligent person in every single thing. You don't always have to try to do things your own way. Sometimes in life, you can get rich by accident, but the hardest thing is to get out of your own way. That sounds easy, but it's actually extremely difficult for most people. Most people are in their own way. Any examples that come to mind? No, you see it happen all the time.

24:36You see it happen in sports. Troy, you see it happen in sports. Okay, y 'all spoke at Harvard, right? I'm here in the cold pile, just landed. How many sports players did you see that was playing with a great player and left because they thought it would have been better. You're just not going to leave Kyrie out of this, man. It's not just Kyrie. I love you forever. Shaq's a legend. He's actually the greatest of all time when it comes to a center. And he made a mistake. That was pride and ego. There's no reason why him and Kobe shouldn't have won six championships together. it just it was a workable model it was working it's working why you want to break that up and then he gets one but what would he have done if he would have stayed with kobe or penny i think that the laker situation they actually traded him the orlando situation he actually wanted to leave he signed us but they traded him because of the turnover he forced the trade yeah they're looking at it like we got to choose between one of the two and it was going to too, I'm wrestling people.

25:48Kobe didn't want that to happen either. Bottom line is this. Yeah. Cultivating a relationship is just one part of it. Maintaining a relationship is another part of it. And the easiest way to maintain is just chill out. Sometimes you could just get rich. Like I said, you could just, you don't gotta be super lit. You don't gotta be well known. You don't gotta be the voice. You don't gotta be the face of it. Yo, there's countless people. And Nvidia is another thing. We went to Nvidia. We saw the co-founder of Nvidia that nobody knew ever. Yeah, you have no clue. And he's a billionaire. Does he have more money than Jensen?

26:21No, but he's up. Yeah, super up. And also, too, I'll say this. In order to get out of your own way, you need to heal some of those childhood traumas and wounds that you have and abandonment issues that you have from the parents. Because often I see when people have constant tumult, the rooting of it is in that childhood. So you need to do some of that shadow work in order to get to that next level to be able to be peaceful enough. Also, too, if you need a big brother to be able to guide you through how to make millions in the market, go to ianinvest.com and join a rare panda stock. Mike, can you pull up this fidelity clip?

26:58I know some of you be like, yo, you talk about as a millionaires now, but shadow work. Shadow work, got to do it. And just a couple of years, this person is up 300 ,000. Let me get some pandas in chat and fire in chat. Just because they did it, it does not mean that you are guaranteed to do it. But if you want to know where to get in, where to get out, the best companies to invest in, the ones to stay away from, all of my thoughts on the market, how to get rich and my blueprint for becoming free, go to ianinvest.com. I love you. But you got to do that shadow work and get out of your own way. Because if NVIDIA, like think of the companies that are not working together, the liabilities list for open AI, even though they're still going to be a trillion dollar company, I can argue if Sam doesn't get out of the way and doesn't become chairman, he's going to fall to the wayside because he's not even going to get the government contracts that Anthropic is going to have.

27:51Like, look at this. Dario going to AI is going to destroy every job on Earth and then go right to the government and say, hey, but I have a solution for you. Let me fix it. And he gets the contract. A lot of building wealth and perpetuity is having good relationships, like you said, and having peace inside of those relationships. So you got to do that work before you can ascend to the highest level. And Rashad, you guys have spoke at Harvard. The case study method is very important to learning. So if there's any case studies of misalignment and friendship that you want to highlight tonight, the floor is yours, my brother.

28:27No, it happens all the time. Like I said, it's a personal battle that everybody fights. Everybody got to minutiae is shut up and get rich. Trademark that. I gotta call Amy because that's important. Sometimes people wanna prove that they have enough information, enough knowledge, enough whatever thought was, whatever, whatever. Like some of the most successful people in the world, their mantra is to shut up and be rich. Just shut up. Like you don't gotta prove it. Like would you rather be rich or would you rather be proven? A lot of people would rather be proven, unfortunately. Take that idea. That's a mistake, bro.

29:10Give the credit away. It don't even matter. Just give me the money. What Jay-Z say, save all the accolades. Just the dough. He said that in 98. He said that. He gave you the blueprint in 98. Save all the accolades. Just the dough. That's it. But I do want to say this because I just found this out. You know, if you have a bank account and is dormant for two years, it becomes deactivated and dependent on your state. But in New York state, after that, I think it's like a period of like 18 months. It goes to the state. Yeah. You knew that? So that's fine. You got to check every - No, but even if you're still alive, if you're still alive.

29:55For sure. If you're not active in it, for sure. No deposit for it. No matter how much money. No matter how much money. So God forbid. It's happened to me today. So I have a bank account. I have a few banks. I have a lot of bank accounts. So I have one bank account that I opened a few years ago that I never used. But I needed to use it today. So I was on the phone and I'm like, I'm looking at my account and I don't see it. So I go into Chase and I'm like, yo, I don't see my account. What's going on? They're like, oh, you haven't used it in two years, so it's deactivated. I'm like, there's money inside of it.

30:33They're like, yeah. I'm like, but it's deactivated. I'm like, how you just deactivated account with money? I'm living. They're like, well, you haven't done anything with it. I mean, I have money inside of it. What do you mean? So then they was telling me, like, look, good thing you came because if it would have went like another year, year and a half, two years, then it would have went to the state. I'm like so my money would have just went to the state like yeah and then you would have had to try to fight the state to get it back so unclaimed funds player I keep telling you as you ascend up the ladder of wealth they got a thousand ways to take the money from you gotta be careful gotta be careful yep and you gotta be careful of this of the AI and crypto trying to hack into accounts.

31:27But then also you got to be careful too because it's like me, I don't even, I haven't even thought about this account, but I remembered it because I don't do drugs. So I have a great memory. But what if I was, where did that come from? Sober mind. So yeah. Sober mind. I don't do drugs. So I have a great memory. but if let's say I did have a bad memory or I was elder right I might have just forgot about the account and then when I go to look at my accounts I don't see it that could happen that could actually happen and then and then what and then my money is just going not because I gave it away because I forgot that I had the account because I'm thinking that I'm looking and what I see is what is actually there I'm not looking to not see something and then think you know what happened to this account that I opened up two years ago.

32:23You got to deploy the capital. Even in that, they won't let you just have a Scrooge McDuck vault. You have to deploy the capital to be able to even keep it. They're going to put it somewhere. For sure. Endless loop, for sure. Just do what every bank is doing. Every municipal. you have to have that money flowing. And also too, it's a great lesson that money is currency. It has to constantly flow. It has to constantly flow somewhere. So I'm sorry that happened. I'm glad you were able to catch it though. Check on your grandparents' accounts. For sure. Yeah. That's another way. That's another way to get you.