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- Alpha Report Issue #60
Alpha Report Issue #60
Is AI Really The Future? NVIDIA...
Brandon
February 04, 2025
Hey guys!
I will be sending out my Alpha Report for FREE every day the market is open!
I always want to create more value for you guys and this report is only going to get better!
Enjoy!
-Brandon
Today’s Heat Map👇
Tuesday February 4, 2025 RECAP👇
Market pushed higher today on optimism surrounding tariffs and lowered chances of a trade war.
Nvidia needs to be talked about.
More on this below.
Fear & Greed Index For Today👇
39 Today & 44 Yesterday
I feel that we are closer to 60 vs what this says.
This index is overly fearful in my opinion right now.
Today’s Economic Updates👇
30 year fixed mortgage rate climbs to 6.98% Today vs 6.97% Yesterday.
10 year treasury bond yield falls to 4.51% today, vs 4.54% Yesterday.
2 year treasury bond yield falls to 4.21% today, vs 4.26% Yesterday.
You sleep better knowing your investments worked all night
— Investing With Brandon (@Invest_Brandon)
9:00 AM • Feb 4, 2025
Nvidia Talk👇
Nvidia and the chip sector has been on a wild ride. Let’s break down why this could mean opportunity for you!
Key Takeaways👇
I don’t make investing decisions based on news headlines.
I go after the real data that actually matters!
Most of the time I feel like investors are chickens running around with their heads cut off!
So what do I do?
I do deep dives into their financials, analyzing margins, valuations, & talking to people who actually work in the field I am investing in.
I want to know what’s really happening—not just what the market is reacting to.
So when NVDA dropped about 17% on the DeepSeek news, I called up a good friend that works at Nvidia who understands AI models on a deep level.
I circled the day the deep seek news hit, and how NVDA fell from over $140, to below $119.
I used to live in the Bay Area where these companies have their HQs, so I made a few good contacts.
And what did I learn?
It made me even more bullish on NVDA.
Let’s break it down…
DeepSeek is Chinese company that just launched its R1 language model. They claim they built a ChatGPT competitor for just $6 million using older NVIDIA GPUs.
That headline alone wiped half a trillion dollars off NVDA’s market cap which you can see that in the chart above.
But let’s be real, that $6 million number is total BS.
Anyone who understands AI development knows that number isn’t realistic.
Here’s what my engineer friend explained that works for Nvidia:
DeepSeek used a distillation process, which is like compressing a full length movie into a highlight reel.
The smaller model isn’t creating something new, it’s just mimicking the best parts of a larger one like GPT-4.
It’s a shortcut, not a breakthrough.
And here’s what’s really interesting…
He told me America is having its “iPhone moment.”
Before 2007, people thought they had the best mobile tech.
BlackBerrys, flip phones, PDAs. Then Apple dropped the iPhone, and overnight, everything changed.
This is a chart of Apple. When the iPhone dropped, the share price was about $3 per share. Currently it’s over $232. (These prices are split adjusted)
It wasn’t just a new product; it redefined the entire industry.
And the stock price reflects the MASSIVE growth!
And now? We’re about to see the same thing happen with AI.
That’s why I’m even more convinced NVDA is going to be a fantastic investment for the next few years.
Some analysts think AI chip demand will peak in 2025, but I think they’re dead wrong.
We’re in an AI arms race between the US and China.
Every new advancement—like DeepSeek—doesn’t slow things down… it speeds them up.
And NVDA is at the center of it all.
Even Elon talked about the MAJOR training they are going to have to do with regards to training Optimus (Tesla’s Humanoid Robot)
He said Optimus will be at a minimum 10x harder to train vs a car, which means more chips are needed.
But the addressable market of a humanoid robot is SOOO massive, that CapEx spending on chips is a drop in the bucket.
Right now, NVDA’s valuation is near intrinsic value based on my countless hours of research into the financials.
On top of that, when you consider what’s coming, it’s actually cheap in my opinion…
Yes, AI training costs are going down…
But guess what that means, more companies enter the market. More innovation happens. And more NVIDIA chips get bought.
This isn’t just about large language models like Chat GPT.
AI is transforming everything from healthcare and drug discovery to autonomous vehicles, robotics, and automation.
So no, the DeepSeek news didn’t shake my conviction in NVIDIA.
If anything, it confirmed that the AI race is heating up even faster than I expected.
Now you see why I don’t just react to headlines—I get the real data.
That’s exactly how I research every stock I talk about in my course members only discord.
That is also how I teach you in my course to really understand what you are investing in!
Current Thoughts In My Head👇
Day to day stock price changes don’t matter.
Be an investor, zoom out, and be patient.
Day to day movements don’t matter
The market feels a bit stretched—probably about 5-10% above intrinsic value.
Trump seems committed to keeping the economy strong and driving inflation down, which could provide stability if it actually pans out.
Earnings have been solid so far, which is exactly what’s needed to justify current stock valuations.
I’m not calling this a bubble, but things are a little expensive.
As always, be prepared for any scenario.
Economic Calendar For: Feb 3-7, 2025
All times in PST
Monday, Feb 3👇
Palantir Earnings (post market)
Tuesday, Feb 4👇
Paypal Earnings (pre market)
7a Job Openings
7a Factory Orders
Google Earnings (post market)
AMD Earnings (post market)
Chipotle Earnings (post market)
Wednesday, Feb 5👇
Uber Earnings (pre market)
Disney Earnings (pre market)
5:15a ADP Employment Data
Qualcomm Earnings (post market)
Arm Earnings (post market)
Microstrategy Earnings (post market)
Ford Earnings (post market)
Thursday, Feb 6👇
530a Initial Jobless Claims
530a US Productivity Report
Amazon Earnings (post market)
Friday, Feb 7👇
530a Employment Reports
I will be breaking all of this down in real time in course members only discord!
👇Price Targets For End Of Year 2025
(updated daily)
I moved all trades and potential plays to course members ONLY Discord!
Take your game to the next level. Do my course. Come into my mastermind Discord!
QQQ - $565
VOO- $575
IWM- $240
SOXX- $240
TSLA - $400
NVDA- $175
AAPL - $250
PLTR- $85
AMZN- $255
GOOG - $235
MSFT - $450
JPM - $275
SOFI - $12
TSM - $225
AMD - $135
META - $750
BITCOIN - $95,000
SOLANA - $240
👇Price Targets For End Of Year 2030
QQQ- $830 (assuming 8% annual ROI)
VOO- $830 (assuming 7% annual ROI)
SOXX- $360 (assuming 8% annual ROI)
TSLA- $1,200 (assuming 18% annual ROI)
NVDA- $645 (assuming 25% annual ROI)
AAPL - $375 (assuming 7% annual ROI)
AMZN- $550 (assuming 15% annual ROI)
MSFT - $1,000 (assuming 15% annual ROI)
(of course a lot of these will split, this is non split adjusted)
👇Current Value of My Trading Account👇
(updated daily)
👇Yearly Account Account Value
December 2018 - $0
December 2019 - $45,251
December 2020 - $150,191
December 2021 - $267,524
December 2022- $290,315
December 2023 - $506,223
December 2024 - $927,796
IN PROGRESS 2025 - $955,151
Screenshot of My Trading Account Today.
👇Portfolio Thoughts
Amazing growth from 2018 to Current all off of a total contribution of $90,000.
That is over a 10x in 7 years!
I did this in a very low risk and conservative way.
I feel the market is a little stretched & volatility is healthy and normal!
If bond yields continue to climb, I expect pain in the markets to continue.
I will continue to find great investments / options plays that will pan out to explode the portfolio in the long run.
Month to month and even year to year volatility is irrelevant.
I see volatility as opportunity!
My goal is $5,000,000 in this account by 2030.
I see this as very achievable and if the market dips further, I will capitalize heavily, just like I did in 2022!
Stay the course and keep your emotions in check!
👇How My Trades Have Performed Since 2023👇
Blue = Me, Black = Nasdaq, Orange = SP500