I found the Chosen (one) Stock.
Growing AI exposed moated undiscovered gem trading at single digit multiple.
I’ve been watching the High Bandwidth Memory (HBM) theme play out with SK Hynix, Micron, etc. And people are saying the next bet is optics, or glass substrate, and the more I research these bottlenecks the more I realize they are right. But I cannot bring myself to pay 30X EV/EBIT on a name that just increased revenue by 100%, so instead I sit on the sidelines envious at what could’ve been.
In my state of FOMO, I started to dabble deeper and deeper into the supply chain. I was looking for something that was positioned to grow from these tailwinds, but not priced at a nosebleed multiple. I scoured far and wide.
And then I found it.
At first glance, I thought I found a good company. But as I stopped glancing and started really digging, I realized I had found something much rarer.
I found a company flying under the radar, sitting at a most crucial part of the semiconductor stack, but far enough removed that it has zero mentions on X.
The Moat: It is an Oligopoly, commanding insane margins.
The Valuation: It is trading at a single-digit EV/EBIT while poised to take advantage of the growth in semiconductors.
I do NOT need to forecast aggressive growth because the company is perfectly positioned to ride the wave of AI, robotics, and everything chip-related. And it’s AI-exposed segment has been growing very fast.
Excellent governance.
It’s got a moat that would make Buffett drool but unfortunately he wouldn’t buy because it’s too small (which is another reason it’s undiscovered). It has management that have a firm grasp of governance and capital allocation who have performed extremely well and have earned a exceptional ROIC. And who are investing a lot of money to be close to TSMC.
The company stands to benefit from not just the AI tailwinds, but from robotics, and everything chip related, which in the future- is essentially everything from self-driving cars, unitree’s acrobatic robots, to your AI-infused refrigerator that will soon also be your therapist.
It is, by far, the best company I have written about thus far. (in my career of 10+ years)
Yes, this beats Heritage Insurance (which was a 20-bagger), simply because the risk profile here is superior and the visibility into its future growth is clear. It’s high margin, AI-exposed segment is growing fast, but that growth is currently masked by headwinds in another segment—the perfect confluence of events to create one hell of a bargain.
It stands to benefit from NVIDIA, from TSMC, and supplies names that have already skyrocketed into the stratosphere.
Deep-dive research of this caliber takes weeks to produce and it takes months (years) of rock-turning to find a stock like this. For that reason, the full thesis and the ticker are reserved for paid subscribers.
It is this kind of opportunity I have been waiting for, this kind of quality opportunity that I want my paid subscription to represent. I’m sure you will find it more than worth it.
It’s not just me that thinks this. I reached out to some well-regarded experts to make sure I wasn’t alone in my thinking.
I then sent it to another investor I admire and received this response:
but then after reading-
Last opportunity for my subscribers
Because this is my first ever paid post,
I am pricing my annual subscription at $239 per year.
That’s equivalent to $19.90 per month. For the price of a burger, you get access to institutional grade research that aims to compound your wealth significantly.
If you subscribe at this price, you lock that price in- forever after I will be priced somewhere between $300 and $400.
After that, the price goes up. No exceptions.
Subscribe now. This is the stock that is worth it.
A quick note for everyone who previously pledged at a lower price: when I switched this Substack from “pledges” to full paid, Substack did not automatically turn those pledges into subscriptions. It treated my new $239 plan as a different thing entirely, removed the old pledge list- there was a setting I should have enabled but I missed it on this first attempt. My apologies.
I can only see who left a note for the pledge. I will honor that note with 6 free months. You should see this email still, but now you need to ‘convert’ again. If you pledged at a lower price, please forward me your ‘pledged’ email and I’ll give you the comp.
I greatly appreciate your support.