The Free Ticker in the MAGI Presentation

When Jeff Brown and Marc Chaikin teamed up for the MAGI presentation at Brownstone Research, they promised to reveal a free ticker. That ticker is AMD. As Brown put it in the presentation: “The name is Advanced Micro Devices and the ticker is AMD.”

This is not a speculative micro-cap. AMD is one of the largest semiconductor companies in the world, and the analysis Brown provides is genuinely useful even if you never subscribe to anything. In our full review of the MAGI presentation, we break down the entire thesis, but here we want to focus specifically on why AMD matters and what Brown and Chaikin actually said about it.

Jeff Brown’s History With AMD

Brown first recommended AMD to his readers in 2017. The stock has risen 4,100 percent since then. That track record matters because it establishes that Brown was identifying AMD as an AI and data center play well before most of the market caught on. He also picked Nvidia before 36,000 percent gains, Tesla before 2,150 percent gains, and Taiwan Semiconductor before 1,100 percent gains.

In the presentation, Brown says AMD has “gone up a lot, but I still believe this is a phenomenal company.” Some have even called it “the next Nvidia” because it is quickly becoming a huge competitor in the AI chip market. That comparison is not marketing fluff. AMD is winning real deals.

Why AMD Matters for the AI Buildout

The core investment case for AMD rests on the massive infrastructure spending underway at big tech companies. Brown explains that “big tech firms are set to spend more than $700 billion in AI infrastructure this year alone, and AMD is on the receiving end of some of those billions.”

Here are the specific reasons AMD stands out, according to the presentation:

  • The Instinct MI300 and MI350 series GPUs are “winning huge deals with OpenAI, Meta, Microsoft, and others because they deliver strong performance for a lot less money” than competing offerings.
  • AMD makes both CPUs and GPUs for AI data centers, which means “everything works together more efficiently” in systems that use both components.
  • Earnings are expected to jump 76 percent this year alone, driven by the AI data center boom.
  • Marc Chaikin’s Power Gauge gives AMD a “bullish rating” and shows that “institutional investors are buying heavily.”

The combination of Brown’s fundamental technology analysis and Chaikin’s quantitative system pointing in the same direction is what makes this pick interesting. Brown understands the semiconductor industry from the inside, having worked as a senior executive at Qualcomm, NXP Semiconductors, and Juniper Networks. Chaikin’s Power Gauge rates over 6,000 stocks using 20 factors and successfully flagged all of the top 10 performing AI stocks after ChatGPT launched.

The Bigger AI Infrastructure Picture

AMD sits at the center of what Brown calls “the largest capital-expenditure wave in history.” The numbers he cites are specific: big tech invested about $400 billion in AI infrastructure last year, $725 billion this year, and nearly $850 billion planned for next year. He frames this as bigger than “the entire Apollo Moon program, the entire Manhattan Project, and the entire U.S. Interstate Highway System, combined.”

The point is that AMD is not a speculative bet on a single product. It is a primary recipient of hundreds of billions of dollars in infrastructure spending from the largest technology companies in the world. When OpenAI, Meta, and Microsoft are buying GPUs for their data centers, AMD is one of the companies getting those orders.

For more on how this fits into the broader MAGI thesis, see our article on Jeff Brown’s background and track record and our deep dive on the Optimus robot patent.

What Brown Says About the Hidden Picks

Brown is honest that AMD is the safer, larger play. He adds an important caveat: “AMD is larger than the little-known Elon Musk supplier I’m recommending, and it’s larger than the company behind Terafab. So if you’re looking for more extreme upside potential, I highly recommend getting those special reports.”

The two hidden picks behind the paywall are a Tesla supplier that makes power-delivery technology for Optimus robot actuators, and a semiconductor equipment supplier for the Terafab project. Morgan Stanley has recommended the first stock as a key way to play the robotics trend, and 39 hedge funds are already invested. At least 26 brokerage firms have raised price targets on the second.

Brown’s framing here is fair. AMD is the large-cap, lower-risk way to play the AI infrastructure buildout. The bonus reports target smaller, higher-risk, higher-reward picks. Most investors can buy AMD through any brokerage, and the analysis provided for free in the presentation is genuinely actionable.

The Election Cycle Timing

Chaikin adds a timing component to the AMD thesis through what he calls the election cycle. He says buying during midterm election year corrections has produced gains 12 months later in 100 percent of cases going back to 1950, with average gains of nearly 40 percent for the entire market. In the last midterm cycle in 2022, his system flagged Meta, Builders First Source, and AMD. All three more than doubled within 12 months.

The convergence of Brown’s technology thesis and Chaikin’s market timing pattern is what drives the urgency in the presentation. Brown says Elon Musk “will begin to ramp up production of this new AI breakthrough by the end of the month,” and Chaikin says the election cycle correction is creating a buying window right now.

Considerations

AMD is a real company with real revenue, real earnings growth, and real contracts with the biggest names in AI. The 76 percent earnings growth projection is verifiable from analyst estimates. The $700 billion in big tech infrastructure spending is consistent with public earnings reports. Brown’s 4,100 percent track record on AMD is verifiable.

What to consider: AMD has already risen significantly since Brown’s 2017 recommendation, and the stock is not cheap at current levels. The 4,100 percent gain is a historical figure, not a forward projection. The election cycle pattern, while supported by decades of data, is a historical pattern and past performance does not guarantee future results. And the broader MAGI thesis, while grounded in real technology, involves extreme projections like the 7,692,207 percent growth figure attributed to Musk.

For investors who want exposure to the AI infrastructure buildout through a major, widely-held stock, AMD is a legitimate option that Brown analyzes in depth. The fact that this analysis is provided for free makes the presentation worth watching regardless of whether you subscribe.

Ready to learn more about the MAGI presentation? Click here to access Jeff Brown and Marc Chaikin’s full research.

This is not financial advice. Always do your own research before investing.