On Tesla's earnings call on October 21, Elon Musk said: "The Terafab I think will be the most valuable building in the world."
Terafab is the factory where Elon plans to make his own AI chips.
Bold, even for Elon. But Jeff Brown has a habit of taking him seriously before the crowd does. In November 2018, while the media was mocking Elon, Jeff told his readers: "When I think about Tesla, I see one of the leading artificial intelligence companies in the world."
Now he says Terafab is step one of a three-step AI plan. He rode a Cybercab to its first site. And he says he's found a little-known company in "a perfect position to profit" from it.
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See What Jeff Says Elon Does Next »Why a Chip Factory?
Jeff says Elon's companies need far more AI chips than the world's chipmakers can supply. So Elon decided to make them himself.
In Elon's words:
Jeff visited the first phase, Elon's Advanced Technology Fab in Austin, riding there in a Cybercab with no steering wheel and no pedals.
As a former executive at two major chip companies, Jeff says building chips takes "one of the most precise machines humans have ever built."
"If Elon wants to build chips, he will need that machine," he says.
He's Been Early on Elon Before
In 2019, while parts of the media called Starlink a "pipe dream," Jeff predicted it would get up and running and start selling its service. A year later, he says, it did.
And Jeff says he visited SpaceX's Starbase, Texas, right before the company went public, and predicted a huge IPO. He says it became the biggest IPO in history.
Jeff's earlier calls, as he describes them
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Selected peak figures, not typical results or subscriber returns. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results.
Past calls don't mean the next one will work. But Jeff is making his next one now.
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See Jeff's Next Call on Elon »Three Steps, Three Picks
Jeff says the chips are only step one of what he calls Elon Musk's AI blueprint:
- The chips. Terafab, which Jeff says is set to be the world's largest and most advanced chip-making operation.
- The energy. Jeff says Elon plans to put AI chips on satellites, powered by the sun.
- The applications. Jeff says nobody comes close to Elon in physical AI: self-driving cars like the Cybercab, and Optimus, Tesla's humanoid robot.
Jeff calls Tesla a great company over the long term. "But I'm not here to recommend Tesla," he says. Instead, he's picked three little-known companies. One for each step.
Step 1: Chips
"If Elon wants to build chips, he will need that machine," Jeff says. He believes he's found the company that will supply it.
Step 2: Energy
A company Jeff says has worked with SpaceX for more than a decade, on chips used in every Starlink satellite and ground terminal. He believes it's positioned for the AI satellites too.
Step 3: Robots
A company Jeff says already supplies Tesla with a key piece of sensor technology. He wouldn't be surprised if it ends up supplying Optimus too.
The three aren't the same kind of call. One is Jeff's prediction of a new supplier. One, he says, already works with SpaceX. One, he thinks, could end up supplying Optimus.
Elon Musk hasn't endorsed Jeff's research or these picks. The picks are Jeff's.
Which companies are they?
Jeff's presentation is free to watch. His full research, including the names of all three companies, is available through a paid subscription to The Near Future Report, which renews automatically each year.
Jeff's End-of-October Forecast
Jeff believes Elon will officially announce a partnership with his step 1 pick, the chip-machine company, by the end of October.
That's his forecast, not a confirmed event.
Jeff's presentation is free to watch. It covers his record on Elon, the Terafab site and all three steps of the plan.
Free to watch · Investing involves risk
