Millionaires are made when the stock

market crashes, and the bigger the

crash, the bigger the opportunity.

Especially if we can be greedy when

others are fearful. So, in this video,

I'll show you everything you need to

know about the latest market downturn

and why I think this is the investment

opportunity of a lifetime. Your time is

valuable, so let's get right into it. I

say this every time the market drops,

but I can't say it enough. The most

important thing that every investor

needs to do is make decisions based on

facts, not feelings. That's not always

easy, and finding the right data to

drive your decisions can be even harder.

So, I've put it all together for you in

this video. I'm also not here to waste

your time. So, here's everything we're

going to talk about. What just caused

this latest market downturn? why I think

this is the opportunity of a lifetime

for long-term investors, exactly how to

be greedy when others are fearful, and

of course, which stocks I'm buying as

prices continue to drop. There's a ton

to talk about, but let's start with this

latest market downturn. Stock markets

around the world dropped after

September's jobs report showed mixed

results. Jobs data for September just

came out after being delayed by almost

two months because of the government

shutdown and it showed the US labor

market grew by 119,000 jobs which is far

above the 50,000 jobs that forecasters

expected. However, the job market gains

for July and August were revised down by

a combined 33,000 jobs and unemployment

rose to 4.4% which is the highest it's

been since 2021. This combination is the

worst of both worlds for the stock

market because on one hand, higher

unemployment and lower jobs revisions

for previous months mean that the

overall economy could be weaker than

expected. And that means it could be

time for the Federal Reserve to cut

rates. But this latest jobs report

coming in much stronger than expected

means the labor market isn't slowing

down, which gives the Fed less reason to

cut rates at their upcoming December

meeting. When the Federal Reserve lowers

interest rates, so do banks. that

encourages people to borrow more money

for major purchases and businesses to

borrow more money to hire employees and

make more goods and services, eventually

leading to higher revenue growth for the

companies that we invest in. And higher

revenue growth usually means higher

stock prices. When the Fed keeps

interest rates high, the opposite

happens. It's more expensive for

consumers and businesses to borrow

money, which leads to lower revenues,

slower growth, and ultimately lower

stock prices. The Federal Reserve lowers

interest rates to keep the job market

healthy and unemployment low. So

September's jobs data, more than

doubling expectations could make the Fed

less likely to reduce rates. But higher

interest rates are actually a double

whammy for the stock market because when

interest rates stay high, the yields on

bonds and savings accounts go up. That

makes the stock market less attractive

by comparison. So more money moves into

bonds and stocks trade at lower

multiples of their revenues or earnings.

So higher interest rates mean lower

earnings for companies and lower price

toearnings ratios for their stocks.

That's the big connection between

interest rates, the overall economy, and

the market. And of course, adding fuel

to that fire is Michael Bur, who's

betting over a billion dollars that AI

stocks are the next bubble to pop. Bur

is famous for predicting the global

financial crisis and shorting the US

housing market before it collapsed in

2008. And earlier this month, his fund,

Scion Asset Management, disclosed a $900

million short position against Palanteer

and another $200 million short position

against Nvidia. These two short

positions are almost 80% of Michael

Bur's overall portfolio, making this a

massive bet against AI stocks. Bur has

two big arguments for the AI bubble.

First, major cloud and AI infrastructure

companies are under reportporting the

depreciation of their AI chips by

claiming they have a longer useful

lifespan that lets them spread out their

depreciation costs over longer periods

of time and artificially boost their

earnings. And since companies like

Amazon, Oracle, Google, Microsoft, and

Meta Platforms are all spending hundreds

of billions of dollars a year on

hardware, Bur says this accounting

tactic could lead to companies like Meta

Platforms and Oracle overstating their

profits by over 20%, which is tens of

billions of dollars. Bur's second

argument for the AI bubble is that true

demand for AI is ridiculously small and

most of the growth is actually coming

from circular deals where AI model

makers, cloud infrastructure providers,

and semiconductor companies are all

buying hardware and software from each

other while simultaneously getting

funding, equity, cloud credits, or other

forms of payment from the very same

companies they're buying from. The thing

is, Bur is famous enough to move the

market. So, his short positions become

something of a self-fulfilling prophecy

since all the media attention and

headlines that cover them become the

exact same reason those stocks fall in

the first place. But the headlines you

don't see can still move the markets.

And that's where Ground News comes in.

Ground News analyzes over 60,000

articles a day and rates each news

source for political bias and

factuality. For example, check out this

story about flight cancellations during

the recent government shutdown with

about twice as much coverage from the

left versus the right. While most of

these news sources have a high

factuality rating, there's also some

serious bias. Headlines from the left

say that President Trump was threatening

to ground even more planes if no deal

was reached. While headlines on the

right said that reducing air travel was

actually a datadriven decision. And

their blind spot feed shows me which

stories are being ignored by one side or

the other. Because knowing what isn't

being talked about is just as important

as what is. These features help me keep

my facts straight and save me a ton of

time. And right now, Ground News is

giving my audience 40% off their Vantage

plan. That's their biggest discount yet.

So go to ground.news/tsy

or click my link in the description to

get unlimited access to every Ground

News feature for just $5 a month. That's

a no-brainer for any serious investor.

All right, so this downturn was caused

by the latest jobs numbers coming in

much higher than expected and reducing

the odds for the Fed lowering interest

rates. On top of that, Michael Bur is

adding fuel to the fire by claiming the

AI bubble is about to pop and spending

over a billion dollars shorting Nvidia

and Palanteer. But as a long-term

investor, it doesn't matter exactly when

the Fed lowers interest rates. They meet

eight times a year, and the longer

interest rates stay high, the longer we

can buy great stocks at great prices.

And neither of Michael Bur's arguments

make much sense based on readily

available data. For example, Nvidia

releases lots of updates that improve

their GPU performance over time. One

example I showed in previous videos was

an open- source software package called

Tensor RTLM, which literally doubled the

inference performance of Nvidia's GPUs.

Not just the ones in data centers, but

the previous generations as well, which

means they should actually last longer

in data centers and be depreciated over

a longer period of time. And we know

that demand for AI is actually through

the roof by looking at very obvious

metrics like chat GPT's weekly active

users over time. OpenAI released Chat

GPT exactly 3 years ago, and it

currently serves around 800 million

people a week. That's one out of every

10 people on Earth. Another obvious

place to look would be Nvidia's latest

earnings results, which they just

reported earlier this week. Nvidia's

revenue grew to $57 billion for the

quarter. That's up 22% from quarter 2

and 62% year-over-year. Set another way,

they added over $10 billion of revenue

in just the last 90 days. But their

earnings per share also grew by 20%

quarter-over-arter and 67%

year-over-year, which isn't something we

would see if Nvidia was spending all

that money with other companies like

Michael Bur claims. Not to mention that

more and more of Nvidia's data center

revenue is actually coming from

networking technologies like Spectrum X

Ethernet, Quantum Infiniband, and

NVLink. Nvidia's revenues from

networking grew from $3.1 billion last

year to $8.2 billion this past quarter,

or almost two times more than all of

AMD's data center revenues. In fact,

this 164% year-over-year growth just

made Nvidia the largest networking

business on the planet. So 16% of

Nvidia's data center revenues now come

from networking, not compute. And I

expect that percentage to grow because

network bandwidth is one of AI's biggest

bottlenecks. And that's important

because data centers can upgrade their

networks and their AI chips completely

separately to keep increasing their

overall system performance, which

increases the useful lifespan of their

hardware even further and pokes another

hole in Michael Bur's arguments about

depreciation. And that's exactly why I

think this is a once-ina-lifetime

opportunity. We have the market pricing

in fears of the Federal Reserve keeping

interest rates high and Michael Bur

shorting two of the highest performing

AI stocks on the market at a time where

half a trillion dollars worth of AI

infrastructure is being built by some of

the biggest, safest, and most

diversified businesses on Earth. Even

Warren Buffett just bought over $4

billion worth of Google stock just this

past quarter. And of course, that brings

us to Buffett's most famous quote. be

fearful when others are greedy and

greedy when others are fearful. So, let

me show you exactly how I do that

because this has made me a lot of money

over the years. This is CNN's fear and

greed index, which I check every time

the market drops. The index goes from 0

to 100, and it's currently showing

extreme fear in the market. You can also

see a one-year timeline, which is a good

way to see how fast the index fell into

extreme fear territory, which is very

useful information for anyone looking to

be greedy when others are being fearful.

Like I say in every one of these videos,

this is one of my favorite indexes

because it's calculated from seven very

useful measures of risk in the market,

including stock price momentum, strength

and breath, the ratio of puts to call

options, market volatility, and overall

demand for stocks versus bonds. The two

indicators I watch the most are market

momentum and volatility. I put more

money into the market when the S&P 500

dips below its 125day moving average,

which is 6 months worth of trading days.

As you can see, we are almost there. And

the last time the S&P went below its

six-month moving average was from

mid-March to midMay, mostly after

President Trump announced his liberation

day tariffs. And that ended up being a

great time to buy stocks. I also buy

stocks when the VIX, which measures the

S&P 500's volatility, hits around 30 or

more. And if we look back at April, we

can see that it topped out on April 8th,

which is the exact bottom for the S&P

500. These levels of extreme fear are

enough for me to start dollar cost

averaging in to stocks more

aggressively. But I always hold enough

cash in case the market drops even

lower, like if the Federal Reserve

really doesn't lower rates in December

or Michael Bur makes more headlines that

keeps spooking the markets. And now that

we've come full circle, we can talk

about which stocks to buy if the market

keeps dropping. And if you feel I've

earned it, consider hitting the like

button and subscribing to the channel.

That really helps me out and it lets me

know to make more content like this.

Thanks. And with that out of the way,

here are the AI stocks that I think are

the most undervalued right now. Let's

start with Vertive Holdings, ticker

symbol VRT. Verdive provides

missionritical power, cooling, and

physical infrastructure for data

centers. Almost every hyperscaler uses

Vertive for their large-scale

expansions. And Verdives's revenue rises

with the volume and speed of data center

buildouts, which are currently at

all-time highs. And once a big tech

company integrates Vertive's power and

cooling solutions, they often stick with

them for future upgrades and expansions.

Because switching can be risky and

costly due to the required downtime and

retraining their staff. Discounted cash

flow models like Simply Wall Streets

calculate the fair value of Vertive

stock to be around $215 per share while

the current price is at $160. That makes

Verive around 25% undervalued based on

their expected future cash flows. Set

another way, Verive stock would have to

go up by 35% to hit its fair value

today. And speaking of data centers,

Meta Platforms is investing over half a

trillion dollars into AI data centers

over the next three years. As of their

latest earnings call, Meta has over 3.5

billion unique daily active users across

its family of platforms, including

Facebook, Instagram, WhatsApp,

Messenger, and threads. That's almost

half the population of the entire

planet, which gives Meta one of the

biggest and richest data sets for AI

training, inference, and monetization

through personalized ads. There are only

a handful of companies on Earth that can

compete with Meta Scale for digital

distribution or their physical AI

infrastructure, let alone both.

According to DCF models, Meta Platforms

is currently 45% undervalued. So, it

would have to go up by 84% to hit its

fair value today. That's an 84% upside

on one of the biggest, most profitable,

and diversified founder-led AI companies

on Earth. Like I said at the start of

this video, millionaires are made when

the stock market crashes. And now you

can see why. In fact, Meta Platforms is

trading at a much cheaper forward price

to earnings ratio than Google,

Microsoft, and Apple while having higher

earnings growth than all of them. Talk

about an obvious investment for the

entire AI era. Hopefully this video

helped you understand why stocks dropped

over the last week, how to be greedy

when others are being fearful, and of

course, a couple great stocks to buy if

and when prices continue to fall.

Because making decisions based on data

instead of your gut is a great way to

get rich without getting lucky. And if

you want to see what else I'm buying to

get rich without getting lucky, check

out this video next. Either way, thanks

for watching and until next time, this

is Tickerol U. My name is Alex,

reminding you that the best investment

you can make is in you.