Jeff’s Note: AI has been under fierce scrutiny recently. From Elon Musk to Stephen Hawking to the UK Prime Minister, we’ve seen the warnings about a loss of control… and they seem to be coming true.
According to Stanford and UC Berkeley researchers, the behavior of ChatGPT has been changing over time. Architects and scientists are no longer sure how AI works and are struggling to predict the behavior of the systems.
So if AI is becoming unpredictable, how are investors supposed to trade it?
My colleague, Colin Tedards, who has worked with IBM Watson, and alongside NASA experts, is sharing valuable new insights on this chaotic sector. Yesterday, November 16, he went live to discuss the AI market and his plan going forward.
To watch his full video – and learn how you could 10X your money in the months ahead – click right here.
Today, we take the internet for granted.
We have remote meetings with work colleagues… we video call family and friends… we stream music, TV shows, and music… we book flights and hotels… and we do our shopping online.
About 5 billion people around the world are online. That’s roughly 60% of the planet’s population.
But before any of this could happen, companies poured hundreds of billions of dollars into building out the physical infrastructure.
We don’t see it when we send an email… or FaceTime a friend. But 750,000 miles of fiber-optic cables crisscross between continents on the ocean floor. That’s enough to wrap around Earth more than 30 times.
Add to that land-based cable networks, and you’re looking at millions of miles of cabling.
There are also close to 400 million internet servers – most of them housed in giant data centers.
Think of them as the bartenders of the digital world. They serve up the movies, songs, images, and text that make up the internet.
It’s the reason people called the internet the Information Superhighway. It’s the physical infrastructure that makes our digital lives possible.
The companies that built this highway delivered fortune-making returns.
And as I show in my new video, you now have another shot to profit as we build out a new, Information Superhighway for the AI revolution.
First, it’s important you grasp the scale of the gains on offer in the late 1990s when the internet boom was underway.
Quadruple-Digit Gains Were the Norm
Take Cisco Systems. It makes internet switches and routers.
These small rectangular boxes with wires poking out of them may seem mundane. But the internet wouldn’t work without them.
They make sure each “packet” of data reaches its destination.
And as Cisco ramped up sales of these devices to help build out the internet, its stock price soared.
Take the period from March 1997 to March 2000 when the boom was in full swing.
Over that time, Cisco returned 1,145%.
It’s just one example of the fortune-making returns during the internet infrastructure investment cycle.
Juniper Networks was founded by two former Cisco engineers.
It also made routers and other network hardware. It delivered a 699% return over that time.
Chipmaker Qualcomm built the computing power for many of these devices and laid the groundwork for the mobile web. It returned 2,050%.
Or take Dell. It’s best known as a PC maker. But it also sold servers and networking equipment. And it returned 1,089%.
I’m 40. So, I was still a teenager when these internet infrastructure stocks were soaring.
Maybe you missed those gains, too…
But don’t worry. As I mentioned up top, thanks to the rise of ChatGPT and other AI systems, the Information Superhighway now needs a major expansion.
And has triggered a new tech boom that will make the boom in internet stocks in the 1990s look tame.
Even better, we know how it will play out. Because we have the script…
$1 Trillion AI Hardware Bill
Like the build-out of the internet in the 1990s, the AI investing cycle begins with spending on hardware.
Amazon, Microsoft, Google, Meta, and other tech firms are expected to spend $250 billion in hardware over the next year.
And as more companies join the AI race, spending will ramp up. AI chipmaker Nvidia says the bill will top $1 trillion in the next three years.
That’s why we’ve seen shares of Nvidia and other AI hardware makers go berserk this year.
Nvidia’s share price has tripled. Super Micro Computer, which makes high-performance server and storage systems for AI training, is up 250% this year.
And Onto Innovation, which sells semiconductor inspection equipment, has rallied 101% year to date.
And these gains are just the start….
AI is an even more powerful technology… with even more profound implications for the economy… than the internet. So, I expect the gains from the AI boom to eclipse the gains folks made in the 1990s.
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More Than Just ChatGPT
Remember, AIs will not only help us search for information online. They’ll also help educate our kids… drive our cars and trucks… diagnose and treat diseases… and help us solve some of the hardest problems facing humanity.
For instance, researchers are already using AI to help us achieve nuclear fusion.
That would be an infinite energy source to power the planet that doesn’t emit any CO2.
Fusion releases nearly four million times more energy burning off coal, oil, or gas.
This makes fusion a potential source of baseload energy, which is the minimum amount of electric power needed to be supplied to the electrical grid at any given time.
Most folks don’t see it yet. All they see are doomsday scenarios. And that’s not a surprise. As I’ve been showing you, Washington wants us to be afraid of AI so that it can regulate.
But AI is about to enter an age of abundance thanks that will make our heads spin.
And when you have a megatrend like that, the gains on offer are potentially life-changing. Especially if you invest in the early stages of the boom before stock prices skyrocket.
That’s why I’m recommending you buy AI infrastructure stocks to profit.
These are tiny companies compared to tech giants like Microsoft, Amazon, and Google.
But like Cisco during the internet boom, they will build the physical infrastructure needed to make the AI revolution possible.
And, using history as our guide, that will give you the chance to 10x or more your money.
So make sure to check out my new video here.
Regards,
Colin Tedards
Editor, The Bleeding Edge
P.S. I used an early version of IBM Watson to build an AI chatbot for one of the website businesses I created. It’s the AI that beat human contestants on the TV trivia show Jeopardy.
I knew that this technology would one day be big. But the AI explosion we’ve seen since the launch of ChatGPT last November has blown me away.
And I believe AI has reached a level of intelligence far higher than what you hear about on the news. AI systems have started to evolve and change… in ways not even their creators understand.
I know that may sound crazy. But I have the report from scientists at Stanford and UC Berkeley to prove it.