The AI Boom is here, and folks, it is just getting started.
Call it a bubble. Call it overrated. But it’s neither. AI is the biggest technological paradigm shift since the internet. It is the real deal. It’s going to change the world.
And, unless you prepare for it, AI will kill your investment portfolio, too.
Because AI will permanently split society. You may think we live in a world of “haves” and “have-nots” today. But that divide is only going to get so much bigger in the Age of AI.
I’m not even talking about the whole “AI is going to take your job” idea. That will certainly happen to some of us. But we will find work elsewhere. Society always figures these things out.
Rather, I’m talking about the generational divide forming in the stock market. AI stock investors will get filthy rich, and all others will spend the next decade playing catch-up.
That is, companies that make, sell, and use AI effectively will eat up entire industries and become titans of business. In that process, they’ll destroy all the companies that don’t do the same.
The result? Stocks on the right side of the AI divide will soar; and not just this year but for the next 10 years. And stocks on the wrong side will crash.
We’re already seeing this play out right now.
AI Is Powering a Generational Shift
You may have noticed. Stocks are up this year, but the rally has been very narrow. In fact, tech and AI stocks are essentially the only stocks participating.
They are soaring. Pretty much everything else is down!
The Global X Artificial Intelligence ETF (AIQ) is up 30% this year. Meanwhile, consumer staples stocks are down 3%. Healthcare stocks slid 6%. Financial stocks fell 7%. Utility stocks are down 8%, and energy stocks have been clobbered by 12%.
AI stocks are soaring. Everything else is dropping.
This isn’t unusual during a new tech paradigm shift.
The last time we saw a shift this big was in the early 1990s with the emergence of the internet. Back then, internet stocks started outperforming all other sectors in the market – and they didn’t stop outperforming for a whole decade.
Throughout the 1990s, tech stocks soared more than 1,100%. Meanwhile, consumer staples stocks rose just 200%. Energy stocks gained less than 140%, and utility stocks added just 50%.
I don’t mean to scoff at a 50% gain. But over the course of a decade? That’s not too impressive – especially when investors had the chance at more than 20X greater returns with tech stocks.
Well, let’s just say investors who didn’t buy internet stocks in the early 1990s are still kicking themselves today.
This is especially true when we look at individual stocks.
The Path to Making Millions
Had you invested $10,000 into internet leader Oracle (ORCL) in 1991, you would’ve turned that $10K into over $900,000 by ‘99. A $10,000 stake in Cisco (CSCO) would’ve turned into $1.4 million. And a $10,000 stake in Qualcomm (QCOM) would’ve grown to over $1.5 million.
Now, let’s say you ignored the internet boom of the early 1990s. You called it a bubble. You said it was overrated. Instead of investing $10,000 into Qualcomm, you put that money into a safe utility stock like Dominion Energy (D). By 1999, you would’ve had a whopping $10,500.
Or, let’s say you played it really safe and bought gold. By 1999, that $10,000 would’ve turned into… wait for it… $7,831.
You get the point, right?
Investors who bet on the right internet stocks at the dawn of the internet in the early 1990s turned thousands into millions. Investors who called the internet a bubble in the early ‘90s and bought safe utility stocks or gold just broke even, at best.
We find ourselves in a similar situation today.
Investors who bet on the right AI stocks now – at the dawn of AI in the early 2020s – are giving themselves the chance to turn thousands into millions. Investors who call this a bubble and buy safe utility stocks instead likely won’t make much (if any) money over the next decade.
Of course, the choice is yours.
But we think the right choice is obvious.
The Final Word
And, lucky for you, we have the top AI stock for you to buy today.
No, it’s not Nvidia (NVDA) – the current poster child for the AI Revolution. In fact, we just sold some of our Nvidia position for nearly 1,000% returns earlier this week.
This company is actually much better – and could one day be much bigger.
It is a brand-new firm, developing next-generation computer chips that we believe will power all future AI software.
These computers will be the foundation of the AI Revolution. That’s why this company could be the next Nvidia!
The best part? The stock of this firm is currently trading for less than $15.
But time is of the essence here – because this tiny stock is already up about 220% in 2023 alone!
Investors are starting to hear about this breakthrough tech stock. And amidst the AI frenzy, they’re buying it up in a hurry.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.