To know and not to act is not to know.
You could do all the research in the world … and know more than the experts … but if you don’t act on it, it’s like you never did anything.
- You “knew” that NVIDIA was going to have the best chip for AI in 2019 … but didn’t buy the stock?
You knew nothing as shares rose more than 3,000%.
- You “knew” that Apple’s iPhone would usher in a new age in tech … but didn’t buy the stock?
You knew nothing as shares rose more than 5,000%.
- You “knew” Amazon was going to dominate e-commerce and then cloud … but you didn’t buy the stock?
You knew nothing as shares rose more than 190,000%.
The thing is, I’ve seen so many investors make this mistake since I started doing this in 1983.
Even if you give them tomorrow’s newspaper, they will still find a way to lose money. That’s because they don’t act.
And I don’t want this to be you.
I really can’t even understate this… It’s one of the biggest mega trends of my lifetime.
In 2019, I talked about it — calling it one of the biggest transformations of my lifetime.
Artificial intelligence (AI).
And this was four years before anybody had ever heard of ChatGPT.
Back then, NVIDIA was just a $110 billion company. Nobody ever expected it to become the $2 trillion giant it is today.
AI’s potential contribution to the global economy by 2030 is in the neighborhood of $15.7 trillion.
And those are the lowest numbers I’m seeing!
Think about it. The United States’ GDP is around $23 trillion. So this is about 70% of U.S. GDP.
That’s how huge AI was going to be…
⬆️ Riding the AI Wave for 627% Growth
I wanted in before the crowd. Because the biggest gainers happen in the early innings of a mega trend.
So, in 2019, I started positioning the Alpha Investor portfolio with great companies to profit from this once-in-a-generation mega trend.
We added chipmakers, data center providers and equipment makers.
I even talked to former governor Mike Huckabee about one of my recommendations: Arista Networks (NYSE: ANET).
I saw how AI would drive cloud computing and that Arista was going to be the big winner.
Here’s a look at our conversation:
I mentioned this growth could happen over the next decade … but I was a bit too conservative. It only took three years.
Cloud grew by leaps and bounds and Arista grew even faster.
We’re up more than 648% with Arista.
And I want to tell you something: It still has room to continue growing.
That’s what happens when you find great businesses in the very early innings of a huge mega trend.
I know what’s going to happen, I just don’t know when it’s going to happen.
And when it comes to AI, we’re STILL in the early innings. So, what’s on the horizon for 2024?
The Era of AI 2.0
I have been thinking a lot about this over the past year. The opportunities today are not so obvious.
That’s what I love about them because that’s what makes them much more profitable.
In fact, I see two big areas where many people are still underpricing the stocks.
The first one is what I call “gigantic tech.” Those are companies with market caps in the trillions of dollars.
Investors are discounting how far ahead these companies are in AI and the enormous profit potentials they offer.
Not only do they have the know-how and the amazing brain power to make AI accessible — for example, they are going to make AI a part of our daily lives.
And they have enormous amounts of money. Companies with lots of money — I have found in life — can do pretty amazing things.
I’ve been adding these companies to our Alpha Investor portfolio this year. (If you don’t have access, what are you waiting for?! Go here and I’ll show you how to unlock these AI recommendations now.)
The second area is AI 2.0…
The way I see it, chip companies and those that made AI function are AI 1.0.
That was the first generation.
Now we’re entering the next generation. And AI 2.0 features companies that create an environment for AI to operate.
They are not the chipmakers. They are the ancillary companies that make this all work.
For example, I’ve been following one company for a few years now. It was off the radar for big investors because it was just too small.
It had a market cap of just $9 billion.
Think about that. Apple makes more in interest in one year than this company is worth.
Big money managers couldn’t invest in it.
Here’s something most people don’t see or understand about AI … AI chips generate zillions of computations. (Maybe zillions is an exaggeration, but it’s a LOT).
Those computations generate an awful amount of heat. This company manufactures the cooling systems that go inside the data centers.
In other words, it makes the air conditioning that allows AI chips to work.
Since I’ve been following this company, the stock is up over 300% over the past 10 months. Pretty amazing. And that’s just the beginning…
The Pivotal Role of THIS Company in AI’s Evolution
This company is pivotal to AI.
That’s why I put all my research on it in a simple PowerPoint. It was too urgent to wait. So I’m sorry it’s nothing fancy … but the information is spot on.
Opportunities like this don’t happen often.
But when they do, you gotta go out there with a bucket to catch gold, not a thimble.
Folks, I’m telling you now, this is AI 2.0. And without this company’s technology, AI doesn’t work.
If you watch any presentation, watch this one.
At worst, you’ll walk away smarter. At best, you will see what we’re talking about and climb aboard this company.
Regards,
Charles Mizrahi
Founder, Alpha Investor