The Real Winner in AI

[dylan-diary-email-header-btm] You are receiving this email because you are subscribed to Behind the Markets. If you no longer wish to receive these emails, please [unsubscribe]( here. Dear Reader, Palantir just reported great earnings and the stock popped, which of course we love – PLTR is one of our core holdings. We recommended it around $7 a couple years back. Now, this is an exceptional AI play – in [today’s video]( I show you exactly what’s going on with AI stocks now, and the “pick and shovel” AI plays that really stand to profit. We were very early on AI and recommended a bunch of these things, but we were looking at AI through the prism of warfare – specifically: how is AI changing warfare? But what we have to look at now with AI stocks is the investment that companies are making in AI vs. the returns they’re making in AI. === NVIDIA Bets Big on AI 2.0.  AI 2.0 is on the verge of revolutionizing a $1.4 TRILLION a year industry.  And the smart money is backing one tiny small-cap selling for just $11 per share.    Nvidia just bought 7 million shares.  Catherine Wood just bought 30 million shares…  And Bayer just signed a $1.5 billion with them.  [Get the name of this stock before it takes off.]( === I learned a big lesson about this when I read Benjamin Graham’s book, “The Intelligent Investor.” Ben Graham, for those of you who don’t know, was Warren Buffett’s teacher. He famously wrote “Security Analysis” and “The Intelligent Investor.” In “The Intelligent Investor” he warns about the dangers of an industry growing so quickly. He talks about the airline industry. In 1960, 10 million people flew – 10 million airline tickets were sold. By 1970 that number grew from 10 million to 100 million. 100 million tickets sold – a 10x increase. That’s huge! But, during that decade the cumulative losses were over $2 billion for the airline industry. In other words, an industry that grew 10 times, lost $2 billion. Why does it happen? What happens is that too much money chases too few returns. So the return on investment gets shrunk down. In the airline industry, if people analyzing that said that we would have $10 billion by 1970 but we’d invest $12 billion to get those $10 billion, that’s not a great plan. This is a warning about the perils of growth: People often think growth is great at any cost. Growth isn’t great at any price. You have to think about return on investment. Profitable growth is the most important thing. And that’s one of the things I’ve been thinking about this earnings season as AI companies are announcing their earnings. Now, Palantir bucked the trend, but so far I have not been impressed with the earnings being announced on most AI investments... …from all these tens of billions of dollars being invested in AI. As far as I can see it, right now, the clear winners are: Palantir, of course… Microsoft… OpenAI… Nvidia… And of course, energy. Because to run AI in any sector requires buying massive amounts of energy. So, while the companies making these big AI investments aren’t really showing a return yet… I’m leaning into the old “picks and shovels.” Would you rather search for gold, or would you rather sell pickaxes and shovels to the people going off to search for gold? Well, I know my choice right now. That’s one of the reasons we’ve been so bullish on the energy sector overall. Some of our favorite picks are these companies with great earnings that are exploding … and they’re paying massive dividends to people! Which is the best place in the world to be. And this is what makes this opportunity in energy so rare: You have an opportunity to get growth – real growth – 10x growth as demand for energy gets bigger and bigger… While also collecting massive dividends! I’m talking about dividends that have made one insider $500,000 every three months – and has even made one a multi-billionaire… Because this company has to pay 90% of its profits out as income to shareholders. That’s why I believe this could really be the last retirement stock you ever need to own. [Watch our brand-new video and get the ticker here]( Energy is usually sleeper stuff – kind of boring, right? But this tidal wave in AI is changing all that. [This is my research that proves it.]( Free to view. That’s all I have for you today. Have a wonderful day. God bless you. "The Buck Stops Here" P.S. Warren Buffett may be dropping AAPL like it’s hot, but he’s just poured $40 billion into this opportunity: [DON’T MISS: The Last Retirement Stock You May Ever Need.]( [youtube button]( [facebook button]( [instagram button]( Our mailing address is: Behind the Markets, LLC 4260 NW 1st Avenue, Suite 55 Boca Raton, FL 33431 Copyright © 2024 Behind the Markets, LLC, All rights reserved. You're receiving this email as part of your subscription to Behind the Markets. For more information about our privacy practices, please review our [Privacy Policy]( or our [Legal Notices.]( [Behind the Markets]( [Unsubscribe](