The "Nvidia Effect" Will Unleash the Next Wave of AI Profits

[The Bleeding Edge]( Colin’s Note: Over my 20 years as an investor, I’ve been waiting for this… An idea so big it has true fortune-making potential. I’m talking about the rise of artificial intelligence (AI). It’s a transformative technology, unlike anything we’ve seen since the creation and rollout of the internet. And the gains from AI will dwarf even those that investors earned by backing internet stocks back then. That’s saying something. In the early days of the internet boom, Qualcomm rose as much as 3,574%, eBay rose 4,087%… and Amazon rose as much as 6,562%. That’s why, next Wednesday, I'm revealing what I unearthed on a recent trip to Nvidia’s headquarters… and how it will capture the next wave of AI profits. You see, while mainstream investors are chasing Nvidia higher, dozens of tiny, undiscovered AI stocks could deliver profits of 1,000% and higher. So make sure to RSVP for my “Nvidia Effect” event. It will air at 8 p.m. ET, next Wednesday, September 20. You can do that with [one click here](. Then, read on for why I’m looking beyond just a few big tech stocks to play the AI boom. --------------------------------------------------------------- The "Nvidia Effect" Will Unleash the Next Wave of AI Profits By Colin Tedards, Editor, The Bleeding Edge Dear Reader, In 1999, business leaders around the world were asking the same question… “Should we have a website?” The answer seems obvious now. Of course, a business needs a website… But in 1999, the internet was still new. And it was hard to tell. Then, in 2007, business leaders were asking another key question… “Should we be on social media?” And the answer, once again, was yes. Today, most companies use Facebook, Instagram, LinkedIn, and TikTok to engage with their customers. And the companies behind these platforms are among the largest in the world. Now, another key tech question has arisen. And business leaders all want to know the answer. “Should we adopt AI?” As I’ll show you today, the answer will be another resounding yes. Companies will use AI to bring down costs… fatten margins… and boost profits. But it’s important to know where to invest now… and how to avoid overpriced names driven far too high by bullish traders this year. First, let me explain a bit more about why AI is such a massive opportunity today… Recommended Link [Forget Nvidia, Buy Elon’s Supplier Instead]( [image]( In December 2015, Teeka Tiwari recommended shares of Nvidia and wrote: “Nvidia is poised to become the next tech giant because of its pioneering work in the field of artificial intelligence.” Anyone who listened to him had a chance to make gains as high as 5,246%. He just issued a new buy alert on [this other AI company that’s most likely supplying Elon Musk with a key piece of technology for his new AI venture.]( [Get the details here.]( -- Fastest-Growing App in History By now, you’re likely aware of ChatGPT. It’s a form of generative AI. ChatGPT is the AI chatbot from OpenAI that has read the internet and can answer just about any question you ask it – just like a human would. It’s a massive triumph. Researchers have been tinkering with AI for more than 70 years. One of the earliest AIs was a program that learned how to play checkers back in 1952. Since then, AIs have translated languages… learned to drive cars and navigate roads… become the world’s best chess players… discovered new drug candidates… and guided unmanned probes to Mars. But those were all one-off use cases. Each AI existed to solve a specific problem. Today’s AI systems are different – and that difference will create a new wave of wealth for investors… as well as for society. Recommended Link [Market Wizard Reveals “Indictment-Proof” Trading Demo]( We keep saying it… Because it’s true. It doesn’t matter what cycles through the news… [image]( Like former President Trump being arrested in New York or how the market reacts… Market Wizard Larry Benedict continues to generate wins for his subscribers. What’s his secret? He doesn’t invest the traditional way… He doesn’t “buy and hold.” And he doesn’t trade the way a traditional broker would tell you to. Larry’s been using this type of strategy for decades. As a hedge fund manager, it helped him deliver $95 million to his clients during the 2008 financial crisis. And now Larry’s revealing his unique trading strategy – including a 10-second demo of him in action. If you’ve been losing money in the markets… Larry’s strategy could be just what you need. [Click here now to watch.]( -- The Race Is on to Adopt AI We can now train AI systems on giant datasets and have them perform a variety of roles. ChatGPT, for instance, can compose songs, answer exam questions, and write computer code. Specialized versions of it can be used as customer service agents… write marketing material… even provide live analysis on stocks and bonds. This flexibility means AI is accessible to nearly every business in the world. And just like in 1999 and 2007, they’re going to adopt it at scale. The CEO of IBM, Arvind Krishna, told Bloomberg AI will replace 30% of office jobs over the next five years. In IBM’s case, I calculated that this would yield about $780 million in yearly savings. That would have boosted IBM’s 2022 profits of $1.6 billion by 48%. That’s the kind of margin expansion most CEOs only dream of. And when margins expand, profits go up. Share prices go up. And investors get richer. And it’s not just IBM. There’s a strong financial incentive to adopt AI across the board to boost profits. It’s why I’m looking beyond just a few big tech stocks to play the AI boom. Thousands of non-tech companies will soon start racing to adopt AI and make their businesses more profitable as a result. That spells opportunity for us as investors… Recommended Link [Bear Market Expert Reveals His #1 Stock for 2023]( [image]( “I went from the brink of bankruptcy to wealthy – thanks to one type of stock” [Get his top pick here.]( -- Follow the 7% Consulting firm PwC calculates that AI will add $15 trillion to the world’s GDP by 2030. That’s 16% of last year’s global GDP of $95 trillion. Most of the value added will come from increased efficiency. Work that AIs automate will be completed faster, cheaper, and more accurately than work humans alone can do. Already, investors are rewarding companies for just saying they’re adopting AI. Consulting firm Accenture found that when management mentioned AI on an earnings call, the chance that its share price would rise went up 40%. But Accenture also found that only 7% of companies were actually using AI to make more money. For those that were, the results were impressive. Companies in that group were able to grow their revenue 50% more than their peers, on average. For instance, a major solar panel installer uses AI on satellite images to automate planning. That shaves about 25% off its installation costs. And Procter & Gamble is using AI to cut its time and costs to develop new products. The company is asking an in-house AI to create a new soap formula that will save costs without sacrificing its cleaning efficiency. It can offer potential solutions that have a good chance of working. That cuts down on a usually lengthy and expensive experimentation process. Long story short, the 7% of companies using AI to build a better business are going to outcompete the 93% that aren’t. And that 7% isn’t as obvious as it looks. Look Beyond the Obvious Names The biggest winner so far in the AI boom is U.S. chipmaker Nvidia. It’s the world’s biggest supplier of the advanced semiconductors that make AI systems like ChatGPT able to process so much data so quickly. And Nvidia shares have more than tripled in value this year. That’s the power of being an obvious name at the start of this trend. But here’s what may surprise you. I do not recommend buying shares of Nvidia. With a market value now north of $1 trillion, it takes a lot to move this stock. The company must add $10 billion in market value to move the stock 1% higher. By contrast, if a stock is worth $10 billion, it only has to add $100 million in market value to have the same effect. Another problem is that Nvidia is priced for perfection. Its shares trade for a price-to-sales ratio of 34. That means you pay $34 as a shareholder for every dollar of sales the company has. That’s 4x higher than its nearest rival, Advanced Micro Devices (AMD). And when a stock is priced for perfection, even a small slip-up can lead to shares cascading lower. As a company, Nvidia has a bright future. But as an investment, its days of explosive growth potential are over. Back the Nvidia Effect Instead Fortunately, we don’t have to invest in Nvidia to benefit from its dominance. It all comes down to something I call the “Nvidia Effect.” When a company becomes as large and as powerful as Nvidia, every move it makes has an impact on the small companies supporting its business. And right now, there are three small-cap stocks primed to shoot higher as the effect takes hold. These stocks are only a small fraction of the size of Nvidia. So, the gains on offer are multiples more than what’s on offer with the chipmaking giant. I’d like to give you more details on this Nvidia Effect as well as the three small-cap AI stocks I’m recommending right now. To learn more, I invite you to join me on Wednesday, September 20, at 8 p.m. ET. I’ll lay it all on the line in a one-off investing summit… And I’ll share my favorite way to profit from the AI megatrend. You can reserve your spot with one click by going [right here](. I’m looking forward to seeing you there… and showing you how you can profit. Regards, Colin Tedards Editor, The Bleeding Edge --------------------------------------------------------------- Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. IN CASE YOU MISSED IT… [Reverse ‘money machines’ popping up across America]( Machines like the ones in the picture below are popping up all across America. If you’ve been to a concert venue, stadium, or airport, you’ve almost certainly walked by one without knowing. The experts are calling it a ‘Reverse ATM’. They’ve been installed at places like Citizen’s Bank Ballpark in Philadelphia… They’ve even been used at the Super Bowl. Why are these machines suddenly appearing out of nowhere? And what does it mean for your money? We’ve recently arranged an interview with former Goldman Sachs managing director, Dr. Nomi Prins, to get her take. There’s nobody in America who’s more aware of the inner workings of the banking system. In the interview, [Dr. Prins explained these strange ‘reverse ATMs.’]( And she said she expects them to play a key role this Summer as our nation’s financial system is overhauled for the first time since 1971. According to her research, many Americans will be blindsided by what’s to come. BUT, folks who understand the ‘Reverse ATM’ phenomenon before it becomes obvious to the average American could actually profit in the weeks ahead. To help folks prepare, she’s recorded a briefing that explains exactly what she sees coming, how it will play out, and how much time you have to prepare. [Click here now to see Dr. Prins’ free presentation.]( [image]( [Brownstone Research]( Brownstone Research 55 NE 5th Avenue, Delray Beach, FL 33483 [www.brownstoneresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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