What I Got Wrong About NvidiaAds

[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. --------------------------------------------------------------- What I Got Wrong About Nvidia By Colin Tedards, Editor, The Bleeding Edge Dear Reader, I got Nvidia wrong… The chipmaker released its second-quarter results on August 23. And I had forecasted that Nvidia would report $11.5 billion in revenue… For context, my estimate was $500 million over Wall Street’s. Nvidia actually made $13.5 billion. That’s 17% higher than what I was expecting. Here are some of the highlights from the earnings call; all figures are year-over-year changes: - Revenue: Up 101% - Gross margin: Up 26.6 pts - Operating income: Up 1,263% - Net income: Up 843% - Earnings per share: Up 854% Expectations were high coming into Nvidia’s earnings announcement… but it still managed to surprise everyone. What surprised me the most wasn’t the demand. I know AI is an undeniable trend and that every major software maker is scrambling to get as many of Nvidia’s H100 GPUs to build and train their AI models. No, what was shocking was how fast suppliers were able to get Nvidia the parts it needed for these chips. Nvidia’s H100 is a complex machine. It weighs 70 pounds, has 35,000 parts, and has nearly 1 trillion transistors. Recommended Link [Elon Did It Again: This Could be Bigger than Tesla]( [image]( Love him or hate him, it’s hard to deny Elon Musk is a genius. After revolutionizing online payment processing (PayPal), space exploration (SpaceX), and the auto industry (Tesla)... He’s getting ready to do it again with [his new AI venture.]( This could be bigger than Tesla, bigger than SpaceX, and bigger than PayPal. [Click here.]( -- Nvidia relies on a web of suppliers and testing companies to source parts and make sure each unit is running at peak performance. There was some concern that if even one of these suppliers fell short, the entire supply chain could be disrupted. However, these suppliers ramped up their operations to meet Nvidia’s surging demand. Nvidia has a rare opportunity today. Its H100 chips are the best in class. If you’re a tech executive trying to build the next great AI model, Nvidia’s chips are the go-to. But once again, Nvidia is not my favorite way to gain exposure to the AI trend. Nvidia dominated earnings. But with a market capitalization north of $1 trillion, it takes a lot to move the stock. As a company, Nvidia has a bright future. But as an investment, its days of explosive growth potential are over… However, there are plenty of opportunities within the broader AI trend to profit from. And if Nvidia’s rapid sales growth is any indication, the AI opportunity is going to be even bigger than the boldest estimates out today. Recommended Link [Final stage before digital money]( [image]( Our financial system is now being transformed in a way that would’ve been unthinkable just a few years ago. And almost nobody is prepared for the chaos that follows. According to Bank of America, this overhaul is imminent – And Dr. Nomi Prins says the final stage started days ago with the rollout of the FedNow system. To show you everything you need to know about the FedNow system – and to help you prepare – Dr. Prins has recorded a free presentation with all the details. It’s controversial, but Nomi’s interview is a must-watch for anyone with more than $2,500 in an American bank or retirement fund. [Click here to find out what you need to do to prepare for this historic transformation.]( -- Hardware, Software, Everywhere When we think back to the adoption of the internet, we see a similar pattern play out. First, it was the hardware providers that benefited. We can think of companies like Cisco with its networking hardware. Then, there were the software developers. I would put a company like Microsoft in this bucket. Microsoft’s Windows operating system made personal computers accessible and user-friendly at precisely the time when the rise of the internet made PCs a “must-have” device. As for “everywhere?” Can we think of any industry that has not been changed in some way by the adoption of the internet? The businesses that resisted the new technology simply faded away. The companies that adopted it became more efficient, more productive, and more profitable. It will be the same pattern with AI. Just remember: Hardware, software, everywhere. Nvidia is the hardware company powering AI today. But it has a vast network of suppliers that also offer triple-digit upside. As for software, Microsoft is once again a market leader… along with others like Meta and Alphabet. But there are also smaller companies like Adobe that are making AI applications for enterprise and personal use. Many others have announced AI services and products that they’ll be rolling out over the next year. AI isn’t everywhere yet. But we’re seeing strong interest. A survey by Accenture showed that 73% of companies polled are prioritizing AI investment over other technologies. JPMorgan Chase is using AI to cut down on fraud. Gucci is using AI to improve its customer service. Johnson & Johnson is using AI to help research compounds for new drug discoveries. These are just the earliest adopters of AI. By 2030, AI will be as commonly used as the internet is today. Nvidia’s production ramp-up means that more GPUs are making it into the hands of developers and software companies. That’s pulling the entire timeline of AI adoption forward. That means as investors we can’t afford to sit on the sidelines and wait. If we don’t invest in AI today, we’re going to miss one of the greatest technology and investment opportunities of our lifetime. Recommended Link [How Regular Americans Are Collecting Payouts From “Secret Royalty Programs”]( [image]( Shame on Wall Street! They’ve collected an estimated $17 billion in payouts from a unique investment Brad Thomas calls “Amazon’s secret royalty program…” But they never told you. In fact, you won’t find it listed anywhere on Amazon’s website… Because this is not endorsed by Amazon at all. Yet, by exploiting an IRS loophole (buried on page 1,794 of the U.S. tax code)… A small group of regular Americans have discovered how to collect consistent payouts from opportunities like this. “Started from a zero balance... Just hit $1,200 a month in [royalties].” – Neil P. “Increased my [royalties] to over $30,000 last year.” – Tom K. “Increased my [royalties] from about $2,000 to $60,000…” – Elaine T. If you want to participate, click the button below for details. The next payout deadline is scheduled for as soon as December 10th. [HURRY: Learn How YOU Can Collect the Next Payout as soon as December 10th.]( *Verified review. Past performance does not guarantee future results. -- Let the “Nvidia Effect” Make You Rich Nvidia is a great company. It is the undisputed king of AI hardware. But it is not my favorite way to play the AI megatrend. Instead, our strategy is to target the smaller, lesser-known suppliers that make Nvidia’s dominance possible. This opportunity is so massive… and so urgent… I’ve put together a strategy session all about it. It will go live next Wednesday, September 20, at 8 p.m. ET. I’ll show you the full potential of the Nvidia Effect and how you can profit from it in your portfolio. So, mark that date on your calendar. This will be my first major event for you and your fellow Brownstone readers. And I couldn’t be more excited about the fortune-making potential of this strategy. If you haven’t already, reserve your spot with one click [here](. Regards, Colin Tedards Editor, The Bleeding Edge --------------------------------------------------------------- Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. IN CASE YOU MISSED IT… [Get Market Wizard’s #1 strategy for 2023]( Larry Benedict is an incredibly successful yet relatively unknown trader. Now, he is coming forward to share a brand-new forecast to make all the money you need in any market, using a single stock. [Click here to watch.]( [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. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Brownstone Research welcomes your feedback and questions. 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