Expectations are sky high... [The Jolt with Stephen McBride] Nvidia reports tonight, what to do Nvidia (NVDA), the worldâs most important stock, reports earnings this evening. Given the huge sums of money being plowed into artificial intelligence (AI) infrastructure, I expect Nvidia to knock it out of the park once again. But Iâm a little cautious about its stock. Nvidia has produced awesome results several quarters in a row. Expectations are sky high, and good results may be âpriced in.â If youâve been reading The Jolt, you know Iâm cautious on the overall market. The S&P 500 surged 15% from November through January. But now, weâre in the seasonally weakest period. The last two weeks of February are typically the weakest of the year. So, a quick 5%â10% decline here would be perfectly normal. Long-term investors who own high-quality stocks in megatrends, [like we do in Disruption Investor](, donât need to change a thing. But if youâre trading, proceed with caution. - In [WTF happened in 2023?]( I showed you America was waking up from its innovation slumber. Weâve been stuck in a mini âdark ageâ for disruption over the past 15 years. New innovations were mostly âmeh.â Snagging dates on Tinder⦠uploading photos to Instagram⦠ordering pizzas through DoorDash (DASH)⦠and watching Netflix (NFLX) are cool, but shallow. They also enable laziness and promote isolation. They didnât push humanity forward like jet engines, refrigeration, or indoor plumbing did. The good news: Weâre entering a new golden age of disruption⦠as long as governments donât screw it up. - Ireland, Germany, China, and Virginia all recently blocked the construction of new data centers. AI thirst for energy is off the charts. AI models like ChatGPT are powered by thousands of energy hungry computer chips inside vast data centers. These systems generate so much heat they need specialized vents and fans humming 24/7 to keep cool. A single AI system consumes the same amount of energy per day as roughly 33,000 households! Governments are concerned AI will use up every ounce of spare electricity. This is forcing AI companies to go âoff the gridâ and build their own power sources. For an endless supply of clean, safe energy, we must go nuclear. Microsoft (MSFT) is working on plans to power its data centers with mini nuclear reactors. Itâs also training an AI model to slash the time it takes to get nuclear power plants approved by 90%. Tech defeating red tapeâyou love to see it. And one of Americaâs largest data center operatorsâDigital Realty (DLR)ârecently floated the idea that new data centers should run on their own âsubmarine styleâ independent nuclear reactors. One of the worst decisions mankind ever made was turning our back on nuclear energy. We essentially outlawed the [cleanest⦠safest⦠densest]( form of electricity because we confused nuclear energy with nuclear bombs. Humanity progresses by discovering new energy sources and using them to invent things. Coal power gave us steam trains. Oil gifted us âhorseless carriagesâ (cars). We were robbed of a new innovation age because environmentalists smothered atomic energy at birth. Now AI is fueling a nuclear renaissance and Iâm fired up about the future. A few things this will make possible: flying cars, desalination (turning seawater into fresh water) and electricity too cheap to meter. The only limits are our imaginations. This renaissance is causing demand in uranium to spike. I first recommended the âExxon Mobilâ of uranium, [Cameco (CCJ), in 2018](. Itâs quadrupled since then, and thereâs plenty of juice left. - A new chart of the century is out⦠This chart tracks the prices of 14 important things since 2000. The latest version came out last week. Take a look: Healthcare costs (top red line) continue to surge faster than anything else. Theyâre even outpacing college tuitions, which is saying something. Healthcare has become a playground for bureaucrats. Government regulation has been a total disaster for everyone except for busybody administrative jobs and health insurance companies. UnitedHealth surged 1,600% since Obamacare passed. Thereâs so much red tape it now takes up to 15 years to get a new drug on pharmacy shelves. Doing so costs $2.7 billion on average. AI can help fix it. One example: ChatGPT for drug discovery. AI can âingestâ mind-bending amounts of medical data. It then connects the dots to offer new ideas that would take us mere mortals a lifetime to discover. Biotech company Genentech recently slashed the time it takes to screen new drugs from âyearsâ to just nine months. And a drug discovery startup incubated by Google (GOOG) aims to halve the time it takes to find new medicines. The startup just inked deals with two of the worldâs largest drug companies: Eli Lilly (LLY) and Novartis (NVS). When drugs cost billions of dollars to develop, you must be darn sure youâll make your money back. So pharma companies only work on drugs that treat widespread diseases. Thatâs why there are less than 50 new drugs approved each year. That means folks suffering from rare illnesses are left out in the cold. By slashing costs, AI could help cure many of these uncommon diseases. AI will save millions of lives before it kills anyone. Picture this⦠An expert robo-doctor in your pocket who knows youâre sick before you feel the slightest bit ill. The AI knows your medical history and orders a new special drug, made for people just like you. This future is possible if AI is allowed to work its magic in healthcare. Instead of rubber stamping 50 new drugs/year⦠letâs make it 50,000. Chris Wood and I are investing in leading AI healthcare companies in [Disruption Investor](. - Todayâs dose of optimism⦠Heart disease is Americaâs #1 killer. It kills roughly 700,000 people each year. The good news: heart disease death rates plunged 75% since 1950 and are now lower than at any point in recorded history. Source: NCHS My advice: Donât smoke. Exercise to âout of breathâ at least every other day. And cut down on the carbs. Then wait for the AI-powered doctor in your pocket to solve the rest. See you Friday. Stephen McBride
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