Is AI A Hype? No, The AI Gold Rush Just Got Hotter!

** Please note that any information shared in this public blog is NOT to be regarded as an advice or a recommendation, it is meant for EDUCATIONAL AND INFORMATION PURPOSES only and it does not constitute an investment advice, an offer or solicitation to purchase or sell the investment asset classes mentioned. **

Remember when people thought the AI boom is a hype and might be cooling off?

Well, Nvidia just proved them wrong… again.

On 20th November 2024, the world’s 2nd most valuable company announced another mind-blowing quarter, with revenue nearly doubling from the same time last year to reach US$35 billion. That’s a 94% increase year-over-year! But here’s where it gets really interesting – Nvidia says they are still struggling to make enough chips to meet demand. The company’s data center business, which makes the specialized chips that power AI systems like ChatGPT, grew by an astounding 112%!  While this sounds great on paper, these results have become business as usual for Nvidia.

Nvidia’s results were generally bullish for its next-generation chip called Blackwell. The chip isn’t even officially out yet, but Nvidia CEO Jensen Huang says demand is already outstripping their ability to produce them. And there’s a good reason for all this demand. Mark Zuckerberg recently revealed that Meta is training AI models larger than anything he has seen. On the other hand, Elon Musk’s xAI is building what he calls the “Colossus” – a supercomputer in Memphis using 100,000 Nvidia chips and they have just raised US$6 billion to help pay for it and Musk is already talking about doubling its size. Meanwhile, Amazon just poured another US$4 billion into AI company Anthropic, bringing their total investment to US$8 billion. They are betting big that Anthropic’s Claude AI model could become a serious competitor to OpenAI’s ChatGPT. Speaking of OpenAI, they recently raised US$6.6 billion at a whopping US$157 billion valuation! For perspective, that makes them more valuable than companies like Disney or Nike.

But here’s what makes this moment truly special – the birth of a new kind of computing.

Nvidia’s CEO is calling it “the industrial revolution of AI.” In a recent ceremony at the Hong Kong University of Science and Technology, Jensen explained how we are moving from an era where computers followed human instructions to one where they can learn and think on their own. This isn’t just about making better chatbots. Meta is using AI to translate languages in real time during video calls. Amazon is working on AI that can run entire warehouses autonomously while Google is developing AI that can understand and create videos from text descriptions. For investors, this creates multiple paths to potential riches. The obvious play has been Nvidia, whose stock has risen nearly 200% this year.

But there’s more to the story. The real opportunity lie in identifying the companies that will use these AI tools to transform their businesses. Consider this: every major company in every industry will eventually need to adopt AI to stay competitive. Those that move first will likely see the biggest gains. We are still in the early innings of this technological revolution. The amount of computing power needed for AI is expected to increase by a millionfold over the next decade, according to Nvidia’s CEO. That’s not just growth – that’s explosive, transformative change! For investors who position themselves correctly, this could be the kind of opportunity that creates generational wealth. Remember, Amazon’s early investors saw their investments multiply by over 1000 times and that was just from revolutionizing retail.

The AI revolution promises to transform every industry simultaneously and is expected to add US$25.6 trillion to the global economy over the next 6 years. That’s more than the GDP of the economies of Japan, Germany, India, France, Canada and the United Kingdom combined. The race is on and the stakes have never been higher. Smart investors are paying attention – because this might be the biggest wealth-creation opportunity of our lifetimes!

I have identified 7 AI-focused stocks that are set to dominate this new technological leap and I called them “The Next Magnificent 7”. I will reveal them during my upcoming webinar this Saturday (7th December), you are welcome to join me then to find out: https://us06web.zoom.us/webinar/register/WN_9aU331lOTtOATaz4u14VMA#/registration

** Please note that any information shared in this public blog is NOT to be regarded as an advice or a recommendation, it is meant for EDUCATIONAL AND INFORMATION PURPOSES only and it does not constitute an investment advice, an offer or solicitation to purchase or sell the investment asset classes mentioned. **