Chris’ note: We’ve all watched the explosive rise of artificial intelligence – or AI – since ChatGPT took the internet by storm late last year… And Nvidia has led the charge of this year’s tech rally.
It’s a race to see which companies are going to come out ahead in the AI boom. As you heard in yesterday’s Cut, the AI megatrend is even bigger than most folks realize… And it’s just getting started.
But with all the media buzz around it, it can be hard to know exactly where to look for the real pioneers in AI… and the best ways to profit. That’s why we turn today to former Goldman Sachs exec turned Wall Street whistleblower Nomi Prins.
Today, you’ll hear from her on the importance of timing when it comes to investing in the kinds of disruptive ideas that can make people truly life-changing wealth… And the three phases a technology goes through on the path to widespread adoption and acceptance.
You can also go here to automatically sign up for Nomi’s urgent briefing on a game-changing profit opportunity… a tiny AI company she’s discovered that she believes is about to go parabolic.
It’s now or never to get in at these low levels before this megatrend really takes off. So go here to save your seat.
After 40 years, I finally understand what my father was chasing.
Dad worked at IBM – or “Big Blue” – for almost three decades. In 1981, the company featured him in its flagship magazine, THINK.
Home computers were just starting to take off. They were still limited in what they could do. And most people saw them as machines that needed to be told what to do.
But Dad saw greater possibilities. He envisioned a future where computers could think for themselves.
In that THINK story, he said: “The future in the computer field is in software.”
And he explained that the true power of computers was in helping businesses and governments save manpower.
So, at IBM, he pioneered a field of forecasting called multivariate analysis.
In short, this forecasting helps computers analyze large, complex sets of data.
It was so important, the government contracted IBM and Dad’s team to use it on government data.
And it lies at the heart of every artificial intelligence (“AI”) today. It’s what enables AI to expand and “learn.”
And as you’ve likely noticed, AI is a huge – and growing – market today.
From $282 Million to $150 Billion in 15 Years
The market for AI applications is on track to reach $192.6 billion by 2025, according to the International Data Corporation (IDC). That’s compound growth of 31.2%.
And according to Goldman Sachs, AI investment is set to grow to more than $150 billion over the next two years. That’s growth of 25% per year.
Global executives see the writing on the wall, judging by a recent poll by Accenture.
Accenture asked executives whether they believe AI will play an important role in their business in the next three to five years. Nearly all – 98% – said yes.
It’s easy to see why.
AI accelerates enterprise productivity. Businesses want to be more efficient. It means more profits at the end of the day.
That’s why more organizations are set to rely on AI for digital-first operations. By 2026, IDC says that 75% of large organizations will rely on AI for this.
Today, 45% of organizations have not yet expanded AI beyond a few isolated projects.
That means there’s a huge opportunity for the companies at the forefront of this digital transformation – and huge potential profits for you.
Let me explain…
The Three Phases of the Adoption Curve
New and disruptive ideas don’t catch on overnight. They follow the same path of interest and acceptance, which is known as the “adoption” curve.
The adoption curve has three main phases: innovation, take-off, and saturation.
Invest too early in the “innovation” phase, when the technology is being developed, and you’ll have to wait years… perhaps decades… to see returns, if any.
Investing in the innovation phase would be like investing in the internet in 1983. That’s when, for the first time, computers were all able to “talk” to each other.
But it took all the way until the 1990s for businesses to start going online.
In other words, for over a decade, the internet was just sitting there… waiting around for someone to do something with it.
Then, in 1994, Microsoft got a website. McDonald’s, The New York Times, and Apple launched their websites in 1996.
From there, the web grew exponentially. More businesses realized that having a website was not an option… but a requirement for doing business in the 21st century.
That was when the internet really started to take off. And if you invested in the right internet companies at the right time, you had the chance to get insanely rich.
Take Google, for example. A $1,000 investment in Google in 2005 could have turned into $25,000…
A $1,000 investment in Amazon in 2005 could have turned into $62,000…
And a $1,000 investment in Apple in 2005 could have turned into an astonishing $157,000!
On the flip side, if you invest too late in the adoption curve, you’ll miss all the biggest gains. That’s the “saturation” phase, when everyone knows about it.
But in the middle – in the take-off phase – that’s the time to get in.
AI’s “Take-Off” Phase Is Now
That’s where we are with AI now. How do we know?
First, because we see usage spiking. According to research firm McKinsey, AI adoption is up 2.5x over the past five years alone.
And that’s only going to accelerate.
We can see this through user growth of ChatGPT, the popular AI-enabled chatbot. According to a study from UBS, it was the fastest-growing consumer application in history. It went from zero to 100 million users in only two months!
To put that into perspective, it took TikTok about nine months to reach 100 million users and Instagram 2.5 years, according to data from Sensor Tower.
Second, we follow what the smart money is doing. As I mentioned, Goldman sees investment in AI growing 25% per year over the next two years.
The insiders – venture capitalists, billionaires, major corporations – they’re all piling in now. Like Microsoft, which poured $10 billion into OpenAI, the parent company of the ChatGPT program.
Or AI data architecture company Databricks, which raised $1.3 billion from major investors like BlackRock and Fidelity at a $38 billion valuation.
And AI defense startup Anduril, which recently raised $1.48 billion from venture capital powerhouses including Andreessen Horowitz, Valor Equity Partners, and billionaire Peter Thiel’s Founders Fund.
That’s why I’m pounding the table on AI now.
This is the moment. We weren’t there six months ago. And we may be past it in six months. Now is the time to act.
But as I’ve been writing, not every AI company will be a winner. And if you get into the wrong AI companies, you’re likely to get burned.
So how do you know which companies will become the leaders of AI… and which ones will fail?
I’m putting together the final details on an urgent briefing, The AI Ultimatum, where I’ll tell you all about my favorite AI company today. It’s trading for only $0.26.
And a major announcement could send this tiny AI company soaring at any point – even as soon as 5 p.m. ET today.
See, one of the biggest organizations in the world missed the AI frenzy. And now, they’re scrambling to catch up… to the tune of a just-announced $826 billion spending spree.
This is a fast-breaking situation. So please accept my apologies. Usually, we give an exact time and date for briefings like this. But I’m putting the final details together as I write this.
I’ll release my urgent briefing, The AI Ultimatum, sometime in the next 48 hours. So please, save your spot with one click here. And for the next 48 hours, watch your email closely for exact details of when my briefing goes live.
Regards,
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Nomi Prins
Editor, Inside Wall Street With Nomi Prins
P.S. Right now, everyone is investing massive sums to get a leg up on AI. And right now, you have a short window of time to get in on this frenzy.
It’s a predictable pattern that plays out over and over again in technology. We can trace it back over 100 years… And if you understand it, it can help you identify when the biggest tech trends are about to take off – and position yourself for the biggest profit potential.
I put the details in a new special report, AI’s Take-Off Phase. And it’s yours free when you add your name to the VIP list for my urgent briefing, The AI Ultimatum. To download it, click here to save your spot instantly, and then enter your phone number to add your name to my VIP list.