The AGI Race Is on... So Is the Race for Profits Almost one year ago to the day, I wrote here in Power Trends that artificial intelligence was the investing story of 2023... and that it probably would be in 2024 as well.
It was.
This year hasnât been a repeat of 2023, as AI has become a more familiar part of the investing landscape. But innovation is ongoing, breakthroughs continue, and the best companies move forward with AI while making shareholders money.
Generative AI has generated profits in my own portfolio and in stocks Iâve recommended in my research services. I donât expect that to change anytime soon.
AI is a transformative technology that is still in its early stages. As Iâve also written, AI wonât reach its full potential until accompanying breakthroughs in quantum computing and next-generation networking allow hardware to match the out-of-this-world speeds of AI software.
âAI is a technology that has the potential to create, or destroy, on a scale that humanity has never before encountered,â writes my colleague Eric Fry.
Heâs right. Thatâs why governments are now getting involved, which I expect will create more opportunities for investors going forward.
The companies leveraging AI most effectively rise to the top my Quantum Edge System as their sales and earnings grow, their shares trade stronger, and Big Money flows in. We will continue to focus on these companies in 2025 here in Power Trends and in more detail in my research services.
Eric recently wrote an excellent essay explaining the coming phase of AI, and I want to share it with you now as we all aim to make money on this massive theme that promises to only get bigger. He also just issued a special broadcast about his work with additional colleagues to build a portfolio of AI stocks best positioned to profit. You can catch the broadcast here.
For more, take it away, Eric... ◆ ◆ ◆ ◆ ◆ Thanks, Jason.
1 part 1940s Manhattan Project
1 part 1960s Space Race
Those are the ingredients to the current worldwide race to develop dominant AI technologies.
Like the Manhattan Project, the AI race is a high-stakes competition to develop a powerful technology of weaponization. And like the Space Race, the AI race is also a competition to seize control of a limitless new frontier.
And the stakes could not be higher.
AI is a technology that has the potential to create, or destroy, on a scale that humanity has never before encountered. Thatâs why the U.S. will be pursuing an all-hands-on-deck strategy to master AIâs capabilities before anyone else does.
Victory will arrive in the form of an advanced AI technology called artificial general intelligence, or AGI. This emerging category of AI will not only be able to mimic human cognitive abilities... but surpass them.
Once we set it in motion, AGI will not rely on human inputs, nor will it automatically follow human instructions or guidelines. Instead, it will develop its own version of free will and self-determination.
When AGI arrives, AI systems could start coding themselves or training each other for specific tasks. It will possess tremendous potential to accomplish positive superhuman achievements, which could produce a âgolden ageâ of scientific, technological, and industrial innovation.
Potentially, AGI could identify problems that humans never even considered, and then create solutions, all on its own. But it could also introduce terrifying new forms of warfare.
And because of AGIâs superhuman potential for both good and evil, the U.S. will devote itself completely to winning the AI race.
So with Jasonâs permission, I want to not only show you how the U.S. will win this race...
But also how you can get in on it.
Letâs take a look... Getting Ready to Rock The race to AGI is not only technologically daunting, but it is also stratospherically expensive. Thatâs why leading technologists might need the U.S. governmentâs help to win... just like the Manhattan Project and the Space Race did.
Inconveniently, the more sophisticated AI technologies become, the higher the costs to train and operate them.
But money isnât the only requirement to succeed. Speed is also essential. This is a race, after all.
Thatâs why the new administration in Washington will attempt to eliminate any and all obstacles that could impede the path of progress toward world-dominating AGI technology.
It will likely cause dozens of regulatory regimes to fall on their swords. And once they have done so, we can expect to see expedited permitting processes for data centers, electrical infrastructure, nuclear facilities, natural gas plants, zoning revisions, and whatever else the tech giants might require to fast-track their AGI programs.
Last week, Donald Trump declared... Any person or company investing $1 billion, or more, in the United States of America will receive fully expedited approvals and permits, including, but in no way limited to, all environmental approvals... GET READY TO ROCK!!! In addition to fast-tracking new investments, the U.S. government might reach directly into its own pocket to help speed things along. Targeted tax breaks and subsidies are likely, and maybe even large-scale government grants.
In other words, the race to AGI will mobilize trillions of dollars of private and public investment. But despite the size of this massive Manhattan Project-size effort, investing directly in it is not necessarily easy nor obvious. The AGI Opportunity Although we donât know for sure what AGI will eventually look like, weâre absolutely positive that the way to prepare for it is by buying up the top AI companies that will benefit along the way.
That is why, at AI Revolution Portfolio, my colleagues Louis Navellier and Luke Lango and myself have been focusing on stocks that are well positioned to benefit from the race toward AGI.
Although it may be surprising, these companies are not actually at the forefront of producing the material needed to create AI. Instead, they are applying AI technology within their own products and services.
That is why we call them the AI Appliers.
I know Jason writes about a recommends these companies as well, including big wins in Super Micro Computer Inc. (SMCI) and Monolithic Power Systems Inc. (MPWR). Many of his currently recommended companies are racing to leverage AI.
You see, as the AI Revolution accelerates, AI itself isnât going to take over the world â businesses using AI will.
The Internet Revolutionâs biggest winners â Amazon.com Inc. (AMZN) and Meta Platforms Inc. (META) among them â didnât build the internet. Instead, they figured out how to apply the internet to commerce, social interaction, and many other parts of our lives.
Likewise, we believe that the biggest AI Revolution winners will be the companies building new businesses â or expanding already successful ones â on top of the AI superhighway.
The AGI race is on, which means the race to find the best AGI plays in the stock market is also on...
So, to learn more about our handpicked favorite AI stocks, I invite you watch our special AI Day One broadcast.
Regards,
Eric Fry | 