The Playbook for Profiting in the AI Boom
Editor’s note: “The Playbook for Profiting in the AI Boom” was previously published in Mat 2023. It has since been updated to include the most relevant information available.
At this point, we all know AI is the real deal. It’s going to change the world in profound ways over the next few years, and investors that buy AI stocks today will make fortunes. That much is crystal clear.
But one major question still remains…
What are the best AI stocks to buy today?
Should you chase the rally in red-hot AI chipmaker Nvidia (NVDA)? Or maybe buy the breakout in the AI software company C3.ai (AI)? Or is a hardware play more like Tesla (TSLA) the best AI stock to buy right now?
The answer to those questions may root itself in a historical analysis of previous technological paradigm shifts.
Indeed, every new technological paradigm shift – like the one we’re seeing with AI – follows a similar pattern.
That is, they evolve in three distinct “profit waves.”
The “Millionaire Playbook”
The first profit wave emerges in the “picks-and-shovels” suppliers of the new tech – the companies that make the stuff that powers the technology.
The second profit wave emerges in the infrastructure makers for the new tech – the companies that take those picks and shovels and make new devices.
And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices.
Makes sense, right?
First, there’s a gold rush for materials to build new tech. Then, there’s a gold rush for new devices that are built with that tech. Then, once everyone has one of those devices, there’s a gold rush for creating applications and services on top of them.
Take the mobile internet boom of the 2010s, for example.
In that time, we saw a profit boom in semiconductor companies like Qualcomm (QCOM) that were selling the chips that powered smartphones.
A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones.
By 2015, a profit boom emerged in software and services companies like Alphabet (GOOGL) and Amazon (AMZN). Once smartphones were ubiquitous, those companies built really cool mobile internet applications for those devices.
In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks.
That was the “Millionaire Playbook” for the mobile internet boom of the 2010s.
Monetizing the AI Revolution
It is also the “Millionaire Playbook” for every major technological revolution of the past 50 years. Every new tech revolution emerges in three distinct profit waves: Suppliers first, device-makers second, and software developers third.
The AI Revolution will play out no differently.
We’re already seeing the first profit wave emerge today. AI chip supplier stocks – paced by Nvidia – are soaring right now.
This boom will last for a year or so. Then, it’ll be the AI hardware makers who experience a profit surge. After that, the AI software developers will start to soar.
This is the “Millionaire Playbook” for the AI Revolution.
Buy the AI supplier stocks first, hardware stocks second, and software stocks third.
Follow this playbook, and you could mint fortunes in the AI Revolution of the 2020s.
The Final Word on AI Stocks
Fortunately, we have the top supplier stock for you to buy today.
No, it’s not Nvidia. In fact, we just sold some of our NVDA position for nearly 1,000% returns a few weeks ago.
Instead, this company is working to make AI chips for the multi-trillion-dollar mobility market.
And it is part of our brand-new Ultimate 10X Portfolio, which comprises five of our top AI stocks to buy today for huge returns in the coming years.
This portfolio includes AI chip stocks, AI infrastructure stocks, and AI software and services stocks. It’s the full playbook in one portfolio.
And through this presentation, I’m giving you a chance to gain access to that portfolio.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
