Phase 2 of the AI Boom Is Here – and One Company Is Going to Be the Next Trillion-Dollar Stock

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Editor’s Note: Every AI company that has reached a $1 trillion market cap has made its investors rich. My colleague Eric Fry – the Global Macro specialist here at InvestorPlace – believes he found the next one. It’s a company that’s using a new application of AI that he believes will revolutionize a $13.1 trillion industry. He’ll share more details on all that during a special strategy session we have scheduled for Tuesday, May 21st at 7 p.m. Eastern. You can reserve your spot for that strategy session by going here.

That $13.1 trillion industry, Eric says, will be a big beneficiary of the AI boom’s Phase 2. So, I invited Eric to join us today so what exactly is causing us to move into AI’s second phase – and to tell us more about his strategy session. Take it away, Eric…

Hello, Reader.

Most investors missed out on the first phase of the artificial intelligence boom.

You know… that era of advancements marked by ChatGPT, AI chips, rapidly evolving robots – and substantial gains.

That’s too bad.

However, another wave of AI innovation is coming…

This time, though, it has nothing to do with any of the previous AI advancements that the mainstream media talks so much about.

In fact, the opportunity here is significantly larger than any of those AI applications.

So, let’s dive into what to expect from this next phase of the AI boom.

And where to find some of that opportunity.

But first, let’s chat some about how we got to this spot in the AI Revolution…

The First Phase of the AI Boom

Although artificial intelligence has been around since the 1950s, it wasn’t until OpenAI released ChatGPT to the public in November 2022 that interest in AI really caught fire.

For perspective… following ChatGPT’s launch, more than 1 million people downloaded it in five days. And over 100 million people signed up for it in two months.

In comparison, it took Facebook more than 4.5 years to reach 100 million users.

In the early phase of the AI boom in 2023, seven clear winners emerged. You know their names. CNBC’s Jim Cramer dubbed them the “Magnificent Seven.”

And their performances certainly were magnificent. They gained an average 111% in 2023.

Of course, the biggest winner of 2023’s boom was Nvidia Corp. (NVDA), the AI chip king, which surged 239% in 2023. Since the unveiling of ChatGPT, shares of the company have skyrocketed nearly 450%.

In different ways, each of these companies has been providing the hardware, software, and processing power that enable enterprises to create and operate AI platforms.

They enabled the AI Revolution.

For example…

  • Microsoft Corp. (MSFT) is developing its own in-house semiconductor chip: code name Athena.
  • Alphabet Inc. (GOOGL) also has created its own new ARM-based CPU processor, called Axion.
  • Amazon.com Inc. (AMZN) has Amazon Q.
  • Tesla Inc. (TSLA) has Dojo.
  • And Meta Platforms Inc. (META) has Llama 3.

Their efforts are why large language models (LLMs), like ChatGPT and Anthropic’s Claude 3, can be developed so quickly.

Cramer may call these companies the Magnificent Seven, but I think of them more as the “AI Seven.”

However, the sudden dawn of the entire AI boom caught most people – and many investors – by surprise. Therefore, a lot of folks missed out on those big gains from the AI Seven.

The good news is the AI Revolution is about to enter a new phase, and a different set of companies will lead the way. The AI Seven is about to become the AI Eight… Nine… and beyond…

We’ve had the AI enablers. Now enters the “AI appliers.”

The Next Phase of the AI Boom

Unlike the AI enablers, these companies are not at the forefront of producing the material needed to create AI. Instead, they are employing AI technology within their own products and services.

AI appliers are everywhere… and growing by the day.

That universe includes companies as diverse as beauty-products purveyor Coty Inc. (COTY), gold and copper explorer, Ivanhoe Electric Inc. (IE), industrial-solutions provider Rockwell Automation Inc. (ROK), and sports technology company Genius Sports Ltd (GENI).

Clearly, many of these companies operate in niches that are normally not associated with technology. So, they are still lying low… under the radar – but they and many others are ready to explode with the next phase of the AI boom.

Not all of them, however, will deliver gains like we saw from Nvidia and the rest of the AI Seven.

That’s why I’ve spent the past few months deep in research… and I’ve identified a company that I believe will become the next $1 trillion AI stock.

That’s the main topic of our strategy session next Tuesday.

And we’re also going to talk about a strategy we can use to get 40 years of Nvidia gains out of this stock in a matter of months.

This company is about to revolutionize a $13.1 trillion industry… with a potential to serve over 3.8 billion people.

Plus, I’m going to have a free pick for you during the event. It’s an AI stock that operates in this promising niche. I believe it could double your money in the coming months.

I’ll give you all the details during our strategy session, The Next $1 Trillion AI Stock. That’s next Tuesday, May 21, at 7 p.m. Eastern time.

This is going to be a very informative event. In addition to talking about the that next $1 trillion stock and next phase of the AI Revolution, I’ll share…

  • My strategy to profit from this boom…
  • How billionaires like Elon Musk, Bill Gates, and Jeff Bezos are all investing big in this new AI application…
  • And (remember) one FREE stock recommendation.

Click here to sign up for this special event. I look forward to seeing you there.

Regards,

An image of a signature that reads

Eric Fry

Senior Investment Analyst, InvestorPlace

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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