Global Macro Specialist
Charles’ Note: There were a lot of fine American buggy whip companies in 1900. With about 170,000 horses in New York alone, there was no shortage of business. There were an estimated 1,200 buggy whip makers plying their trade. Were you an investor at the time, you might have been “long” buggy whips.
Then Henry Ford came along and launched the Model T in 1908… and you know what happened next. By the early 1920s, horses had all but disappeared from the streets. And the number of buggy whip makers had fallen to fewer than 10.
Meanwhile, Ford went on to power the United States into the industrial age. And the rest is history.
Our past is littered with the corpses of companies that couldn’t adapt quickly to technological change. Blockbuster Video, Kodak, BlackBerry, Borders Books… the list goes on.
But in this world of Darwinian natural selection, the winners survive and thrive.
This will be even more true in the AI age, and particularly once AGI – artificial general intelligence – becomes reality.
To help me unpack all of this, I invited my InvestorPlace Senior Analyst and tech visionary Eric Fry to give his thoughts.
Eric has been at the cutting edge of AI since the beginning, alerting his readers to the potential of AI stocks a full year before they went mainstream.
His unique “macro” approach powers his analysis. By looking for big-picture trends that drive huge, multiyear moves in entire sectors of the market, he’s able to extract and exploit the moneymaking opportunities a regular Wall Streeter would miss.
In professional circles, Eric is known for his extraordinary long-term track record. This includes many “10-bagger” calls (meaning the investment returned 10X), like buying Asian stocks during the depths of its late-90s currency crisis… buying commodities in the early 2000s, right before their historic rally into 2007… and buying stocks in 2015 that would benefit from the EV boom, just as those stocks were gaining big momentum.
Take it from here, Eric!
Buy Stocks in Only These 3 Categories – or Get Left Behind
By Eric Fry, Futurist and Senior Investment Analyst, InvestorPlace
Gusty winds and stormy seas delayed the departure. Finally, on December 27, 1831, the HMS Beagle left the Plymouth, England coastline in its wake.
Its bow was pointed to the coast of South America… bearing the 22-year-old Charles Darwin toward his legacy.
It was during this five-year voyage that Darwin famously developed the theory of evolution by natural selection. But survival of the fittest principle extends well beyond biology.
It exists in the business world as well.
Today, every company faces an evolutionary imperative. Only those that can adapt to their environment can survive.
If they don’t embrace the inevitable arrival of Artificial General Intelligence (AGI), they’re doomed.
AGI is when AI achieves human-level intelligence and can perform tasks all on its own.
This technology is coming. In fact, OpenAI CEO Sam Altman said in January that the company already knows “how to build AGI.” And technologist Elon Musk is on record saying we could see it’s arrival by end of this year.
For investors, this changes everything.
That is why I’ve developed a three-step process for finding companies that will survive and thrive on The Road to AGI… and I’ll show you those three steps today.
In fact, I believe the stocks this process reveals are the only companies we should invest in for the foreseeable future.
The imminent arrival of AGI within the next 12 to 24 months puts us all in the crossroads right now.
So, let’s dive in…
Step 1: Invest “In” AI
This simply means buying shares of companies that are providing key parts of the infrastructure that will accelerate AI technology toward AGI.
Consider AI chip companies. They fit squarely into the “investing in AGI” category because they supply the immense amount of computational power that AGI requires.
When I first started talking about The Road to AGI less than a year ago, the AI chip market was projected to hit $341 billion in a decade. It’s now projected to hit $501 billion in only eight years.
Of course, any keen investor will want in on that $500 billion… but cashing in on that growth directly won’t be easy.
There is massive competition in the AI chip race. Names like Nvidia (NVDA) and Super Micro Computer (SMCI) – which develop AI-focused GPUs and servers, respectively – probably come to mind first.
However, if you break down an AGI chip of the future into its components, you’re likely to find the same exact raw materials, regardless of the manufacturer.
So, in my “investing in AGI approach,” I look at the companies that provide key parts of the infrastructure that will accelerate AI technology toward AGI – like the core group of precious metals inside each chip – instead of their highly valued producers.
Step 2: Invest “Alongside” AI
This means getting in on the companies primed to rise in tandem with AGI.
Now, I worry that too many folks have bought into a story that the only way to build AI wealth is to go overweight into the technology itself, like AI chip and software stocks.
But by “investing alongside AGI,” we get a more thoughtful path to building wealth – with potentially far less risk.
Let’s look at data centers, for example.
To achieve AGI, we need a lot of data centers to house all of its computing power. In fact, Nvidia CEO Jensen Huang predicts $1 trillion will be spent over four years on AI data centers. Most of that money will come from Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), and Meta Platforms (META).
These data centers are being built on land around the country. In Vint Hill, Virginia, for example, the price of the land where a data center is going to be built has, over the past few years, soared 10 times in value.
So, in this case, “investing alongside AGI” would mean investing in the industries that provide the physical infrastructure and building blocks of AGI facilities.
I’m talking about companies that provide the raw land that will house data centers, or the systems that cool the centers or the energy sources that power them… or all of them at once.
Step 3: Invest in “Stealth” AI
This means investing in non-tech companies that will adopt and apply AI with the goal of reaping huge gains in efficiency, productivity, and profits.
Stealth AGI industries include shipping and logistics… beauty, fashion, and wellness… and food and beverage. These are companies that might even be considered a little boring, especially compared to headline-grabbers like Nvidia.
However, these less-exciting names will adopt AI and AGI in a bid to become more profitable, often by orders of magnitude.
Biotech is a sector in the “Stealth AGI” category that I see a bright future for. That’s because AI in biotech is speeding up how we discover new drugs, personalizing treatments, and helping us predict diseases before they even show up.
Survival of the Fittest… AGI Style
So, companies that are set to ride the profit waves of AGI are the ones:
- Building or providing the materials for AI hardware and software…
- Riding its rising tide, like data center real estate companies…
- Or applying AI into their products and services, like biotech firms.
Everything that falls outside these categories is either too risky… or on its way out.
That is why I believe that the stocks within these three categories of AI investment are the only ones to buy right now.
I’ve got 41 different investment recommendations that have reached over 1,000% gains on my track record.
Now, in three brand-new reports, I have one recommendation ready to go for investing in AGI… another for investing alongside AGI… and a third for investing in Stealth AGI.
You can learn how to access the names of these companies in my brand-new The Road to AGI: The Final Warning special broadcast.
Now, I want to make it as clear and easy as possible to get started.
So during this free broadcast, I also reveal more about my AGI blueprint, including details on critical stocks to avoid or sell immediately before they collapse.
Plus, I’ll show you one of my top-rated AGI-related stock picks – name and ticker symbol. It recently registered a 46% gain while the S&P 500 dropped 5%.
In this free Final Warning video, I’ve got many more details.
With my AGI blueprint, you’ll soon be filling your portfolio with “survival of the fittest” companies… and capitalizing on their profits.
Regards,
Eric Fry
P.S. from Charles: Eric will have specific insights on the best ways to play the march to AGI in his special broadcast. I’ll add that if you’re looking for a quick way to get your feet wet and get broad exposure to the companies most intimately involved in this revolution, consider the Global X Robotics & Artificial Intelligence ETF (BOTZ). BOTZ gives you a one-stop shop for familiar household names like Nvidia (NVDA) as well as harder-to-find niche plays in Japanese and European companies.