The interplay between 5G and the Technochasm … the real investment story behind 5G … how this is “sweet spot” investing
Below is the chart for Nvidia here in 2020.
As you can see, despite the COVID-bear, it’s made investors 124% on their money, crushing the S&P’s 11% gain.
What’s helping drive Nvidia’s growth?
For Digest readers less familiar, Nvidia designs graphics processing units for the gaming and professional markets. It also manufactures system-on-a-chip units for the mobile computing and automotive market.
Put another way, the company’s operations put it directly in the crosshairs of one of the most transformative trends of the modern era — 5G connectivity.
The majority of the technological advancements we’re going to enjoy this decade (artificial intelligence, self-driving cars, the Internet of Things, to name a few) will require lightning-fast, consistent internet connections.
5G is the dynamic wireless infrastructure that’s going to make this possible. And in doing so, it’s going to make some 5G investors incredibly wealthy.
Let’s pause on this for a moment. We’ll circle back …
***Last Thursday, veteran investors Eric Fry and Louis Navellier held a special, live event called The Technochasm Summit
We’ve had some big events, but it turns out this was one of the biggest in InvestorPlace history. The amount of buzz and positive feedback we’ve received has been enormous.
Now, if you’re new to the Digest, the “Technochasm” is Eric’s term to describe the stark — and expanding — wealth gap in the United States that’s, in large part, driven by technology.
This gap extends to the stock market as well, where technology is creating clear winners and losers.
On one hand, as noted a moment ago, this decade will see technology create immense investment wealth. On the other hand, it will destroy the portfolios of uninformed investors who continue to hold “yesterday’s economy” stocks that technology renders obsolete.
At last Thursday’s event, Eric and Louis discussed both sides of this coin.
And when it came to aligning a portfolio with technological strength, there was one trend that received a great deal of focus from these expert investors …
Returns such as Nvidia’s 124%-gainer this year are just the beginning.
That’s because the avalanche of dollars that will be flowing toward 5G-related companies this decade is nothing short of mind-boggling.
***Why 5G is such a massive investment story
The U.S. won the battle of 4G.
As the first-mover in this technology, we were largely able to set the standards that the world adopted.
And the prize for that?
Well, in 2016 alone, the win increased U.S. GDP by $100 billion, created additional jobs, reduced consumer costs, and helped lead to the development of more advanced applications.
Yet that’s nothing compared to 5G …
From The Hill:
5G promises to have an even larger economic impact, as the technology is projected to enable more than $12 trillion in global economic output by 2035.
Here at home, when the entire 5G value chain is considered, some expect the benefits to top $3.5 trillion, support 22 million jobs, and contribute the equivalent of the entire economy of India to real American global GDP.
With speeds up to 100 times faster than 4G, lag-time lowered by a factor of five, mobile data volumes 1,000 times greater than today, and lower drain on batteries for remote cellular devices, 5G will enable new capabilities and unlock innovation across the economy.
***Behind these trillions of dollars is a technology that will transform our day-to-day lives
Most people have the false impression that 5G is little more than “a faster phone connection.”
The flaw in this thinking reduces to one principle mistake … straight-line extrapolation.
When we think about technological advancements, we often imagine something of a linear progression. For example, we believe the amount of change we experienced between “technology back then with 3G” and “technology now with 4G” will be the same difference between 4G and 5G.
It’s not going to work this way.
The leap to 5G is going to be transformational.
That’s because the 5G speed will be literally 100-times faster than 4G.
And this will enable an entire new world of technological innovations.
Here’s Eric from his Saturday Smart Money update for more:
Whereas 4G provided the network speeds necessary to run online apps and mobile streaming video and audio, 5G represents a monumental leap forward.
It’s not going to just make our phones faster. 5G also provides the foundation for a whole host of “gee-whiz” technologies like:
- Autonomous vehicles.
- Healthcare technologies like telemedicine and remote robotic surgeries.
- “Smart factories” that integrate machine-learning processes with human oversight — i.e., “cobotics.”
- Internet of Things (IoT) — a vibrant, high-speed network of physical objects … things … that are embedded with sensors, software, and other technologies for the purpose of exchanging data and “communicating with” other devices, systems and/or people.
In other words, it isn’t just the speed, it’s the new functions enabled by the speed. And these new functions will generate trillions of dollars of economic wealth.
That’s how investors will make multiples on their invested dollars this decade.
Back to Eric:
Clearly, we’re on the cusp of a 5G revolution … and this revolution will create enormous opportunities for select companies and their shareholders.
The nascent 5G boom is a powerful megatrend that will provide a wide range of investment opportunities — beginning with constructing the actual 5G infrastructure throughout the world, and then continuing with the vast range of technologies and business applications that the 5G infrastructure will enable and supercharge.
Trillions of investment dollars will flow toward and through 5G infrastructure over the next several years, no matter how well or poorly the global economy is faring.
***You and are I lucky — we are in the right place, at the right time, in the early days of a vast, societal transformation
Warren Buffett famously said “The trick in investing is just to sit there and watch pitch after pitch go by and wait for the one right in your sweet spot.”
With 5G, we’ve been given the gift of a sweet-spot pitch.
Here’s Eric explaining why:
No company or country can afford to ignore 5G or to lag behind constructing and utilizing it.
This new network will quickly become the essential oxygen of the coming tech-based economy … and the dollars involved will be astronomical.
Right now, you have the ability to align your wealth with leading 5G companies, then watch it climb multiples higher over the course of this decade as a tsunami of capital floods the 5G sector.
The specifics of this is what Eric and Louis discussed in last week’s event. If you missed it and want to get all the details, click here for the playback.
I’ll give Eric the final word about 5G and the Technochasm:
5G is powering the future of the tech economy … expecting investments from an overwhelming majority of the world’s companies … and instilling fear of falling behind in some firms.
That sounds like a sector on the right side of the Technochasm that Louis and I talked about Thursday night.
So, it won’t surprise you to know that of the 11 stocks we talked about last night, five are directly connected to the 5G boom — the tech that will separate the stock market winners from the losers.
And that includes our No. 1 hypergrowth stock pick.
If you weren’t able to join Louis and I on Thursday night — or if you just want to check out our summit again — you can check out the replay now to get the details … and to get our free stock pick.
Have a good evening,