“Get rich quick” is the dream of every investor.

Really, everyone dreams about it.

Just look at the frenzy whenever the Powerball Jackpot ($173 million as I write) balloons – sometimes over a billion.

News reports are flooded with videos of lines of folks waiting and waiting for the chance to cash in and live the ultimate dream of crazy wealth.

But a lot of us are also wary of get rich quick schemes. Too many fools have been parted from their money by crooks promising extreme riches with no effort.

Most investors fit into that second category.

But that’s not to say there are no opportunities to grow your wealth quickly in the investing world. Many of the investing legends of our time have become incredibly wealthy over a short period by putting money behind the right stocks at just the right time.

And we’re approaching a significant milestone in the latest megatrend, one that has already paid off handsomely for some investors … but has the potential to be even more lucrative.

Almost exactly a year ago, ChatPGT debuted, signaling the beginning of a new stock market megatrend – artificial intelligence (AI). Since then, the stories of AI use cases in seemingly every aspect of our lives have been nonstop.

AI quickly became the megatrend to dominate all others, and we’ve watched some of the biggest stocks in the market, the so-called “Magnificent 7” produce enormous returns here in 2023, even as other stocks have done nothing, or even lost value.

AI also has raised alarms

The legal, ethical and societal issues are daunting. AI can do so much – whether it’s art or journalism or programming or legal contracts – and can do it so much faster, that the potential for criminal activity, unethical practices and widespread job displacement is incredible.

Here are some of the larger issues we are watching.

On the legal front, the Brennan Center for Justice is tracking 20 separate pieces of congressional legislation. These bills do at least one of the following:

• Impose restrictions on AI that is deemed high risk
• Require purveyors of AI systems to conduct evaluations of the technology and its uses
• Impose transparency, notice, and labeling requirements
• Create or designate a regulatory authority to oversee AI
• Protect consumers through liability measures
• Direct the government to study AI to inform potential regulation

To be clear, there are a lot more than 20 pieces of proposed legislation out there. But the Brennan Center limits its tracking to the major pieces because tracking everything specifically regulating AI would just be impossible.

According to Axios, nearly 200 AI-related bills have been introduced nationwide in 2023. Legislators in 31 states have introduced at least 191 bills focused on AI.

The ethical considerations are at least as daunting. AI is going to change everything from transportation to health care to finance to supply chains so the concerns over transparency and fairness remain paramount.

Most AI codes of ethics you see are about regulating human behavior as they design, create and use AI systems. But just as many are concerned about whether AI can achieve enough intelligence to make its own decisions – and the ethics of creating such systems.

Many businesses, such as Google and IBM, have published an AI Code of Ethics for their organizations.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) has endeavored an international approach to “ensure that science and technology develop with strong ethical guardrails.”

The first big turning point in AI development

While the world struggles to catch up with the pace of change in the AI market … believe it or not, we’ve already reached the first major turning point.

Here at the Digest, we continue to believe that the AI megatrend is just getting started. As we’ve written, most people do not appreciate the power of exponential progress, and how it can allow companies to grow faster than ever.

The speed of change is already being felt in the biggest players in tech.

Tech analyst Luke Lango made a bold move recently when he told his subscribers it was time to take profits in Nvidia (for a 1,000% gain, I should add) and move on to the another set of stocks.

Why? Here is Luke’s explanation:

We are now entering the second wave of the AI Chip Boom. This is the “Custom” AI Chip Boom, where companies are racing to create complex, task-specific AI models.

In this race for customization, Big Tech companies like Tesla, Meta, Alphabet, Microsoft, and more are turning away from Nvidia and creating their own custom AI chips.

Big Tech is trailblazing a new path forward for all companies. Over the next few years, as all AI developers turn toward custom AI, billions upon billions of dollars will flow out of Nvidia and into custom AI chipmakers and related companies.

This is the AI Revolution’s first big turning point.

Who are going to be the winners in this new era of AI chip customization? That’s the kind of stock Luke targets in Early Stage Investor.

If you’re new to the Digest, Luke’s Early Stage Investor service focuses on the small cap stocks that can make you wealthy over the long run. As I noted above, we all like to dream of getting rich quick. With stocks, the best way to grow your wealth is to own a small company that grows large.

For example, an early investor in Microsoft could have made over 9,000% during the 1990s. That type of gain turns every $5,000 invested in $450,000.

It only takes one of these big hits to make enough money to never have to work again. And that’s the approach Luke takes in Early Stage Investor.

Luke researches and recommends small-cap public companies, but with a venture capital mindset. He is looking to hit home runs. He is looking to make hundreds – even thousands – of percent returns in the world’s best early-stage public companies.

In his most recent video, Luke provides a detailed explanation of the five big ways to play this brand-new AI Turning Point. In brief, here are the categories of the new emerging leaders.

• Electronic Design Automation (EDA) Software
• Custom System-on-a-Chip (SOC) Development
• Next-Gen Quantum Chips
• Legacy Chipmakers
• AI Software Development

Luke debuted a special portfolio of seven stocks to play the $15.7 trillion turning point in the AI Revolution during his AI Turning Point event last week. He believes these seven stocks are particularly well-positioned to succeed in 2024 as Nvidia’s dominance in the AI chip market erodes.

You can watch a replay of the AI Turning Point presentation, plus get one free pick from Luke, by clicking here.

In the meantime, society is still struggling to catch up to the implications of the Age of AI. We’ll continue to cover those stories as we bring you the best ways to capitalize on the ever-changing market in the Digest.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace