AI chip stocks are on fire right now. And over the next few months, some will get even hotter as a powerful AI breakthrough spreads across the economy.
Case in point: Have you seen Arm (ARM) stock lately?
The semiconductor chip design firm reported blockbuster earnings and lifted its profit outlook thanks to burgeoning demand for its AI chip technology. Then its stock shot up as much as 40% in just a few minutes post-earnings.
ARM stock is now up 135% in just over three months.
And it joins a long list of other semiconductor stocks benefitting from surging demand for AI chips.
Nvidia (NVDA) stock is up about 225% over the past year. Advanced Micro Devices (AMD) and Broadcom (AVGO) are up 100%-plus over the past year, too, as is QuikLogic (QUIK).
AI chip stocks are on fire.
And this fire is likely to keep raging on.
Why?
A secretive AI breakthrough that could profoundly change the world over the next few months.
The Company That Started it All
This little-known tech originates from OpenAI – the very same that kickstarted this whole AI Boom with ChatGPT’s launch in late 2022.
You’ve probably heard all about the board room drama that embroiled OpenAI around Thanksgiving of last year. The multi-billion-dollar startup fired and then rehired its CEO, Sam Altman, all in a matter of days.
Most investors followed the drama. But once it concluded with OpenAI simply rehiring its same CEO, the world largely moved on.
Makes sense. Ostensibly, nothing really changed at OpenAI as a result of the weeklong saga. It happened. It was interesting. And that was that.
But something did change.
And it all comes back to why Sam Altman was fired in the first place. Why did a multi-billion-dollar startup – arguably the hottest company in the world – suddenly and dramatically oust its very well-liked CEO?
OpenAI’s board wouldn’t make that move unless they had serious concerns.
It appears they did indeed have serious concerns.
Behind the Boardroom Drama at OpenAI
Reporting suggests that, weeks prior to Altman’s ouster, OpenAI achieved an AI breakthrough – internally dubbed Q* – that represented a huge advancement in AI capabilities. Some reports indicate this breakthrough was eerily close to Artificial General Intelligence (AGI), a superintelligence similar to what we’ve seen in science-fiction movies.
Our work suggests that this Q* breakthrough scared some of OpenAI’s board members. They wanted to stop or at least halt development until they had a better handle on Q*.
But, apparently, it didn’t scare Sam Altman.
Around the same time, reports broke that Sam Altman was looking to raise billions of dollars to create an entirely new AI chip venture to make chips for OpenAI.
He didn’t want to stop or halt development. He wanted to accelerate it.
Our guess is that this riff between Altman and other board members is what led to his ouster.
And Sam won that battle.
Now reports are emerging once again that Altman is looking to raise billions for his new AI chip venture.
We think that’s because he’s about to unveil Q*, and he wants to put it in the hands of every person in the world.
And to us, that screams that the AI Chip Boom we’ve seen over the past year is just the start.
The Final Word
The launch of OpenAI’s first breakthrough – ChatGPT – kickstarted this whole AI Chip Boom back in late 2022.
Now the launch of OpenAI’s second breakthrough – which could be infinitely bigger than the first – will accelerate and expand this AI Chip Boom over the next year.
This isn’t the time to run away from AI stocks because they’ve rallied so much. It’s time to run toward AI stocks because they have so much room left to rally.
Indeed, we’re likely not even in the first inning of this ballgame yet. This is still the pregame.
And things are about to heat up in a major way, potentially within a matter of weeks, all thanks to OpenAI.
That’s why, next Tuesday evening, Feb. 13, at 8 pm EST, I’m going live with an emergency broadcast on this secretive AI breakthrough.
I’ll cover the breakthrough and its origins. I’ll talk about what it means for the economy and the markets. And, most importantly, I’ll unveil a carefully curated investment playbook to help you reap the full benefits of this major AI breakthrough.
The world is quite possibly about to change forever, and this is your chance to get on the right side of it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.
