Massive Market Reshuffling Is Set to Shock Investors


A Note From Louis: Artificial intelligence has been the name of the game of 2023. The reality is AI will be life changing, which is why companies across all industries are dipping their toes into AI – whether it be by creating their own AI software or incorporating the technology into their businesses.

For the first half of the year, Wall Street was mostly focused on the big tech companies creating their own AI software, but there is a major shift occurring in the AI market now…

This is something my InvestorPlace colleague Luke Lango has been following closely for a while now, and he believes he knows who the next winners will be. Luke doesn’t want investors to miss out on the potential profits, which is why he’s holding a special event – the AI Turning Point – on Wednesday, November 1, at 8 p.m. Eastern time. If you haven’t registered for the event yet, click here and sign up now.

And for more details on the AI reshuffle, check out Luke’s article below.


Does it feel like something is amiss in financial markets? Like something big is coming, but you don’t know what quite yet?

If so, your hunch is right.

Something big is coming to Wall Street. Specifically, a huge reshuffling is about to shock the markets.

And the world’s most powerful companies and people are betting the farm on this reshuffling.

Elon Musk and Tesla (TSLA) are betting big on this reshuffling. So is Mark Zuckerberg and his whole team at Meta (META). Same with the folks at Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN).

This reshuffling will reshape Wall Street. It will mark the biggest change investors have seen in years.

And it all has to do with the one technology that everyone has been gushing about recently: artificial intelligence.

AI will change the world. Machines and software algorithms that think for themselves have the potential to improve productivity and transform the global economy in more profound ways over the next 20 years than the even the internet did over the past 20 years.

But AI has one critical problem: There’s too much demand and not enough supply.

Every company out there wants to invest in AI, create new AI programs, and use AI throughout their businesses to improve sales, marketing, customer service, product creation, and more.

Six months ago, less than 20% of companies were using AI in their business operations, according to data from Gartner. Today, nearly 60% of companies are deploying AI. That’s a 3X increase in six months.

And those companies are going all in with AI.

A separate KMPG survey of U.S. Chief Executive Officers found that nearly 75% of CEOs will make AI a “top investment priority” in 2024. About 85% of those CEOs believe they will see a return on those AI investments within five years.

The demand for AI is enormous right now.

But the supply is scant.

AI programs like ChatGPT are built on top of advanced AI chips. Those chips are incredibly complex. They take a lot of time and money to make – so much so that chipmakers are finding it difficult to keep up with demand.

TSMC is one of the leaders in the AI chip market. They expect the AI chips market to stay significantly supply constrained for at least another 18 months.

So far, these supply constraints have been a good thing for AI chip makers.

But the market is shifting, and companies are looking to build their own custom AI chips to get ahead of supply constraints.

Have you ever heard of Dojo?

Dojo is the supercomputer over at Tesla. It is the “brain” behind Tesla’s self-driving operations. It crunches through all that data from all those Tesla cars on the road, and it uses this data to develop self-driving algorithms to power Tesla’s autonomous vehicle capabilities.

And Tesla isn’t alone.

Every Big Tech firm is now developing their own custom-built AI chips.

Amazon has developed two AI chips customized specifically to building AI models on the firm’s cloud service, Amazon Web Services (AWS). One is for high-performance inference (AWS Inferentia) and one is for deep-learning training (AWS Trainium). Together, Amazon believes these two AI chips could power all AI functions on AWS in the future.

Amazon also just poured $4 billion into top AI startup Anthropic, with part of the deal being that Anthropic’s AI models will now be built on top of Amazon-made chips.

Meanwhile, Alphabet is already on the fifth generation of its custom Tensor Processing Units, or TPUs, for neural network development.

What’s more, Microsoft has reportedly invested heavily in its own secretive AI chip development project, codenamed Athena.

And news broke earlier this year that Meta is developing its own custom chip for running AI models, dubbed the MTIA chip – or Meta Training and Inference Accelerator chip.

Big Tech has made its move. It is going all in on AI.

And this is the massive market reshuffling we’re talking about.

Analysts project the AI Revolution will create a $15.7 trillion investment opportunity over the next several years. That means that the AI opportunity will economically be nearly as big as the entire U.S. economy.

Previously, it looked like all (or at least a bulk) of that $15.7 trillion would flow into TSMC and other major AI chipmakers.

Now, though, that $15.7 trillion is being reshuffled.

Instead of flowing into the “first generation” of AI stocks, it is going to start flowing into smaller chipmakers better equipped to create specialized, custom AI chips.

Meanwhile, big semiconductor stocks have been breaking down. They’ve completely lost their uptrend and have fallen below their all-important 200-day moving average.

It’s also why the market has been suffering. Established chip stocks are important to the stock market. They pulled the market higher in the first half of the year. But they’ve been dragging the market down over the past few months.

The bad news? This reshuffling is just getting started. Bigger market shocks are on the way.

The good news? You can make a lot of money in this reshuffling.

The Final Word

It’s a reshuffling, after all. Not a stoppage or an ending. This means that all the money that was being plowed into major chipmaker stocks is now going somewhere else.

But where?

That’s the trillion-dollar question we are going to answer this Wednesday evening, at 8 p.m. Eastern. I’ll even give you the name and ticker symbol of the no. 1 stock to buy to profit from this $15.7 trillion market reshuffling. This is a highly promising stock that I’ve never recommended before in any of my services. And it’s destined to thrive during this market shift.

Trust me. This is an event you need to attend if you want to make money in stocks over the next 12 months.

Your next wise investment move is just a click away.

Click here to reserve your seat now.


Luke Lango's signatureLuke Lango

Editor, InvestorPlace

Article printed from InvestorPlace Media,

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