Before we dive into today’s Market 360, I want to first thank those who joined me for my special AI Breakthrough event last night.
It was a great success, with over 3,000 people tuning in to hear about the New Intelligence and how it works with my stock-picking system.
For those who were unable to make this event, a replay of the event is available here for your viewing. Not only did we cover how to use New Intelligence, but I shared a free recommendation for this investing approach.
Click here to watch the replay of my special AI Breakthrough event now.
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Let the chips fall where they may.
You may say that when you need to convince yourself to do whatever you have to do without worrying too much about the consequences… to concentrate on what’s important and not sweat the small stuff.
The expression dates to the 1800s as a reference to the flying shards (“chips”) that are created when you chop wood. It was a reminder to focus on cutting logs and not worry about where the chips flew away to.
However, when it comes to semiconductor chips, companies focused on creating artificial intelligence (AI) applications can’t be so passive about the chips they use.
And now, Microsoft Corporation (MSFT) is readying the debut of its own homegrown chip designed for AI processing.
So, in today’s Market 360, let’s dive into the details of the newest semiconductor chip expected to join competitors. Then, I’ll share how you can access my stock-picking system to find the best stocks.
Seattle’s Best… Chip
While the chip’s official name isn’t known yet, its codename is a nod to the Greek goddess of wisdom and handicraft: Athena. (Interestingly enough, Athena also presides over warfare – and tech companies have certainly been battling it out in the AI Revolution.)
Microsoft will likely debut Athena during its Ignite Conference in Seattle, set for mid-November.
The chip is designed for Microsoft’s data center servers that train and run large language models (LLMs). LLMs are the software behind generative AI features, like ChatGPT and other conversational chatbots.
The rest of the chip’s performance details aren’t known yet. So, we likely will have to wait until November to learn more.
Microsoft expects Athena to reduce its reliance on NVIDIA Corporation’s (NVDA) AI chips. The Seattle-based tech giant’s data centers currently use Nvidia’s GPUs, or graphics processing units, to power its LLMs for its cloud customers.
However, demand for NVIDIA’s AI chips has been so intense that tech companies’ needs have exceeded NVIDIA’s supply. Microsoft, along with other companies, has had a tough time acquiring the chips required for AI processing.
As we all know from Economics 101, this supply-demand imbalance has led to NVIDIA’s chips creeping up in price… big time. NVIDIA’s H100 GPU, its highest-end AI chip, now goes for $40,000.
By utilizing its own chips, Microsoft could cut costs substantially.
However, NVIDIA’s semis are still the preferred AI chips among most tech companies, so Microsoft will have to work hard if it wants to attract outside users to its AI chips.
When it comes to this budding “homegrown” AI chip trend, Amazon.com, Inc. (AMZN) also has its own, called Inferentia and Trainium.
Microsoft may be a smidge late to the semiconductor game – but we don’t think this is a sign of it letting its chips “fall where they may.”
How AI Can Help Create Your Portfolio
With every new advancement in artificial intelligence, it seems like if you’re not incorporating AI into your personal investing, you’ll be smoked by the people who are.
The good news is that it’s still early enough in this trend that you can still invest in the AI revolution.
And if you’re not sure where to look, AI can also help get you started.
Now, I’ve been using AI prototypes for decades. My proprietary stock-picking system is based on eight factors that I determined are most responsible for whether a stock will go up or down over the long term.
I’m now combining my own system with another form of AI built by colleagues who tested it against my own criteria. This is the “superpower” system that I’ve been waiting for after all my decades of building computer systems to beat the market.
We call it the New Intelligence.
The reality is that AI can do things with data no human or human-trained system can do on their own… and that’s because we simply don’t have the same capacity to analyze information.
The New Intelligence is able to calculate data in a way no human analyst ever could to make a prediction with a high probability of success.
This AI breakthrough is the culmination of my 40-year career in the financial markets – and it goes hand in hand with a huge new prediction I’m making.
I gave all the details in my special AI Breakthrough event held last night.
Sincerely,
Louis Navellier
