The Latest “Intel” on the AI Revolution

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Right before the holidays, I shared my top candidate to become the next trillion-dollar AI company…

Intel Corp. (INTC).

Even though the chipmaker has admittedly made a series of past missteps, I recommended adding it to your AI watchlist. Simply put, Intel stands at the ready with a roster of offerings that can help power the AI Revolution.

The company remains a top dog and, even with some pullbacks, it has been on a growth trajectory recently. In fact, the stock soared nearly 100% in 2023.

However, even though Intel tops the rank of AI-chip producers, along with giants NVIDIA Corp. (NVDA) and IBM Corp. (IBM), it is not simply a “chip” company…

It represents the next phase of the AI revolution.

A New AI Company Joins the Revolution

Last Wednesday, Intel announced that it is launching a new independent AI company.

The new company will be called Articul8 AI, pronounced like “Articulate AI.” The entity is backed by digital-focused asset manager DigitalBridge Group, among other investors.

Articul8 AI will work on corporate AI technology that Intel initially started with Boston Consulting Group (BCG). Intel developed generative AI capable of reading texts and images using in-house supercomputers and internally developed technology. Intel then applied its AI system to BCG’s data centers to help address the consulting firm’s privacy and security concerns.

The value of Intel’s new AI company remains unknown. What is known is that the firm will have an independent board of directors; and the chipmaker will remain a shareholder.

This exciting, new development at Intel is just one example of the massive AI-inspired transformation underway.

The birth of Articul8 AI shows you that even companies like Intel – who haven’t always won the popularity contest – are poised to reap the benefits of the “AI Revolution” we’ve been undergoing since December of 2022.

But right now, the first phase of this movement has ended. And we likely won’t again see huge additional gains in well-known AI stocks like…

  • Microsoft Corp. (MSFT), which increased 56% in 2023…
  • Amazon.com Inc. (AMZN), which soared 78% in 2023….
  • Or NVIDIA, which rocketed an unreal 245% in 2023.

Instead, we should turn our gazes elsewhere…

The Next Phase of the AI Revolution Is Coming

Megatrends that possess similar strength and momentum as AI often come in “waves” or “phases.”

The first phase is a white-hot flash that dominates headlines. During this time, a small group of stocks soar, which gives investors the chance to make huge returns in record time, and tons of companies try to hop aboard the trend as quickly and creatively as possible.

But as quickly as this phase comes, it fizzles out in a similar fashion.

That’s where we are right now: the “in between” of phases one and two. And I’m so glad you’re reading this now, because when phase two begins, there will be far less euphoria to go around.

Instead, all of us are standing on the precipice of a massive movement that will define the financial future of millions of Americans.

And I’m worried that the mainstream media isn’t paying enough attention to what’s coming. 

They keep telling the same story… that a crash and burn for the AI megatrend is imminent.

  • The Wall Street Journal insists that the “A.I. Mania Triggers Dot-Com Bubble Flashbacks…”
  • While CNN warns: “The A.I. boom is here. Is it too late to invest?”
  • And Barron’s says: “A.I. Stocks Are Soaring. It’s a Feeding Frenzy That Won’t End Well.”

But the truth is, AI isn’t slowing down…

It stands to draw a line between two groups of American people: those who acted when the time was ripe, and those who didn’t.

And for the latter group, it won’t be a moment where you snap your fingers and say, “Darn, I really should have invested sooner…”

It will be a moment where you realize that there may be no great way to recover from the lost opportunity.

We’ll talk more on Thursday about what you can do to position yourself properly for AI’s impending “phase two…”

So, stay tuned.

Regards,

Eric


Article printed from InvestorPlace Media, https://investorplace.com/smartmoney/2024/01/the-latest-intel-on-the-ai-revolution-2/.

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