Editor’s Note: In the fall of 2019 – long before OpenAI’s launch of ChatGPT, the AI mania, or trillion-dollar tech valuations – my InvestorPlace colleague Louis Navellier gave his readers prophetic advice…
They should not fear artificial intelligence… but invest in it.
Back then, few were paying attention. Today, everyone is. And tech giants, like Nvidia Corp. (NVDA), have become household names… and a $3.5 trillion juggernaut.
But here’s the thing: The biggest AI gains are no longer coming from the tech titans.
Instead, they’re coming from an overlooked corner of the market that almost no one is talking about. It is a subsector critical to powering AI’s future, but it is currently valued at less than 2% of the entire market.
That is why, on Wednesday, July 9, at 8 p.m. Eastern time, Louis is holding a special broadcast to pull back the curtain on the “pocket change” stocks leading the next phase of the AI boom. You can click here to sign up.
He will also share why a key announcement from President Donald Trump on July 22 could be the trigger that sends these overlooked stocks soaring.
Louis is joining us today to share more about what he sees coming.
Take it away…
“Don’t be afraid of artificial intelligence – invest in it!”
That was my advice to readers in the September 27, 2019, issue of my Market 360 e-letter.
As you can see, the graphic design was a bit clunky back then. And the marketing department was still using a baby-faced headshot of me rather than my more rumpled 60-plus self.
But my core message was on the money. As I told my readers…
I do expect artificial intelligence to change the world. In fact, just a few companies are going to transform just about every major industry – like transportation, healthcare and retail, to name a few.
I even provided a link for my readers to a promotion for my Growth Investor advisory. It promised to reveal the name of a stock I called the “AI Master Key.” From that same e-letter issue…
Now, there are many different investing angles to play this space. You can invest in a company that uses AI (like Walmart), or you can invest in the company that’s set to dominate the entire billion-dollar industry.
I call it: the A.I. Master Key. Think of it like a single key that can unlock any door in a giant building.
That stock was AI chipmaker Nvidia (NVDA).
I wrote this three years before the launch of ChatGPT and the AI mania it kicked off on Wall Street.
Nvidia became the poster child for the AI megatrend and has risen 3,580% since then.
Just $10,000 invested in Nvidia back in late 2019 would be worth around $350,000 today. A $30,000 investment was all you would have needed to become a millionaire.
And that wasn’t the first time I recommended Nvidia.
I added it to the model portfolio in 2016 when it was trading at a split-adjusted price of about a buck.
Today, its share price is 10,000% higher.
Nvidia is still a stock that will change your life. But as we’ll look at today, it’s NOT the best way to profit from AI.
In fact, the biggest gains will not be in any of the AI stocks. They’ll be in a tiny subsector of the market that few investors are paying attention to.
And when I say “tiny” I mean it. This niche accounts for less than 2% of value of the overall market.
Mega Caps vs. Pocket Change Stocks
When I first recommended Nvidia in 2016, it had a market value of about $60 billion.
That’s how much you’d need to buy all of its outstanding shares.
Today, it’s valued at $3.47 trillion.
And that’s a world of difference for us as investors.
When a company is valued at $60 billion, every extra $1 billion in market value it adds is a 1.6% gain for investors.
But when a company is valued at $3.47 trillion, that same $1 million in additional market value is just a 0.029% for investors.
This is simple math. That same $1 billion is a rounding error when you’re dealing with a $3.5 trillion behemoth.
Nvidia will continue to richly reward investors. But its explosive growth phase is now in the rear-view mirror.
The problem is that most of the major AI players have market values measured in the hundreds of billions… and even trillions… of dollars.
That means looking elsewhere for stocks with hypergrowth potential. And I know just the place to look…
That’s why I’ve turned my attention turned to a lesser-known batch of AI stocks.
These are the kind of stocks I cover at my Breakthrough Stocks advisory, with market values of between about $300 million than $2 billion.
They’re small, under owned, and under the radar. As a result, these are the type of stocks that could go up 1,000%, 5,000%, even 10,000% as investors pile in.
In other words, they have the same potential today as Nvidia had in 2016 when I first recommended it.
Trump’s “AI Executive Order” Shows the Way
The companies I’m targeting for the next phase of explosive AI growth have three key characteristics. They must be…
- Critical to the AI buildout
- Positioned ahead of a big demand boom
- Blessed by the government
And there’s only one tiny subsector of the market that ticks all three boxes.
It’s a niche most folks don’t even associate with AI. But without it, the buildout of AI can’t happen.
And like the energy sector, this niche is critical to America’s AI future… and even its national security.
That’s why, just five days after he entered the White House, President Trump signed an “AI Executive Order” to protect and promote it.
And he’s about to grant “priority status” to a handful of U.S.-based companies based on this order in a major AI announcement just a few weeks from today – on July 22.
It’s another rare opportunity for you to turn a modest stake into as much as a six-figure payout.
This is such a rare opportunity to profit that I’ve put together a special online briefing about it called Trump’s AI Day.
It will air on Wednesday, July 9 at 8 p.m. Eastern. And I hope you’ll be a part of it.
During my briefing I will…
- Explain why President Trump set a critical AI deadline for July 22… and how it could trigger a boom in a tiny niche of “forgotten” stocks that accounts for less than 2% of the market.
- Reveal how the last time we had a boom in this overlooked sector, investors had a chance to get rich with gains of 3,768%, 4,894% and even 5,059%.
- Discuss details of a new model portfolio with my top five “pocket change” stocks for this new AI boom
And as a thank you for tuning in, I’ll reveal the name and ticker symbol of one of the companies most likely to benefit from Trump’s July 22 action to all attendees.
I know most of the folks in the mainstream press will have you believe that Nvidia, Microsoft, Google, and Meta are the best ways to profit from AI.
But as someone who spotted Nvidia in 2016 long before it was a Wall Street darling, I can tell you that there are much more profitable opportunities out there.
Here’s that link again to secure your spot for Trump’s AI Day briefing.
I hope to see you there!
Regards,
Louis Navellier
Senior Investment Analyst, InvestorPlace
P.S. To be clear, the stocks I’m focused on are not AI companies. They’re the suppliers to the AI boom. They make essential materials for AI chips, batteries, robots, and data centers.
I’ve now been a professional investor for over four decades. I’ve seen this same strategy play out during the dot-com boom in 1990s, the internet infrastructure revamp in the 2000s, and the EV boom in the 2010s – all of which rewarded overlooked plays over headline tech names.
And because the stocks I’m targeting now are not AI stocks, they’re still trading for pocket change. And that’s the only way to potentially see 10x to 100x returns again.
I’ll reveal all on July 9. Here’s that link again to secure your spot.
