Hello, Reader.

Many products or pieces of hardware usually age quickly in the tech world… but that doesn’t mean they can’t find new meaning.

At least that’s the case with central processing units (CPUs).

CPUs used to be the most important component in managing a computer’s activity, speed, and capabilities, acting as the “brain.” Their importance remained, but when artificial intelligence emerged, tech companies quickly learned that graphics processing units (GPUs) were better suited to run AI models, performing technical calculations faster and more efficiently than CPUs.

That made Nvidia Corp. (NVDA) the AI chip king… and its investors hugely successful.

Over time, demand for GPUs rose, creating a compute shortage that we discussed last Thursday in Smart Money. That put Nvidia in a good spot, to say the least.

But now, there’s a fundamental change in compute needs thanks to the rise of agentic AI.

Because AI agents are task-oriented, CPUs are the ideal fit for running them, as they have fewer powerful cores than GPUs when running consecutive general-purpose tasks. And Nvidia is once again ready to profit from this shift.

It’s already sending that message by recently boasting about the success of its deployment of Grace CPUs in powering Meta Platforms Inc.’s (META) data centers, a partnership that began just last month. In a press release, Nvidia stated the CPUs’ ability to improve performance per watt in Meta’s data centers.

Today is the first day of the Nvidia GTC AI conference, an expo where thousands of developers, researchers, and business leaders share and discuss tech’s latest AI breakthroughs.

Leading up to the event, Nvidia’s head of AI infrastructure expressed the “exciting opportunity” CPUs present, and noted that they are “becoming the bottleneck in terms of growing out this AI and agentic workflow.”

This afternoon, the company revealed its new 88-core Vera data center CPUs, which deliver 50% performance gains over traditional CPUs. Nvidia also announced details about its new Vera CPU Rack, which integrates up to 256 liquid-cooled CPUs into a single rack for CPU-centric workloads, improving core sustainability and enabling twice the energy efficiency.

Now, many investors will join Nvidia as it profits from the rise of agentic AI… but I’d like to offer you an even more profitable approach.

It’s true that Nvidia is a spectacular, industry-leading company. But because it is trading at a spectacularly high valuation, investors are putting themselves in a vulnerable position. Nvidia may be the most obvious investment choice to ride the CPU demand wave, but that doesn’t mean it will be the most profitable.

But before I share how investors should prepare for agentic AI’s takeover, let’s look at what we covered here at Smart Money this past week…

Smart Money Roundup

One Stock to Buy on Oil’s Wild Swings… and Two More in the Wings

March 11, 2026

Conflict in the Middle East has made oil prices unpredictable, complicating the investment landscape. So, in Wednesday’s issue, Tom Yeung shows readers how to navigate the market calmly and reveals one stock that should do well regardless of oil’s movement, and shares how to find two more benefiting from oil’s high prices. Click here to read more.

The First AI Bottleneck Made Millionaires. The Next One Is Forming Now.

March 12, 2026

Thursday’s issue takes us back to November 2023, when demand for ChatGPT exceeded the company’s GPU capacity, ultimately creating a compute bottleneck. But as the industry hit a wall, two AI infrastructure providers went on to capture enormous gains early in the AI boom. Read on to learn more about both of these companies and how investors can jump in on the next wave of millionaire-maker bottlenecks.

Everyone’s Watching the Wrong Part of AI

March 14, 2026

As we’re seeing right now with the Strait of Hormuz, when shipping slows or stops, the consequences ripple across the entire global economy. Something very similar is happening in artificial intelligence. The AI boom depends on enormous quantities of copper, electricity, and memory chips. And today, all three are facing growing constraints. Click here to learn how to profit from following the companies that will thrive.

This 1990s Supply Shortage Created 800% Gains – It’s Happening Again

March 15, 2026

During the late 1990s and early 2000s, the explosion of internet infrastructure, personal computers, and networking hardware meant the world suddenly needed far more metals than usual. So, I recommended four mining stocks to my readers, which went on to deliver remarkable gains. Take a closer look at them here, and at how identifying a supply bottleneck early created enormous upside.

Looking Forward

Now that CPUs are becoming increasingly essential, investors will want to invest in their demand correctly. According to Bank of America, the CPU market could more than double by 2030, rising from $27 billion in 2025 to $60 billion.

The need for CPUs collides with each of the AI bottlenecks I described on Saturday. CPUs require raw materials for construction, memory to function, and energy to operate in data centers.

But CPUs are only part of the AI bottleneck story.

As a whole, the AI Revolution simply isn’t scaling fast enough. The shortages that are forming will reshape the entire investment landscape… and I want to make sure you’re prepared.

So, on Wednesday at 1 p.m., in less than 48 hours, I urge you to attend my free FutureProof 2026 presentation. I will further explain the specific shortages arising from AI’s insatiable demand and walk you through a list of tickers I believe will surge as a result.

A market shock is likely to hit as AI’s constraints become impossible to ignore. I believe it will trigger a massive rotation of capital away from today’s dominant tech names – like Nvidia – and toward companies that supply AI’s physical needs.

Click here to reserve your seat.

Regards,

Eric Fry

Editor, Smart Money