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| By Sean Brodrick |
We’re on the cusp of something big. Something that could deliver life-changing wealth to people who act fast.
I’m talking about how artificial intelligence is going to supercharge the next tech supercycle.
The technology supercycle is the most powerful cycle in human history. It’s unlocking a $13 trillion opportunity, and you can get your own piece of it.
We already know that select tech stocks can — and have — delivered those kinds of gains. I can give you plenty of examples. But let’s take a look at a name that everyone’s talking about — Nvidia (NVDA).
This company dominates the graphic processing unit — or GPU — chips that are turning AI dreams into reality.
If you’d bought Nvidia 10 years ago, you’d be up more than 13,400%. That means if you invested $5,000 in Nvidia a decade ago, that investment would turn into around $675,000.
As you can see, the long-term performance in Nvidia is phenomenal. Heck, even the shorter term is excellent — Nvidia is up more than 228% since the start of the year!
That’s in the rearview, though. And the tech cycle of the 1980s that saw fledgling tech stocks become household names is in the history books.
Will the new tech supercycle be the same? Yes … and no.
I expect big gains. But this time around, the power of AI is going to deliver those potential gains much faster.
We’ve seen tech supercycles transform human society throughout history. From the invention of simple tools to agriculture to the Industrial Revolution and then to the IT Revolution. Each one lays the foundation for big, swift wealth creation. And each tech supercycle moves faster than the previous one.
According to the McKinsey Global Institute, AI is going to be adopted in some capacity by 70% of companies by 2030. And it’s going to contribute $13 trillion in new economic growth globally. Nearly half the size of the entire U.S. economy.
Another estimate, from MarketsandMarkets, is that the AI market will experience a staggering 36.8% compound annual growth from 2023 to 2030. That’s an average. There will be outperformance.
The last tech supercycle lasted for more than a decade. This one coming up could deliver the bulk of its gains in the first five years.
War Cycle Will Power Up AI
There are many forces driving this, but one very important factor is that conflict is heating up between the U.S. and China.
This conflict is taking place everywhere from Taiwan to cyberspace. We can see from news reports that this is turning into a battle for AI supremacy.
The U.S. has flatly blocked shipments of important chip and computer equipment to China, in an effort to prevent that nation from advancing its AI technology so quickly.
Now, both the United States and China are pouring trillions of dollars into R&D for emerging technologies, and AI will be the big focus of that money.
In past conflicts, military spending jump-started technological advancement. Now, on top of the tech giants of the world pouring money into AI, along with the best and brightest flocking to AI startups, we have the two biggest military powers in the world pointing firehoses of money at AI.
So, OF COURSE AI is going to blast off!
How Can You Ride This Supercycle?
We’re already playing this massive new trend in Supercycle Investor. And we’re ready to kick it into higher gear in 2024. In fact, I have three red-hot picks for new members this week.
You can find out more about that by clicking here.
If you’re doing this on your own, be very careful. Buying the wrong stock can take your portfolio to the cleaners.
If you want to trade out performance for safety and still want exposure to the power of AI, you can buy an exchange-traded fund like the WisdomTree Artificial Intelligence and Innovation Fund (WTAI). It has an expense ratio of 0.45% and is up about 38% so far this year.
You can see that this AI ETF is leaving the S&P 500 in the dust. Even though the S&P 500 is having a great year — up nearly 22% — the WTAI has nearly doubled that.
To be sure, an ETF won’t get you the big returns like those seen over the past decade in Nvidia. It won’t get you the TRULY MASSIVE returns we’re targeting on my new picks in Supercycle Investor. But it’s a good place to start.
2024 is going to be a great year for select AI stocks. I hope you’ll ride this rally for all it’s worth.
All the best,
Sean
