Stock Market

For the past few issues of Hypergrowth Investing, we’ve talked about how both the U.S. Federal Reserve’s and Congress’ decision-making could ignite a huge boom in a tiny subsector of stocks. And today, we’ll dig into another factor – unrelated to the government – that should supercharge these stocks: artificial intelligence (AI).

Now, if you’re a regular to this newsletter, this probably comes as no surprise. Heck, even folks unfamiliar with our work here know that AI is proliferating at a break-neck pace.

Just take a look at Nvidia (NVDA). As a leading chip supplier for the AI boom, the tech titan has had a phenomenal past couple of years. And despite its record outperformance, it’s clearly running full-steam ahead into this new Age of AI.

Last week, the firm held its GPU Technology Conference (GTC), a must-attend forum for AI developers and enthusiasts alike. And in his keynote address, CEO Jensen Huang announced a number of exciting announcements. One of the most buzz-worthy was the launch of Nvidia’s Blackwell chip.

This next-gen chip architecture will enable the creation of faster, smaller, and better AI chips. Dubbed B200, Nvidia’s Blackwell chips can create AI models that scale up to 10 trillion parameters. For context, that’s approximately 60X more parameters than OpenAI’s latest ChatGPT model is capable of producing.

And that’s just one of the developments happening for the AI industry right now. 

We’ve entered a new era. And earth-shaking innovations like this are likely to continue.

Why? A plethora of data.

AI: It’s All About the Data

What makes good AI? Good data. 

After all, artificial intelligence is just a compilation of machine learning algorithms trained on data. Of course, the quality of these algorithms matter. But really, the differentiating quality for various AI is the underlying data. Where you have good data, you can build robust AI.

And data scientists consider “good” data to have what they call the “4 Vs”: volume, velocity, veracity and variety. You need a ton of data (volume) to be produced frequently (velocity). And that data must be trustworthy (veracity) and diverse (variety). With all four Vs, you can make really good AI.

And for one tiny subsector we’ve set our sights on, the data isn’t just good – it’s pretty phenomenal.

  • Tremendous volume: This industry has so much data that it takes supercomputers years to map it all out.
  • Exceptional velocity: Vast amounts of new data are produced every single day. In fact, I believe this industry produces more data each day than any other in the world.
  • Excellent veracity: When sourced and tested properly, the data produced in this industry is basically incorruptible.
  • Overwhelming variety: This industry’s data comes from billions of different sources, all with their own unique characteristics.

Needless to say, this subsector ticks all four “Vs” when it comes to good data. And that makes it especially ripe for massive AI disruption.

The Final Word

In my opinion, this little-mentioned industry produces the highest-quality data in the world. And theoretically, that should lead to the creation of the highest-quality AI models in the world. 

I think that’s exactly what will happen. 

AI will likely transform and accelerate this industry in unimaginable ways. And the stocks therein that use AI the best could produce mind-boggling returns…

Because here’s another thing about this industry: It tends to produce some of the biggest stock market winners, too. Now, thanks to AI’s infusion into this sector, those gains will be put on overdrive.

And after some major decisions from the federal government, the time to prepare for this boom is today.

That’s why, this Wednesday night, March 27, at 8 p.m., I’m going live with an emergency broadcast. I’ll get into all the details about this sector, its novel use of AI, and the monumental policy shifts unlocking huge value in the industry. 

Plus, I’ll also reveal my top pick to play this hidden AI boom for huge profits. 

Reserve your seat, and unlock big profit potential.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site. And if you’ve benefitted from Luke’s recommendations and/or analysis, tell us your story by using the form here to send an email to our contact center, or reach out to us by calling 1-800-219-8592.

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