Select Page
Posted via Adam O’Dell | May 3, 2024 | Banyan Edge, investment opportunities, technology
5 minutes and 8 seconds of reading.
I still remember the day I heard about a crazy new site called “Amazon”. . .
It was 1999. A close friend was raising two young people and had just started buying groceries on the Internet.
I was excited about the time I had saved. And he was impressed to be able to press a few keys on his computer. . . and then have your purchases delivered to your doorstep about a week later.
Of course, Amazon was just a glorified bookstore at the time.
This was a decade before Apple replaced the global market with the launch of the first iPhone.
And only 12% of Americans had access to the Internet.
These are the early days of the internet revolution.
Even if other people like my friend simply said that the new generation had some value, no one would have guessed how much it would have at the end of our lives.
Amazon is now a retail heavyweight, second only to Walmart with $1. 4 billion in revenue.
Tech heavyweights like Google, Facebook, and Netflix have sprung up to create billions of dollars in market capitalization and make unprecedented fortunes for unwavering investors.
But in 1999 or 2000, what was missing was how diversified and successful this new generation would become.
Fast forward to 2024 and we’re back in the same position. . .
We’ve just gone through the exciting first phase of the AI revolution.
And it’s only a matter of time before this radical new generation transforms our lives.
Before that happens, there are THREE critical points that AI innovators will want to master.
(The third one surprises you. . . )
With the launch of ChatGPT on November 30, 2022, the first phase of the AI revolution was launched.
ChatGPT was the first “revolutionary application” of the AI revolution. It put the power of large language models (LLMs) in the hands of web users, and other people enjoyed it. The site reached a hundred million users in just two months, proving that there was a huge market for AI-based tools.
A handful of large-cap tech companies have become clear favorites in this race because they already had a head start. These stocks are the “Magnificent Seven” that have seen their shares rise through 2023.
And while some of those Magnificent Seven movements are skyrocketing, others aren’t. Tesla, for example, has one of the worst-performing stocks in the S.
So, in a way, it turns out that the initial “hype” phase of the AI boom is abating.
Just like during the web boom of the early 2000s, consumers and investors have trumped their initial emotions of worry and excitement and are now looking to find a genuine price for AI.
Some investors are placing this on the hardware that will drive the AI revolution.
Nvidia has clear merit in this, as it is the world’s leading manufacturer of graphics processing sets, or GPUs.
As the call suggests, those GPUs are for creating graphics, videos, and images, depicting the visual effects we see in Hollywood blockbusters and our favorite streaming shows. They are also for 3D modeling, architectural design, and dozens of other real programs. Worldwide applications.
GPUs use a procedure called “parallel computing” to make the magic happen. It’s thousands of individual cores running in sync to perform large calculations at the same time.
While your computer’s CPU possibly has four or eight CPU cores, the newest Nvidia card has 16. 38 four cores, all running in tandem.
This is precisely the kind of next-level processing strength that AI systems will need.
But hardware is nothing without smart software. And that’s where Microsoft comes out on top.
Microsoft has signed a $10 billion deal with OpenAI, the company that created ChatGPT, and has already begun integrating AI assistants into platforms such as Bing and Skype.
And since Windows is still installed on 72% of all computers in the world, they have enormous merit in dominating the AI Copilot market.
Ben Reitzes of Melius Research argued that Microsoft will likely already “own the most valuable AI estate” and that the company’s benefits “today are not quantifiable. “
Therefore, transparent precursors are already in place when it comes to hardware and software for the AI revolution.
But that still leaves out an essential component of the formula. Surely something for each and every PC program, platform, and online activity. . .
Think. . .
Before browsing a single internet page or downloading a single email, press the “power” button on your computer and wait patiently while it starts.
If you’re reading this article on a tablet or smartphone, charge your device at the end of the day.
Power is something most of us take for granted. . . Because it’s still there.
Trigger a transfer or plug in a charger and you’re good to go.
We rarely stop thinking about the effect of our daily browsing and commuting.
The undeniable truth is that it takes a great deal of energy to keep the web up and running on a regular basis.
According to Thunder Said Energy, the company absorbed 800 terawatt hours of electrical energy in 2022.
By 2025, IT is expected to use up to 20% of all electrical power generated in the world.
Compare that to China – the world’s most populous country, with 1. 4 billion more people – which consumes only more energy (26% of the overall global market).
It’s true, your favorite websites, apps, and streaming apps together consume almost as much energy as all of China!
But as staggering as those numbers are, they still don’t hold up in the face of the unprecedented, energy-hungry AI platforms that are just around the corner.
This may be the BIGGEST technology investment opportunity of the decade. . .
I’ll be covering all the main points at next week’s special AI Power Summit, and this is YOUR invitation.
To claim your invitation and start your portfolio for the next wave of the AI boom, stop by here.
To the profits,
Adam O’Dell
Chief Investment, FX & Markets Strategist
Very useful
Toll-free number: 1-866-584-4096
Subscribe to our Banyan Edge newsletter for financial insights and recommendations from our most sensible investment experts. Start making an investment with a head start today!