Colin’s Note: Robotics will be one of the best investing opportunities of the next couple years…
I spoke at length about the tech’s potential last month when I attended the Consumer Electronics Show in Las Vegas… And I’ve written you about it before…
But I can’t say enough about how robotics and automation are going to completely transform U.S. manufacturing.
And we’re still in the early stages. Just as we’ve seen with other tech megatrends – the internet, artificial intelligence, cryptocurrencies – you have to build out the infrastructure and the standards before the megatrend can truly take off.
The folks who get in early stand to make potentially life-changing gains… And I’m going to keep updating you as the megatrend develops.
It’s all in today’s video. You can click below to access it or read on for the transcript.
Hi investors, Colin Tedards here. I’m not in my normal setup today.
I’m braving the weather and the rain out here in California and traveling to multiple robotics startups. I’m bringing you top insights into what I believe will be one of the best investing opportunities over the next couple of years.
Now, I know you’ve heard me talk a lot about robotics. Just a couple of weeks ago, I was at the Consumer Electronics Show in Las Vegas. There, I identified robotics as one of the biggest investing trends there is.
I realize – and some of you have written us about this – there are already robot vacuum makers, robot lawnmowers, and robot baristas…
There’s automated surgery, which is amazing. And there are delivery drones as well. You also have major companies – Amazon and Walmart in particular – that are already using robotics in a major way every single day.
And it’s only getting bigger… I believe we’re at the beginning of a brand-new megatrend.
What is a megatrend? Well, for example, let’s look back at the internet. When the internet was being built out in the 1990s, we needed routers, modems, and fiber optic cable.
Then, when it came to websites, you needed standards – things like HTML, SSL security, databases. There was an extended stage of developing all of that before the internet took off in the 2000s.
Look at something like Bitcoin. It’s been a fantastic investment over the past decade or so for those who have held on through the bouts of volatility. And what did we need to build out Bitcoin? We needed a bunch of decentralized computer systems to be built before Bitcoin could become what it is today.
We’re in the midst of an artificial intelligence (“AI”) boom – a growing megatrend. And what did we need – and still need – to build out AI? Specific, AI-purpose-built servers using Nvidia or AMD chips. Companies are building that out and manufacturing as we speak.
As for where we’re at in robotics, we’ve not really even begun to build it out. It’s just getting in the beginning stages of a huge adoption cycle.
And just like we saw with the internet, crypto, and AI… there’s going to be huge money to be made by investors that get in early.
Just a couple of days ago, I visited an AI and robotics startup company in San Fransisco that reinforced all of this. The founder has people on his team who have spent decades at Apple and Google. They’re working around the clock on a very exciting project in the robotics space.
We were talking. I was giving him my thesis that I think robotics will be the next megatrend… He agreed, and he made a very important point…
Right now, every robotics startup has to build almost everything from the ground up. They have to reinvent everything.
From the actuators if you’re building robotic hands… or motors if you’re trying to move legs or arms. You also have to build the robotics software, the machine learning, and the AI software. You have to build that all end-to-end from scratch.
He also noted that with the breakthrough of large language models like ChatGPT – and some things Google is working on – there are a lot of smaller open-source large language models as well. That means bypassing a lot of that from-scratch building – at least on the software side.
Often, robots are moving around and recognizing objects. So a lot of that recognition work, from a software perspective, has already been done.
Teams at that San Fransisco startup that I visited in San Francisco – along with major companies like Tesla – are working on the actuators, the motors, the different hard components, and the manufactured components that make a robot function.
So we’re probably just 12 months away from a lot of the standards and building blocks, if you will, of the robotic industry being built. Similarly, if you are going to design and build a website, you’re going to follow certain standards.
You’re going to write it in HTML code, there’s going to be SSL security, you’re going to follow HTTP protocol, and you’re also going to make certain calls to a database if needed.
None of that framework – none of those standards – exists right now in the robotics industry. And that’s why it’s one of the most exciting and fluid fields.
Also, when you think about the robotics field, there isn’t an Apple, a Microsoft, or a Google in there right now. There’s no one dominating the space the way there are leaders in enterprise software, electric vehicles, smartphones, or search engines.
It’s a wide-open field. It reminds me so much of the internet in the early 1990s and cryptocurrencies in the mid-2010s. It reminds me a lot of AI Just over the past year or so.
I’m going to keep you updated on this exciting field. I think anyone who gets in early and makes the right investments will probably be set for life.
Hopefully, you guys enjoyed today’s video. My name’s Colin Tedards, I’ll be back again with more from The Bleeding Edge later this week. Good luck with your investments.