Editor’s Note: We are thrilled to welcome our new editor, Colin Tedards. Colin is a serial entrepreneur and a tech-focused investor. He’s shared his insights with a following of over 130,000 people across various media channels.
After he built his first website in 2008, he wanted to grow the profits from his e-commerce business.
He started watching CNBC and reading articles online. But he realized the talking heads were spinning facts to boost views… and online resources were overly complicated.
That’s why he set out on a journey to educate himself.
In 2008, he bought a penny stock that grew 900% in seven years. In 2016, he bought his dream home in California with the profit.
His first big public recommendation came when a stock he’d been researching for years returned 3,181% in just five years.
At the request of friends and family, he began sharing more of his investment research online in 2014. Since then, Colin’s correctly called rallies in Enphase, Getty Images, and Amazon… and he’s warned viewers to stay out of Under Armour, Rivian, Intel, and Zoom before major drawdowns.
But his most important call was urging readers to get back into the market in September 2022, just days prior to the market bottom in October.
Over the coming weeks, Colin will show you why he’s never been more optimistic about the chance to build wealth in the stock market.
You’ll hear from Colin every day in these pages. He’ll shed light on the biggest technological breakthroughs… and how to profit from them.
Read on for today’s insights.
On May 25, Nvidia added $184 billion to its market cap.
The 24% jump in its stock price is enough money to buy out Walt Disney Co., Wells Fargo, or Verizon… blue-chip stocks that rank among the top 10% of corporations in the U.S.
Single day moves like this are rare.
Nvidia’s revenue actually decreased by 13% year-over-year. But what caught Wall Street’s attention was the forecast.
For the fiscal second quarter, management is projecting revenue of $11 billion. That would be 33% year-over-year growth. And – assuming the company can pull it off – it would be Nvidia’s best quarter ever.
You’d think these analysts could’ve predicted Nvidia’s blowout quarter.
Afterall, 97 analysts from the likes of Morgan Stanley, Goldman Sachs, and J.P. Morgan track Nvidia.
But they didn’t.
These same analysts were quick to raise their price targets on Nvidia after the fact… and investors piled in. But they’re missing the bigger picture behind artificial intelligence (AI).
Right now, analysts and investors are only focused on hardware makers like Nvidia.
But AI is a much bigger trend than that.
It’s going to transform the way every business is run. And the investors that can recognize this trend before the crowd will have the opportunity to profit from more than just hardware makers.
During the Dot-Com bubble, companies like Pets.com, eToys.com, and AOL raised millions of dollars almost overnight as they threatened to steal market share from brick-and-mortar businesses.
Hardware companies like Cisco and Intel were powering the mass adoption of the internet.
Everyone knew business was going to change. But most people failed to realize what the new digital age would look like.
Most of the high-flying Dot-Com companies went under shortly after the bubble collapsed. The exceptions, like Amazon, Google, and Netflix, became household names.
The hardware makers like Cisco and Intel are still around today… but they’ve never retaken their Dot-Com era highs.
That’s why it’s not enough to know that a big trend is happening. We have to know how to position ourselves to profit from it.
Tech stocks are the best performing sector this year…
The tech sector is up 35% this year. That’s compared to the 5% gain from the rest of the S&P 500.
The biggest tech names have a head start on building AI hardware and programs. And their shares have rallied this year as a result.
Nvidia: 166%
Alphabet: 38%
Apple: 39%
Meta: 120%
Microsoft: 36%
But these are the obvious stocks that everyone’s already piled into. It’s too late to buy shares at current prices and expect big returns over the long run.
Fortunately, AI’s opportunity is much bigger than a handful of tech companies.
It will change the way most companies operate… similarly to how the internet transformed business in the early 2000s.
We’re already seeing the first signs of this.
The CEO of IBM stated in a recent interview with Bloomberg that he foresees AI replacing 30% of office jobs over the next five years.
We estimate that to be about $780 million in yearly savings.
That would boost IBM’s $1.6 billion in net income last year by 48% to $2.4 billion.
IBM isn’t alone.
The Washington Post, Bloomberg, and CNET are using AI to write articles. These companies are using AI to make their current teams more productive.
That means fatter margins and higher profits.
That’s why I’m so excited about the opportunity behind AI. As corporate profits rise, the share price and dividends will also grow.
Big tech are the early adopters. But we’ll see even sleepy insurance and banking companies adopt AI on a massive scale in the coming years.
Our opportunity today is to find the first movers that already have a strategy in place to adopt AI.
Over the coming weeks, I’ll be sharing the companies that stand to gain the most from adopting AI.
Regards,
Colin Tedards
Editor, The Bleeding Edge
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
