This Stock Makes Profiting Off AI Easy
AI is becoming a geopolitical battleground.
Last year Russian Prez Vlad Putin said that whichever nation leads in artificial intelligence will rule the world.
Indeed. AI could end up being the greatest technology ever developed since humans learned how to make fire and sharpen stones. Also embedded within its potential is a real force multiplier — the ability to someday create new technology on its own.
The technology to end all others?
As far as technology goes, whoever leads in AI will enjoy a massive economic and military advantage.
AI is still in its early innings, and the United States has been leading, but the outcome isn’t certain.
China is turning out hundreds of thousands of science and engineering graduates yearly… many of them focused on developing new AI technology.
Moreover, over the past few years, the country has opened a temporary lead in building and operating the world’s fastest supercomputers.
But the U.S. isn’t giving up. At a White House AI conference last week, Trump’s tech adviser promised that AI research would be a national priority.
It should also be a priority for tech investors.
And I’d like to point out why with the king of all examples.
All Hail King Nvidia
The best performing chipmaker is the semis juggernaut Nvidia (NASDAQ: NVDA).
NVDA was the S&P 500’s best performer in 2016 and it cracked the top 10 last year.
We first looked at NVDA in 2015. Shares are up 1,184% since then, marking one of the most incredible runs we’ve ever seen.
But 2018 has been a more sedate year for NVDA.
Its powerful GPU chips have become a cryptocurrency mining mainstay. And even though cryptos recent struggles, and changes to mining practices, have affected chip sales it’s only a short-term headwind.
The crypto market is just the cherry on top of a delicious sundae.
The thesis for holding NVDA is still fundamentally strong based on the many applications of its powerful GPUs.
So Good That 33% In Gains Is Bad
Perhaps I shouldn’t call 2018 a “sedate year” for NVDA. NVDA has gained over 33% year-to-date. Impressive considering it’s only May.
However, we may be on the next leg up with the company’s share price breaking out of resistance and making new all-time highs this week.
NVDA beat the Street again last week, turning in a report of Q1 earnings of $2.05 per share — ahead of forecasts by a substantial $0.39 per share. The company’s $3.21 billion of revenue beat estimates by $310 million.
What’s Next for NVDA?
The company expects its cryptocurrency-related business to be soft next quarter, which isn’t surprising.
However, NVDA is also likely to release its next-generation of GPUs, called Volta, in the third quarter.
Volta GPUs are much more powerful and efficient than their predecessors and will use a new generation of superfast memory called GDDR6 for incredible speeds.
It’s this type of processing power that will allow AI applications to reach the next level even sooner.
Which in turn should create even more demand for NVDA chips as the AI space grows.
It’s the perfect self-sustaining long-term growth model for NVDA.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily