The AI stocks you’re watching right now must feel a little repetitive.
I know you can feel the weariness in the AI space at this point. It’s everywhere you look; every analyst, financial pundit, investor in the herd espousing the same watchlist of AI stocks.
Go ahead and take a look around for yourself. You’ll actually find it a little disappointing.
In many cases, you’ll see the same analysis about the same mega-cap stocks written by AI chatbots themselves!
Throw in any mainstream talking head on CNBC and I’ll guarantee you that they’re talking about one of the same five AI stocks that have saturated our minds ever since ChatGPT was released at the tail end of 2022.
You know the usual suspects:
- Nvidia (NASDAQ: NVDA)
- Microsoft (NASDAQ: MSFT)
- Alphabet (NASDAQ: GOOG)
- Advanced Micro Devices (NASDAQ: AMD)
- Meta Platforms (NASDAQ: META)
Let’s face it, the market is tired of buying NVIDIA. It’s time for an alternative way individual investors like us can capitalize on in the ongoing AI boom… because believe me, this story is far from over.
Fortunately, you just need to know where to look.
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The AI Driver Every Investor is Missing Right Now
Look, I’m not going to tell you there’s no place in your portfolio for those safe mega-cap AI stocks. However, there’s no denying that they’ve felt a little top-heavy at current prices.
Shares of Nvidia have been stagnant for more than two months at this point, and picking up more when they’re trading at 35x earnings right now isn’t what I would call a blockbuster opportunity for us.
But if you’ve been paying attention to certain aspects of this boom up until this point, then you know just as well as I do that there are some serious hurdles that AI needs to overcome before it can take things to the next level.
Back in March, we actually talked a little bit about the one thing that can bring AI crashing down. It all comes down to one thing: Power.
The cold, bitter pill here is that in order for this AI technology to grow, we’re going to need a lot of power. So far, the warning signs are being largely ignored.
The elephant in the room that nobody wants to talk about is the astounding demand for electricity over the next few decades.
In early April, Bank of America Merrill Lynch reported that electricity demand from AI will grow at a CAGR of 25-33% through 2028. In fact, electrical demand from data centers will grow at a CAGR of 11% until 2030. For the record, usage from data centers alone will account for up to 2% of global demand.
I’ve seen some projections that thanks to AI applications, data center demand will double between now and 2030, and that infrastructure isn’t going to come cheap. Those massive mega-cap players you see everywhere are expected to pony up close to $1 trillion over the next five years investing in data centers.
If you thought the U.S. power grid is strained now, just wait and see as the crisis unfolds in real-time over the next few years.
And for investors that can think outside of the herd mentality, this unprecedented need for more power will open up one helluva opportunity. Nvidia Could Crash Soon Nvidia’s days are numbered… Because there’s a new player in the AI market… A Californian company that developed a groundbreaking chip — one that outperforms Nvidia’s chips 100x. The U.S. Air Force is just one elite client that was allowed to use it early. But soon this chip will be available to the mainstream. And if you position yourself before it reaches the mass market, you could turn every $1 into $120… The U.S. Air Force is just one elite client that was allowed to use it early. Just like early Nvidia investors did. Keith Kohl just published an urgent presentation on this unique opportunity.
The Alternative AI Stocks to Watch
We’re in an interesting period right now when it comes to energy.
Over the past decade, all eyes have been razor-focused on upcoming renewable energy sources like wind and solar. And to give some credit where credit is due, both of those energies have seen tremendous growth.
However, neither are anywhere close to providing the kind of power we’re going to need.
In 2023, the U.S. generated 4,178 billion kWh of electricity. But to put a little more perspective on that figure, keep in mind that 60% of it came from fossil fuel sources, with 43% of that share coming straight from natural gas. Another 18.6% of our electrical generation was from nuclear power.
Now here’s the rub for renewables…
Even though renewables accounted for 894 billion kWh in utility-scale electrical generation last year, only about 65% of it was generated from wind and solar, with a nice chunk coming from hydropower.
If you recall, the death of the U.S. coal industry is inevitable over the next two decades as we stop building new coal plants and existing plants retire. It’s not a transition that’ll take place overnight, but everyone is slowly starting to realize that we’re going to need those reliable, non-intermittent sources of power more than ever before.
This is why companies like Amazon recently paid $650 million for a 100% nuclear-powered data center to be built in Luzerne County, Pennsylvania.
The alternative AI stocks to watch will be those companies able to deliver that crucial lifeblood of electricity to the growing demand from data centers going forward.
On my radar are major players providing that power, such as Dominion Energy (NYSE: D), a company that could pave the way for next-gen nuclear technology such as small modular reactors, which could boost grid capacity for data centers.
Granted, you may want to go even further down that line of thinking and find the hidden investment gems fueling that next-gen nuclear technology.
Then there’s Constellation Energy Group (NASDAQ: CEG), which is one of the largest nuclear operators in the country. The company is in talks right now to supply carbon-free power to AI data centers throughout the next decade.
Next time, we’ll go further down this AI rabbit hole.
Until next time, Keith Kohl A true insider in the technology and energy
markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new
technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the
Managing Editor of Energy & Capital, as well as the
investment director of Angel Publishing’s
Energy Investor and Technology and
Opportunity. For nearly two decades, Keith has been providing in-depth coverage of the hottest
investment trends before
they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution
currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on
key advancements in robotics and AI technology. Keith’s keen trading acumen and investment research also extend all the way into
the complex biotech sector,
where he and his readers take advantage of the newest and most groundbreaking medical therapies being
developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s
to lab scientists grinding out the latest medical technology and treatments. You can join his vast
investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter. 
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