For every end product, there is a precursor… A material or substance which needs to be acquired, produced or refined before it progresses to its ultimate goal.
For gasoline, there is oil. For batteries, there is lithium. For steel, there is iron ore.
Today, one of the hottest buzz terms in the world of finance, and in the media and popular culture, is artificial intelligence.
It’s everywhere these days.
It’s driving our cars, it’s writing our term papers, it’s landing rockets on floating platforms hundreds of miles out to sea, and it’s making medical diagnosis.
Just earlier this week, James Demmert, chief investment officer at the $2B asset management firm Main Street Research, said that AI could push the Dow into 100,000 territory within a decade’s time — almost 200% growth from today’s levels.
As a technology, an industry, and at its core, a commodity, the arrival of AI might be the most powerful industrial event seen since the advent of internal combustion.
And it too has a precursor. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
What Makes AI?
Artificial intelligence, contrary to popular belief, is not the same thing as raw computing power.
Even the world’s fastest supercomputers are not capable of organic learning and generative functionality. They don’t have the ability to do things like write or draw pictures based on rudimentary prompting — without, for lack of a better phrase, knowing how to think.
For that ability, AI needs the same thing that organic intelligence requires, exposure to environments to build a basis of understanding.
Babies do it by interacting with the world around them and forming conclusions based on patterns observed over the course of billions of individual events.
Machines do it by absorbing what’s called “training data”, which is passed through custom engineered algorithms to establish a pseudo-organic understanding of how various factors affect outcomes within a specific environment.
Through untold millions or billions of cycles of exposure, machines can learn to learn.
The training data and the algorithms that allow the machine to recognize patterns are therefore the precursors to artificial intelligence.
Don’t Invest In AI… Invest In Its Source
AI is expected to drive the economy forward the same way that the internet and wireless connectivity drove the economy forward for the last 20 years.
This should make AI precursors one of the most important, if not the most important commodity known to man today… And yet, hardly anybody is talking about it.
Correction, plenty of people are talking about it, they’re just doing it behind closed doors.
Because every AI project out there needs these precursors the same way any gas refinery needs oil.
All of today’s biggest tech brands feed off these “precursors” at an ever increasing rate, and today, at least 4 of the 5 biggest names in the tech world (Amazon, Meta, Alphabet, Apple and Microsoft) are going to one source for their training data and algorithms.
And this single source isn’t some silicon valley giant whose name you’d recognize.
The Most Influential Tech Company Out There Is Based In… Jersey?
This is a relatively tiny company operating across the continent from Northern California, quietly making the building blocks for tomorrow’s artificial intellects.
It’s what I like to refer to as a “foundational play” for the AI industry.
More than just a pure-play, it’s a company whose destiny is inextricably linked to the future of artificial intelligence and vice versa.
For those 200% gains on the Dow to take place, this company will have to flourish.
I’ve been following this stock closely since last year.
I watched it explode during the early stages of the AI craze, and I watched it collapse as the weak hands fled the market at the first sign of hesitancy.
Right now, I’m watching the stock as it dusts itself off and begins to rise again, this time without the irrational FOMA buyers.
The Dotcom Crash Wasn’t A Crash At All. It Was The Beginning Of Something Much Bigger
Want to see the future of AI? Just look at the dotcom industry after the bubble burst in the first years of the 21st century.
Almost all the growth in the dotcom field, as well as the ascent of almost all of today’s biggest brands (including 3 of the aforementioned big 5), all took place in the years that followed the oft-cited tech crash.
You can expect the exact same thing with AI, except this growth may be even more dramatic in the long term.
And in the middle of it all, this company will be engineering AI precursors for an ever-expanding list of applications.
Want to learn more about it? Check out my presentation, right here.
You’ll get all the crucial facts and data to get started on your due diligence. But before you click, just remember this… There are a thousand ways to invest in AI out there.
But there is only one foundational play you can make at a valuation of less than $1B.
Fortune favors the bold,
His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.