| SPECIAL GUEST ISSUE Capitalize on the Market’s Next Big Turning Point Today Editor’s Note: Eric Fry here. Today, I’m sharing a special letter from my friend and colleague, Luke Lango. I know from my years working alongside Luke that he’s a brilliant stock-picker. So I’m always eager to hear his insights – and you should be, too. Tomorrow, Nov. 1, at 8 p.m. Eastern, he’s going live to reveal his top stock to buy during the impending AI Turning Point… and you might be surprised which stock he thinks you should sell today. Details below – and make sure you claim your spot for tomorrow’s briefing. Hello, Reader. Luke Lango here.
The stock market is on the cusp of a critical turning point. If you don’t position yourself correctly before this turning point hits, you could see your portfolio crash and burn. If you do, you could make enormous sums of profits.
Believe it or not, it all has to do with one stock.
This stock is arguably the most important stock in the market right now. It has been one of the most talked about and celebrated stocks of 2023. Most investors own it in their portfolios.
That stock is NVIDIA Corp. (NVDA) , and it is about to crash.
Now, before I go any further, let me be the first to state that I’m not one of those NVIDIA perma-bears that’s been screaming the sky is falling on this tech titan for years. Quite the opposite, actually.
In my flagship research service, Innovation Investor, I have been actively recommending NVDA stock for years. I’ve been bullish – very bullish. Our readers actually scored 1,000% returns on this AI stock.
But a few weeks ago, we fully parted ways with our position in the AI darling.
Not because the “AI Boom” is dying. It’s not.
Rather, because the AI Boom is shifting away from NVIDIA. And when this shift hits, the entire market will pivot, causing one group of stocks to lose almost all their value while another group of stocks benefits enormously.
The story here is pretty simple… The Custom GPU Revolution NVIDIA benefited from a huge demand surge for its GPUs in 2023, primarily from Big Tech firms looking to build AI models. But that surge will prove temporary because those same Big Tech firms that have been fueling the surge are now moving away from NVIDIA and developing their own chips.
Have you ever heard of Dojo?
Dojo is Tesla Inc.’s (TSLA) supercomputer. It is the “brain” behind Tesla’s self-driving operations. It is fed all that driving data from all those Tesla cars on the road, crunches through all of that data, and develops self-driving algorithms that power the autonomous vehicle capabilities in Tesla cars.
Dojo is Tesla’s AI.
And Dojo doesn’t use NVIDIA GPUs.
Tesla used to power all its self-driving operations with a large NVIDIA GPU-based supercomputer. Dojo is set to replace that.
In other words, Tesla used to use NVIDIA GPUs. Now, though, they’ve developed its own Dojo supercomputer that uses its own GPUs custom-built for Tesla’s AI needs.
And that gets to the crux of the problem here: customization.
NVIDIA won big in the early innings of the AI Boom by supplying very advanced but very general-use GPUs to companies looking to develop broad AI models.
But the AI Race is now evolving. We are entering a critical turning point in the AI Boom, wherein companies are going from building general-purpose AI models to building custom AI models.
For those AI models, they need custom-built GPUs.
It doesn’t make economic sense for NVIDIA to create custom-built GPUs for every single one of its customers.
So, NVIDIA’s largest customers are developing their own custom-built GPUs to meet their own specialized AI needs.
That’s why we believe the general AI chip boom is over. The custom AI chip boom is taking its place. Big Tech Goes All In on AI Tesla and its Dojo supercomputer are just one example.
Every Big Tech firm – that is building AI models and who formerly relied on NVIDIA – is now developing their own custom-built AI chips.
Amazon.com Inc. (AMZN) has developed two AI chips customized specifically to building AI models on the firm’s cloud service, AWS. One is for high-performance inference (AWS Inferentia) and one is for deep-learning training (AWS Trainium). Together, Amazon believes these two AI chips could power all AI functions on AWS in the future.
Amazon also just poured $4 billion into top AI startup Anthropic, with part of the deal being that Anthropic’s AI models will now be built on top of Amazon-made chips – not NVIDIA chips.
Meanwhile, Alphabet Inc. (GOOGL) is already on the fifth generation of its custom Tensor Processing Units, or TPUs, for neural network development.
What’s more, Google recently invested in Anthropic, too, providing $500 million of its $2 billion investment so far. Between this and Amazon’s investment, Anthropic is sitting on a huge cash pile that it could use to train its next AI model.
Microsoft Corp. ( MSFT) has reportedly invested heavily in its own secretive AI chip development project, codenamed Athena. And news broke earlier this year that Meta Platforms Inc. (META) is developing its own custom chip for running AI models, dubbed the MTIA chip – or Meta Training and Inference Accelerator chip.
Big Tech has made their move. They’re going all-in on AI, and none of them want to depend on NVIDIA to help them win the AI Race.
They all want to do it themselves.
This will create huge problems for NVIDIA. The Fall of NVIDIA Did you know that 39% of NVIDIA’s revenues came from just two customers last quarter?
NVIDIA reported $13.5 billion in revenues last quarter. Two customers accounted for nearly 40% of those revenues, meaning two firms spent over $5 billion on NVIDIA chips in 3 months.
Who has that kind of money?
Only Big Tech.
And Big Tech is now pivoting away from NVIDIA.
It doesn’t take a rocket scientist to connect the dots.
Big Tech fueled NVIDIA’s 2023 growth surge. Big Tech is now leaving NVIDIA. That growth surge will fall flat in 2024. Once it does, richly valued NVDA stock will come crashing down back to Earth.
It is time to sell NVDA stock.
Just like the insiders.
Insiders have been dumping NVIDIA stock like crazy this year. They see the writing on the wall, and they want to profit off their NVDA investment while it is still the hottest game on Wall Street. We think it’d be foolish not to join them.
That’s why we finally sold our NVDA position in our Innovation Investor service for a ~1,000% return. The Final Word We’re looking to take those profits and roll them into the next batch of top AI stocks to buy.
You see – all that money that was being spent on NVIDIA chips is not going away in 2024. It will be spent on different, more customizable AI chip makers.
Which means that NVIDIA’s pain next year will be someone else’s gain.
This is the AI Turning Point. This is the critical shift that will define what stocks win and lose next year.
So… what stocks should you be buying right now? Which ones should you be selling?
Those are the billion-dollar questions we need to answer right now if we want to make big money from top AI stocks in 2024.
And this Wednesday evening at 8 p.m. Eastern, I will be answering those questions in a live broadcast. I’ll even give you the name and ticker symbol of the No. 1 stock to buy to profit from this AI Turning Point. This is a highly promising stock that I’ve never recommended before in any of my services. And it’s destined to thrive during this market shift.
Your next wise investment move is just a click away... so reserve your spot now for the event here.
Sincerely, |
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