The Tech Wars Are Here

[The Bleeding Edge]( The Tech Wars Are Here By Colin Tedards, Editor, The Bleeding Edge In January 1942 – just one month after Pearl Harbor – President Franklin D. Roosevelt ordered the establishment of the War Production Board. The task of the Board was straightforward: Repurpose America’s manufacturing capacity to produce military equipment for the war ahead. In 1941, close to 3 million new cars rolled off assembly lines in Detroit, Michigan. That figure was only 139 once World War II started. Virtually the entire manufacturing capacity was devoted to building trucks, tanks, and aircraft engines. During the entirety of World War II, the production figures were staggering: - 297,000 aircraft - 193,000 artillery pieces - 86,000 tanks - 2 million army trucks The wartime economic output was so robust that American industry produced nearly two-thirds of all allied military equipment during the war. By any measure, the program was a resounding success. And it set the bar for what can be accomplished when government and industry put their full weight behind a project. Today, we’re on the verge of one of the largest government-supported booms since the establishment of the War Production Board. But this time, it isn’t to prepare for war – at least, not in the traditional sense… Recommended Link [EXCLUSIVE NEW INVITATION-ONLY AI EVENT FROM BROWNSTONE RESEARCH The Nvidia Effect: How to Supersize Your Profits in the Second Phase of the AI Boom]( [image]( Tonight at 8 p.m. ET Discover the blueprint for finding tiny AI-related companies with the potential to return 10-to-1, 20-to-1, 50-to-1… perhaps even 100-to-1… and become the highest-returning AI stocks of ALL TIME. [Click to RSVP Now.]( (By clicking the link, your email address will automatically be added to the RSVP list.) -- The Tech Wars In some ways, the world is already at “war.” People aren’t calling it that yet. But that’s what it is. But unlike World War II, this one won’t be fought with artillery shells, tanks, and planes. Instead, it’s a war to determine who will gain economic superiority in the emerging technologies of the future. I’m talking, of course, about artificial intelligence (“AI”) and the hardware needed to power it – semiconductors. Case in point… Last September, the Biden administration notified Nvidia and AMD that they would need to attain a license before shipping certain powerful chips to China. In October, the administration revealed a list of sweeping export controls for chip companies like Lam Research, Applied Materials, and others. The goal of both policies is to limit the flow of critical technologies to China. The U.S. wants these technologies designed and manufactured on domestic soil. And it’s easy to understand why. During the lockdown years, the U.S. learned a tough lesson. For decades, the country has relied on foreign manufacturing for critical technologies. Chief among them is semiconductors. In May 2021, tens of thousands of F-150 pickup trucks were parked at the Kentucky Speedway in Sparta, KY. The trucks were unsellable. They were missing critical components from overseas that simply couldn’t be sourced. The global economy is complex. Complex things are fragile. And fragile things break… It was then that the U.S. – and the world – began to realize that a resilient supply chain was not only a matter of economic importance… It could also be a matter of national security. And on August 9, 2022, the federal government began to do something about it. That’s when the CHIPS and Science Act (known as the “CHIPS Act”) was signed into law. The legislation earmarked $278 billion in federal spending over the next 10 years to jumpstart a new high-tech manufacturing base right here in America. And as the name suggests, it will primarily focus on semiconductors made in the U.S. In essence, it’s the modern version of Roosevelt’s War Production Board. But since the passage of the CHIPS Act, one question has been lingering. When will the money be awarded? And to whom? I believe I have the answer… Recommended Link [Revealed Tonight at 8 p.m. ET: AI Stocks: Boom or Bust Ahead?]( [image]( URGENT: Tonight at 8 p.m. ET, Brownstone Research is going to release what may be [the most important investment update of the year for you… Here’s why…]( In it, you’ll discover why dozens – possibly hundreds – of tiny undiscovered AI “microcaps” could take off… potentially well over 1,000%... in the coming weeks… [Click to RSVP Now.]( (By clicking the link, your email address will automatically be added to the RSVP list.) -- A $39 Billion Tsunami The Wall Street Journal carried the story recently: Since the passage of the bipartisan CHIPS and Science Act last summer, the Commerce Department has been quietly building a small team of elite Wall Street financiers to help allocate $39 billion in taxpayer-funded manufacturing subsidies and other incentives to hundreds of companies. The Biden administration has tasked a handful of former Wall Street executives to help dole out the first slug of the CHIPS Act money. Many on the team come from private equity. In other words, they know how to get a deal done. But just because something is inevitable doesn’t mean it’s necessarily imminent. So here’s my prediction… Most – if not all – of this $39 billion will be allocated by November 5, 2024. That may seem oddly specific. But some readers may already know why that date is important. It’s election day here in the U.S. Recommended Link [TONIGHT AT 8 P.M. ET The Nvidia Effect: How to Supersize Your Profits in the Next Phase of the AI Boom]( [image]( Airing tonight at 8 p.m. ET, an exclusive new webinar to learn the truth about what’s really happening with AI – and where the biggest opportunities lie… The Next Tidal Wave of AI Profits Could Be Coming Sooner than You Think… For investors, this next spike could be 3X bigger than the launch of all Google, Microsoft, and OpenAI’s AI projects combined… But they won’t come from the companies most people expect… [RVSP to learn the truth…]( (By clicking the link, your email address will automatically be added to the RSVP list.) -- It’s the Economy, Stupid James Carville might not have known he was creating a political North Star when he coined the phrase, “It’s the economy, stupid” in 1992. But even today, it’s taken as gospel. And for good reason. The most important issue to American voters right now is the economy. A recent poll from NPR shows that “The Economy” is the most important issue to 31% of voters. “Preserving Democracy” is a distant second at 20%. From there, no single issue breaks double digits. Make no mistake… How Americans feel about the economy will determine the coming presidential election. The Biden administration understands this. That’s why it’s rolled out the “Bidenomics” tagline. And if the economy will determine who is the next president of the United States, what better way to juice things than with a flood of government money? That’s what leads me to believe that most – if not all – of the $39 billion CHIPS allocation will be doled out over the next year or so. And as investors, that has some important implications… Policy Investing One of the best ways to see outsized returns is to “hitch a ride” with favored government industries. As just one example… On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act. Most of us know this as “Obamacare.” Whatever we think of this legislation, there’s no denying the impact it had on favored industries. Between March 2010 and December 2013, the Dow Jones climbed 52%. By comparison, the top nine health insurance providers in the U.S. soared 97%. You don’t have to like a policy – or a politician – to understand the impact government money can have on individual stocks. And with a political incentive to roll out tens of billions of dollars to the high-tech industry over the next 12 months, we need to be paying attention. That’s why, on Wednesday, I’m revealing what I unearthed on a recent trip to one chipmaker’s headquarters… and how you can capture the next wave of AI profits. While mainstream investors are chasing this stock higher, dozens of tiny, undiscovered AI stocks could deliver profits of 1,000% and higher. So make sure to join me for my “Nvidia Effect” event. It will air tonight at 8 p.m. ET. [You can do that with one click here.]( Regards, Colin Tedards Editor, The Bleeding Edge --------------------------------------------------------------- Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. [Brownstone Research]( Brownstone Research 55 NE 5th Avenue, Delray Beach, FL 33483 [www.brownstoneresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Brownstone Research welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-512-0726, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@brownstoneresearch.com). © 2023 Brownstone Research. All rights reserved. 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