This Is AI's 'Netscape Moment'

Vintage Internet... How artificial intelligence ('AI') compares... More of our interview with Chaikin Analytics founder Marc Chaikin... His road map for navigating the AI boom... This has happened for time immemorial... A free event, pick, and more... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Digest] Vintage Internet... How artificial intelligence ('AI') compares... More of our interview with Chaikin Analytics founder Marc Chaikin... His road map for navigating the AI boom... This has happened for time immemorial... A free event, pick, and more... --------------------------------------------------------------- AI is having a 'Netscape moment'... That's what our friend and founder of our corporate affiliate Chaikin Analytics Marc Chaikin says... For those that need a reminder, early Internet and pre-smartphone web browsing once looked like the image below. It's the "Netscape Navigator" back in 1994... Netscape was a giant leap forward in technology. Before its launch, the Internet was something largely only used by computer programmers and engineers. You needed specific knowledge just to access it and use commands. With Netscape, a "regular person" with a computer and Internet connection could click around and find information. The browser even allowed credit-card transactions online. Life would never be the same... Why do I bring this up today?... Marc compared AI today with Netscape's launch when Dan Ferris and I (Corey McLaughlin) recently interviewed him on the Stansberry Investor Hour podcast (available on our [YouTube page]( [InvestorHour.com]( or other traditional podcast platforms). Marc also detailed how this "moment" could play out in the markets moving ahead. Now, to be fair, analysts have proclaimed a "Netscape moment" for dozens of technologies in the past. Some have been right. Many have been wrong. But I think Marc's onto something... I've experimented with various new public AI tools, like the latest version of ChatGPT, Google's Bard (now Gemini), and Perplexity. They all work to a certain extent (like the buttons on the Netscape browser three decades ago), but it seems like there's much more (for better or worse) that can be done with AI. As [we said yesterday]( Marc has five-plus decades of professional investing experience... He's a true Wall Street legend who has developed tools and indicators that you can find on every Bloomberg terminal. Marc has also worked directly with many of finance's biggest names. Now, Marc is sharing his latest market outlook with the public... including his thoughts on the AI boom and how it compares with the booms of past technologies. Marc told us where he thinks the AI bull market is right now... and how far it might have to run. He also gave us his tips for making smart investments linked to the technology. [Last Friday]( Dan warned about not getting lost in the "AI hype cycle," and Marc's ideas support that tip. Marc says there are buying opportunities beyond popular names like Nvidia (NVDA). In fact, he has found several businesses that could benefit from AI. And you likely haven't heard of these names in the mainstream media. Marc is going to discuss this all further in a free presentation that goes live at 8 p.m. Eastern time tonight. If you're interested, [click here for more information]( and watch. But ahead of that, I want to share a few excerpts from our recent interview... What AI could be like... Corey: What comes to mind when you think about AI as a technology? You have five-plus decades of experience in the market. How does AI perhaps compare to other breakthroughs you've seen? Marc: I compare the AI boom to the introduction of the Netscape browser... The market leading up to that introduction had been very choppy in terms of inflation, interest rates, and the economy. The Netscape browser was introduced, and if you look at what happened between 1995 and 2000, you see two things: inflation went down, profit margins went up. The Netscape browser basically democratized the Internet, and people started adapting their business models to start selling online or interacting with their customers online. We're in a comparable situation now where the AI boom is going to trigger a wave of profit margin increases for the next five years. It's so comparable to that period. We're probably in 1996 to 1997 right now. There were some pretty big drawdowns in '97 and '98, and we all know what happened in 2000 when the tech sector blew off... [but] it was a good period to be invested in stocks and I think that's where we're headed now. The stocks that will benefit... Dan: The overall market's rather exorbitant valuation by various measures doesn't bother you? Marc: Well, it's that seven stocks in the S&P 500 Index are very highly inflated [and] profit margins are way up. On the other hand, they contribute 27% of all the earnings to the S&P 500. You look at the other 493 stocks, and [price-to-earnings (P/E) ratios] are pretty much in line with the norm, and then when you go down to mid- and small-cap stocks, P/Es are actually below historical norms. I always worry about valuation. We all know what happened to Cisco [Systems] (CSCO) in 2000. Everybody's comparing Nvidia's chart to Cisco, but Cisco was making a machine that was basically put into data centers to drive the Internet demand for processing power. This is a whole new ball game, and sure, Nvidia is very richly priced but look at its earnings growth. If P/Es are all about forward growth, then so far, so good. Dan: Semiconductors, generally, are set to become the biggest piece of the S&P 500 soon. They're just a hair behind software now... The Cisco example reminded me of that because its industry was the leading one in March 2000. Historically, that has been a bad sign for longer-term returns, but in the short term, it sure can get pretty exciting, can't it? Marc: Indeed, and profit margins are the key to future returns. And if we're entering a period where companies are more profitable [because of AI, these companies can] cut some people where the fat is. Then they implement AI and supply-chain management, customer support, HR and so forth, and profit margins [go] up. That's where I see this headed, and in that scenario, valuations start to readjust to better profit margins. Valuations typically are not as much a function of earnings growth as they are a combination of earnings growth and profit-margin growth. The trick is finding stocks to benefit from AI, and we're seeing it in a variety of industry groups. [In] health care, it's going to be a major breakthrough tool to create new drugs. In finance, we found a company that has a digital banking platform for regional banks... they're starting to use AI to make the customer interaction better. You can find these companies across a broad spectrum of industries. AI [in] energy is going to become very big in terms of optimizing pipeline flows and maybe convincing some government somewhere to let us build more pipelines so we can get our natural gas where it needs to be, which is in the consumer's hands or exported. AI is [being used] across a broad swath of industry groups. Bubble talk... Dan: Are we anywhere near an AI bubble, in your opinion? Marc: That's above my pay grade because you're dealing with psychology and that's a tricky bit. But let's look at another stock that's actually in our 2024 portfolio in our [Chaikin newsletter] Power Gauge Investor – Qualcomm (QCOM). Since we recommended it in February, it's up about 50%, the best performer in the group. I don't see anybody talking about Qualcomm as part of the AI revolution. Qualcomm is sort of the intersection of AI and mobile devices. There's a company called Zebra Technologies (ZBRA) that has the scanners used in supermarkets to read barcodes, and they're handheld. Qualcomm is now putting chips into the Zebra handheld scanners, and [Qualcomm's AI chip] enables the supermarket manager to order strawberries if they're out without connecting to the Internet... You don't see anything about Qualcomm associated with AI, at least not in the major media. This is not a recommendation... but it is in our 2024 portfolio. And I think it has a three-year runway where their chips are going to go into things like handheld scanners and computers as well. There's plenty of pockets of opportunity away from Nvidia. Will there be a bubble? Sure. Always is. This is [based on] earnings. In 1969 or 1973, I shorted a stock called Four Seasons Nursing Homes in my personal account. I was a stockbroker. It was in Oklahoma, and I think they had four nursing homes, and it had a bigger market cap than Montgomery Ward or Sears or something, and unfortunately, it went [higher]. I shorted it at $99 and I covered it at $119 and seven-eights. A lot of shares for a young kid. That was one tick away from the all-time high, and 12 months later, it was bankrupt. But there was a whole group of stocks like that. I think it was 1970, there was a company called Levitz Furniture. It had about 18 furniture stores, and it was bigger than Montgomery Ward in terms of market cap. This has happened for time immemorial, but if you invest by always looking for shadows around the next corner, you're never going to be in the market, you're never going to make any money. Dan: Today is always the hardest day to invest... Marc: That doesn't mean you throw caution to the winds, and I respect the work that you do, Dan, where you see pockets of insanity in the market and shy away from them, and that's good for investors. If you have something like the Power Gauge rating on your side and you're looking at Dan Ferris' research, it's even better. Anytime you can eliminate some of the losers or the potential losers, you're a winner in the stock market. A road map... Dan: That is not a sexy thing, but it has got teeth, doesn't it? Eliminating losers is counterintuitively a way to make money... Marc: At the end of the day, it's all about earnings and profit margins... the rest is just noise. Dan: It's funny because for some years now, there's been this constant talk – Jeremy Grantham from [investment company] GMO is a typical voice about this – he constantly points out that profit margins are the most mean-reverting data series in all of finance, and the mean reversion hasn't come. It simply has not arrived... and if you're right about AI, using that 1995 analogy, it's not going to arrive for three or five more. Marc: Exactly. Take a look at profit margins between 1995 and 2000 and you'll get a road map, or analog, to what I think is going to happen today. It's a good time to be invested. Marc has a few ideas about how to be invested today... You heard him mention a few areas of interest related to the AI boom... and what factors (namely profit margin growth) to consider when looking for companies that might ride the wave higher... A lot of Marc's advice has to do with his Power Gauge, the 20-factor tool he created and launched in 2011. Longtime Stansberry Research readers and Stansberry Alliance members have probably heard us mention it before... The Power Gauge is based off Marc's insights from the years he spent working with Wall Street clients. He combined what he learned about their different strategies into an easy-to-use investing tool that analyzes thousands of stocks and exchange-traded funds to find stocks worth buying, as well as the ones to avoid. As Marc says, his Power Gauge is "based on how Wall Street works." In a free presentation tonight, which begins at 8 p.m. Eastern time, Marc will share more details about this system... and how any individual investor, no matter what strategy they prefer to use, can use it to navigate the markets... including the AI boom. As Marc told Dan and me... If you combine the Power Gauge with any other discipline, whether you're doing your own fundamental research, whether it's Morgan Stanley, Goldman Sachs, your friends... you've got a really powerful tool to narrow the playing field because you and I both know that to make money in the stock market, you need two things: you need a plan, and you need a focus. And [also to] have a repeatable process... If you filter anything through the lens of the Power Gauge, you're going to improve your results, and that's a story I've been telling for 10 years and hopefully will be telling for another 10. In the event, Marc will share a free stock pick... explain how you can get full access to the investment strategy he says could outperform the S&P 500 by fourfold over the next year... and give details about a special report he has created specifically for Stansberry Research subscribers. [Click here for more information](. Again, the event begins at 8 p.m. Eastern time tonight. --------------------------------------------------------------- Recommended Links: [TONIGHT: Critical Update for All Stansberry Readers]( There's a massive shift playing out in U.S. stocks – one we've only seen a dozen times before, going all the way back to 1943... and now one Wall Street veteran is warning it'll impact every major stock you can think of, especially Nvidia. Tonight, he's sharing where the stock market's going next... what it could mean for your money in 2024... and the No. 1 investing strategy he's now recommending if you want to protect and [grow your wealth in 2024](. --------------------------------------------------------------- [Little-Known AI Currency Soars 10,000% in One Week?]( A little-known currency has emerged that will power AI. It's not gold, bitcoin, or any other crypto. But this currency is now in such demand that Alphabet, Apple, and Amazon have already gained approval from the U.S. federal government to directly buy, sell, and trade it. Elon Musk says: "People just don't understand how much demand there will be." The Financial Times reports that it could become, "a new world reserve currency." It's also already making some people wildly rich, soaring as much as 10,000% in a single week. Whitney Tilson traveled to the AI epicenter of the world to investigate. [See his full report here](. --------------------------------------------------------------- New 52-week highs (as of 6/25/24): Coca-Cola Consolidated (COKE), Cintas (CTAS), Commvault Systems (CVLT), Alphabet (GOOGL), Intuitive Surgical (ISRG), Eli Lilly (LLY), Microsoft (MSFT), Motorola Solutions (MSI), Novo Nordisk (NVO), Regeneron Pharmaceuticals (REGN), Roper Technologies (ROP), Verisk Analytics (VRSK), and the short position in Cracker Barrel (CBRL). In today's mailbag, feedback about an essay by Stansberry Investment Advisory lead editor Whitney Tilson – about the performance of an "untouched" six-stock, family investing portfolio – that we highlighted [earlier this week](... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "Whitney, Commendable article. Truth be told. [There is] also something to be said about leaving assets to your heirs." – Subscriber John B. All the best, Corey McLaughlin with Dan Ferris Baltimore, Maryland, and Eagle Point, Oregon June 26, 2024 --------------------------------------------------------------- Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open stock positions across all Stansberry Research portfolios Investment Buy Date Return Publication Analyst MSFT Microsoft 02/10/12 1,437.5% Stansberry's Investment Advisory Porter MSFT Microsoft 11/11/10 1,430.9% Retirement Millionaire Doc ADP Automatic Data Processing 10/09/08 905.2% Extreme Value Ferris WRB W.R. Berkley 03/16/12 743.9% Stansberry's Investment Advisory Porter BRK.B Berkshire Hathaway 04/01/09 628.7% Retirement Millionaire Doc HSY Hershey 12/07/07 459.6% Stansberry's Investment Advisory Porter AFG American Financial 10/12/12 438.9% Stansberry's Investment Advisory Porter TT Trane Technologies 04/12/18 436.8% Retirement Millionaire Doc NVO Novo Nordisk 12/05/19 429.4% Stansberry's Investment Advisory Gula TTD The Trade Desk 10/17/19 374.7% Stansberry Innovations Report Engel Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio. --------------------------------------------------------------- Top 10 Totals 5 Stansberry's Investment Advisory Porter/Gula 3 Retirement Millionaire Doc 1 Extreme Value Ferris 1 Stansberry Innovations Report Engel --------------------------------------------------------------- Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Investment Buy Date Return Publication Analyst wstETH Wrapped Staked Ethereum 12/07/18 2,291.8% Crypto Capital Wade BTC/USD Bitcoin 11/27/18 1,543.5% Crypto Capital Wade ONE/USD Harmony 12/16/19 1,167.1% Crypto Capital Wade MATIC/USD Polygon 02/25/21 772.3% Crypto Capital Wade AGI/USD Delysium AI 01/16/24 365.7% Crypto Capital Wade Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio. --------------------------------------------------------------- Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios Investment Symbol Duration Gain Publication Analyst Nvidia^* NVDA 5.96 years 1,466% Venture Tech. Lashmet Microsoft^ MSFT 12.74 years 1,185% Retirement Millionaire Doc Inovio Pharma.^ INO 1.01 years 1,139% Venture Tech. Lashmet Seabridge Gold^ SA 4.20 years 995% Sjug Conf. Sjuggerud Nvidia^* NVDA 4.12 years 777% Venture Tech. Lashmet Intellia Therapeutics NTLA 1.95 years 775% Amer. Moonshots Root Rite Aid 8.5% bond 4.97 years 773% True Income Williams PNC Warrants PNC-WS 6.16 years 706% True Wealth Systems Sjuggerud Maxar Technologies^ MAXR 1.90 years 691% Venture Tech. Lashmet Silvergate Capital SI 1.95 years 681% Amer. Moonshots Root ^ These gains occurred with a partial position in the respective stocks. * The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. --------------------------------------------------------------- Stansberry Research Crypto Hall of Fame Top 5 highest-returning closed positions in the Crypto Capital model portfolio Investment Symbol Duration Gain Publication Analyst Band Protocol BAND/USD 0.31 years 1,169% Crypto Capital Wade Terra LUNA/USD 0.41 years 1,166% Crypto Capital Wade Polymesh POLYX/USD 3.84 years 1,157% Crypto Capital Wade Frontier FRONT/USD 0.09 years 979% Crypto Capital Wade Binance Coin BNB/USD 1.78 years 963% Crypto Capital Wade You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. 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