How to Invest in AI

Understanding the Next Millionaire Maker Investment…

We sit on the cusp of an event that will create millionaires many times over… after all the bankruptcies wash out. 

I’m talking about the revolution now unfolding in artificial intelligence, or AI. News of this young technology is plastered across every media source these days, and it’s already radically changing the world in subtle and abrupt ways. 

Millionaires, in fact, have already been minted. 

Several crypto-savvy folks created entire cryptocurrency projects using AI alone. Some have soared to valuations approaching $80 million. Others are using AI to build businesses from the ground up, including one that had AI design every aspect of a men’s swimwear line. 

And still more are exploiting their own expertise in building “AI prompts” that properly goad the technology into producing what’s needed instead of the uselessness it would otherwise regurgitate. (Prompts are the sentences/directions that are used to explain to AI what a user seeks to accomplish. Choosing the right prompts is definitely an acquired skill, I can assure you.) 

Because of all this hype, investors and the media are mooning over AI-related stocks of any kind. Some are legit winners, such as Nvidia, which makes the uber-powerful graphics card that can handle AI’s extreme processing needs. 

Other AI stocks… well, not so much.  

But that’s not stopping companies from slapping “AI” on just about anything these days. 

Frankly, the atmosphere feels like we’re days away from Wall Street putting a billion-dollar valuation on an IPO from Uncle Fester’s AI Barber and Artificially Intelligent Plumbing Supply Emporium. 

And that’s where the washouts are doomed to occur… 

I’ve already seen this movie. It’s the story of bright days ahead, but only after the earthquake, tsunami, and Cat 6 hurricane have rearranged the landscape. 

You probably saw that movie, too. 

It arrived in the late ’90s and was known as the Dotcom Mania. 

Wall Street analysts were so smitten with this new technology called the World Wide Web and all that it promised that they created entirely new valuation metrics that made absolutely no sense. One analytics firm was valuating companies on a “per eyeball” basis, insisting that more eyeballs on the company’s internet site foretold of explosive sales to come. 

Alas, that didn’t work out so well. 

Thing is, it wasn’t wrong to think the internet held promise. 

If anything, many prognosticators undersold the internet’s eventual meteoric rise. But the internet’s full capabilities needed more than a decade to really build out. 

In those intervening years, investors too early to the party were wiped out. Most of the names that defined the Dotcom Mania on Wall Street no longer exist. Even the winners visited hell on their way to greatness. Amazon was down more than 93% at one point, and it took nearly a decade before Amazon stock was solidly and permanently above its mania high. 

That’s precisely where we are today with AI. 

The promise of AI is going to be way more than current expectations… and current expectations are off the chart. 

But before AI’s full capabilities are realized, there will be the requisite bloodbath that always accompanies the hysteria surrounding a revolutionary technology. 

The Railway Mania of the 1840s saw speculators dive into the stocks of the then-revolutionary transport industry. The resulting flameout wiped away untold wealth… but railways went on to live up to their promise. I already touched on the internet. And then there’s the crypto market, which is just now emerging from a massive flameout that began in late 2021 and erased trillions of dollars of global wealth. 

Now, it’s AI’s turn to suffer the penitence of popularity before the real boom begins. 

We’re going to see stocks such as Nvidia, C3.ai, and others crash-and-burn. That’s when you’re going to want to be a buyer. When you see Nvidia down below $75 or so (it’s currently around $470) you’re going to want to grab a bag of those shares to stash away for the long haul. (For my full guide to investing and protecting yourself from AI, learn how you can attend my upcoming Exclusive AI Briefing here.) 

I’m not even sure the Amazon or Google of AI even exists yet. 

Only a few of the original World Wide Web names are around today—namely Amazon, Booking.com (which was then known as Priceline.com), eBay, and Shutterfly. Most of the others are now long-forgotten digital tombstones. 

Yet the internet lives on, bigger and better than ever imagined. 

That’s what we can expect from AI. It’s going to define our lives in so many new ways, just as the internet did. But before that happens, millionaires are going to be made—before seeing their newfound wealth slaughtered. 

What I’m saying is: Be patient. You’re not missing anything right now but the blood-letting to come. The big opportunity in AI is still on the horizon.