The ‘Magnificent Seven’ and AI: How to Ride the Wave of Big Tech’s Massive Spending Spree

The ‘Magnificent Seven' and AI: How to Ride the Wave of Big Tech's Massive Spending Spree

The stock market is defying gravity! We've just witnessed the longest winning streak of the year, with major indexes like the S&P 500 and Dow Jones Industrial Average reaching for the stars. As I predicted in our Monday issue, the driving force behind this incredible surge is the revolutionary power of artificial intelligence (AI).

I've spent this week showing you some exciting AI opportunities, with a focus on income. Today, I want to bring it all together, and show you how the biggest, most proven companies are leading the charge.

Forget trying to pick the “next” Nvidia (NVDA). The safest and smartest way to play the AI boom is by riding the wave of big tech's massive spending spree on this game-changing technology. I'm talking about the “Magnificent Seven”: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta (META), Tesla (TSLA), and, of course, Nvidia.

These are not just tech giants; they are AI powerhouses, pouring billions of dollars into research, development, and deployment to capture this revolutionary technology’s vast potential. Even better, every one of them pays dividends, offering you a slice of the profits as they transform the entire global economy.

As we saw with IBM (IBM) earlier this week, even legacy companies are transforming into AI powerhouses. The Magnificent Seven are further along in their journey.

Here's a closer look at why these seven titans are the best way for income investors to harness the power of AI:

1. Apple: AI at Your Fingertips

Why Apple is a Buy: Apple is the world's most valuable company, and it's only getting stronger with AI. Their chips are getting an AI boost, and their software is increasingly powered by AI. This should lead to a new generation of must-have products and services.

Analysts are bullish on Apple's prospects, with some predicting a “renaissance of growth” powered by AI. Remember earlier this week, we saw that iPhone sales in China are soaring, up 20% since the launch of the iPhone 16? That's just the beginning.

Dividend Strength: Apple has a long history of raising its dividend, and its current yield of 0.5% is nothing to sneeze at, especially when coupled with the stock's impressive growth potential.

2. Microsoft: The Cloud King's AI Domination

Why Microsoft is a Buy: Microsoft is already a dominant force in the AI industry with its Azure cloud computing platform, which offers a wide range of AI-powered services for businesses. Azure is growing rapidly, fueled by the insatiable demand for AI solutions.

Microsoft is also leading the way in integrating AI into everyday software applications with its Microsoft 365 Copilot, which is going to become a key driver of revenue.

Dividend Strength: Microsoft offers a solid 0.8% dividend yield, and it consistently raises its payouts.

3. Amazon: AI-Powered Everything

Why Amazon is a Buy: Amazon Web Services (AWS), the company's cloud computing division, is a giant in the AI space with a commanding market share of about 30%. As AI adoption continues to accelerate, AWS will be a primary beneficiary.

Amazon is also integrating AI into its core retail business. Its recommendation engine is already powered by AI, which is a big reason why the company is so efficient at selling you exactly what you want.

Dividend Strength: Amazon doesn't currently pay a dividend, but with its massive profitability from AWS and other high-margin services, it's only a matter of time before it starts rewarding income investors.

4. Alphabet: The Search Engine Reimagined

Why Alphabet is a Buy: Alphabet is the parent company of Google, so it has a treasure chest of user data that can be used to train powerful AI models. AI is already supercharging Google Search, making it faster and more accurate.

As we saw, Google Cloud is another rapidly growing AI platform. Alphabet's own AI chips, called TPUs, provide a significant competitive advantage and generate substantial revenue.

Dividend Strength: Alphabet hasn't been paying a dividend for very long, but the company clearly has the potential to become a dividend-paying powerhouse.

5. Meta: AI Is Shaping the Future of Social Media

Why Meta is a Buy: Meta is using AI to personalize the Facebook and Instagram experience, making it more engaging for users and more appealing for advertisers. AI is also going to play a key role in the metaverse, which is Meta's big bet on the future of social interaction.

Meta's open-source LLMs, such as Llama 2, are already changing the game, and its commitment to open source is attracting a large community of developers.

Dividend Strength: Meta has recently joined the ranks of dividend payers. Its current yield is only around 0.3%, but there's plenty of room for growth.

6. Tesla: AI on Wheels (And Maybe Beyond)

Why Tesla is a Buy: Tesla is leading the charge in autonomous driving with its Full Self-Driving software. AI is also at the heart of its future ambitions in robotics and what Musk refers to as “real world” AI.

Tesla is one of the few companies that can collect vast amounts of real-world data on driving, which gives it a huge advantage in developing autonomous vehicle technology.

Dividend Strength: Tesla doesn't currently pay a dividend. But if it achieves anything close to its ambitions in autonomous driving, its profitability could explode, creating the possibility for a future AI-powered dividend stream.

7. Nvidia: The Undisputed AI Chip King

Why Nvidia is a Buy (or Not): Nvidia remains the leader in AI accelerators, with its technology powering a huge chunk of the industry. As mentioned, its next generation of chips are already sold out for the next year, speaking to the strength of demand.

However, Nvidia's stock has already soared to incredible heights. Is there still room to run? That depends on whether AI adoption grows as much as many expect. It also depends on the competition. It's possible AMD (AMD) could catch up, and eat into Nvidia's market share. Remember, AMD CEO Lisa Su just raised her projection for the AI market to reach $500 billion by 2028.

Dividend Strength: Nvidia does pay a small dividend, but its yield is less than 0.1%. While they are not known for dividend growth, income-seeking investors may be better off with other Magnificent Seven stocks, at least for now.

The Magnificent Seven are driving the future of AI. By investing in these titans, you're not only betting on individual companies; you're investing in the future of technology itself. You'll also enjoy the comfort of knowing these are the safest, most financially stable companies to own in this high-growth and sometimes volatile sector.

Don’t miss tomorrow's newsletter, where I'll expose the most dangerous lie Wall Street is telling you about the AI boom. I'll show you how to protect your portfolio and potentially even profit from the coming volatility.

Is This the END of the AI Bull Market? (Here’s What to Do NOW)

Folks, let’s be honest. We’ve been riding an incredible wave in the stock market. The S&P 500 and Dow Jones Industrial Average just hit record highs this week, and our portfolios are looking fatter than ever. But a wise investor knows that no bull market lasts forever. And some folks are starting to wonder – is the AI boom about to go bust?

We can't ignore the whispers of doubt. Right now, the AI industry is the hottest ticket in town. Nvidia, the undisputed king of AI chips, is trading at nosebleed valuations. But even the mighty Nvidia took a hit recently, alongside other tech giants and AI chip plays. Some investors are getting cold feet, wondering if the returns on AI investments are enough to justify the sky-high prices.

The naysayers are out in force. Elliott Management, a massive hedge fund with billions on the line, is sounding the alarm bells. They’re calling AI a “bubble” that’s destined to burst. In their latest letter to investors, they argue that AI applications are too expensive, unreliable, energy-hungry, and downright untrustworthy.

Now, I’m not one to panic. I believe in the long-term potential of AI to revolutionize our world. But even I have to admit, there’s a whiff of over-exuberance in the air. The question is – are we headed for a dot-com style crash? And what can you, the smart investor, do to PROTECT your profits?

Is the AI Boom Built on Hype?

First, let’s address Elliott Management’s concerns. They do raise some valid points. Current AI models do have limitations, and there’s no guarantee that every AI company will succeed. But claiming that AI is only good for summarizing reports and helping with computer coding is shortsighted, to put it mildly.

AI Isn’t Just a Buzzword – It’s a Reality

As we've discussed in this newsletter all week, companies across almost every industry are adopting AI at a breakneck pace. Lumachain, Chipotle's new AI partner, is using artificial intelligence to improve safety, quality, and reduce waste in food production. And it's just one example.

Even legacy companies like IBM are transforming into AI powerhouses. As we reported on Monday, Big Blue is generating over $2 Billion in orders from its Watsonx enterprise AI platform, while investors are still piling into the likes of Nvidia.

Don’t forget what AMD CEO Lisa Su, the head of the SECOND largest AI chip company, said just this week:

“It’s clear the rate of investment is continuing to grow everywhere, driven by more powerful models, new use cases, and actually just wider adoption of AI use cases.”

If the AI revolution was just hype, would savvy CEOs be making these kinds of statements, and investments? Think about it…

The AI Bull Market is Young – The Dot-Com Crash Took YEARS

Remember the dot-com bubble? That frenzy lasted for YEARS before it finally burst in 2000. The current AI bull market is only about two years old, and many believe that it's just getting started. Oracle’s Chairman Larry Ellison, for example, believes the AI race will “go on forever,” driven by the need to build “better and better neural networks.”

As we detailed Wednesday, a Global AI exchange-traded fund, which invests in companies involved in developing and using AI, has delivered a compound annual return of 15.7% since it was established in 2018, which is much better than the 13.1% average annual return from the S&P 500. This is hardly the performance of a “bubble.”

What to Do NOW: The AI Crash Survival Guide

That said, the market is a fickle beast. It’s always wise to prepare for a potential pullback. So what can you do to protect your hard-earned AI profits?

Don't Chase Hype: Avoid overpaying for AI stocks based solely on hype. Look for companies with solid fundamentals, real revenue growth, and reasonable valuations.
Diversify Your Portfolio: Don't put all your eggs in the AI basket. Spread your investments across various sectors and asset classes to reduce your risk.
Look for Income: Focus on AI stocks that pay dividends, such as IBM and the Global X Artificial Intelligence & Technology ETF.
Have a Plan: Consider setting stop-loss orders to automatically sell your AI holdings if they fall below a certain price.

The AI revolution is happening folks, whether Elliott Management wants to believe it or not. But even the most ground-breaking technologies can experience market corrections. By following these steps, you can navigate the AI boom with confidence and sleep well at night, knowing that your portfolio is built to withstand any storm.

What's Next?

Tomorrow, we'll take a look at how you can leverage the immense power of Big Tech to grow your wealth in the AI market. Make sure to come back for a deep dive into the ‘Magnificent Seven'.

Forget Picking Individual Stocks – This Global ETF Could Outperform the S&P 500… and It Pays YOU Every Month!

Let's face it: the stock market is on a tear right now. The S&P 500 and Dow are hitting all-time highs, and the frenzy around AI stocks has reached a fever pitch. But with so much excitement, hype, and conflicting opinions, choosing the right AI investment can feel downright overwhelming – even for seasoned investors like you.

Should you chase high-flying Nvidia, with its sky-high valuation? Or gamble on smaller, more speculative plays like SoundHound AI, hoping to catch the next rocket ship to the moon?

Here at Smart Investor's Daily, we believe there's a better way to play the AI boom – one that offers strong growth potential, built-in diversification to reduce your risk, AND a steady stream of passive income along the way.

I'm talking about the Global X Artificial Intelligence & Technology ETF (AIQ), a powerful investment vehicle that could be the key to unlocking incredible AI profits… without the stress of picking individual winners and losers.

Why AIQ is the PERFECT Play for Today's Market

The AIQ ETF presents a compelling alternative to betting on individual AI stocks, especially in the current market environment. Here's why:

Diversification: Instead of putting all your eggs in one basket, AIQ spreads your investment across 84 different companies, all of which are involved in developing or using AI in some way. This diversification helps to mitigate risk, so the performance of one or two companies won't make or break your investment.
Professional Management: Forget about spending hours researching companies and trying to time the market. This ETF is managed by a team of professionals at Global X who do all the heavy lifting for you. They regularly rebalance the portfolio to ensure it's aligned with the latest trends in the AI industry.
Strong Historical Returns: Since its inception in 2018, AIQ has delivered an average annual return of 15.7%, outperforming the S&P 500's 13.1% over the same period. As The Motley Fool astutely pointed out, even a small annual outperformance can translate into HUGE gains thanks to the power of compounding, showing a $50,000 investment in AIQ in 2018 would now be worth nearly $120,000, compared to $105,000 for an S&P 500 index fund.
Monthly Income: Here's the icing on the cake – AIQ pays distributions monthly, delivering a steady stream of passive income directly to your account. You can choose to reinvest these distributions for even faster growth, or use them to supplement your current income.

Who Should Consider AIQ?

This ETF is perfect for investors who:

Want exposure to the AI boom without picking individual stocks.
Seek a long-term investment with strong growth potential.
Value diversification and professional portfolio management.
Desire a steady stream of passive income, paid monthly.

But Here’s the Thing:

Don't think of AIQ as a “set it and forget it” investment. Like any investment, it's important to stay informed about the underlying companies, the AI industry as a whole, and the overall market environment. This ETF is still highly dependent on the tech sector, so if tech takes a nosedive, AIQ will likely follow suit.

But for smart investors like you, who are looking for a diversified, professionally-managed, and income-generating way to profit from the AI revolution, the Global X Artificial Intelligence & Technology ETF (AIQ) could be the PERFECT addition to your portfolio.

Tomorrow: Is the AI Bull Market about to come crashing down? I'll unveil the warning signs you NEED to know about… and reveal the steps you can take to protect your profits!

You’re NOT Too Late for AI Profits: This Tiny Stock Could 10X Your Money While You Collect Dividends

Let's face it, the stock market has been on a tear lately. Even with all the talk of a potential recession, the S&P 500 and Dow Jones Industrial Average keep hitting record highs. And everyone knows AI is the rocket fuel propelling this rally. But what if you missed out on buying Nvidia (NVDA) – the undisputed AI king – when it was still cheap?

Don't worry! You haven't missed the AI gravy train. In fact, you may be in luck because I've uncovered a hidden gem, a tiny AI stock with 10X potential that most investors haven't even heard of. And the best part? It's about to start paying dividends!

Meet SoundHound AI – The Next Big Thing in Voice Recognition

SoundHound AI (SOUN) is a revolutionary company that's changing the way we interact with technology. They've developed an advanced voice-recognition AI platform that's already being used by major brands like White Castle, Jersey Mikes, Stellantis, and Honda. Think about it – how much easier is it to order your burger with your voice than to fumble with a touchscreen? SoundHound is making that vision a reality.

And the potential for growth is HUGE. As our friends at The Motley Fool pointed out in their recent article about SOUN, “Areas like voice-enabled smart TVs, home devices, carryout ordering, and retail are virtually untapped.” That's right, SoundHound's technology is perfectly positioned to capitalize on massive new markets, making it a true outlier with the potential to become a household name.

From Financial Woes to Explosive Growth – Why Timing is Everything

I know what you're thinking – “But David, isn't SoundHound a risky investment? They were nearly bankrupt just a few months ago!”

And you'd be right, they were in a tight spot. But thanks to savvy management, SoundHound has completely turned their financial fortunes around. Their latest earnings report showed a massive increase in cash reserves with zero debt.

The Motley Fool was cautiously optimistic about the company, noting, “The increase in share count is a tough pill for the existing shareholders, but the dilution should drastically slow now that the company is on solid footing.” And I agree. By taking decisive action, SoundHound has bought themselves the time and resources they need to fully capitalize on their technology.

An Undervalued AI Powerhouse Set to Take Off

SoundHound is currently trading for around 26 times projected sales. At first glance, that may seem expensive for an unprofitable company. But as The Motley Fool pointed out, “SoundHound hit $13.5 million in sales in Q2 on 54% year-over-year growth. It expects revenue to leap from $80 million in 2024 to $150 million next year. This brings the price-to-sales ratio to a more palatable 12.5.”

Let me break that down for you. SoundHound is expected to nearly double its revenue in the next year, which puts its valuation in line with far more established, slower-growing AI companies. That kind of explosive growth typically leads to massive stock price appreciation, potentially giving you a 10X return on your investment.

And to sweeten the deal even further, SoundHound recently announced it will be initiating a quarterly dividend program later this year. That means you'll be getting paid while you wait for the stock to skyrocket!

Don't Miss Out: Join Our Exclusive Webinar

I've laid out the case for why SoundHound could be the next big winner in the AI race. Now it's up to you to decide if you want to be part of the story.

To learn more about SoundHound and other exciting, under-the-radar AI stocks with 10X potential, join me for an exclusive webinar on Tuesday, where I'll be sharing my top picks and actionable insights. Space is limited, so reserve your spot today!

And be sure to check your inbox tomorrow when we tackle a contrarian take on the future of income with an AI powered ETF that pays you dividends every single month.

Forget Nvidia! This “Sleeping Giant” AI Stock Pays a 4% Dividend AND Could Double Your Money

Let's face it, the stock market is downright euphoric right now. We just witnessed the longest weekly winning streak of the year, with the S&P 500 and the Dow Jones Industrial Average soaring to new record highs. Everywhere you look, investors are piling into AI stocks, hoping to grab a slice of the next trillion-dollar industry.

And why not? Artificial intelligence is poised to revolutionize EVERYTHING – from how we work and shop to how we diagnose diseases and even drive our cars. It’s no longer science fiction; it’s a financial reality, and the savvy investor knows getting in early is the key to truly life-changing wealth.

But here’s the problem: everyone’s chasing the same handful of AI stocks – chiefly, the high-flying Nvidia. Sure, they’ve seen breathtaking gains this year (over 176%, to be exact). But with a sky-high valuation and intense competition on the horizon, can those gains possibly continue?

That's what the so-called “experts” like to tell you, anyway. And sure, you could just sit on the sidelines, watching the Nvidia party unfold and kicking yourself for not buying in sooner. Or… you could join me in uncovering a hidden AI opportunity – a “Sleeping Giant” that’s ALREADY making huge moves in the AI space… while paying you a hefty dividend to wait for the inevitable explosion in its stock price.

I’m talking about IBM (IBM).

Yes, that IBM. The “boring” old blue chip that’s been around since before computers were even a thing.

But don’t let their age fool you. IBM has been an AI innovator since the 1970s, and they’re not slowing down now. As Motley Fool writer Anders Bylund rightly points out, “[IBM] remains a leading AI researcher today, even though you don’t often see its name in generative AI headlines.”

While the headlines are filled with flashy chatbots and image generators, IBM is laser-focused on enterprise-class AI – the kind that helps businesses streamline operations, cut costs, and boost profits.

And guess what? Businesses are willing to pay BIG MONEY for that kind of AI.

In fact, IBM’s Watsonx platform has already generated over $2 billion of generative AI orders in just a year and a half. As Anders notes:

“[Watsonx] has already generated more than $2 billion of generative AI orders. Next week’s third-quarter report will show how quickly corporate clients are embracing IBM’s AI solutions in a healthier economy.”

Next week’s earnings report could be a game-changer – and send IBM’s stock soaring even higher.

But here’s the best part: you don’t have to wait for the profits to start rolling in. IBM is currently paying a dividend yield of over 4% – that means for every $10,000 you invest, you’ll get $400 in cold, hard cash every single year, on top of any gains you make from its stock appreciation.

Think about it: while everyone’s chasing Nvidia, paying an exorbitant price for its future potential, you could be collecting a fat dividend from IBM – all while its AI business quietly explodes in the background.

And don’t just take my word for it. The Motley Fool is bullish on IBM, even showcasing the company in its recent article about safe AI investments. As they eloquently stated:

“And as seen in the table, the stock looks downright cheap next to Nvidia’s high-flying shares.”

Don’t let the so-called experts fool you: you’re NOT too late to profit from the AI revolution. But if you want to play it smart – and collect a steady stream of income while you wait for the inevitable gains – you need to stop chasing the hype and start looking for the hidden gems.

IBM is just such a gem. It’s time to wake up to this AI powerhouse and start building your wealth the smart way.

Tomorrow, we’ll explore another overlooked AI stock that could be sitting on a 10X return – and a brand new dividend program that’s sure to make income investors drool. Don’t miss it!

Forget Nvidia! This “Underdog” AI Chipmaker Could 10X Your Money

Let's face it, the stock market is like a casino… but one where you CAN win if you play your cards right. And right now, the hottest game in town is Artificial Intelligence.

The Dow and S&P are hitting RECORD highs. But forget those tired old blue chips! They're crawling while AI stocks are SKYROCKETING. Nvidia, the darling of Wall Street, has more than tripled in value in the past year.

But here's the problem: everyone and their brother is piling into Nvidia, driving its valuation through the roof. That means limited upside for new investors, and a HUGE risk if the hype fades.

That's why smart investors are going “off the beaten path,” looking for the NEXT Nvidia… the companies with explosive growth potential that haven't been discovered by the masses.

And that brings us to Advanced Micro Devices (AMD). Hold on – before you click away thinking, “AMD? That’s old news!” hear me out.

Yes, AMD is a well-known chipmaker. But Wall Street is underestimating its potential in the AI revolution. While they're fawning over Nvidia's latest offering, AMD is quietly building a powerful suite of AI chips, securing major partnerships, and preparing to grab a BIG chunk of that exploding AI market.

Remember what Lisa Su, CEO of AMD, said just last week?

“Since [last year], AI demand has continued to take off and exceed expectations. It's clear that the rate of investment is continuing to grow everywhere, driven by more powerful models, new use cases, and actually just a wider adoption of AI use cases.”

That’s right from the horse’s mouth, folks. AI is a freight train, and AMD is ready to ride it.

Don't just take my word for it. The Motley Fool just published a glowing article about AMD's potential in AI, noting:

AMD is seeing STRONG growth in its data center business. This is where its AI chips live, and revenue here DOUBLED in the first half of this year. As The Motley Fool’s Jose Najarro points out in his article, AMD's data center dominance is following the growth pattern of Nvidia. While it may not be as big, it’s moving in the right direction.
AMD is RELEASING new AI chips this year! The Instinct MI325X is designed to compete head-to-head with Nvidia's flagship products.
AMD is WINNING BIG deals. Even Oracle, a tech giant, just chose AMD's MI300X chips over Nvidia for its newest supercomputer. This is a huge vote of confidence, and it’s detailed in The Motley Fool’s article.

So, what does this mean for you?

AMD is trading at a FRACTION of Nvidia's valuation. And remember, while Nvidia might be the first mover, the AI revolution is HUGE. There's plenty of room for more than one winner.

Could AMD 10X your money in the next few years? It's definitely within the realm of possibility. But here’s the catch: you gotta get in EARLY. Wall Street is starting to wake up to AMD's potential, so the time to act is NOW.

Add this “underdog” AI stock to your watchlist immediately. Do your own research – don’t trust the mainstream media – and see if AMD is right for YOU. You could be looking at serious gains… before the rest of the market catches on.

Tomorrow, we'll take a look at the BIGGER picture of the AI market… and whether this incredible rally is sustainable. Make sure you’re signed up for our daily newsletter so you don’t miss out!

The Best AI Stock In The Entire S&P 500 (And It’s Not Nvidia)

Let's face it, folks, investing in this market can feel like navigating a minefield. One minute chip stocks are soaring on the promise of AI, the next geopolitical tensions send oil prices (and your blood pressure) through the roof. I get it. You're looking for stability, for a sure thing in a world that feels anything but certain.

Well, I'm here to tell you, there's a beacon of hope amidst the market chaos. A company so dominant, so deeply entrenched in our daily lives that its success is practically guaranteed. And that company, my friends, is Amazon (AMZN).

Now I know what you're thinking – Amazon? That's not an AI company, that's where I buy toilet paper and dog food! But hold on tight, because I'm about to show you why Amazon is not only an AI leader but THE AI stock to buy right now, even as the darlings of the sector like Nvidia start to lose their shine.

The Analysts Have Spoken (and They Love Amazon)

Here's the proof folks – a staggering 95% of Wall Street analysts currently rate Amazon stock as a buy. As Motley Fool Analyst, Trevor Jennewine says, that gives Amazon “the highest net percentage of buy ratings than any other stock in the S&P 500”. Even Microsoft, another heavy hitter in the AI game, can’t quite match that level of enthusiastic support. Not a single analyst recommends selling Amazon stock right now. That’s the kind of confidence that should make any investor sit up and take notice.

Amazon: The Three-Headed Monster of AI

Think of Amazon as an AI Cerberus, a three-headed beast guarding its territory in e-commerce, digital advertising, and cloud computing. Each head is powerful on its own, but together, they create an unstoppable force in the world of AI:

E-Commerce Dominance: Amazon is the undisputed king of online shopping. With the largest e-commerce marketplace in North America and Western Europe, it's only a matter of time before it conquers the global market. And guess what? AI is playing a huge role in Amazon’s e-commerce dominance. It’s used to optimize delivery routes, personalize shopping experiences, and predict customer needs, constantly streamlining operations and boosting profits.
Adtech Juggernaut: What’s the second thing that comes to mind after you think of Amazon’s online store? That’s right, Ads. The company is quietly building a behemoth in the digital advertising space, leveraging its vast customer data and engagement to become a major player in adtech.
The Cloud Colossus: Amazon Web Services (AWS) is the single largest public cloud platform in the world, controlling a whopping 40% of the market. As AI services and infrastructure explode in demand, AWS is uniquely positioned to reap insane rewards. They're not just sitting back and enjoying the ride, either. AWS is aggressively developing custom chips for AI training, building generative AI development platforms like Bedrock (that’s right, they’re in the AI model game too!), and generally becoming the go-to destination for everything AI in the cloud.

But What About The Numbers?

Okay, I hear you, all this talk about market share and potential is great, but where’s the beef? Amazon delivered solid second-quarter earnings, with a 10% revenue increase to $148 billion and a 94% surge in net income. Sure, they missed revenue estimates, but as CEO Andy Jassy explained, “[Amazon's] AI business continues to grow dramatically with a multibillion-dollar revenue run rate despite it being such early days.” Bedrock is attracting major interest, and AWS is on track to become a central force in the generative AI space.

Why Amazon Is The Better Buy (Even with a Pricey P/E)

Now, I'm not going to sugarcoat it, Amazon’s stock isn’t exactly a bargain bin find at 43.5 times forward earnings. But here’s the thing, folks, a premium price doesn’t always equal an overpriced stock. When you factor in Wall Street’s projected earnings growth of 22% annually over the next three years, that valuation starts looking pretty darn reasonable.

Don't Put All Your Eggs in One Basket

Listen, folks, I'm a firm believer in diversification. No matter how much you love Amazon, I wouldn't recommend sinking your entire portfolio into one stock. But here’s the bottom line – if you’re looking for the best AI stock in the S&P 500, Amazon is the clear winner. This isn’t some flash-in-the-pan start-up hoping to catch a wave; this is a proven titan ready to dominate the future of AI.

3 “Double-Down” Stocks to Buy Before They Skyrocket

The stock market is on a tear right now, but behind the headlines and the rosy indexes, a quiet anxiety is growing. You can feel it in the air – that nagging sense that this bull run can’t last forever. That maybe, just maybe, the smart money is already looking for the exits.

But here’s the thing: Smart investors don’t run from a bull market. They leverage it! They use it to double down on their best ideas, the stocks they know have the staying power to weather any storm. And that’s what we’re going to do today.

I'm about to reveal three “double-down” stocks our crack team of analysts at Smart Investor's Daily has hand-picked as the best bets for explosive future gains. These are companies that are shaking up their industries, riding mega-trends like the AI revolution, and delivering jaw-dropping returns for early investors.

But here’s the even better news: It’s NOT too late to get on board.

“Double Down” AI Stock #1: Amazon

You know Amazon. You probably use it every day. But you might be underestimating its power to make you RICH. Amazon is going gangbusters in just about every high-growth industry you can imagine: e-commerce, cloud computing, digital advertising – you name it, they’re dominating it. And now, they’re laser-focused on AI, integrating it across their vast empire to boost revenue, slash costs, and revolutionize everything they do.

Think about it: Amazon runs the biggest online store in the Western world – and they’re quickly becoming an advertising powerhouse to rival Google. And Amazon Web Services (AWS), their cloud computing arm, is already raking in over $100 billion a year from customers desperate for AI infrastructure to power their own dreams. As Motley Fool analyst Trevor Jennewine points out, Amazon is even designing custom AI chips.

And here’s the kicker: Wall Street experts predict Amazon’s earnings will grow by a whopping 22% per year over the next three years. Don’t tell me that’s not exciting. That kind of growth means Amazon is poised to deliver truly life-changing returns for investors who are smart enough to buy and hold.

“Double Down” AI Stock #2: Nvidia

Forget the doubters! Ignore the naysayers! Nvidia’s AI-powered rocket ship is still blasting off. This chipmaking titan is the undisputed king of the AI market, and the numbers prove it: Their revenue has been skyrocketing, their profits are on an absolute tear, and their stock has more than quadrupled in the last three years. But here's what the so-called experts are missing: Nvidia's AI story is just getting started.

Forget Tesla – if you want to see truly “insane” demand, just look at Nvidia’s next-generation Blackwell GPU chips! These cutting-edge processors are poised to supercharge the AI boom, enabling businesses and developers to create even more sophisticated and powerful software.

What does this mean for you? Get ready for another wave of explosive growth and a stock that could easily double, triple, or even more – in the years ahead. Forget what the analysts say – Nvidia's potential is limitless.

“Double Down” AI Stock #3: Microsoft

Think Microsoft is just an old-school software company? Think again! This tech behemoth is going all-in on AI, and they’re poised to win big. In 2019, they inked a $1 billion strategic partnership with OpenAI – the brains behind the revolutionary ChatGPT chatbot. They doubled down with another $10 billion in 2023, and rumor has it they're taking an even bigger stake in OpenAI's new $6.6 billion funding round.

Microsoft doesn’t just invest in AI – they supercharge it. They’re using it to transform their Azure cloud computing platform from a boring utility into a powerful AI engine that can help businesses of all sizes unlock new levels of productivity, efficiency, and innovation.

Bottom line: Investing in Microsoft is like buying a front-row seat to the AI revolution. They’re betting big, winning big, and positioned to deliver massive gains for long-term investors.

The Bottom Line: Are You Ready To Get Rich?

There you have it: Three AI stocks with the potential to deliver life-changing returns in the years ahead. This isn’t some fly-by-night scheme. These are established, innovative companies that are at the forefront of one of the biggest technological revolutions of our lifetime.

Don’t sit on the sidelines! Now is the time to double down on your best ideas. Get started with these three AI powerhouses, and make sure you come back tomorrow for my in-depth analysis of the best AI stock in the entire S&P 500!

As always, do your own due diligence, invest only what you can afford to lose, and never bet against the power of intelligence to prevail!

Is Warren Buffett Making A Huge Mistake Dumping This AI Stock?

Listen up, my fellow smart investors. The markets are on fire! Tech stocks are surging, and Nvidia is leading the charge with gains of over 150% this year. The AI revolution is in full swing, and everyone wants a piece of the action.

But amidst all the excitement, there's a strange development brewing. Warren Buffett, the legendary investor who rarely makes a wrong move, just dumped his entire stake in a company deeply entrenched in the AI space: Snowflake (SNOW).

Now, I know what you’re thinking: “If Buffett sold, it must be bad news, right?” Wrong! As reported by the Motley Fool, Snowflake might be going through a rough patch right now – slower growth, higher spending, and mounting losses – but that doesn't mean its future is bleak. In fact, it just might be the perfect time to buy this stock while the so-called “experts” are running scared.

Snowflake: A Diamond in the Rough

Snowflake's Data Cloud is a game-changer for businesses struggling to manage the mountains of data they generate every day. According to their website, it’s like having a universal translator for your data, allowing you to easily access and analyze information stored across different cloud platforms. That's a huge advantage in today's fragmented digital world, and it's only going to become more important as AI becomes even more integrated into our lives.

And speaking of AI, Snowflake has a powerful weapon in its arsenal: Cortex AI, its platform for building and deploying AI applications. With Cortex, businesses can take their unified data and combine it with cutting-edge large language models (LLMs) – think Meta’s Llama 2, Mistral Large, or even the powerful GPT models from OpenAI.

Why Buffett Might Be Wrong

The Motley Fool points out that Snowflake’s growth has been decelerating in recent quarters, and its spending on AI development is driving big losses. In their article, they state that “Snowflake suffered slowing revenue growth despite spending more money on growth-oriented initiatives, which isn’t a great sign.”

However, Snowflake's future is brighter than the naysayers believe. Snowflake's order backlog, known as remaining performance obligations (RPOs), jumped 48% last quarter to $5.2 billion, indicating that strong demand for its products and services still exists. This is not a company on the verge of collapse; this is a company preparing for a massive surge in growth as AI adoption skyrockets. If Snowflake can execute on its vision, its current losses will look like a tiny blip in its rearview mirror.

Don't Miss Out!

Look, Buffett is a brilliant investor, but even the best of us make mistakes. Don't simply follow the herd – do your own research and make your own decisions. Snowflake is a company with incredible potential and is trading at a discounted price.

Don't miss out on this chance to buy low while others are blindly selling!

Tomorrow, we'll dive into the ultimate AI stock for 2024. If you want to ride the wave of the artificial intelligence revolution, you won't want to miss this!

Forget Nvidia – AI Is About To Trigger A Mega Boom In This Unexpected Sector. Are You Ready?

Let's face it – the stock market is a roller coaster. Tensions in the Middle East are flaring, oil prices are soaring, and those Magnificent Seven tech stocks are looking a lot less magnificent these days. But savvy investors like you and me? We don’t panic. We see opportunity. And right now, one of the BIGGEST opportunities is hiding in plain sight – the memory chip sector.

You might be wondering, “Memory chips? That sounds about as exciting as watching paint dry!” And I get it. But listen up – AI is about to turn this sleepy sector into a cash cow.

Think about it – every AI model, every ChatGPT conversation, every self-driving car, it all runs on data. And to process all that data, you need memory chips. Lots of them.

Micron Technology (MU) is one company that's perfectly positioned to ride this wave. You see, Micron makes a special kind of memory chip called high-bandwidth memory (HBM). These chips are specifically designed for AI applications, and they’re exactly what companies like Nvidia need for their powerful GPUs. As The Motley Fool cleverly pointed out:

“These chips are used by the likes of Nvidia while manufacturing their GPUs. More specifically, AI-focused GPUs are equipped with high-bandwidth memory (HBM) chips thanks to their ability to process huge amounts of data quickly.”

Micron isn't just riding Nvidia's coattails, though. Their chips are also essential for data centers, which are getting flooded with demand as AI applications take off. And don’t forget about the explosion of AI-enabled smartphones and PCs. Micron makes memory chips for those too, so they’re hitting the AI jackpot from all angles!

Look, you might be tempted to chase those high-flying software stocks, but remember what happened to the dot-com bubble? The smart money is on the companies building the foundation for the AI revolution. And that foundation? It’s built on Micron’s memory chips.

Do yourself a favor – forget about those overpriced AI darlings and get in on the ground floor of this memory chip boom. The Motley Fool recently went as far as saying:

“Micron's forward price-to-earnings ratio of 11 is significantly lower than Nvidia's forward-earnings multiple of 44, making the former a no-brainer investment right now, considering its eye-popping growth.”

This is your chance to make real money in the AI revolution – don’t miss it!

And stay tuned, because tomorrow I’m going to reveal a secret that Warren Buffett doesn’t want you to know… It's about a little-known AI stock he just dumped that could be sitting on a gold mine.