As an experiment, Ian King asked a powerful, new, next-generation AI system how many jobs artificial intelligence will replace by 2050. Its answer was up to 800 million, which is nearly one in three workers.
But it’s not just millions of jobs that AI will disrupt, entire industries will be disrupted or wiped out, and Ian has three AI Stocks to buy before June 30 that will be the biggest winners.
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The Teaser
Like every other world-changing innovation before it, AI will create both winners and losers.
Ian King is Banyan Hill's Chief Investment Strategist and a former hedge fund manager specializing in options. I have reviewed some of Ian's past picks here on Greenbull, including his “AI Energy” Pitch and “America’s New Chip-Making Boom” Stocks.
On one hand, AIÂ will wreak havoc on millions of unprepared Americans.
On the other, it will also create an entirely new generation of millionaires…for those who are prepared.
The AI Megatrend
AI isn’t just a trend, it’s a MEGA trend.
A technology that will radically change our lives just like electricity, the combustion engine, personal computers, and the internet did.
Last year Forbes even said, “We are at the dawn of the AI-driven industrial revolution.”
True megatrends have the power to make or break a person’s future on a scale that no other market force can.
For example, just look at the combustion engine.
It was a megatrend that devastated some while turning others into millionaires.
Have you ever heard of the Moline Plow Company?
If you're like me, the likely answer is no. But you have probably heard of John Deere.
Both businesses started out making horse-drawn plows. Then along came the combustion engine.
Moline Plow Company failed to adapt and went out of business.
Meanwhile, John Deere saw what was coming, adapted, and today it is the largest farm machinery manufacturer on the planet.
Deere & Co.'s shareholders have done alright.
However, it’s just one of many examples of the good and bad side of global disruption.Â
The same thing happened with the personal computer and Internet mega trends and is happening again now with AI.
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The Pitch
Ian has found three opportunities to help put us on the winning side of AI and he's placed his findings in three reports that make up the core of his AI Tipping-Point Investor’s Playbook.
The entire playbook is ours if we subscribe to Banyan Hill's Strategic Fortunes newsletter, which normally costs $199 for a one-year membership.
However, for a limited time, we can get in for only $49 and a 365-day money-back guarantee to boot. This offer also includes unlimited access to the Strategic Fortunes member’s website, a strategic model portfolio that adds at least one stock per month, and four other bonus special reports.
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The Four Factors of Every Mega-Trend Stock
For every person who invested in Deere, Apple, or Amazon stock, many more made the mistake of investing in competitors like the Moline Plow Company, Gateway Computers, and Pets.com.
This is why Ian personally vets each stock he and his team recommend against four must-have criteria:
1. Be at the tipping point of a megatrend
By megatrend, Ian means something that will impact nearly all industries like the PC, the internet, and now, AI.
2. Has an X-factor
This is a big, unique edge that no other company has, or in other words, a defendable competitive advantage.
3. Momentum is on its side
A stock that is trading well above the 20 and 50-day moving average.
Although counter-intuitive to us value-minded folk, this gives Ian a clear signal the stock has momentum behind it and should continue to move higher.
4. It is beating the street
If its earnings consistently surpass Wall Street’s estimates, this tells us that Wall Street is underestimating the company’s growth potential.
All three of Ian's picks possess these four factors, which is why they are at the very top of his AI investment list. Let's find out what they are.
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Revealing Ian King's AI Stocks
First up is something centered around a type of tech Ian calls AI Boosters and it is hyped as…
The Ultimate AI Stock
- This company has invented a device that takes data processing to an entirely new level called “Extreme Performance Yield Computing.”
- It has an 11,000-strong patent pipeline.
- The Lawrence Livermore National Laboratory has partnered with it to build one of the most powerful computers on the planet, an exascale supercomputer called El Capitan.
Ian is talking about Hewlett-Packard Enterprise Company (NYSE: HPE).
- HPE is committed to bringing high-performance computing solutions into the mainstream.
- The company's worldwide patent portfolio included approximately 11,000 patents a few years ago and maybe more now.
- El Capitan is Hewlett Packard Enterprise's upcoming exascale supercomputer, hosted at the Lawrence Livermore National Laboratory, which is set to debut by June 30th.
The Next AI Giant
- This company’s massive cloud-computing network is about to play a central role in the AI megatrend.
- It recently announced a $4 billion partnership with one of the world’s leading AI developers.
The stock being teased here is Amazon.com Inc. (Nasdaq: AMZN).
- Amazon's AWS is the largest cloud service provider globally.
- The $4 billion partnership refers to Amazon's recent investment in Anthropic, which is hoping to compete with OpenAI.
AI Fuel: A $602 Billion Opportunity
- This company owns and operates over 300 cutting-edge data centers worldwide.
- Just about every leading AI company on the planet has signed deals with them, from Microsoft to Google, Oracle, and many more.
The pick here is Digital Realty Trust Inc. (NYSE: DLR). The clues were laid out perfectly like your outfit on the first day of school.
- DLR owns more than 300 data center facilities in 50 metro areas, across 27 countries, on six continents.
- Oracle is Digital Realty's largest named client, with Meta, IBM, and other Fortune 100 companies also part of its client roster.
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A Winning Playbook?
“Price is what you pay, value is what you get.”
This is Warren Buffett's warning about business valuations.
It conveys in just a few words that even a good business is not a good investment at any price.
This is highly relevant because all of Ian's picks are large or mega-caps with high price/earnings ratios, except for one.
The exception is Hewlett-Packard Enterprise Company, with a P/E of only 11x trailing earnings.
At such a low absolute valuation along with a 3% annual dividend plus any share repurchases, even a below-average growth rate should net shareholders a decent return over the long term. Anything above average and the return will be good to great.
As for the other two picks – Amazon and Digital Realty, I don't disagree with the premise that they will continue to log above-average growth. It's just a question of how much to pay for such growth without getting carried away. At P/E's of over 60x and 40x, respectively, we're close to that threshold.
However, if you already own one or more of these names, hold on to them, because it's going to be a fun and profitable ride.
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Quick Recap & Conclusion
- Ian King says Artificial Intelligence will not just cost millions their jobs, but it will also wipe out or disrupt entire industries, and he has three AI Stocks to buy that will be the biggest winners amidst the destruction.
- AI is a megatrend and as has been the case with every megatrend throughout modern history, it will devastate some while turning others into millionaires.
- Ian has found three opportunities to help put us on the winning side of AI and he's placed his findings in three reports that make up the core of his AI Tipping-Point Investor’s Playbook. This playbook is ours with a $49 subscription to Banyan Hill's Strategic Fortunes newsletter.
- Fortunately, you don't have to wait to get this, because we were able to reveal the three stock picks inside Ian's playbook for free. They are Hewlett-Packard Enterprise Company (NYSE: HPE), Amazon.com Inc. (Nasdaq: AMZN), and Digital Realty Trust Inc. (NYSE: DLR).
- All three are good to great businesses with above-average growth prospects. Of the bunch, HPE presents the most compelling opportunity from a valuation/growth standpoint, if it can execute its high-performance computing plans.
Which of Ian's three stock picks do you believe will be the best long-term performer? Let us know in the comments.
Thanks for the reveal. Very helpful.
What is Keith Kohl’s Sunnyvale, CA chip maker?
Hi DJ, we already reviewed and revealed this one here: https://greenbullresearch.com/keith-kohls-nvidia-killer-company/