Investment manager Louis Navellier, who has accumulated quite the track record over the past four decades, is making his boldest prediction ever.
It has to do with a monumental financial event that will come crashing down on the stock market in the coming months, taking millions of investors by surprise, and sending some “AI Proliferation Stocks” soaring.
The Teaser
Forbes has called Louis a “perma bull,” but this is not a happy-go-lucky teaser. It's about a market shift that almost no one is talking about.
In his heyday, Louis produced more than 18 plays that returned gains of as much as 10,000%, and even over one 15-year period, he even outperformed the legend, Warren Buffett himself. We have previously revealed his “QaaS” Stocks and “A Phase” Stocks, here on Green Bull.
Louis quips that he's never issued a warning like this in his career because “we’ve never encountered anything like this before.”
A bold claim considering that he's been in the market for nearly half a century.
However, his proprietary system, which is based on fundamentals and institutional money flow, is signaling that we're now at the very early stages of a historic rupture in the stock market.
The Cracks in the Matrix
The dictionary definition of a rupture is a breaking apart or bursting…of the groin!?
Louis' definition is almost as painful.
A rupture in the stock market means extraordinarily large winners and losers.
Those on the right side of the fault line that's forming will have the opportunity to make more money in the next year than any other.
What Louis is seeing can be summed up in a single chart:
For every company that’s soaring, multiple others are stagnating, losing market share, or worse.
This is the “rupture” in action and it's playing out across all industries.
But why are some companies like GoDaddy suddenly surging while their competitors aren’t?
Two words: Artificial Intelligence.
GoDaddy may not be in the business of making high-end semiconductors or creating sophisticated large language models (LLMs), but it is a pioneer in applying AI to its business, which is making it more profitable.
The first winners are already starting to emerge and Louis has a dozen companies that are perfectly positioned to be on the right side of the massive market fracture ahead.
The Pitch
All the names can be found in a research report, detailing how Louis sees the next proliferation phase playing out. It’s called: 12 “Must Own” Stocks for AI’s Proliferation Boom.
This report is included in a subscription to Louis' Growth Investor research service, which netted a 44% average gain in 2023.
A subscription costs $99 per year and includes a 90-day money-back guarantee, a second special report titled 11 “Must Sell” Stocks for AI’s Proliferation Phase, and full access to Louis' eight fundamental factor Stock Grader software.
The AI Proliferation Phase
AI could contribute more than $15 Trillion to the global economy by 2030.
It's an over-touted figure with far-ranging implications.
The AI infrastructure being built out will create multiple multi-billion-dollar and a few Trillion-dollar businesses too. Just like some familiar names that were built on top of the Internet's infrastructure:
All of the businesses pictured above are worth more than $30 billion each last time I checked and three (Google, Amazon, and Meta) are worth more than $1 Trillion.
None of them helped build the Internet, but all of them applied the critical infrastructure that makes up the Internet and built phenomenal, scalable businesses on top of it.
Something similar is happening now with AI.
The upcoming AI Proliferation stage will create two kinds of companies:
- Those who apply and master AI
- Those who go out of business
However, there is one key difference between these businesses and their Internet-based predecessors.
The winners will emerge and take off much faster than they have in the past, as AI is the fastest-evolving technology in history.
This creates a ripe buying opportunity in the first category of businesses and Louis has a few recommendations.
Louis Navellier's AI Proliferation Stocks
As has become common practice with InvestorPlace teasers as of late, no clues were provided on any of the twelve stock picks.
However, through some trusty Internet sleuthing and by consulting baseless, anonymous posts, we can make some good guesses about what Louis' AI Proliferation Stocks may be.
This starts with Louis' #1 pick Nvidia Corp. (Nasdaq: NVDA).
Nvidia is a current AI titan, but its market-leading position in Graphics Processing units (GPUs) and vast R&D budget ensure that it will also play a big part in the next phase of AI.
The stock is a top holding of Louis' Navellier & Associates asset management firm and his top pick of the decade for InvestorPlace subscribers.
AI Proliferation Stock #2
AI data centers don't build and maintain themselves.
This is what mechanical and electrical construction services firm EMCOR Group Inc. (NYSE: EME) does.
AI Proliferation Stock #3
Personalized AI agents doing your grocery shopping, automated customer service, $1 hot dogs being served up by robots…
Costco Wholesale Corp. (Nasdaq: COST) is an unlikely pick, but a great example of a traditional business applying AI.
AI Proliferation Stock #4
The granddaddy of the taser, Axon Enterprise Inc. (Nasdaq: AXON) is getting an upgrade thanks to AI.
This is another example of an ordinary firm using technology to create new products, such as automated license plate recognition and data reports pulled from officers’ body camera videos.
AI Proliferation Stock #5
One of AI's most-hyped applications is medicine.
Eli Lilly & Co. (NYSE: LLY) is one of Louis' largest holdings and one of the most prominent examples of big pharma implementing AI to drug discovery, natural language generation, and process automation.
We can't say for sure that these are some of Louis' AI Proliferation Stocks, but there is a better than 50/50 chance that at least a few are.
6x’s The Return of the S&P 500?
In his teaser, Louis boasts that over the past 20 years, his “A-rated stocks” have 6x'd the returns of the S&P 500.
The stated criteria for these picks were as follows:
Perhaps the only thing I would add is returning capital to shareholders via buybacks and special dividends
How likely is this criteria to stand up and Louis' winning streak to continue?
The not-so-magic, dollar store eightball says…outlook looks good!
Truth be told, it will be harder to lose money investing, than it will be to make it over the next few years.
I say this because sweeping deregulation will create a positive macro environment and more importantly, AI has much broader applications than the Internet and we are only at the first stage.
The way to win is with fundamentally sound AI infrastructure stocks, AI pure plays, and everyday businesses applying AI, as Louis mentioned.
6x the return of the S&P may be conservative in this instance, as the potential returns from AI are much greater.
Quick Recap & Conclusion
- Investment manager Louis Navellier is teasing a monumental financial event that will befall the stock market in the coming months, taking millions of investors by surprise, while sending some “AI Proliferation Stocks” soaring.
- The “monumental financial event” is the next phase of artificial intelligence and it is creating two classes of stocks: Those who apply and master AI and those who go out of business.
- The first winners are already starting to emerge and Louis names a dozen of them in a new report called: 12 “Must Own” Stocks for AI’s Proliferation Boom. This report is included in a subscription to Louis' Growth Investor research service, which costs $99 upfront for the first year.
- Unfortunately, no clues whatsoever were forthcoming on any of these picks, as has become common InvestorPlace practice, thanks to the sheer amount of picks GreenBull has revealed over the years. However, this didn't stop us from speculating about what some of Louis' picks could be.
- AI's potential is orders of magnitude larger than what Louis states in his teaser and we're only at the first stage.
Will AI create more wealth than any previous boom in history? Let us know your thoughts in the comments.