FinTech analyst Eric Wade believes Nvidia's much-hyped and much-delayed Blackwell AI chip will mean big things for a few businesses with exposure to it.
We look to reveal Eric's three “Blackwell Chip Stocks” with ten-bagger potential for free.
The Teaser
Nvidia announced the Blackwell chip this past March and called it “the engine that will power the new industrial revolution.”
But before we get into the teaser, a word about Eric Wade.
He's the guy who sold the domain Wallstreet.com for over $1 million, took the windfall, and became an internet entrepreneur, a movie script writer, and the Founder of a family business that has been recognized locally and internationally.
We have previously reviewed the newsletter Eric edits for Stansberry Research – Crypto Capital and we have also covered his FedNow Investor Playbook Stocks presentation.
Eric's teaser must have originally gone out to his email list shortly after Nvidia announced Blackwell, not to be confused with Colin Blackwell of the Chicago Blackhawks because the rollout of the next-gen AI chip has hit a few snags.
Recent reports say Nvidia has delayed the Blackwell B200 AI chip by 3 months or more due to a design flaw found late in the production process.
Nvidia shares have taken a hit as a result, but according to Eric, that's ok.
This is because the Blackwell chip is only a launching pad for a much bigger opportunity.
A Tech Boom Catalyst
Each of Nvidia's previous chip launches have been catalysts for tech booms.
Take the original GeForce 256 chip for example.
Launched in late 1999, the Graphics Processing Unit (GPU) greatly improved the number of pixels that can be generated and it was the chip used in Microsoft's first Xbox, helping spark the $282 billion video game industry.
In 2007, CUDA was launched.
A programming interface that enables software to use GPUs for accelerated processing, it spurring the growth of video streaming.
Finally, the Tegra super chip with over one teraflop of processing power opened the door for the nearly $400 billion electric vehicle market.
This could happen again with the release of Blackwell, which could be the chip powering the AI revolution, making it Nvidia's most lucrative invention ever.
Eric has identified three companies that he believes will be the biggest winners.
The Pitch
The names and ticker symbols of all three can only be found in a report called “Our (Eric's) Favorite Ways to Play the Biotech Sector.”
The title will make more sense in a few moments, as Eric believes this is one of the sectors that will benefit the most from the computing power that the Blackwell chip is about to unleash.
The report can be ours, but only if we subscribe to the technology-focused investment newsletter Stansberry Innovations Report for $199.
This includes a 30-day money-back guarantee, a bonus report, one new stock recommendation every month, a live, up-to-date model portfolio, and more “hedge fund-quality research” on cutting-edge tech opportunities.
The Next Industry Nvidia is Transforming
By some estimates, Nvidia's Blackwell possesses 30x the processing power of previous chips.
What industry or sector could benefit the most from such a major increase in computing power?
Eric believes it's Biotech.
Everyone apparently hates the American healthcare system or at least most do, with 70% of U.S. adults surveyed saying the system has failed them in some way.
There is also the fact that among those aged 75 or older, the majority spend $400 per month or more on prescription drugs.
The Blackwell chip could change this.
How exactly will it do this?
The first commercial version of Blackwell is supposed to be so powerful and efficient, that it will cut down the time and expense it takes to develop more efficient treatments.
But this is only the beginning.
How Blackwell Is Changing Healthcare
Artificial intelligence in medicine is a major point of contention.
Case in point, Moderna using AI algorithms and process automation to get a Covid shot out to the public in weeks, instead of the months it normally would have taken if sequencing wasn't automated and if human clinical trials had taken place.
However, there are other areas, such as clinical research, where AI can shine.
Nothing can process data quicker or more efficiently than AI.
So using AI to capture and analyze preliminary data at the preclinical stage makes a lot of sense.
This is already happening, with the likes of AstraZeneca, Sanofi, and others submitting more than 1,000 patent applications for AI-designed drugs and medical devices.
All the while innovative healthcare companies such as Neko Health, founded by the creator of Spotify, offer patients full-body AI scans, which cost less than an average CT scan and can also detect diseases far sooner.
The only thing holding big pharma back from pushing the limits of AI is computational power, which Blackwell hopes to solve, and it could be a major turning point according to some experts:
If the Blackwell chip does what it's designed to do, it could give rise to businesses bigger than Amazon, with equal or even greater returns for investors.
So what businesses should we be buying into?
Eric Wade's Blackwell Chip Stocks
Eric has a few favorite biotech plays to profit from the coming Blackwell chip.
However, after an hour of listening to the man ramble in video format with no playback or forward features, we got nothing.
Zero, zilch, nada. No clues or tips of any kind.
But after some digging around the internet, we found something.
It's not much, a YouTube video review by someone claiming to know all three of Eric's picks. He has them pegged as:
- Crispr Therapeutics (Nasdaq: CRSP)
- Lonza Group AG (SWX: LONN)
- Intellia Therapeutics, Inc. (Nasdaq: NTLA)
But we should take these with a grain of salt, as I could not confirm these from any other source.
Will The Blackwell Chip Dominate The Market?
More important than the individual picks, is the premise Eric Wade based them on.
Is he right about Nvidia's Blackwell chip dominating the AI market?
I wouldn't be so quick to crown the Blackwell chip just yet. Here is why…
Nvidia may command upwards of 80% of the AI chip market at the moment, but it is this dominance that is turning some of its largest customers into competitors.
Both Google and Meta have recently announced new in-house AI chips and Amazon's AWS is also developing its own processor to compete with Nvidia.
That's some major competition that will chip away (pun intended,) at Nvidia's market share.
There is also the fact that the AI market is developing so rapidly, that no single chipmaker will be able to keep pace and serve all the specialized computing needs that will emerge.
For these reasons, I would be wary about claims of the Blackwell chip dominating the AI market and about Eric's picks.
Quick Recap & Conclusion
- FinTech analyst Eric Wade believes Nvidia's much-hyped Blackwell AI chip will dominate the market and he names three “Blackwell Chip Stocks” that are set to profit from it.
- All of these businesses follow the pattern of buying into smaller companies, waiting for them to be swept up by a larger industry trend, and profiting. In this case, it's the biotech and healthcare markets that the Blackwell chip will transform.
- The names and ticker symbols of all three stocks can only be found in a report called “Our (Eric's) Favorite Ways to Play the Biotech Sector.” This report can be ours, but only if we subscribe to the technology-focused investment newsletter Stansberry Innovations Report for $199.
- Eric fails to drop a single clue or tip in his hour-long video presentation…with no playback feature. But some online are speculating that his three picks could be Crispr Therapeutics (Nasdaq: CRSP), Lonza Group AG (SWX: LONN), and Intellia Therapeutics, Inc. (Nasdaq: NTLA) Although there is no way to be sure.
- Nevertheless, the premise that the Blackwell chip will dominate the AI market is not a foregone conclusion. Especially with some big names like Google, Amazon, and Meta entering the industry, so Eric's investment thesis may be null and void.
Will any one company dominate the AI chip market? Let us know your thoughts in the comments.