Editor’s Note: Before we dive into today’s Market 360, I wanted to remind you that the markets will be closed on Monday, January 15, for the Martin Luther King Jr. holiday. Likewise, the InvestorPlace offices and customer service department will be closed. Enjoy the long holiday!
Since ChatGPT’s public debut in late 2022, as far as consumers are concerned, artificial intelligence has been all about software. For most of us, AI means getting our hands on chatbots like ChatGPT and generative AI art programs like Midjourney.
However, we haven’t really gotten our “hands” on anything yet. Software, after all, is made of 0’s and 1’s… you can’t put your hands on it.
AI is set to become much more hands-on, though, in 2024 and beyond. We’ll see AI PCs this year and AI smartphones as well. Plus, we’ll see plenty of other AI gadgets aiming to one day replace those smartphones.
We got a first look at some of those devices this week during this year’s Consumer Electronics Show (CES), the annual multi-day trade show in Las Vegas, where tech companies debut their newest gadgets.
In fact, it’s safe to say that AI gadgets and other developments stole the show at what Consumer Technology Association lauds as the “most powerful tech event in the world.”
So, let’s use today’s Market 360 to take a look at two of the most interesting AI gadgets revealed at CES 2024. I’ll share what AI’s more “hands-on” approach means for the AI industry going forward, as well as the best stock to profit from the continued evolution of AI.
Samsung’s Ballie AI Robot
This week, Samsung Electronics Co. Ltd. showcased its “AI companion robot,” Ballie.
The fittingly named Ballie looks like a tennis ball and was first introduced at CES 2020. It is a personalized companion robot that “supports you, your family – even your pets!” The spherical robot is set to help with household tasks, share weather forecasts, and display calendar events.
This year, Ballie is getting an AI upgrade.
The robot is now equipped with a sensor-equipped projector that can automatically identify both the posture and facial angle of people in a given room. This allows Ballie to adjust and find the perfect angle to project. The picture below shows Ballie’s new projection feature.
Source: Designboom
Ballie can also now act like an AI pet, which includes walking (or, we suppose, rolling) around and coming to its “owner” when called.
Volkswagen ID.7 & ChatGPT
They grow up so fast…
ChatGPT, the AI chatbot that’s the biggest middle-school homework helper since the calculator, has apparently reached driving age.
At CES 2024, it was announced that Volkswagen Group (VWAGY) is partnering with Cerence Inc., an AI assistant developer for automobiles, to integrate ChatGPT into its vehicles. Specifically, the chatbot will be available in Volkswagen models equipped with the “IDA” voice assistant. The first vehicles to incorporate ChatGPT will be Volkswagen’s electric ID.4 and ID.3; its upcoming ID.7 and ID.5 electric vehicles (EVs); and its combustion-powered Tiguan, Passat, and Golf models.
Currently, IDA accepts typical voice commands. All a user has to do is say, “Hey, IDA,” and give their direction or request. Then, the current assistant can control cars’ navigation and air conditioning systems.
With a boost from ChatGPT, IDA will also be able to answer more complex questions and complete more general tasks. For instance, IDA will be able to read researched content aloud and answer spontaneous questions like “What is a good restaurant nearby?”
Volkswagen’s CES 2024 press conference featured a video of Scottish actor Ewan McGregor in an ID.7. He asks IDA if a kilt is formal enough to wear to a red-carpet event. “According to ChatGPT,” the voice assistant says, “people regard kilts as suitable for formal affairs.”
As the AI product lines and capabilities prepare to expand in 2024, so will the AI market. In 2022, the global AI market stood at about $136.6 billion, according to GrandViewResearch. By 2026, it’s expected to more than double to $299.64 billion, according to Facts&Factors Research.
That’s great news for AI investors.
Invest in the AI Leader
Now, if you’re interested in investing in the AI sector, there are many AI or AI-related stocks to choose from. Personally, I believe your best bet for profits in an industry is to invest in the leader. In the case of AI, that leader is NVIDIA Corporation (NVDA).
The reality is NVIDIA already has a dominant grip on the market. It is at the forefront of the AI movement. Its chips are used in everything from data centers to autonomous vehicles.
Last year, NVIDIA was the number-one performing stock in the S&P 500, surging 238.9%. And in just the first two weeks of January this year, the stock has already hit new record highs and is up more than 10% this month so far. In comparison, the S&P 500 is up slightly, while the Dow and tech-heavy NASDAQ are down more than 0.2% (as of this writing).
It also boasts stunning fundamentals: The company’s third-quarter sales surged 205.6% to $18.12 billion, compared to $5.93 billion in the same quarter a year ago. Data center revenue accounted for a record $14.51 billion, or a 279% year-over-year increase. The consensus estimate called for total revenue of $14.84 billion.
During the same period, earnings soared a stunning 1,274.1% to $9.24 billion, or $3.71 per share. This compares to earnings of $680 million, or $0.27 per share, a year ago. Excluding extraordinary items, NVIDIA’s operating earnings were $4.08 per share.
Even better: NVIDIA is expected to post even stronger results for its fourth quarter. Analysts are calling for earnings of $4.10 per share on revenue of $18.29 billion, up from earnings of $0.88 per share and revenue of $6.05 billion in the same quarter a year ago. That represents 365.9% year-over-year earnings growth and 202.3% year-over-year revenue growth!
That’s simply stunning growth, especially when you consider that NVIDIA boasts a 1.35 trillion-dollar market cap.
So, it’s no surprise that NVIDIA is highly rated in my Portfolio Grader.
I should also add that because NVIDIA has its fingers in many pieces of the AI pie, it is also a great “picks and shovel” play. Consider this…
- Volkswagen uses NVIDIA’s chips for I.D. Buzz, its self-driving car. Specifically, the I.D. Buzz will use NVIDIA’s DRIVE IX technology.
- ChatGPT was trained used 10,000 NVIDIA graphic processing units (GPU).
- And Samsung Electronics supplies HMB3 chips to NVIDIA.
So, if you buy NVIDIA, you’ll also indirectly benefit from Samsung’s and Volkswagen’s AI successes.
The bottom line: AI is going to really ramp up this year as consumers are finally able to “touch” it. This, in turn, will help grow the industry, which should ultimately send institutional investors into an AI feeding frenzy. Those who invest in the right stocks will be able to cash in on the AI boom.
And I’ve seen this before. The fact is, almost every single tech boom in history has followed the same script. The PC boom… the internet boom… the smartphone boom… the EV boom… even as far back as the automobile boom of the early 1900s.
To take advantage, all you have to do is apply my “Billion Dollar Tech Blueprint” to the AI market and you could turbocharge your portfolio into a major, major work – even if you only have a few hundred dollars to start.
There are three moves you will need to make immediately, so click here to find out the steps you’ll need to take. I’ll also show you how to access my best research instantly.
Click here for full details.
(Already a Growth Investor subscriber? Go here to log in to the members-only website.)
Sincerely,
Louis Navellier
P.S. The AI market is poised to be a true juggernaut… potentially creating hundreds of new millionaires… billionaires… and, as Mark Cuban went on record saying, “Even the world’s first trillionaire.”
I can show you exactly how to carve out your own slice of the burgeoning AI market. All you have to do is copy my time-tested “Billion Dollar Tech Blueprint.” Click here to find out how.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
