Editor’s Note:
The AI Revolution kickstarted two years ago with the launch of ChatGPT, and many investors missed the opportunity for significant gains.

My InvestorPlace colleagues, Eric Fry, Luke Lango, and I want to ensure you don’t miss the upcoming phase of this revolution. We’ve uncovered what we call AI Appliers, companies integrating AI into their operations, poised for potential significant growth.

Today, I’ll share Eric’s insights on how we entered the AI Revolution and what we can expect from these AI Appliers.

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Hello, Reader.

Many investors missed the early phase of the AI Revolution, defined by breakthroughs like ChatGPT, advanced AI chips, and rapidly evolving robotics, all leading to substantial profits.

But another wave of AI innovation is on its way.

This time, however, it veers away from the AI trends that have dominated news headlines.

The upcoming opportunity appears even larger than those initial advancements.

First, let’s discuss how we arrived at this juncture in the AI Revolution.

Then, we’ll explore what to expect from the new wave of companies… and how to identify emerging opportunities.

Early Winners of the AI Boom

Artificial intelligence has its roots dating back to the 1950s, but it wasn’t until November 2022, with the public release of ChatGPT by OpenAI, that genuine interest surged.

For context, ChatGPT gained over 1 million downloads within five days, and more than 100 million users signed up in just two months. To illustrate, Facebook took over 4.5 years to reach the same milestone.

In 2023, seven standout companies emerged during this initial AI revolution phase, often referred to as the “Magnificent Seven” by CNBC’s Jim Cramer.

These companies delivered remarkable returns with an average gain of 111% throughout the year.

Specifically, Nvidia Corp. (NVDA), recognized as the leader in AI chips, saw a remarkable rise of 239% in 2023, and its stock has skyrocketed nearly 765% since ChatGPT’s introduction.

Each of these Magnificent Seven companies contributed essential hardware, software, and processing power for businesses to develop and execute AI platforms.

They were instrumental in enabling the AI Revolution.

Consider these examples:

• Microsoft Corp. (MSFT) developed an in-house semiconductor chip named Athena.
• Alphabet Inc. (GOOGL) created a new ARM-based CPU processor known as Axion.
• Amazon.com Inc. (AMZN) introduced Amazon Q.
• Tesla Inc. (TSLA) has its Dojo processing system.
• Meta Platforms Inc. (META) developed its Llama large language model family.

Their innovations have greatly accelerated the development and improvement of LLMs like ChatGPT and Anthropic’s Claude 3.

While Cramer labels them the Magnificent Seven, I prefer the term “AI Seven.”

Troublingly, the sudden emergence of the AI boom caught many off guard, causing numerous investors to miss substantial gains.

The good news? The AI Revolution is gearing up for a fresh wave, with new companies stepping into the spotlight. The AI Seven will evolve into the AI Eight… Nine… and beyond.

We’ve seen the rise of AI enablers.

Now the focus shifts to the “AI appliers.”

Future Winners of the AI Boom

In contrast to the AI enablers, these companies are not primarily engaged in producing the materials necessary for creating AI technology. Instead, they are integrating AI tools into their products and services.

AI appliers are ubiquitous and expanding rapidly.

This group includes companies that may not be traditionally seen as tech-oriented, such as Coty Inc. (COTY), the gold and copper exploration firm Ivanhoe Electric Inc. (IE), and the industrial solutions provider Rockwell Automation Inc. (ROK).

While these firms usually operate in less tech-centric sectors and have been relatively unnoticed, they are primed for growth in the next stage of the AI boom, which my InvestorPlace colleagues Louis Navellier and Luke Lango, and I refer to as AI Day One.

AI Day One marks a significant shift in artificial intelligence. Although the specifics are intricate, it involves the emergence of AI capable of deeper reasoning abilities.

This progress will ease the integration of AI into business models, leading to greater efficiencies and profits across various industries.

However, not every AI applier is guaranteed to replicate the success seen with Nvidia or the AI Seven.

This reality led Louis, Luke, and I to unveil our AI Appliers Portfolio during a special broadcast. This collection includes stocks with high potential for growth as AI Day One unfolds.

Given the rapid developments occurring before AI Day One, circumstances can shift quickly.

While we are uncertain what the landscape will look like in one to two years, we know one thing: AI is progressing at an unprecedented pace.

That’s precisely why it is crucial to prepare yourself now.

For more insights on our AI Appliers Portfolio, watch our broadcast here.

Regards,

Eric Fry

Editor, Smart Money