Editor’s Note: InvestorPlace analyst Luke Lango has diligently tracked the dual phases of the AI Revolution: the AI Builders and AI Appliers. His early identification of the AI Applier wave has greatly benefited our readers. Stocks such as Axon Enterprise Inc. (AXON) and AppLovin Corp. (APP) have soared over 350% since his recommendations, long before mainstream acknowledgment.

This is why my colleague Eric Fry and I were eager to collaborate with Luke. Together, we developed a portfolio focused on the top AI Applier stocks and recently shared insights via our broadcast. (Catch the highlights of our discussion here.)

Today, Luke offers a broader view of the AI Revolution and its implications for firms harnessing AI in their business models. He’ll also outline how the second phase of the AI Boom is presenting unique opportunities in select “first wave” AI Builder stocks in anticipation of forthcoming advancements. Explore his insights below.

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In 1990, Tim Berners Lee invented the World Wide Web, but it wasn’t until Amazon.com Inc. (AMZN) completed its first online sale in 1995 that the internet truly gained traction.

Similarly, while BlackBerry Ltd. (BB) launched its first smartphone in 1999, it was Steve Jobs’s iPhone introduction in 2007 that revolutionized mobile technology.

As we approach 2025, another pivotal moment approaches — one we are calling “AI Day One.“

I’ve long viewed the AI Revolution as a two-wave phenomenon.

The first wave, or the AI Builder boom, involved massive investments by AI-focused companies in building new data centers and acquiring AI chips. In this stage, these companies are on a race to establish the infrastructure for new AI products and services, resulting in substantial growth for AI Builder stocks.

The second wave is the AI Applier boom, where companies invest heavily to develop and implement innovative AI applications atop the established infrastructure. Stocks involved in creating and utilizing these applications are poised for significant gains.

Eventually, a “killer app” will emerge, propelling the AI Applier stocks to new heights.

Later, I will delve into what that app might resemble and how you can position yourself to benefit from it today.

To begin with, let’s analyze the current landscape of the AI Revolution.

The Contrarian Approach to the AI Boom

The AI Builder boom took shape in the first 18 months of the AI Revolution, following the debut of Chat-GPT in late 2022.

During this period, AI Builder stocks, such as Nvidia Corp. (NVDA) and Super Micro Computer Inc. (SMCI), emerged as front-runners, outperforming AI Applier stocks from late 2022 through mid-2024.

Recently, however, we’ve transitioned into the second wave. Starting in July 2024, top AI Builder stocks like Nvidia have faced challenges, while AI Applier stocks such as Axon Enterprise Inc. (AXON) and AppLovin Corp. (APP) have surged.

AI Appliers have now taken the lead from AI Builders.

For our members, this phase transition has brought substantial returns.

Recognizing the shift, we had already invested in promising AI Applier stocks like AXON and APP before their significant climbs.

In our research services, we even recommended taking partial profits on our AXON investment, which had grown over 350%. Similarly, APP has enjoyed a rise of more than 350% since our initial recommendation.

However, we still have strong faith in AI Builder stocks.

Anticipating a strong resurgence for AI Builders, we’ve observed a recent slowdown attributed to concerns over reduced spending on AI infrastructure.

But contrary to that belief, substantial investments are underway:

• The world’s largest tech investor, Masayoshi Son of SoftBank Group Corp. (SFTBY), announced a plan to invest $100 billion into the U.S. over the next four years, largely targeting new AI infrastructure projects.
• Amazon has committed an additional $10 billion to enhance its data center infrastructure in Ohio.
• Meta Platforms Inc. (META) unveiled plans to construct a $10 billion AI data center in Louisiana, marking the largest project of its kind for the company. Meanwhile, nearby in Tennessee, Elon Musk is developing a significant AI-focused supercomputer project.

Contrary to popular belief, the U.S. AI infrastructure expansion is gaining momentum, revealing numerous opportunities for investors.

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Seize the Opportunity: AI Stocks Poised for a Comeback

Investors have a unique chance right now to purchase undervalued AI Builder stocks, which are set for a strong rebound as the market recognizes the sustained growth in the AI sector.

Our recent analysis focused on top-performing AI stocks that have faced recent declines. Notably, Micron Technology Inc. (MU) shows promise—it has risen nearly 30% in 2024, yet it has also seen a 30% drop over the last six months.

Qualcomm Inc. (QCOM) has also caught our attention with a similar 30% decline over the same six-month period.

Furthermore, Arm Holdings plc (ARM) stands out, having gained almost 90% this year, despite a 20% drop in recent months.

Additionally, companies like Nvidia and Texas Instruments Inc. (TXN) are on the list for wise investors to consider for the anticipated AI Builder recovery in early 2025.

However, the opportunities don’t stop there.

The Dawn of a New AI Era

We are approaching a historic transformation in the global economy—the impact will surpass the internet boom and last less than 1,000 days.

This moment has been termed “AI Day One.”

Unlike other technological trends, this shift represents a foundational change that promises to generate substantial wealth for those who recognize its potential early, while leaving others behind.

Imagine being able to identify which companies will lead in the AI space long before the broader market takes notice. Now, that opportunity exists.

Our team at InvestorPlace has pinpointed a select group of “new wave” AI Applier stocks that are primed for substantial growth in the ensuing months. These companies are not your usual tech giants—they represent the often-overlooked opportunities in our AI-driven future.

Recently, we conducted a special free broadcast to elaborate on what “AI Day One” entails and to explain our selection of these promising “new wave” AI Applier stocks.

Be proactive to avoid being left behind in what could be the most significant wealth transfer of our time.

Now is the time to position yourself wisely—before opportunities slip away.

Best regards,

Luke Lango

Editor, Hypergrowth Investing