Hi, and welcome. Today I’m looking into a new James Altucher presentation centered around what he’s calling the “AI investment jackpot.”
According to Altucher, those who embrace AI today could “see their wealth skyrocket in the years ahead,” and he’s found “3 tiny AI stocks” with the biggest potential to soar.
The whole thing is a pitch for his $49 investment newsletter called Altucher’s Investment Network, so that’s the service you need to join to find out what he’s teasing.
However, I looked into the clues he shared to see if I could find out what stocks he was teasing, and I managed to figure out what one of them was.
So with that said, let’s unpack James Altucher’s AI prediction and picks!
James Altucher’s “AI Investment Jackpot” Prediction
The basis of James Altucher’s AI prediction is that we are at the forefront of a “transformative moment in human history” that will divide Americans into two groups – those who benefit (and get rich) from AI, and those who don’t.
Here’s a snippet from the presentation:
“… we are at the forefront of a transformative moment in human history.
“In short, one breakthrough new technology is about to change the world in a profound way…
“I’m talking about artificial intelligence, or AI.
“Whether you like it or not, AI is coming – and it’s coming fast.
“In fact, starting over the next few months, I believe AI will completely remake America as you know it.”
“You see, in the coming years, I expect Americans will be divided into two groups…
“On one side are the people who embrace AI today, and invest early in the new technology…
“These people could see their wealth skyrocket in the years ahead.
“On the other side, however, are those who are scared of AI and do nothing, only to fall behind and never recover…
“These people will be on the losing side of the coming wealth transfer.”Source: https://web.archive.org/web/20231004003242/https://pro.paradigmnewsletters.org/p/aln_investmentdecade_0923/LALNZA06/Full
As you can see, he’s predicting that AI will completely remake America in the coming months and that some folks could create massive wealth, while others “fall behind.”
More specifically, he’s predicting that the biggest and “most explosive profits” will come from tiny, off-the-radar stocks, which are supposedly the types of stocks he’s recommending.
“While companies like Nvidia and Microsoft are almost certain to do very well in the coming years…
“The biggest, most explosive profits are all but guaranteed to come from tiny, off-the-radar AI stocks…
“Stocks that I’ll be revealing more details on in today’s short presentation.”
Another thing he emphasized almost a dozen times throughout the presentation was that we need to “get in” before November 21.
Why? Well, he kept the details of this a mystery until the latter part of his pitch (to build curiosity), but he finally said that this is when he expects Nvidia will release its next earnings report, as he believes this could be a “historic catalyst.”
“And for your best shot at the biggest gains, I believe you must get in BEFORE a major announcement is made on November 21.
“This announcement is set to send shockwaves throughout the industry…
“And if you get in now, you have the chance to buy the best AI stocks while they still trade for pennies on the dollar.
“Once November 21 rolls around, however, many small AI stocks could quickly start to skyrocket in the days that follow.”
“And that’s why today’s opportunity in AI is so exciting…
“Because a historic catalyst is right in front of us…
“And I predict it all kicks off on November 21.
“That’s when I expect a major AI company, Nvidia, will release its next earnings report, which could confirm that this is a lasting market trend and here to stay.”
I would recommend taking that November 21 prediction with a grain of salt, as nobody knows what stocks will or won’t go up in price, much less when they will.
Nevertheless, James Altucher is clearly bullish on AI. And based on the presentation, it’s because he thinks it has the potential to transform many different industries.
He even predicts that AI could be used to cure cancer:
“Over time, AI could be used to cure cancer, enable a new age of space travel, and much, much more.
“The possibilities truly are limitless.”
I found a blog post he wrote about AI on jamesaltucher.com that you may find useful if you want to know more about his AI thesis.
But that’s the gist of it: he thinks AI will change the world.
And despite most of the presentation being a fairly long-winded sales pitch for his newsletter, he does seem to have knowledge and expertise on the subject of AI.
According to the presentation, Altucher has worked on AI for over 35 years, which has involved him working on an AI supercomputer called Deep Blue.
“You see, I have over 35 years of experience working on AI, making me one of the top pioneers of this new technology.
“Perhaps you’ve heard of Deep Blue, the AI supercomputer which famously beat the world’s top chess champion, Garry Kasparov.
“Well, I was a part of the team that worked on Deep Blue in its earliest stages.
“I’ve also been funded by the U.S. government to build an AI program… I’ve written countless highly influential academic papers on AI… and much more.
“In short, I’ve been around AI since the very beginning, and I’ve personally played a role in helping to create it.”
So, what’s he recommending?
Long story short, James Altucher says he’s found “3 tiny AI stocks” that he believes have the “biggest potential to soar starting as soon as November 21.”
And apparently, these stocks meet his “4-point checklist,” which involves the following:
“Requirement #1: Must Have A ‘Leading-‘ Or ‘Bleeding-‘ Edge Technology”
“Requirement #2: Must Have Constant Revenue Growth”
“Requirement #3: Must Be Small And Virtually Unknown”
“Requirement #4: Must Have An Urgent Catalyst In The Days Or Weeks Ahead”
So with that said, let’s see what his picks might be!
What Are James Altucher’s “3 Tiny AI Stocks?”
James Altucher teased 3 “tiny” AI stocks in the presentation. And he reveals these picks in a research report that comes with a subscription to his newsletter, called “The $100 AI Jackpot: How To Target Potentially Huge Profits With 3 Tiny AI Stocks.”
I didn’t join the service or read that report, but I did look into his clues, and I think I know what at least one of his AI picks is.
AI Stock #1
Here are the clues James Altucher shared about his first AI pick:
“I’m calling this special report The $100 AI Jackpot: How To Target Potentially Huge Profits With 3 Tiny AI Stocks.
“Inside, you’ll see…
“My full analysis on the company that Forbes calls a ‘quantum leap in AI.’
“The people who struck it rich during the 1849 California gold rush didn’t do so by mining for gold – instead, they sold equipment to those who did.
“Today, you have the same exact opportunity with this AI ‘picks-and-shovels’ play…
“This company uses state-of-the-art quantum computing technology to build a critical piece of AI technology that everyone will need.
“They’ve already inked deals with Amazon, Dell, Microsoft, and Nvidia – and once the AI boom takes off, I expect revenue will explode.”
The most tangible clue he shared there was the Forbes quote.
Aside from the matching Forbes quote, my research shows that IonQ has had dealings with the four large companies mentioned above. And, as I just mentioned, it’s a quantum computing company. So, IonQ looks like a match.
IonQ isn’t exactly “tiny,” but with a $2.8 billion market cap, it is just over the threshold for being a small-cap stock, which means it is relatively small.
It’s also a company that other well-known stock-pickers have recommended, like Luke Lango. According to a 2023 presentation I wrote about, IonQ is his “#1 stock of the decade.”
Is it a good investment?
Ultimately, that’s something you’ll have to decide for yourself.
AI Stock #2
Next, we have a company that, according to James Altucher, has created a “proprietary technology” that is “vastly more powerful than cloud computing” and that could “hold the hidden key to unlocking the entire AI boom.”
Here’s a snippet from the presentation:
“As you may know, AI requires an enormous amount of computing power to function…
“And that’s where this second company comes in.
“They’ve created a proprietary technology which is vastly more powerful than cloud computing, or any other alternative.
“As a result, I believe this stock could hold the hidden key to unlocking the entire AI boom.
“Some of the world’s biggest internet companies (such as Amazon, Stripe, Apple, and Google) have signed deals with this stock, and I believe that’s only the beginning of what’s to come.
“Once the AI races kicks into high gear, this company could play a key role in enabling it.”
Based on those hints, we’re possibly looking for a company in the Edge Computing space, as that’s the only tech I could find that lines up with what Altucher said. And it’s a company that has signed deals with the large tech firms he mentioned.
That’s not a lot to go off, though. So I’m not sure what this one could be. Let me know if you have any ideas on what it might be in the comments below.
AI Stock #3
Lastly, we have a company that Altucher shared virtually no clues about:
“Finally, you’ll find the details on my #1 AI pick for 2023.
“This company is the smallest of the 3 tiny stocks I’m profiling in my new report…
“A true early-stage ‘moonshot’ opportunity…
“A stock which is worth well under $1 billion today, but could soar over time.”
That’s literally all he said about this one… that it has a market cap of “well under $1 billion,” and that it is (somehow) involved in the AI industry.
Recommended: Go here to see my #1 rated stock advisory of 2023
James Altucher didn’t share a whole lot about his AI stock picks, but based on what he did say, it appears as though one of his AI stock picks is IonQ.
I’ve seen a lot of AI stock teasers this year, which makes sense, as well-known stock-pickers tend to jump all over whatever the latest “hot trends” are. But just because AI is a promising technology doesn’t mean you’ll get rich betting on AI stocks.
There is so much that goes into choosing the right investments, and a whole bunch of risks you need to navigate if you hope to come out on top.
That is why it’s always a good idea to do your own due diligence rather than rushing into anything. That way, you’re not just taking someone’s word for it.
Anyway, that’s my take.
I hope you enjoyed the post, and appreciate you stopping by!