| DAILY ISSUE Hello, Reader. Do you grok Elon Musk’s AI chatbot, Grok? If I’ve lost you already, let me explain… “Grok” is a Martian term for having profound and complete understanding. But don’t worry – no tinfoil hats are needed here. Author Robert Heinlein coined the term in his 1961 sci-fi novel Stranger in a Strange Land. Basically, to grok something means to understand it fully. Heinlein fans and folks and other sci-fi circles quickly started using the word. Star Trek fans in the late ’60s, for example, used the term to protest the show’s cancellation, adopting the phrase “I grok Spock.” In the decades since, the word has spread to other nerdy subcultures and the computer science community, but not much further than that. That is until Elon Musk brought it to the AI main stage. Grok, which he released in late 2023, is the name of Musk’s generative AI chatbot for the X app. It was the first product to come out of xAI, and it works much like the other GenAI chatbots we’re all familiar with now. This week, Musk released the updated Grok 3 model. In a live stream on Monday, xAI claimed that Grok 3 outperforms OpenAI's GPT-4o, Alphabet Inc.'s (GOOGL) Gemini, Anthropic's Claude, and DeepSeek's V3 model. (DeepSeek, of course, recently rocked the AI world with its R1 model.) Grok 3’s arrival also follows OpenAI’s rejection of Musk’s recent unsolicited, and essentially hostile, takeover bid to buy the ChatGPT creator. This led to a turf war between AI “broligarchs” Musk and OpenAI CEO Sam Altman last week. Now, Musk’s and Altman’s AI companies are both a part of a group that I call the “AI Creators.” They create and train the large language models (LLMs) that power Grok, ChatGPT, etc. They are driving the AI Revolution forward. Chip companies like Nvidia Corp. (NVDA) and Intel Corp. (INTC) are also AI Creators. While AI Creators deserve a place in your investment portfolio, there is another category that many investors tend to overlook. And this is a mistake… especially because these companies will “future-proof” your portfolio. So, while Musk and other AI Creators continue to steal headlines, I want to talk a little more about this under-the-radar AI category… And how you can find its best stocks. | Recommended Link | | | | China’s DeepSeek rocked the markets when it announced it’s a new platform could rival ChatGPT. The news was so alarming, it prompted new legislation proposing 20 years in prison for Americans who use DeepSeek. Make no mistake: The global AI race is on. And according to Nvidia’s CEO, a $100 trillion opportunity is now emerging. To help people seize a ground floor stake, Wall Street legend Louis Navellier is holding an urgent AI summit, and even issuing Strong Buys on 7 AI stocks poised for 1,000% potential gains in new AI frontier. Go here now. |  | | Looking at the Overlooked This overlooked category consists of enterprises that produce physical products or services that AI cannot replace. I call them “AI Survivors.” Agriculture companies would be one example. No matter how sophisticated AI becomes, humans will want to eat avocados and bananas. Similarly, companies that produce natural resource products like copper, aluminum, or timber should be able to survive the growth of AI technologies… at least for a long time. I consider AI Survivors to be “future-proof” companies. In the past, we investors did not routinely consider the future-proof qualities of any prospective investment. We did not worry about some ominous force like AI descending on the global economy and rewriting the rules of almost every business on the planet. We simply looked at company-specific metrics like the growth of market share, earnings, and dividends. But that sort of analysis may no longer be sufficient to prepare for the world that lies ahead. The risks that AI imposes require us to make informed guesses about the future viability of specific companies – and even entire industries. Now, the AI Survivors are easy to overlook, mostly because they tend to operate in “old school” industries that seem unglamorous on the surface. However, these industries could become increasingly glamorous, as AI fans out across the global economy and starts claiming victims in hundreds of industries that are not future proof. Additionally, many AI Survivors will also become AI Appliers, adopting the technology into their products and services… Thereby boosting their profit margins. Here’s how… Not Just Surviving, but Thriving Agricultural companies, for example, could use AI enabled drones and/or sensors to optimize inputs like fertilizer, irrigation, and pesticides. In other words, future-proof companies not only possess the potential to survive the onslaught of AI, but to eventually thrive from it. That is why I have focused on this category of stocks across my services. For instance, back in January 2020, I recommended one of the world’s largest copper producers to my Fry’s Investment Report members. At the time, I remarked, “The terms ‘artificial intelligence’ and ‘copper miner’ do not obviously relate to one another.” However, over the past few years, this miner has been using a machine-learning model at its copper mine in Arizona to boost production. This model uses data from sensors around the mine to “tailor” the ore-processing method to each of the seven distinct types of ore that come from the mine. Because of the company’s success, its annual copper production increased by a hefty 5%. Down the road, this company’s AI technology could enable the company to tackle more complex projects, and to extract value from places where its competitors cannot. That advantage will be valuable in a world that’s starving for battery metals like copper. This particular copper miner is not the only “future proof” company that I recommend. Inside my Fry’s Investment Report portfolio, our list of AI Survivors includes 10 companies that operate in some facet of the energy industry, an aluminum producer, a fertilizer producer, and private timberland owner – just to name a few. So, to future proof your portfolio, it is important for you to “grok” the significance of AI Survivors. Click here to learn more. Regards, | 
No comments:
Post a Comment