Category Penny Stocks

Remember when you had to race to Blockbuster to grab the latest movie before someone else rented it?

Some folks under a certain age will have no idea what I’m talking about.

The whole idea feels ancient now – and that’s the point.

Blockbuster didn’t die because people stopped watching movies. It died because a new technology came along and changed everything. Netflix, Inc. (NFLX) rewrote the rules, and Blockbuster couldn’t keep up. It’s as simple as that.

Today, there’s just one Blockbuster left – in Bend, Oregon. It’s a tourist attraction now. A museum piece. A reminder of what happens when you ignore the waves of technological change.

Blockbuster isn’t alone in that dustbin of history. Eastman Kodak Co. (KODK) failed to adapt to digital cameras. BlackBerry Ltd. (BB) clung to keyboards while the world moved to touchscreens.

You see where I’m going with this, folks?

I bring this up because we are seeing the same thing happen now – only faster and with even greater magnitude.

The disruptive tech this time? Artificial intelligence.

What makes AI different is its unprecedented velocity. The disruption these companies experienced over years now happens within months.

In fact, my proprietary system is signaling that we’re entering a whole new era of the AI Revolution.

In short, we’re entering a new era I call the Economic Singularity – where AI begins to fundamentally alter the way work is done – and how wealth is created.

This also means that portfolios built on yesterday’s “safe” names are at even greater risk of terminal decline as this plays out.  

In fact, it’s already flashing red on several well-known names that are struggling to keep up with this wave of innovation.

So, in today’s Market 360, I’m going to share three companies that are under real threat from AI. Then, I’ll tell you where to find the companies that my system says are ready to dominate.

1. An Education Tool Gets a Failing Grade

Not long ago, if you were a student looking for homework help or cheap textbook rentals, Chegg, Inc. (CHGG) was the way to go.

Not anymore.

Chegg’s entire business model is being steamrolled by AI. Students are now using free tools like ChatGPT instead. These tools can write full essays in seconds. They solve problems instantly. No need to pay Chegg.

Now, Chegg is feeling the heat and has to make some tough decisions. In fact, on Monday, May 12, Chegg announced that it will be cutting 22% of its total staff, marking its third major layoff in less than a year.

But Chegg isn’t going away quietly. In February, Chegg filed a complaint against Alphabet Inc. (GOOGL), claiming that Google AI is siphoning off its traffic.

Regardless, the writing is on the wall, folks. Chegg has been slow to adapt to AI and likely won’t recover. It currently holds a Total Grade of “F” in my system – making it a Strong Sell.

2. A Gallery With No Visitors

Let’s say you need high-quality images for a marketing campaign, website or magazine.

Up until recently, the best people for the job were Getty Images Holdings Inc. (GETY).

Need a photo of a famous person or an important cultural event? Chances are Getty had it. You just had to pay a handsome licensing fee, of course.  

That’s changing fast.

Generative AI has made it possible for anyone to create custom images on demand. No licensing fees, no waiting, no need for Getty.

Now, Getty is recognizing the need to change with the times. It’s promoting “generative AI technologies and tools trained on permissioned content.” In other words, it’s slowly stepping away from its original business model.

But the financial picture is clear: Customers are moving on. Margins are shrinking, and its best days are likely behind it.

My system gives Getty a D-rating, meaning investors would be wise to look elsewhere.

3. The Court Is In Session

Starting a small business used to mean hiring a lawyer and navigating a maze of paperwork.

But then, LegalZoom.com Inc. (LZ) came in and made the process simpler and cheaper. It was a huge weight off the shoulders for small business owners.

However, AI is making it even easier. And that’s put serious pressure on LegalZoom.

That much is clear in analysts’ latest projections. They’re calling for a 5.5% year-over-year decline in LegalZoom’s business formations for the first quarter of 2025.

Competition is rising, too, with rivals like ZenBusiness and North West Registered Agent offering AI-powered services at lower prices.

LegalZoom’s management recognizes AI’s threat and is undergoing a strategic review, looking to pivot toward a subscription model aimed at higher-value customers. That strategy is working so far, with net income up 115% year-over-year to $30 million in 2024. The fundamentals may be there, but the market is looking elsewhere.

Right now, LegalZoom earns a C-rating. That makes it a hold, so the jury is still out on this one, folks.

Where to Find the Winners

The bottom line is that AI is not a distant threat. It’s changing businesses right before our eyes. Many of them are going to come face-to-face with a harsh reality.

They’re simply not built for the Economic Singularity.

The sad truth is there will be losers from the transformation that is taking place. But we can’t stop the waves of change, folks. So, while I want you to be prepared for what’s coming – I also want you to profit.

Make no mistake: The Economic Singularity will be a massive reset of who wins and who loses in this market.

It also threatens to make most of the work regular Americans do obsolete.

It may not feel this dramatic yet. But I assure you, the folks at Blockbuster didn’t feel threatened at first, either. Nor did Blackberry or Kodak.

Rest assured, when the dust settles, the impact will be massive. And the companies that harnessed AI most effectively will be the next market giants.

The market doesn’t reward those who wait for certainty… it rewards those who act on insight before it becomes obvious.

That’s why I created a special report for my Growth Investor subscribers called The Singularity 7: The New Exponential Wealth Machines of the AI Revolution.

These are the companies my system has flagged to lead the next phase of the AI Revolution. They’re using smart tools to grow faster, scale more efficiently and generate growing revenue and earnings.

Click here to learn more and gain immediate access to the special report.

Sincerely,

Louis Navellier

Editor, Market 360

Hello, Reader.

In business, only those companies that can adapt to their environment can survive.

Today, every company faces an evolutionary imperative.

Rapid technological change – driven by breakthroughs in artificial intelligence – means businesses must either evolve or go extinct.

In December 1831, 22-year-old Charles Darwin embarked on the HMS Beagle to survey the coast of South America as the ship’s naturalist.

It was during this five-year voyage that Darwin famously developed the theory of evolution by natural selection. This “survival of the fittest” concept refers to the idea that individuals with traits best suited to their environment are more likely to survive and pass those advantageous traits to their offspring.

The same theory can be applied to every business in the world.

And the stakes have never been higher because the pace of change is more rapid than anyone could have imagined. The companies that adapt quickly will be the new kings of the market.

Those that refuse to adapt, or simply are slow to change, will go the way of the dodo bird.

As we reach the final stretches of the Road to Artificial General Intelligence (AGI), every company on the planet now faces the Darwinian prospect to adapt or perish.

AGI is when AI achieves human-level intelligence and can perform tasks all on its own.

This technology is coming. In fact, OpenAI CEO Sam Altman said in January that the company already knows “how to build AGI.”

For investors, this changes everything.

A company’s relationship with AGI is the lens through which investors now must view all stocks. And the companies that hope to survive and thrive must adopt and integrate AI technologies as quickly as possible.

Those that fail to do so will perish… and time is of the essence.

That is why I’ve developed a three-step process for finding companies that will survive and thrive on The Road to AGI… and I’ll show you those three steps today.

In fact, I believe the stocks this process reveals are the only companies we should invest in for the foreseeable future.

The imminent arrival of AGI within the next 12 to 24 months puts us all in the crossroads right now.

So, let’s dive in…

Step 1: Invest “In” AI

This simply means buying shares of companies that are providing key parts of the infrastructure that will accelerate AI technology toward AGI.

Consider AI chip companies. They fit squarely into the “investing in AGI” category because they supply the immense amount of computational power that AGI requires.

When I first started talking about The Road to AGI less than a year ago, the AI chip market was projected to hit $341 billion in 10 years. It is now projected to hit $501 billion in only eight years.

Of course, any keen investor will want in on that $500 billion; but cashing in on that growth directly won’t be easy.

There is massive competition in the AI chip race. And names like Nvidia Corp. (NVDA) and Super Micro Computer Inc. (SMCI) – which develop AI-focused GPUs and servers, respectively – probably come to mind first.

However, if you break down an AGI chip of the future into its components, you’re likely to find the same exact raw materials, regardless of the manufacturer.

So, in my “investing in AGI approach,” I look at the companies that provide key parts of the infrastructure that will accelerate AI technology toward AGI – like the core group of precious metals inside each chip – instead of their highly valued producers.

Step 2: Invest “Alongside” AI

This means getting in on the companies primed to rise in tandem with AGI.

Now, I worry that too many folks have bought into a story that the only way to build AI wealth is to go overweight into the technology itself, like AI chip and software stocks.

But by ““investing alongside AGI,” we get a more thoughtful path to building wealth – with potentially far less risk. 

Let’s look at data centers, for example.

To achieve AGI, we need a lot of data centers to house all of its computing power. In fact, Nvidia CEO Jensen Huang predicts $1 trillion will be spent over four years on AI data centers. Most of that money will come from Amazon.com (AMZN), Alphabet Inc. (GOOGL), Microsoft.com (MSFT), and Meta Platforms Inc. (META). 

These data centers are being built on land across the country. In Vint Hill, Virginia, for example, the price of the land where a data center is going to be built has, over the past few years, soared 10 times in value.

So, in this case, “investing alongside AGI” would mean investing in the industries that provide the physical infrastructure and building blocks of AGI facilities. I’m talking about companies that provide the raw land that will house data centers, or the systems that cool the centers or the energy sources that power them… or all of them at once.

Step 3: Invest in “Stealth” AI

This means investing in non-tech companies that will adopt and apply AI with the goal of reaping huge gains in efficiency, productivity, and profits.

Stealth AGI industries include shipping and logistics… beauty, fashion, and wellness… and food and beverage. These are companies that might even be considered a little boring, especially compared to headline-grabbers like Nvidia.

However, these less-exciting names will adopt AI and AGI in a bid to become more profitable, often by orders of magnitude. 

Biotech is a sector in the “Stealth AGI” category that I see a bright future for. That’s because AI in biotech is speeding up how we discover new drugs, making treatments way more personalized, and helping us predict diseases before they even show up.

Survival of the Fittest… AGI Style

So, companies that are set to ride the profit waves of AGI are the ones:

• Building or providing the materials for AI hardware and software…
• Riding its rising tide, like data center real estate companies…
• Or applying AI into their products and services, like biotech firms.

Everything that falls outside these categories is either too risky… or on its way out.

That is why I believe that the stocks within these three categories of AI investment are the only ones to buy right now.

I’ve got 41 different investment recommendations that have reached over 1,000% gains on my track record.

And now, in three brand-new reports, I have one recommendation ready to go for investing in AGI… another for investing alongside AGI… and a third for investing in Stealth AGI.

You can learn how to access the names of these companies in my brand-new The Road to AGI: The Final Warning special broadcast.

Now, I want to make it as clear and easy as possible to get started.

And so, during this free broadcast, I also reveal more about my AGI blueprint, including details on critical stocks to avoid or sell immediately before they collapse.

Plus, I’ll show you one of my top-rated AGI-related stock picks – name and ticker symbol. It recently registered a 46% gain while the S&P 500 dropped 5%.

In this free Final Warning video, I’ve got many more details.

With my AGI blueprint, you’ll soon be filling your portfolio with “survival of the fittest” companies… and capitalizing on their profits.

Click here to learn more. 

Regards,

Eric Fry

There’s blood in the streets. Markets are in turmoil. Tariffs are flying faster than a Wall Street rumor in a bear market. But in the middle of all this chaos – amidst the economic fear and geopolitical noise – something remarkable is happening: The American AI Boom is rapidly taking off.

And it may end up being the greatest silver lining of this entire trade war saga.

While politicians posture and stock prices buckle, the most important companies in the world are making some of the biggest bets in modern economic history. And it’s not happening overseas but right here in the U.S. 

They’re building factories, forging partnerships, and investing hundreds of billions of dollars in the reshoring of America’s AI infrastructure.

You might see it as a tactical response to global instability or a strategic play for long-term control. 

But we see a sensational investment opportunity.

Nvidia’s $500 Billion Bet on U.S. AI Infrastructure

Let’s start with the kingmaker.

Nvidia (NVDA), arguably the most important company in AI today, just announced plans to invest up to $500 billion into American AI infrastructure over the next four years.

Half a trillion dollars.

This is not theoretical. It’s already happening.

• Production of Nvidia’s latest chip, the Blackwell, has officially begun in Phoenix, Ariz., at Taiwan Semiconductor Manufacturing Company’s (TSM) new U.S. plant. That’s right; TSM, Taiwan’s silicon giant, is making its crown jewel chip for Nvidia on American soil.
• Nvidia is also building supercomputer manufacturing facilities in Texas through partnerships with Foxconn (FXCOF) and Wistron. That marks the first time ever Nvidia will make these machines in the U.S.
• It’s also teaming up with Amkor Technology (AMKR) and Siliconware Precision Industries to develop packaging and testing operations, all based in Arizona.

And here’s the kicker:

This is all happening after the White House exempted electronics components from the Chinese reciprocal tariffs.

Despite still sourcing many components from China, Nvidia still decided to go big on American soil. That says everything.

Regardless of how this trade war ends – whether tariffs persist or evaporate, trade deals are signed or supply chains snap – Nvidia has decided that the future of AI infrastructure is American.

And it’s not the only one…

Big Tech Joins the American AI Boom

Nvidia may be the headliner, but the chorus of companies backing the American AI Boom is loud – and growing louder by the day.

• Apple (AAPL) recently pledged to invest $500 billion in the U.S. over the coming years, including the construction of a massive AI server facility in Houston, expected to open in 2026.
• Meta (META) is pumping $10 billion into its largest-ever data center campus in northeast Louisiana, exclusively dedicated to AI development.
• Microsoft (MSFT) just tripled its original proposal, announcing a $3.3 billion investment to build an AI superhub in southeast Wisconsin.
• OpenAI, Oracle (ORCL), SoftBank (SFTBY), and others have teamed up under the White House’s Project Stargate, pledging to invest up to $500 billion into AI infrastructure and innovation hubs across the U.S.

This is more than a boom. It’s an explosion.

If you’re feeling good about the market now, congratulations—you survived.

After a bruising selloff, the S&P 500 is back to flat for the year. That doesn’t sound like a victory, but given how far we fell, it feels great.

But a flat market isn’t a sign of strength. Let’s think back to the beginning of 2025. Where did you expect the market to be in May?

If I told you in January that we would be up less than 1% in May, would you have been happy? Or might you have thought that something must have gone wrong?

Instead, we’re all sitting here feeling good.

There is a familiar human bias working here – anchoring.

When expectations fall as fast as prices, getting back to zero feels like a triumph. It’s important not to let that feeling cloud your judgment.

In markets, just surviving isn’t enough.

The real edge goes to those who know how to use volatility to grow their wealth—while everyone else is too rattled to act.

Most investors treat volatility like a storm: hide, wait, and hope it passes. Or, worse yet, they panic sell.

But smart investors know how to position their sails to harness the power of the storm to reach their destination even faster – and I’m going to share a way to do just that.

The Man Who Predicted the Historic Market Volatility

“I just want to point out for the record….JEFF CLARK WAS RIGHT ABOUT EVERYTHING.”

That’s what one of my colleagues said recently when we were discussing master trader Jeff Clark.

She was referring to Jeff’s prediction that the first 100 days of the Trump presidency would be chaotic for the market and would be a great time for Jeff’s subscribers to make money.

Here is what Jeff said in January when Trump was inaugurated.

It’s official: Under President Trump’s leadership, the market is shaping up to be a minefield for passive investors and a gold mine for savvy traders.  

While headlines swirl with talk of new tariffs, AI breakthroughs, and global trade upheavals, one truth remains: 

The most lucrative opportunities belong to those who recognize volatility for what it really is… a catalyst for potentially explosive gains. 

I’ve been trading through chaotic markets for over 40 years, and let me tell you…  

The next four years could be your defining moment… if you’re ready.  

He was right about the volatility.

On April 4, just after Trump’s “Liberation Day” press conference, the S&P dropped 2,231 points. The third largest point drop ever.

Then, on April 9, the market gained 2,962 points. That’s the largest point gain in the history of the S&P.

Here is what that looked like.

As I mentioned above, we’re now just about flat for the year. Buy-and-hold investors have had to hold their breath to keep cool during this wild swing.

Meanwhile, Jeff and his readers have been collecting money – without selling a single stock.

How to Collect Cash During Stormy Markets

Jeff owned and operated a money management firm for more than 20 years that specialized in trading options. His firm served clients with high net worths – and even higher expectations.

Jeff didn’t build his reputation on speculative trades, but on strategic, conservative use of options for income generation and risk management.

Here is how he describes his approach.

Most folks, when they trade options, they just want to be told which calls to buy or which puts to buy. They want to speculate on the upside or the downside in the stock market. And that is totally fine.

It makes perfect sense most of the time. But if you’re really serious about generating income or you’re really serious about making money through trading options, you really have to understand and know how to sell uncovered puts.

That is truly the single best income producing strategy in the markets today.

So how does it actually work?

Jeff uses a strategy called selling cash-secured puts. That means he gets paid upfront to agree to buy a stock he already likes — but only on Jeff’s terms.

He decides how far the stock must fall, and by which specific date.

If the stock falls by the terms Jeff outlined, he buys it at a discount (a win) and keeps the income he generate by selling this put in the first place.

If the stock doesn’t as low as Jeff outlined by the specified date, he just keeps the upfront cash (also a win). That’s how he generates cash without selling a single stock.

By harnessing the power of puts, you can stay in your favorite long-term plays during all the market’s stormy ups and downs, and still generate cash to help pay for anything and everything.

And in volatile markets — when prices whip up and down — this strategy can generate consistent, repeatable income no matter what direction the market is moving.

We’re Not Out of the Woods

Though stocks are coming off a historic rally, Jeff believes major volatility remains ahead.

What happens when that next shock hits?

If the best the market can muster is “back to flat,” then most investors will still be holding their breath – and making 0%.

But Jeff’s readers will still be collecting cash.

That’s the difference between surviving the storm — and knowing how to profit from it.

Jeff walks folks through his strategy in this new free video.

After everything we’ve seen this year, maybe just getting back to even does feel like a win.

But if you’re retired — or thinking about retirement — break-even doesn’t cut it.

You need income. You need consistency. You need peace of mind.

Click here to see how Jeff Clark is doing that now!

No matter what the headlines say!

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

Louis Navellier is miffed at the Fed … no cuts till September? … get ready for AGI to rip the market in half … avoid this AGI loser … on Jonathan Rose’s watchlist – a crack spread trade

I hope this week’s evidence is going to make the Fed cut. The Fed seems to be very stubborn.

That was from legendary investor Louis Navellier during yesterday’s Flash Alert podcast in Growth Investor.

Louis’ referenced evidence included yesterday’s Producer Price Index (PPI), that showed wholesale prices declined by 0.5% in April. This was a massive surprise as economists expected a 0.3% increase.

Back to Louis:

The PPI demonstrated that despite all the trade chaos, wholesale prices are falling due to lackluster economic activity as well as surplus goods being dumped into America.

After listening to “stubborn” Fed Chair Jerome Powell at his press conferences for years now, I imagine he would respond:

That’s all well and good, but it’s backward-looking information.

Looking forward, too many unknowns remain – what tariff rates will be, how long they’ll remain, and how consumer spending will respond.

The greater risk today is moving too quickly.

Traders finally appear to be taking Powell at his word

We can see this in the CME Group’s FedWatch Tool. It shows us the probabilities that traders are assigning different fed funds target rates in the future.

One month ago, traders put 72.4% odds on at least one quarter-point interest rate cut by June. As I write, those odds have plummeted to 8.2%.

So, what’s the prevailing expectation for when we’ll get the first cut?

September. The odds are roughly 75%.

If the Fed does hold off until September, I suspect we’ll be hearing some very frustrated commentary from Louis.

Here’s a preview from yesterday’s podcast:

[The Fed is] disobeying our President. They’re disobeying our Treasury Secretary. They’re disobeying market rates…

You’re going to see next month that the European Central Bank is going to cut again. So, pressure is mounting on global rates around the world.

We are still in the midst of this global interest rate collapse. That means as all central banks cut their rates, the U.S. will be the last country standing…

The Federal Reserve is chasing a mythical inflation boogeyman that doesn’t exist.

Louis has gone on record that the Fed will enact the equivalent of four quarter-point rate cuts by the end of the year

That prediction is running into a calendar challenge. Come the fall, the Fed only meets in September, October, and December.

So, if the first cut comes in September, Louis’ forecast will require one of the meetings to bring a 50-basis point cut.

Traders appear less confident in such an outcome. As I write, the heaviest odds (at 37.4%) go to just two more quarter-point cuts for the rest of the year. The next highest probability goes to three cuts, coming in at 30.1%.

Whatever the outcome, Louis urges investors to focus on the one thing that matters most – fundamental strength:

It’s every stock for itself when it comes to earnings…

 If you can beat analyst expectations, you’re going to be rewarded. It’s as simple as that.

For the fundamentally superior stocks Louis is recommending in Growth Investor today, you can learn more about joining him by clicking here.

Yesterday, we highlighted the “Road to AGI” with our macro expert Eric Fry

AGI stands for Artificial General Intelligence. It refers to the watershed moment when an AI system can match or exceed the cognitive ability of the smartest human across any task.

The arrival of AGI is hurtling toward us, and it’s drawing a sharp dividing line in the investment world.

Back to Eric:

In effect, artificial intelligence is slashing the world of commerce into two distinct groups: the AI appliers and the AI victims.

The companies that hope to survive and thrive must adopt and integrate AI technologies as quickly as possible.

Those that fail to do so will perish… and time is of the essence, especially as we get closer and closer to achieving artificial general intelligence (AGI).

In yesterday’s Digest, we highlighted one of Eric’s AGI “AI Applier” recommendations from last summer – Toast (TOST). It’s up more than 80% since he flagged it for subscribers.

Let’s check in on an example of an “AI victim.”

Last August, Eric pointed toward Shutterstock Inc. (SSTK) as a company “sitting in the crosshairs of AI.”

Here’s what he wrote then:

Once upon a time, Shutterstock was a cutting-edge graphics company with a massive, and valuable, library of proprietary images. Today, that library looks more like an anvil than a pair of wings.

Thanks to GenAI technologies like OpenArt, “proprietary graphics” are nearly a thing of the past…

Because of these competitive threats, subscriber “churn” is increasing at Shutterstock. As a result, gross margins and net income are both collapsing… These declining fortunes reflect declining demand for the company’s core content library.

Sure enough, since the start of last August, the stock has fallen more than 50%.

Shutterstock isn’t a rare anomaly. It’s a preview of what’s coming for companies that can’t adapt to AGI.

This is why Eric says AI is one of the most important screens through which investors must base all market decisions today:

We must examine every prospective investment through the lens of AI and be alert to both the opportunities and the hazards it will create.

He just put the finishing touches on four new research reports focused on investing in AI before AGI arrives. Three of the reports highlight a stock to buy; the fourth warns about three stocks to sell.

You can learn how to access them right here.

Looking for a trade idea?

Expert trader Jonathan Rose has a suggestion.

For newer Digest readers, Jonathan is the analyst behind Masters in Trading Live.

He earned his stripes at the Chicago Board Options Exchange, going toe-to-toe with some of the world’s most aggressive and successful moneymakers. He’s made more than $10 million over the course of his career, profiting from bull markets, bear markets, and everything in between.

Let’s jump to yesterday’s MIT Live Update:

One area I’m laser-focused on right now: refiners.

The crack spread—which is basically the profit margin refiners earn turning crude into gasoline and diesel—has surged over 30% since mid-March. That kind of divergence doesn’t last forever.

To illustrate, Jonathan provides a chart that I’ll show you below.

The yellow line represents the crack spread. You’ll see how it’s become increasingly disconnected from refiner stocks like HF Sinclair (DINO) and Valero Energy (VLO).

Back to Jonathan:

This creates opportunity for creative traders.

When margins are expanding and the equities haven’t caught up, we’ve got a window to strike.

This is the exact kind of setup I love to track… because when the market catches on, the move can be fast and aggressive.

Beyond DINO and VLO, check out Marathon Petroleum (MPC) and Phillips 66 (PSX). These companies’ profits rise when refining margins are fat. So, a widening crack spread means a long position (or call options) could be a profitable way to play this.

If you’d to learn more, Jonathan wrote a fantastic primer for how to trade crack spreads. You can check it out for free right here.

I’ll note that Jonathan makes education the foundation of his videos and market approach. He’s one of the best teachers out there.

Want more trading ideas like these?

Then join Jonathan for his free Masters in Trading Live broadcasts at 11:00 a.m. every day the market is open. They’re a fantastic way to learn more about trading, while also giving you the tools to put a wad of cash in your pocket.

And if you’re new to trading, there’s no pressure to move faster than you’re comfortable. You can simply tune in, watch, and learn.

We’ll keep you updated on all these stories/opportunities here in the Digest.

Have a good evening,

Jeff Remsburg

Editor’s Note: AI has moved at an unprecedented speed, redefining how we live our lives. Before we know it, we’ll be approaching another kind of AI: artificial general intelligence, or AGI.

But what exactly is AGI? Why is it so important? And more importantly, what dangers and opportunities will it have? My colleague, Eric Fry, will answer these questions in an exclusive video called The Road to AGI Summit.

Now, I should mention that last summer, Eric warned that we were closer to AGI than most people realized. But now, with an acceleration toward the inevitable gaining steam, he is back with his final warning – to share the unprecedented opportunities AGI presents to investors. I’ll let Eric take it from here…

**********************

Hello, Reader.

Imagine we had progressed in transportation exponentially, instead of linearly.

In a linear progression, we moved from a horse-and-buggy to a basic automobile, to flight, to space travel.

In an exponential timeline, we would have gone from a horse-and-buggy directly to time travel.

That’s the reality we are facing with artificial intelligence.

In February, ChatGPT could claim an impressive 400 million weekly active users.

By mid-April – just weeks later – the number of weekly active users had doubled to 800 million.

That’s according to OpenAI CEO Sam Altman, who let those proprietary numbers slip out during an onstage conversation at TED 2025 on April 11.

“Something like 10% of the world uses our systems, now a lot,” Altman said.

That’s exponential growth on top of what was already rapid growth.

According to the market research firm DemandSage: “Between December 2024 and February 2025, ChatGPT saw a 33% increase in its user base (from 300 million to 400 million).” And that’s up from a “base” of 50 million weekly active users in January 2023.

Here’s a table displaying DemandSage’s estimates on the number of ChatGPT weekly active users over time:

Month	ChatGPT’s Weekly Active Users
April 2025	800 million
February 2025	400 million
December 2024	300 million
October 2024	250 million
August 2024	200 million
August 2023	100 million
January 2023	50 million

Clearly, this AI assistant is very popular… and becoming ubiquitous. Many of us use ChatGPT regularly.

That’s why it might be surprising to hear that AI technologists consider ChatGPT to be “weak.”

More specifically, these experts call all the AI chatbots, voice assistants (like Siri), and image creators we use “artificial narrow intelligence” (ANI).

But those seemingly negative designations don’t have anything to do with usefulness, popularity, or even accuracy. Instead, they refer to scope.

You see, ANI systems are designed to perform specific tasks within their specific domain. And while they may excel at those tasks, they cannot handle anything beyond their preprogrammed capabilities. 

That said, this “weak” AI is improving at exponentialrates. The companies that have been at the forefront of deploying ANI – like Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft Corp. (MSFT) – continue to pour cash into it.

This year alone, these giants will invest about $325 billion in data centers and AI infrastructure. To put this trend in perspective, the total represents a nearly $100 billion increase from last year’s $230 billion investment.

That means we’re quickly reaching a tipping point where the future will look nothing like the past.

When we reach that tipping point, ANI will start looking a lot more like what experts in the field call “strong” AI – or artificial general intelligence (AGI).

So, in today’s Smart Money, I’ll break down exactly what AGI is… and where we are on the Road to AGI.

Then, I’ll show you how you can turn its imminent arrival to your advantage.

You still have time to prepare and invest strategically before the rest of the world catches up – but not much time.

You might call this my “final warning” on AGI.

Let’s dive in…

The ANI to AGI Leap

The “weak” AI we’re using now – like ChatGPT and Siri – requires us to prompt the technology into action… but AGI won’t.

To better understand the difference between ANI and AGI, think of a pocket calculator. Until you punch numbers into the calculator, it just sits there with a blank screen.

Now, imagine looking at that calculator… but it’s already turned on and operating completely on its own. The calculator has determined what problems it needs to solve and is performing millions of calculations per second without your intervention.

The technology isn’t waiting for us to tell it what to do anymore. Instead, it’s determining both the problems and the solutions. This calculator – as fantastical as it sounds – has gained free will (or at least something close to it).

That is AGI.

AGI is when the AIs start coding themselves, when AIs start training each other… and when humans no longer have any idea how or why AIs are doing what they’re doing to achieve their goals.

Of course, this advancement can sound scary. But there is an a major, unprecedented, and positive side to this technological leap…

The Unprecedented Potential of AGI

AGI will be able to identify problems and create solutions we never considered.

This technology could have the power to develop breakthrough medical treatments and unlock scientific mysteries we have yet been able to crack.

This is how the world may become virtually unrecognizable in just a few years. This technological change is inevitable, and it’s a future we’re getting closer to with each passing day.

That is why, last August, I went live with an important event I called The Road to AGI Summit. In it, I warned that we are closer to AGI than most people think, and that many are unable to even fathom the kinds of changes this quantum leap will usher in.

Back then, only a few folks had heard of AGI. But now, the acceleration toward the inevitable is gaining steam, especially under the current administration.

On Day 1 of his second term, President Donald Trump announced the $500 billion Stargate project. This joint venture – the partners are OpenAI, Oracle Corp. (ORCL), and SoftBank Group Corp. (SFTBY) – is the largest AI infrastructure project in history. 

That was when AGI officially went mainstream.

OpenAI wrote in a blog post announcing the Stargate Project…

All of us look forward to continuing to build and develop AI – and in particular AGI –for the benefit of all of humanity. We believe that this new step is critical on the path and will enable creative people to figure out how to use AI to elevate humanity.

And SoftBank CEO Masayoshi Son said, “I think AGI is coming very, very soon.”

We’re on the Road to AGI right now… where those who grasp how to capitalize on this breakthrough — before it arrives — could emerge incredibly wealthy… while those who delay could end up suffering devastating financial losses.

Now, I’m giving a final warning for 2025. 

In my free The Road to AGI: Final Warning broadcast, I dive deep into the unprecedented dangers AGI represents for the world… and the even more unprecedented opportunities AGI presents to investors. Plus, I show you how to get ahold of my three-part “future proof” blueprint for a world of rapidly accelerating AI.

That blueprint features…

• The reasons why energy, real estate, and biotech are some of the most dynamic ways to play AGI.
• My No. 1 AGI-related stock pick with limitless potential on the Road to AGI.
• Details on critical stocks to avoid or sell immediately before they collapse.

This event isn’t just about warning you about AGI’s potential societal impact. It’s about future-proofing yourself for that impact.

In this new world, AGI could create immense wealth for early adopters, all the while transforming society in ways we can barely imagine.

Having predicted the housing crisis that wiped out Fannie Mae and Freddie Mac, the collapse of Countrywide Financial (-87%), and dozens more… I’m sounding this final warning with utter confidence.

I provide all the details during my The Road to AGI: Final Warning broadcast – all you have to do is click here to watch now.

Regards,

Eric Fry

Editor’s Note: As you are no doubt aware, I am foaming-at-the-mouth bullish on the AI Revolution and the massive wealth-creating potential it holds for investors. Hypergrowth Investing has been heavily focused on this exciting industry since the boom began in late 2022. We’ve spent years researching every corner of this market in order to understand it as intimately as possible – and ultimately, profit from it greatly. And so has Wall Street pro and my InvestorPlace colleague Eric Fry.

Back in August, he went live with an event called The Road to AGI. In it, he warned that we are closer to Artificial General Intelligence – AI smarter than the smartest human, with sentience and free will – than most people think. And many are unable to even fathom the kinds of changes this quantum leap in technology will usher in.

Futurist Eric Fry offers a roadmap to exponential wealth as we race toward a world driven by (and potentially controlled by) AGI. And in today’s issue, we’ll hear more from Eric about how to get positioned for such a life-altering shift.

Hello, Reader. 

In business, only those companies that can adapt to their environment can survive.

Today, every company faces an evolutionary imperative. 

Rapid technological change – driven by breakthroughs in artificial intelligence – means businesses must either evolve or go extinct. 

In December 1831, 22-year-old Charles Darwin embarked on the HMS Beagle to survey the coast of South America as the ship’s naturalist. 

It was during this five-year voyage that Darwin famously developed the theory of evolution by natural selection. This “survival of the fittest” concept refers to the idea that individuals with traits best suited to their environment are more likely to survive and pass those advantageous traits to their offspring.

The same theory can be applied to every business in the world.

And the stakes have never been higher because the pace of change is more rapid than anyone could have imagined. The companies that adapt quickly will be the new kings of the market. 

Those that refuse to adapt, or simply are slow to change, will go the way of the dodo bird.

Learning to Adapt for the Seismic Shift Ahead

As we reach the final stretches of the Road to Artificial General Intelligence (AGI), every company on the planet now faces the Darwinian prospect to adapt or perish. 

AGI is when AI achieves human-level intelligence and can perform tasks all on its own.

This technology is coming. In fact, OpenAI CEO Sam Altman said in January that the company already knows “how to build AGI.” 

For investors, this changes everything.

A company’s relationship with AGI is the lens through which investors now must view all stocks. And the companies that hope to survive and thrive must adopt and integrate AI technologies as quickly as possible. 

Those that fail to do so will perish… and time is of the essence.

That is why I’ve developed a three-step process for finding companies that will survive and thrive on The Road to AGI… and I’ll show you those three steps today.

In fact, I believe the stocks this process reveals are the only companies we should invest in for the foreseeable future.

The imminent arrival of AGI within the next 12 to 24 months puts us all in the crossroads right now. 

So, let’s dive in…

Hello, Reader.

Imagine we had progressed in transportation exponentially, instead of linearly.

In a linear progression, we moved from a horse-and-buggy to a basic automobile, to flight, to space travel.

In an exponential timeline, we would have gone from a horse-and-buggy directly to time travel.

That’s the reality we are facing with artificial intelligence.

In February, ChatGPT could claim an impressive 400 million weekly active users.

By mid-April – just weeks later – the number of weekly active users had doubled to 800 million.

That’s according to OpenAI CEO Sam Altman, who let those proprietary numbers slip out during an onstage conversation at TED 2025 on April 11.

“Something like 10% of the world uses our systems, now a lot,” Altman said.

That’s exponential growth on top of what was already rapid growth.

According to the market research firm DemandSage: “Between December 2024 and February 2025, ChatGPT saw a 33% increase in its user base (from 300 million to 400 million).” And that’s up from a “base” of 50 million weekly active users in January 2023.

Here’s a table displaying DemandSage’s estimates on the number of ChatGPT weekly active users over time:

Month	ChatGPT’s Weekly Active Users
April 2025	800 million
February 2025	400 million
December 2024	300 million
October 2024	250 million
August 2024	200 million
August 2023	100 million
January 2023	50 million

Clearly, this AI assistant is very popular… and becoming ubiquitous. Many of us use ChatGPT regularly.

That’s why it might be surprising to hear that AI technologists consider ChatGPT to be “weak.”

More specifically, these experts call all the AI chatbots, voice assistants (like Siri), and image creators we use “artificial narrow intelligence” (ANI).

But those seemingly negative designations don’t have anything to do with usefulness, popularity, or even accuracy. Instead, they refer to scope.

You see, ANI systems are designed to perform specific tasks within their specific domain. And while they may excel at those tasks, they cannot handle anything beyond their preprogrammed capabilities. 

That said, this “weak” AI is improving at exponentialrates. The companies that have been at the forefront of deploying ANI – like Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft Corp. (MSFT) – continue to pour cash into it.

This year alone, these giants will invest about $325 billion in data centers and AI infrastructure. To put this trend in perspective, the total represents a nearly $100 billion increase from last year’s $230 billion investment.

That means we’re quickly reaching a tipping point where the future will look nothing like the past.

When we reach that tipping point, ANI will start looking a lot more like what experts in the field call “strong” AI – or artificial general intelligence (AGI).

So, in today’s Smart Money, I’ll break down exactly what AGI is… and where we are on the Road to AGI.

Then, I’ll show you how you can turn its imminent arrival to your advantage.

You still have time to prepare and invest strategically before the rest of the world catches up – but not much time.

You might call this my “final warning” on AGI.

Let’s dive in…

The ANI to AGI Leap

The “weak” AI we’re using now – like ChatGPT and Siri – requires us to prompt the technology into action… but AGI won’t.

To better understand the difference between ANI and AGI, think of a pocket calculator. Until you punch numbers into the calculator, it just sits there with a blank screen.

Now, imagine looking at that calculator… but it’s already turned on and operating completely on its own. The calculator has determined what problems it needs to solve and is performing millions of calculations per second without your intervention.

The technology isn’t waiting for us to tell it what to do anymore. Instead, it’s determining both the problems and the solutions. This calculator – as fantastical as it sounds – has gained free will (or at least something close to it).

That is AGI.

AGI is when the AIs start coding themselves, when AIs start training each other… and when humans no longer have any idea how or why AIs are doing what they’re doing to achieve their goals.

Of course, this advancement can sound scary. But there is an a major, unprecedented, and positive side to this technological leap…

The Unprecedented Potential of AGI

AGI will be able to identify problems and create solutions we never considered.

This technology could have the power to develop breakthrough medical treatments and unlock scientific mysteries we have yet been able to crack.

This is how the world may become virtually unrecognizable in just a few years. This technological change is inevitable, and it’s a future we’re getting closer to with each passing day.

That is why, last August, I went live with an important event I called The Road to AGI Summit. In it, I warned that we are closer to AGI than most people think, and that many are unable to even fathom the kinds of changes this quantum leap will usher in.

Back then, only a few folks had heard of AGI. But now, the acceleration toward the inevitable is gaining steam, especially under the current administration.

On Day 1 of his second term, President Donald Trump announced the $500 billion Stargate project. This joint venture – the partners are OpenAI, Oracle Corp. (ORCL), and SoftBank Group Corp. (SFTBY) – is the largest AI infrastructure project in history. 

That was when AGI officially went mainstream.

OpenAI wrote in a blog post announcing the Stargate Project…

All of us look forward to continuing to build and develop AI – and in particular AGI –for the benefit of all of humanity. We believe that this new step is critical on the path and will enable creative people to figure out how to use AI to elevate humanity.

And SoftBank CEO Masayoshi Son said, “I think AGI is coming very, very soon.”

We’re on the Road to AGI right now… where those who grasp how to capitalize on this breakthrough – before it arrives – could emerge incredibly wealthy… while those who delay could end up suffering devastating financial losses.

Now, I’m giving a final warning for 2025. 

In my free The Road to AGI: Final Warning broadcast, I dive deep into the unprecedented dangers AGI represents for the world… and the even more unprecedented opportunities AGI presents to investors. Plus, I show you how to get ahold of my three-part “future proof” blueprint for a world of rapidly accelerating AI.

That blueprint features…

• The reasons why energy, real estate, and biotech are some of the most dynamic ways to play AGI.
• My No. 1 AGI-related stock pick with limitless potential on the Road to AGI.
• Details on critical stocks to avoid or sell immediately before they collapse.

This event isn’t just about warning you about AGI’s potential societal impact. It’s about future-proofing yourself for that impact.

In this new world, AGI could create immense wealth for early adopters, all the while transforming society in ways we can barely imagine.

Having predicted the housing crisis that wiped out Fannie Mae and Freddie Mac, the collapse of Countrywide Financial (-87%), and dozens more… I’m sounding this final warning with utter confidence.

I provide all the details during my The Road to AGI: Final Warning broadcast – all you have to do is click here to watch now.

Regards,

Eric Fry