“Generals always prepare to fight the last war, especially if they won it.”
French Prime Minister Georges Clemenceau supposedly said that during World War I.
The same applies to investing. Investors will often look at what worked before and assume it’ll keep working.
We’ve seen this happen with the dot-com bubble in the late 1990s. Investors threw money at any company with “.com” in its name, only for many of them to crash and burn. Then, in the 2000s, investors bet big on brick-and-mortar retail giants like Sears and JCPenney, missing the rise of e-commerce and Amazon.com Inc. (AMZN).
During the beginning of the AI Revolution, arguably the biggest technological shift of our time, some investors stuck with legacy tech stocks like Intel Corp. (INTC).
This was once an iconic American company. But take one look at Intel’s chart below. The chipmaker’s stock is down about 63% over the past five years.
What makes this drop even more shocking is the fact that all of Intel’s missteps happened as the AI Revolution picked up steam.
So, competitors like NVIDIA Corp. (NVDA) came along and revolutionized the semiconductor industry and become the clear-cut leader of the AI race.
Intel was fighting the last war.
Meanwhile NVIDIAsurged ahead, dominating the AI Revolution, thanks to its graphic processing units (GPUs), which proved to be far superior to CPUs (central processing units) for AI work. That’s when everything changed. All of a sudden, everyone doing AI was clamoring for NVIDIA’s chips, and the AI arms race was on.
As a result, few companies have profited from this profound shift more than NVIDIA. In my 40-plus years in this business, I’ve never seen a company as monopolistic as NVIDIA.
It’s why I went on record saying that NVIDIA is the “Stock of the Decade.” Its pace of innovation is unmatched.
But you have to wonder: How much longer can NVIDIA keep this up?
By the end of this decade, I predict the transistors in each of NVIDIA’s chips will be approaching the “atomic” level. That’s when the laws of physics will get in the way of making its chips any faster.
So, is NVIDIA fighting the “last war”?
I don’t think so.
I think NVIDIA plans to utilize quantum computing to dominate the next phase of the AI Revolution.
Now, you are going to start hearing more about quantum computing very soon. And that’s because, on March 20, NVIDIA will hold the first ever “Quantum Day” at their annual AI conference…
Or what I’m calling “Q Day.”
According to the company, it will bring together experts to consider what we should expect from quantum computing in the coming decades.
I believe this will be when NVIDIA makes its biggest announcement of the year…
And that announcement won’t just be great for NVIDIA. It’ll also be great for select “pure play” quantum computing companies that are partnering with NVIDIA.
Remember:The biggest gains will likely come from smaller “pure play” quantum computing companies.
These are the ones that could become the next NVIDIA.
So, make sure you block off your calendar for Thursday, March 13, at 1 p.m. Eastern. That’s when I’ll share all the detailsyou need to know about Q Day in a special summit – including my top pick, a small-cap stock protected by 102 patents with close ties to NVIDIA.
You can reserve your spot by clicking here.
After you’ve saved your spot, be sure to send me your biggest questions about quantum computing. I’ve already received a number of great questions, so keep them coming! You can reach us at [email protected] and use the subject line “Quantum computing questions” so that I can be sure to see each one of them.
In the meantime, to understand what’s coming, I’ll explain the ins and outs of quantum computing, including how NVIDIA is getting in on the action. It’s important to understand what quantum computing is and how it works.
Plus, I’ll share two ideas for how you can profit.
Let’s dive in…
What Is Quantum Computing?
I want you to think about a maze for a moment.
A classic computer will run a simulation by choosing a path. It will start all over again when it hits a dead end in the maze. It will repeat this process again and again until it finds the solution.
But if you can teach the computer how to reason like a person, then it could take a more efficient approach. Theoretically, it could automatically weed out the obvious dead ends, for example, and optimize the simulations even further.
That’s what British mathematician Alan Turing had in mind when he laid the foundation for artificial intelligence by suggesting building a program to simulate a child’s mind. In other words, teaching it to “think.”
This level of reasoning is basically what we refer to when we’re talking about artificial intelligence.
But here’s where things get interesting, so stick with me.
What if you could test ALL paths of the maze simultaneously, giving you the correct answer in just a fraction of the time?
Then you’d really have something on your hands, right? That’s quantum computing.
The idea is simple: Solve hard problems much faster than regular computers.
This ability to exist in multiple states at once is the key. It allows quantum computers to generate many solutions at the same time. And instead of traditional bits, which are either 1 or 0, quantum computers use something called qubits, which can be 1 and 0 simultaneously – a property called superposition.
Now, I want to be clear that many of today’s technologies already use quantum mechanics. Atomic clocks… MRI machines… lasers… even the humble LED lightbulb rely on quantum mechanics to work. We’re not talking about some theoretical power or outright sorcery.
But what’s different today is that we’re finally reaching a stage where quantum states can be harnessed to perform computing tasks. Electricity went through its own “transistor moment” in the 1950s – leaping from the blunt task of driving bulky electric motors to the ultra-fine role of powering the advanced semiconductors that run in every modern computer.
Quantum computing is now ready to make that same jump.
In fact, we’re already seeing real-world breakthroughs…
Quantum’s Move to the Mainstream
For years, quantum computing was limited to government agencies and university research labs because the hardware was too big, too expensive, and too unstable for real-world applications.
But thanks to some key advances, that’s changing.
Big Tech companies like Alphabet Inc. (GOOG), Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN) are developing custom quantum chips that can perform computations in seconds that would take classic supercomputers thousands of years to finish. (More on that in our next “Q Week” essay tomorrow.)
There have been other advances in quantum computing, too. Ones that have the potential to bring this to market at a mass scale that researchers only once dreamed about…
Now, I promise I won’t bore you with any more physics or technical lingo. The critical thing to know is that recent breakthroughs are putting us closer than ever to bringing quantum computing out of the lab and into profit-making Corporate America.
Major governments, tech firms and institutional investors are betting big on quantum computing.
That’s because the implications are staggering:
- Biopharma companies could discover breakthrough drugs faster than ever before.
- Automakers could develop driverless car systems that really work.
- Chemical companies will develop materials we can’t even imagine.
And that’s just the tip of the iceberg, folks. With quantum computing, we’re going to start solving problems we don’t even know we have.
And that brings us to the investment opportunity.
I’m Looking for the Next NVIDIA…
Now, as I mentioned earlier, I expect NVIDIA to begin the shift to quantum computing soon.
In fact, I predict a major turning point will take place on Thursday, March 20.
That’s when NVIDIA hosts its first-ever Quantum Day.
This is a big deal, folks.
My prediction is that NVIDIA will figure out a way to marry AI with quantum computing in a way no one has ever done before. We’re talking about the possibility of a new technological breakthrough that could affect industries worth a combined $46 trillion.
That means NVIDIA is still a solid “Buy” for long-term investors. That’s my Profit Idea No. 1.
But if you really want to make big gains, you have to start looking at the “pure play” quantum companies that NVIDIA and other Big Tech companies are partnering with. That’s my Profit Idea No. 2.
To learn more about that strategy, join me at my special Next 50X NVIDIA Call. Again, it’s on Thursday, March 13, at 1 p.m. Eastern. (You can click here to reserve your spot now.)
My goal for this briefing is to get you ahead of the crowd… ahead of the news outlets…
Because by the time the crowd has heard about this, it will already be too late.
Go here to reserve your spot NOW.
This is just the first part of my “Q Week” series. In my next piece, I’ll discuss how the rest of Big Tech is gearing up for the next battle – and what it means for investors. So, keep an eye on your inbox – you won’t want to miss what I have to say next.
Sincerely,
Louis Navellier
Editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA)