Now Is the Time to Get in the $20 Trillion Physical AI Boom

There was a famous line from the 1967 movie The Graduate, when Mr. McGuire gives young Benjamin (played by Dustin Hoffman) some unsolicited career advice:

McGuire: I want to say one word to you. Just one word. Are you listening?

Benjamin: Yes, I am.

McGuire: Plastics.

Benjamin: Exactly how do you mean?

McGuire: There’s a great future in plastics. Think about it. Will you think about it?

It seemed strange at the time, but McGuire was on to something big.

Thirteen years later, seven of the world’s 10 most valuable companies were oil firms, thanks in no small part to plastic.

ExxonMobil Corporation (XOM) rose to prominence, converting crude oil into polyethylene, polypropylene, and countless everyday products. Chemical engineers from top Ivy League schools flocked to these firms, drawn by opportunity and innovation.

The 2000 movie Frequency includes a time-traveling person who tells his six-year-old childhood friend to remember the “magic word, Yahoo.” That advice eventually turns the friend into a dot-com millionaire. 

Today, we’re facing a similar moment – an opportunity hidden in plain sight. I’m calling it the “Day Zero” moment for artificial intelligence.

We’ve seen previous waves of tech innovation – and the kinds of life-changing gains they can offer investors. The PC wave, the internet, the iPhone – and now, AI.

But in today’s Market 360, I’m going to explain why I think this next wave of the AI Revolution could be the biggest one yet. I’m talking about Physical AI – where AI steps out into the real world and powers everything from self-driving cars to automated factories to humanoid robots and more. 

Bottom line, you better buckle up, folks. Because the world is about to get a lot more interesting. And the good news is my InvestorPlace colleagues Eric Fry and Luke Lango and I have a handful of ideas for how you can profit.

Let’s dive in.

Why I’m Betting Big on Physical AI

Now, there’s a reason I bring up that line from The Graduate.  

I’m a proud dad, of course, and I think my kids have a bright future ahead of them. But this brings me to something I was thinking about recently…

What advice would I give a young graduate today?

Thinking about this took me back to when my son was studying engineering at Stanford. At the time, the university debuted a self-driving race car named “Shelley,” using chips from NVIDIA Corporation (NVDA).

I was impressed enough to add NVIDIA to the portfolios in two of my premium services back in 2016, at around a split-adjusted price of a dollar.

Full disclosure, I sold the stock after locking in a solid 274% gain. But when I learned more about NVIDIA’s plans in artificial intelligence in 2019, I jumped back in, and I’ve never looked back. Since then, those shares have soared more than 4,100%.

What’s interesting is NVIDIA’s initial success was powered by video gamers. But when AI researchers began using NVIDIA graphics processing units (GPUs) to train neural networks, it was a game-changer.

Practically overnight, NVIDIA became the essential provider of AI hardware. Then, in November 2022, ChatGPT was launched, officially igniting the AI Revolution.

So, if I were giving advice to a young graduate today, I think I’d pass along some wisdom from Jensen Huang, NVIDIA’s CEO.

When asked what he would study if he were starting out today, Jensen said it wouldn’t be purely software. Instead, he’d focus on the physical sciences – which is important for the physical side of AI.

But this advice isn’t just for graduates, of course. Investors should pay attention, too.

Here’s why…

The Robots Are Coming…

Amazon.com, Inc. (AMZN) has already deployed over a million robots in its warehouses and is even experimenting with humanoid robots that can hop out of delivery vans and bring packages directly to your door.

Tesla, Inc.’s (TSLA) gigafactories run extensively on automation. Soon, its Optimus humanoid robots will roll out to the public and help with everything from household chores to backbreaking manual labor.

Farmers are deploying fully autonomous tractors from Deere & Company (DE), revolutionizing agriculture.

We’re even seeing the emergence of “dark factories” like Xiaomi’s facility in China, which produces smartphones at a rate of one per second without any human involvement.

I could go on. But the point is AI is moving from science fiction to reality, and it’s happening faster than most people imagine.

We’re at the beginning of an innovation revolution built on robotics, AI-powered factories, autonomous logistics and more.

Companies like NVIDIA are already investing billions into robotics to stay ahead, shifting their focus away from legacy businesses to capture the Physical AI boom.

It’s arguably the most transformational thing to happen to our society since the Industrial Revolution. And it’s going to take a massive wave of investment to make it happen.

See, every major technological wave creates at least three times the value of the wave before it:

• The internet era created more than three times the value of the PC era.
• Mobile computing tripled the Internet’s impact.
• Cloud computing then tripled mobile’s impact.

Now, Physical AI is poised to triple the impact of cloud computing, potentially generating $20 trillion in new wealth.

How to Find the Best Physical AI Stocks

In 2023, Eric, Luke and I teamed up to launch a special research project featuring only the best-of-the-best AI stocks leading the AI Revolution. These were companies that we believed would not only dominate their industries because of their use of AI but also shape the way the world uses this nascent technology.

Since then, we’ve stayed on top of the most profitable AI trends, from software to quantum computing to the AI Appliers – and helped those following our research make good money off of them. And now, we believe that Physical AI will define the next great era of growth investing.

So, we decided to create a new seven-stock portfolio that includes our best Physical AI and robotics stocks to own today.

To find out how to access this portfolio and learn about the incredible investment opportunities Physical AI is offering, we recently filmed a special free broadcast. Plus, we give away one of our top Physical AI picks – completely free of charge.

Click here to watch our briefing now.

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:

ExxonMobil Corporation (XOM) and NVIDIA Corporation (NVDA)