3 Stocks to Watch During the AI Frenzy

It’s a new bull market... And friends who were skittish about investing for the last few years are now calling and e-mailing me out of the blue to get my opinion. This is often when people get hurt. Whether you find the idea wondrous or horrifying, AI is finally going mainstream.

SPECIAL REPORT

3 Stocks to Watch During the AI Frenzy

BY MARC CHAIKIN

Special Research Presentation

3 Stocks to Watch During the AI Frenzy

Special Report by Marc Chaikin

Artificial intelligence (“AI”) and all that it encompasses is incredibly exciting.

The technology itself is here to stay. It already has massive buy-ins from the biggest and most well- established tech companies of the past 20 years. But let me be clear: As I’m about to show you, the run-up in AI stocks is not the whole story. AI can provide massive good for all humanity – but there’s a dark side to this emerging story, too... one that most Americans haven’t even considered. What’s going on is much, much bigger than AI. Surely you and everyone else knows this mania won’t last forever. Nothing does. However, the tech revolution is not going to stop. It’s going to continue to accelerate. AI is already part of our everyday life. You see it everywhere, like the facial recognition that unlocks your iPhone, Amazon’s virtual assistant Alexa, and Google’s “Call Screen” feature. The innovations that come from generative AI will create countless investment opportunities down the road. But as history has taught us, with great progress comes great risk...

It’s a new bull market... And friends who were skittish about investing for the last few years are now calling and e-mailing me out of the blue to get my opinion. This is often when people get hurt. Whether you find the idea wondrous or horrifying, AI is finally going mainstream. The AI frenzy kicked off last November, when San Francisco-based company OpenAI launched ChatGPT. This chatbot wowed users with its humanlike conversation. It also served up quick answers to complex questions – greatly cutting down on research time. Unlike previously hyped tech trends like the metaverse, generative AI has immediate applications and uses... This isn’t some pipe dream for the future... It’s now being reported that chatbot-themed investments have added $1.4 trillion in stock market value in 2023. In fact, generative AI may make up most of the gains we’ve seen in the market this year.

History Doesn’t Repeat Itself, but It Rhymes

There always has been, and always will be, some investment du jour – the next big thing that makes early investors a fortune... Then it ultimately harms the investors who buy in too late. It was gold in the ‘70s... Then Japanese stocks... The Internet boom... crypto... social media... It goes as far back as the “tulip mania” during the 17th century Dutch Golden Age. Things got so crazy that people exchanged 12 sheep or 1,000 pounds of cheese for a single tulip bulb. You can’t feed your family tulips during a cold Dutch winter. Compare where we are with AI today with the dawn of Internet integration in 1995... You might remember when people used to say, “Why would I need a computer in my house?”

This is where we’re at today with AI, because folks just don’t get it yet... The first smartphones were nothing like the miniature computers we carry around in our pockets today. A 2005 Nokia phone didn’t use the Internet at all. Instead, it used a telephone communications band with a tiny digital backchannel. But kids in Finland started to use this backchannel for texting – specifically, texting 1,000 times a day with their friends to build a de facto social network. That networking effect set the stage for the boom in wireless Internet, starting with the iPhone. The moment the first website went live on August 6, 1991, it became almost inevitable that we’d end up here. AI can be as exciting as it is scary...

Data Is King

What is the next technology growth story that will drive demand for data storage? Generative-AI models are designed to respond to you like a human would. In some cases, they can generate audio or video files with a human voice. What generative-AI models are good at is pattern recognition. They make sense of large data sets. And the more data you feed the models, the “smarter” they get. Generative-AI systems like ChatGPT are computing systems with interconnected nodes that work much like neurons in the human brain, with each node having its own computational processes. They accept data, process it, and usually push the output to a new node with new parameters within the network. What is important to understand about machine learning is that there is a human element to advancing the functions of these systems. The more people who use a model, the better the model gets. It “learns” through human interactions and feedback. So, there’s value in being a first mover in this space because it means you’ll collect more feedback than competitors who get a later start. Ultimately, generative-AI models are only as good as the data they’re fed, or “trained” on. Increasing applications for AI technology will mean a lot more data and much higher demand for a place to store it all. AI is playing a huge role in data analytics across many industries.

There’s no doubt that AI will change the way we do things. It has the potential to automate repetitive and time-consuming tasks. And that will give employees more time to focus on other – and more important – duties. Throughout history, there have always been periods when new innovations disrupt everything about how human societies function. But the bottom line is, it’s okay to be apprehensive about new technology and still make money off of it. No matter where you stand on tech, you can’t ignore it as an investment opportunity. Tech investments have likely made the average retail consumer more money than anything else. And it’s nearly impossible to make much money in the stock market, decade after decade, ignoring hot tech trends. However, investors must remain skeptical and strategic. That way you end up holding the historic winners and avoiding the historic losers.

The Mainstream Financial Media Won’t Show You What to Do With Your Money

If you’re looking at the hundreds of AI recommendations and warnings printed in the mainstream financial media right now, you’re better off reading tea leaves. My name is Marc Chaikin. I’m best known as the creator of one of Wall Street’s most popular indicators... a system that appears in every Bloomberg and Reuters terminal in the world, and is now used by hundreds of banks, hedge funds, and every major brokerage site. For decades, I used it to help banks grow wealthier. But then the crash of 2008 came along... My wife lost around 50% of her 401(k)... all because of a bad money manager.

And that’s when I made a radical decision that yanked me out of retirement and has kept me working 24/7 for the last decade now... creating what I consider the ultimate “secret power” for everyday people. It’s a way to see which stocks could soon double your money, by taking the same information I gave Wall Street for 50 years... and using it to give yourself a huge and “unfair” advantage. And right now, I’m giving you a full version of the Power Gauge on three popular stocks to try yourself. Here are the three stocks you can plug in right now.

Stock No. 1: 3M (MMM)

Click here to enter this stock into the Power Gauge right now You’ll find the rating is VERY BULLISH due to very strong earnings performance, very strong price/ volume activity and very positive expert activity.. 3M (MMM) produces more than 50,0000 products across 23 business divisions. These products touch the industrial, consumer, technology, health care, and transportation sectors. 3M has nearly 100,000 employees and conducts research and development in 55 different countries. Notably, the company has also been awarded approximately 122,416 patents. Here’s where the Chaikin Power Gauge comes into play...

You see, MMM’s earnings performance has been very strong. And the stock is priced relatively low compared to next year’s projected earnings per share. Looking into the technicals setup, there’s a lot of newfound opportunity at MMM. Share price and trading volume activity for MMM is Very Bullish. MMM is outperforming the S&P 500 and is experiencing sustained “smart money” accumulation as measured by Chaikin Money Flow. That means MMM is another recent example of a classic “Chaikin Bull”... It has a “very bullish” Power Gauge rating, is outperforming the market, and there was persistent buying in the stock.

Stock No. 2: Affirm (AFRM)

Click here to enter this stock into the Power Gauge right now.

of its merchandise volume in 2020 and 2021. That’s since plunged to less than 2%. Competition in the space is up, while borrower credit quality is down. It might be tempting to buy the stock today, since American consumers seem to want to keep spending even as the economy heads into a deeper recession. But according to the Power Gauge, this stock could soon be rated a “Sell” at every major bank and hedge fund… which means that this company could end up as one of the biggest losers in the coming months. If you own AFRM, know that the Power Gauge sees that it’s in murky water. Things might get better for the company eventually. But for now, this is a stock to watch… not load up on.

And you’ll see the rating is listed as NEUTRAL . Affirm is a popular choice for folks looking to buy all sorts of things they may not immediately have the cash for. It’s a digital payments platform that bet big on “buy now, pay later” loans. You may have seen Affirm as an option in an online checkout queue... at places from Home Depot to Walmart... Dyson vacuums to Adidas shoes... tickets from American Airlines to trinkets from Target. But it’s not working out perfectly, as the entire pay-later industry has come under criticism for getting consumers deeper in debt... And with losses mounting, the company is trudging through a challenging time. For example, one of its biggest sources of revenue in the past few years came from exercise- bike maker Peloton... making up nearly a quarter

Stock No. 3: United Parcel Service (UPS)

Click here to enter this stock into the Power Gauge right now. And you’ll see the rating is listed as VERY BEARISH. UPS (UPS) has spent the past 117 years building a delivery empire that now stretches across more than 200 countries. On an average day, it handles an incredible 22 million packages. As you’ll recall, delivery companies became huge winners during the COVID-19 pandemic... Folks didn’t want to leave their homes, but they still needed things. They ordered more of just about everything online. And in turn, business surged for companies like UPS... The company’s stock peaked at $232 per share in February 2022. That was an incredible 169% surge from the pandemic low two years earlier. But as the rest of the market surged in 2023, the stock struggled. It fell nearly 10% last year. And even worse for investors, it’s having a rough 2024, too.

UPS recently noted declining volumes in both its domestic and international businesses... For the fourth quarter of 2023, the average number of daily packages fell more than 7% year over year in the U.S. And it was down more than 8% internationally. Unfortunately for UPS, that trend has continued. The company’s profits fell 30% in the second quarter of 2024 compared with last year.

The company earns a “very bearish” overall rating.

After a two-year downtrend, you might be tempted to think UPS is trading at a bargain today. But fundamentally, the company still doesn’t look good... and the Power Gauge sees that.

If you own UPS, get out immediately.

Finding bearish stocks is how I once appeared on CNBC’s Fast Money back in 2014 and warned the public about Priceline.com, just before the stock plummeted. A friend of mine reported seeing a 733% overnight gain on a single play he came across by using my prediction.

Should I Put My Money in the New Bull Market?

In my event, which you can watch right now by clicking here, I’ll walk you through how the Power Gauge works. I’ll give away my No. 1 AI recommendation. While AI is the strongest tide in the sea right now, there’s a massive dark side to today’s story. It has been present in every frenzy since the dawn of the financial markets. When the AI bubble bursts – as bubbles always do – we’ll see a devastating sell-off. You must have an exit strategy. That’s the only way to see massive potential gains from this moment forward – without taking on catastrophic risk. The Power Gauge has identified at least nine of the top 10 stocks of the year... every year... for the last six years. My strategy will help you take advantage of this critical stage of the AI investment trend... while

also protecting you from the AI stocks that could cost you everything in the months to come. I’ll show you exactly how to play my prediction using the Power Gauge. Last year alone, it pointed to Riot Blockchain before it shot up 10,090% in less than 12 months... Digital Turbine, before it shot up 789% in eight months... Overstock.com, before it shot up 1,050% in four months... and more. Watch my event, where I’ll explain what to buy now, and what to buy next , for the biggest potential gains of this new bull market. Regards, Marc Chaikin

Founder, Chaikin Analytics Creator of the Power Gauge

About Marc Chaikin

Marc Chaikin has spent 50 years on Wall Street, he is one of the most influential contributors to financial strategy and technology. Over the past 50 years, he survived and thrived in 9 bear markets... helped create three new indices for the Nasdaq, where he once rang the opening bell... has built what many experts consider the “golden standard” for determining where a stock is going next (based on his worldwide indicator which appears on every Bloomberg terminal)... and has appeared many times on Fox Business and CNBC’s Mad Money . As CNBC’s Mad Money host, Jim Cramer, once said: “I learned a long time ago not to be on the other side of a Chaikin trade. I want to explain why I love Marc’s stuff. It’s simple, it’s understandable, it’s rational, it’s not emotional, and I use it constantly and I almost never want to go against it.”

Click here to start using the Power Gauge for yourself—right now.

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