By Matt McCallAug 12, 2019
Artificial intelligence (AI) is finding its way into all of the biggest businesses in the world — the ones you use every day. Alphabet (GOOGL) uses AI to keep a stranglehold on the internet, with the almighty Google search engine. When you’re using Google Maps to navigate, and it reroutes you because of traffic, that’s AI, too. If you use Netflix (NFLX), LinkedIn (LNKD), Zillow (Z), or any other service that makes personalized recommendations, then you use AI.
But today I’m here to talk about a totally different kind of AI… one that Bill Gates said could be worth 10 Microsofts.
That’s a big claim — considering that Microsoft (MSFT) is already a $1 trillion company, by market cap — and Bill Gates is one of the smartest people in the world. So, I’m sure he doesn’t say that lightly.
Another of the smartest analysts I know, Cathie Wood of ARK Investments, says Gates is low-balling it! She thinks this variety of AI will “approach $17 billion in market cap” (emphasis mine).
To show you why, let me give you my quick “elevator speech” on AI as I see it… and the specific, extremely lucrative opportunity I’ve identified here.
The big subset of AI that everyone’s working in now is machine learning. That’s where machines can actually learn from massive amounts of data, without having to be reprogrammed. They do the work themselves. But it takes a lot of work to write each little algorithm that sets this in motion.
Let me give you an example:
Say you want AI to be able to identify a cat. It might sound simple. But to do this with machine learning, the scientists would have to choose what’s called classifiers to help determine whether it’s a cat or not. Maybe they go by the shape of the face and ears, the way the eyes look, the way it stands and moves, that sort of thing. Then the scientists hand-code all of those classifiers.
What Bill Gates and Cathie Wood are so excited about is called deep learning. With deep learning, the scientists start by creating a neural network. This is more like how our own human brains work. The neurons perform their task, pass the baton to the next neurons, and so on until the task is complete.
With deep learning, the AI truly teaches itself what a cat looks like! This is what a Google scientist did a few years ago. He built a neural network, then ran 10 million cat videos through it. This kind of deep learning learns how to identify cats much the way you and I did: by being shown, “This is what a cat looks like.”
The fact that we can now mimic human reasoning like that is incredible. And it really is the future. These days, we’ve thought of lots of possibilities for AI… and now deep learning will make them actually possible.
Deep learning will transform many industries. One I would highlight is transportation, which is a mega-trend we follow very closely.
Self-driving cars are the classic example of artificial intelligence and how it will change our daily lives — eventually.
Right now, it’s hard to imagine getting into an autonomous vehicle (AV). But as Mark Zuckerberg of Facebook (FB) puts it, “If you’re arguing against AI, then you’re arguing against safer cars that aren’t going to have accidents.” After all, an algorithm can’t have road rage, and it’ll never drive poorly because it skipped its morning coffee.
Fully autonomous vehicles will only become a reality on public roads with deep learning. Any driver, human or otherwise, needs to read signs in a split second. With machine learning, you can teach AI to identify a STOP sign, but you’ll need to hand-code the classifiers, and program it to look for the red color, the eight sides, and the letters S-T-O-P. But if a tree branch is laying across it, you can’t be sure this AI will still know to STOP!
If the car is driving itself, you want it to be able to think and react like a human brain. AVs will have to instantly know that they’ve encountered a bike, a person, a street sign, or any other object, and then determine the best action to take.
That is the kind of “brain power” we get with deep learning. And it’s incredibly valuable! The chart below from Persistence Market Research shows deep learning increasing nearly 40-fold from this year to 2027.
This estimate is even bigger than the ones we saw from Bill Gates and Cathie Wood. Persistence Market Research expects deep learning’s market value to hit $25 trillion.
Any way you slice the numbers, I see the upside in artificial intelligence, and more specifically deep learning, as among the greatest wealth creation opportunities in the next decade. It’s time to start building your own AI portfolio.
I took a look at the exciting advancements in AI during my 10X Innovation Summit, and the replay is available today for free. (But it won’t be for much longer, so be sure to check it out now).
When you do, you’ll see the stock that I’d have to mention in any discussion of AI.
This company is not working with stop signs, or cats — it’s a communications company, which lets you message your friends and associates anywhere in the world through the cloud. Like any company on the cutting-edge of AI, it still has crazy upside. Revenue is projected to triple in the next three years.
You get the details in my 10X Innovation Summit, where you’ll also see how to invest in another huge mega-trend: the Internet of Things (IoT).
I believe so strongly in this opportunity that I decided to give away my latest stock pick for free during the 10X Innovation Summit. I wanted my presentation to really be worth your while.
And my free stock pick is all about the Internet of Things.
Long before I pulled the trigger on the investment, I watched the company for years… ever since I first heard about it at a conference. I love its product — I just wanted to see the path to profitability.
Well, now I’m really impressed at its numbers in the latest quarter, which blew away Wall Street’s expectations. I think it’s on track to go from an $800 million stock to $8 billion. Go here to watch my summit, where I explain this stock pick, how it grabbed my attention, and how it fits into my new 10X Venture Portfolio.
P.S. Let me leave you with one final, related thought:
Smart investors do not worry about “picking stocks.” They worry about picking trends! And once you get to know that trend inside and out — the major players and the smaller imitators who are just hanging on for the ride — the right stocks reveal themselves.
The car as we know it is on the verge of a transformative change not seen since Karl Benz invented it nearly 135 years ago. In fact, the whole transportation sector is now poised for its version of 2.0.
I’m not exaggerating when I say this will lead to trillions of dollars in money sloshing around in the coming decades. What is coming will create one of the five biggest investment opportunities you’ll ever see in your life, no matter when you were born. Learn more here.
Marijuana has been outlawed most everywhere for decades… but now a wave of legalization is starting to sweep the world. This will create massive new markets and massive stock market winners. Learn more here.
The next big breakthrough in battery technology is an innovation that will have multi-trillion-dollar economic implications. I can tell you this mega innovation isn’t a matter of “if,” it’s a matter of “when,” and I believe it will go down as one of the greatest inventions of the 21st century.
Those on the right side of this innovation stand to build incredible wealth… just like people did from the creation of the internet and the smartphone. Think of this as your “field guide” for profiting from the next big battery breakthrough. Learn more here.
Don't miss out on the incredible megatrends that are shaping today's market. Gain access to the most powerful market insights and stock advice from Matt McCall absolutely FREE. Join Today!