By Matt McCallMar 05, 2020
Hypergrowth investing is one of the absolute best ways to turn small amounts of money into life-changing wealth.
I follow multiple hypergrowth trends very closely, and one I can’t get enough of lately is artificial intelligence (AI).
A hypergrowth investor puts his or her hard-earned capital in industries and businesses with the potential to growth 10… 20… 50… even 100 times their current size.
We’ve got such an opportunity on our hands with AI.
Think about it. The internet created roughly $10 trillion in global equity in 20 years, according to ARK Invest. That’s more than the economies of Japan and Germany combined.
The research firm expects AI can add $30 trillion to global equity markets over the coming 20 years. That’s nearly as much as the GDPs of Japan and Germany… plus the United States, combined.
The size of this opportunity is mind-boggling. And one sector I already see AI impacting is healthcare.
Research and Markets anticipates the global healthcare market will increase from $8.5 trillion in 2018 to $11.9 trillion by 2022. So again, we’re targeting a massive market.
And the party’s just getting started.
We’re now beginning to see how AI can help researchers spot drug targets. A form of AI called machine learning can help them find desired molecules from massive data libraries, suggest chemical modifications, and identify drug candidates that could be repurposed for new uses and more.
Machine learning basically uses algorithms to go through data, learn from that data, and then make a prediction or decision. In other words, the machine can be trained through large amounts of specific data to learn to perform a given task.
The latest machine learning techniques used in healthcare are lightning fast and can ponder several experiment design goals at the same time from scratch, according to AI researcher Gisbert Schneider.
Another form of AI that’s being used in the healthcare sector is “deep learning.” This is a type of machine learning that uses neural networks inspired by the human brain to comb through vast amounts of data and consider examples typically without being given specific tasks to carry out.
We’ve witnessed a flurry of activity in this space over the past couple months, which tells me that researchers and businesses have been taking advantage of these techniques.
As I mentioned in a recent MoneyWire, researchers at MIT just announced that they used AI in the form of neural networks to help identify a powerful new antibiotic compound. You can read more about that here.
Findings like these make me more confident than ever that the sector is setting up for great things, despite the noise we’re hearing lately from the market. In fact, it’s our huge and ever-present need for improvement in the healthcare sector that will make it a long-term winner.
I firmly believe that in 10 years, AI will make it so that we look back at today’s healthcare system as extremely crude.
In 2019, investors spent $4 billion in healthcare AI across 367 deals, according to CB Insights. That was up significantly from the $2.7 billion spent among 264 deals in 2018. And among the total $26.6 billion spent on AI startups, healthcare was the leading sector.
One example is New York City-based Shrodinger (SDGR), which uses sophisticated computer techniques to develop new drugs. It IPO’d on February 6 and has climbed nearly 60% since. It’s dipped a bit in the broad market sell-off, but investors have been mostly bullish, and the stock has a lot potential.
But it’s not the only one.
I recently recommended two brand-new stocks that combine AI and healthcare in my new Microcap Millionaire Portfolio. And they’re killing it right now.
The first is a business that specializes in innovative cancer detection and therapy solutions. It’s a $292 million company that’s also a first mover in AI-powered detection of breast cancer. And it’s well positioned to take big market share and expand into other forms of cancer.
Since I introduced the stock to the Microcap Millionaire Portfolio on February 12, it’s taken off 36.5%.
The other biotech company in the portfolio uses AI to create next-generation drugs, helping lower costs and increase efficiency in the drug discovery process. Again, it’s a red-hot theme investors can’t get enough of.
The tiny company’s shares recently notched a 12-year high after it posted revenue that topped analysts’ estimates. Since entering the portfolio, the stock has increased more than 60% – in less than a month!
Investors are just beginning to see how significantly AI will impact the healthcare sector. What new drugs will be discovered that we’ve never thought were possible? What new therapies can extend our lives or even cure long-standing diseases?
The possible breakthroughs are tantalizing, and so are the investment possibilities.
P.S. Most investors haven’t yet seen how impactful AI will be in the global healthcare industry. It’s going to transform the sector in ways we’re just starting to grasp.
And it’s why this moment represents a chance to invest early in small stocks set to grow large… and make investors a lot of money in the process.
I have a whole system designed to do that, which I explain in the recent Microcap Millionaire Project event. More than 10,000 people tuned in to see how buying microcaps can “boost” the gains they’re seeing from blue chip stocks and index funds. You can watch the full presentation here.
I also released my 10 favorite microcap stocks at this point. We already locked in big profits on one, but the remaining nine are in high-growth industries that could soar 1,000% or more. Click here to learn how you can get started today.
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt discusses the recent market volatility. Stocks endured one of their worst weeks since the 1930s as a result of fear surrounding the coronavirus. But this isn’t the first correction the market has experienced – and it certainly won’t be the last. In this podcast, Matt dives into the history of stock market corrections. What it tells us can help us create a strategy. The current weakness is providing buying opportunities, and Matt names a few stocks with potential. Plus, he interviews famous value investor Dan Ferris of Stansberry research.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
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