Phase 2 of the AI Boom Will Revolutionize a $13.1 Trillion Industry

By TradeSmith Research Team

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Note from Michael Salvatore, Editor, TradeSmith Daily: It’s a rare thing for a company to reach a $1 trillion valuation. There are only seven such companies in the world today.

But my colleague Eric Fry – global macro specialist at our corporate partner InvestorPlace – believes he’s found the next one.

It’s a company that’s using AI in a way he thinks will revolutionize a $13.1 trillion industry. If he’s right, it’ll become a new leader in the field like Nvidia did for AI hardware.

I also invited Eric to show you why what he calls Phase 2 of AI will be what enables this new shift. Read on…

Phase 2 of the AI Boom Will Revolutionize a $13 Trillion Industry


Most investors missed out on the first phase of the artificial intelligence boom.

You know… that era of advancements marked by ChatGPT, AI chips, rapidly evolving robots – and substantial gains.

That’s too bad.

However, another wave of AI innovation is coming…

This time, though, it has nothing to do with any of the previous AI advancements that the mainstream media talks so much about.

In fact, the opportunity here is significantly larger than any of those AI applications.

So, let’s dive into what to expect from this next phase of the AI boom.

And where to find some of that opportunity.

But first, let’s chat some about how we got to this spot in the AI Revolution…

The First Phase of the AI Boom

Although artificial intelligence has been around since the 1950s, it wasn’t until OpenAI released ChatGPT to the public in November 2022 that interest in AI really caught fire.

For perspective… following ChatGPT’s launch, more than 1 million people downloaded it in five days. And over 100 million people signed up for it in two months.

In comparison, it took Facebook more than 4.5 years to reach 100 million users.

In the early phase of the AI boom in 2023, seven clear winners emerged. You know their names. CNBC’s Jim Cramer dubbed them the “Magnificent Seven.”

And their performances certainly were magnificent. They gained an average111% in 2023.

Of course, the biggest winner of 2023’s boom was Nvidia Corp. (NVDA), the AI chip king, which surged 239% in 2023. Since the unveiling of ChatGPT, shares of the company have skyrocketed nearly 450%.

In different ways, each of these companies has been providing the hardware, software, and processing power that enable enterprises to create and operate AI platforms.

They enabled the AI Revolution.

For example…

  • Microsoft Corp. (MSFT) is developing its own in-house semiconductor chip, code name Athena.
  • Alphabet Inc. (GOOGL) also has created its own new Arm-based CPU processor, called Axion.
  • Inc. (AMZN) has Amazon Q.
  • Tesla Inc. (TSLA) has Dojo.
  • And Meta Platforms Inc. (META) has Llama 3.

Their efforts are why large language models (LLMs), like ChatGPT and Anthropic’s Claude 3, can be developed so quickly.

Cramer may call these companies the Magnificent Seven, but I think of them more as the “AI Seven.”

However, the sudden dawn of the entire AI boom caught most people – and many investors – by surprise. Therefore, a lot of folks missed out on those big gains from the AI Seven.

The good news is the AI Revolution is about to enter a new phase, and a different set of companies will lead the way. The AI Seven is about to become the AI Eight… Nine… and beyond… during the next phase of the AI boom.

We’ve Had the AI Enablers. Now Enter the “AI Appliers.”

Unlike the AI enablers, the next key players in AI are not at the forefront of producing the material needed to create AI. Instead, they are employing AI technology within their own products and services.

AI appliers are everywhere… and growing by the day.

That universe includes companies as diverse as beauty-products purveyor Coty Inc. (COTY), gold and copper explorer Ivanhoe Electric Inc. (IE), industrial-solutions provider Rockwell Automation Inc. (ROK), and sports-technology company Genius Sports Ltd (GENI).


Eric Fry
Senior Investment Analyst, InvestorPlace