Global Opportunities Beyond the Radar

Forget AI: Is This the Next Big Opportunity?

Bull Market

Bull Market

 

A large, diversified portfolio in quality assets can help you protect your wealth and grow your wealth.

Depending on your appetite for risk, it can also give you the option of adding an allocation for higher-risk opportunities.

Yes, money you can afford to lose should those opportunities not prevail. But also, with clear conviction, a good chance that they may come to fruition. And generate spectacular returns.

For much of this year, institutional and hedge-fund money has been chasing the AI boom. Predicted demand in processing power has seen Nvidia [NASDAQ:NVDA] rise over 190% this past year. Over five years, it’s up over 2,900%. A $10,000 investment back then would now be worth over $300,000.

Pity we missed that one. But back in 2019, it was far more speculative. Revenue had declined 17%. Demand for its graphics cards was falling. And the data-centre segment saw a 14% decline in sales as cloud infrastructure providers tightened their belts.

Of course, Nvidia was a company looking for new opportunities, and the stock did continue to grow through until 2022. Yet, by the end of that year, it had halved in value, wiping out much of those gains.

Few saw the AI opportunity. From early 2023, the Nvidia stock price began to rise quickly. And from early 2024 very steeply. Yet, just this past month, it began falling sharply as investors question its heady valuation.

That is how exciting new opportunities go. They begin as a vision. Most investors doubt the vision or they run out of patience with it.

Now, with some hedge funds selling AI chip businesses to go into software or other opportunities, we’re wondering where the next opportunity beyond the radar could come from.

And we’re not afraid to push the envelope…

 

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