AI Profit Alert: The AI Gold Rush Just Got Hotter

Remember when people thought the AI boom might be cooling off?

Well, Nvidia just proved them wrong... again.

Last Wednesday, the world's most valuable company announced another mind-blowing quarter, with revenue nearly doubling from the same time last year to reach $35 billion.

If you're keeping score at home, that's a 94% increase year-over-year.

But here's where it gets really interesting: Nvidia says they're still struggling to make enough chips to meet demand.

The company's data center business, which makes the specialized chips that power AI systems like ChatGPT, grew by an astounding 112%.

While this sounds great on paper, for Nvidia, these results have become business as usual.

Since announcing earnings on Wednesday, Nvidia’s stock is down about 7.5%

This follows a similar pattern we saw back in August when Nvidia last announced earnings. 

Initially, the stock dropped about 18% in the following week. 

However, the stock has recovered those losses and rallied an additional 8.7%. 

If you were lucky enough to pick up shares of Nvidia’s stock one week after the last earnings, you’d be sitting on gains of 28%

I believe a similar trend may play out again in the coming quarter.

The AI Race Heats Up

Nvidia’s results were generally bullish for its next-generation chip, called Blackwell.

The chip isn't even officially out yet, but Nvidia CEO Jensen Huang says demand is already outstripping their ability to produce them.

And there's a good reason for all this demand.

Mark Zuckerberg recently revealed that Meta is training AI models larger than anything he's seen.

Not to be outdone, Elon Musk's xAI is building what he calls the "Colossus" – a supercomputer in Memphis using 100,000 Nvidia chips.

They've just raised $6 billion to help pay for it, and Musk is already talking about doubling its size.

Meanwhile, Amazon just poured another $4 billion into AI company Anthropic, bringing their total investment to $8 billion.

They're betting big that Anthropic's Claude AI model could become a serious competitor to OpenAI's ChatGPT.

Speaking of OpenAI, they recently raised $6.6 billion at a whopping $157 billion valuation.

For perspective, that makes them more valuable than companies like Disney or Nike.

But here's what makes this moment truly special…

The Birth of a New Kind of Computing

Nvidia’s CEO is calling it "the industrial revolution of AI."

In a ceremony this past weekend at the Hong Kong University of Science and Technology, Huang explained how we're moving from an era where computers followed human instructions to one where they can learn and think on their own.

This isn't just about making better chatbots.

Meta is using AI to translate languages in real time during video calls.

Google is developing AI that can understand and create videos from text descriptions.

And Amazon is working on AI that can run entire warehouses autonomously.

For investors, this creates multiple paths to potential riches.

The obvious play has been Nvidia, whose stock has risen nearly 200% this year.

But there's more to the story…

Transforming Every Industry

The real opportunity might lie in identifying the companies that will use these AI tools to transform their businesses.

Consider this: Every major company in every industry will eventually need to adopt AI to stay competitive.

Those that move first will likely see the biggest gains.

We're still in the early innings of this technological revolution.

The amount of computing power needed for AI is expected to increase by a millionfold over the next decade, according to Nvidia's CEO.

That's not just growth – that's explosive, transformative change.

For investors who position themselves correctly, this could be the kind of opportunity that creates generational wealth.

Remember, Amazon's early investors saw their investments multiply by over 1,000 times.

And that was just from revolutionizing retail.

The AI revolution promises to transform every industry simultaneously.

The race is on, and the stakes have never been higher.

Smart investors are paying attention – because this might be the biggest wealth-creation opportunity of our lifetimes.