The AI chatbot ChatGPT boasts high name recognition, but its daily use remains modest. This trend reflects the gradual adoption of AI, similar to past tech revolutions. In today’s FA Alpha Daily, we explore how deeper AI integration could drive significant growth in AI stocks, challenging the belief that the AI trend has peaked.
FA Alpha Daily:
Monday Macro
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More than half of the U.S. population has at least heard of AI chatbot ChatGPT. And nearly one-third of the population has used it.
On the surface, it looks like AI has already made a huge dent. However, when you look deeper… the story is quite different. Only around 7% of the U.S. population uses ChatGPT daily. Most people who reported using it only did so a handful of times.
And that’s only in the U.S. We have a higher percentage of ChatGPT users than any other country besides Denmark.
While ChatGPT is the most-used tool by far… there are new AI tools launching every day. They cover everything from translation to image generation, and even houseplant care—most of which have a fraction of the users ChatGPT has.
Companies are still trying to figure out how to use AI. Very few make money from it yet. And most of them, especially small-scale businesses, use the word “AI” to attract investors or customers.
Keep in mind that Big Tech giant Apple (AAPL) only sold 5 million iPhones in its first year. The iPhone couldn’t even consistently outsell the iPod for the next four years.
By 2013, though, Apple had sold 150 million units. Folks were quick to say that the iPhone had peaked.
A decade later, it sold 232 million units… or 43 times more than its first year.
The same thing happened on the e-commerce front. After the dot-com bubble burst in 2000, e-commerce controlled nearly none of U.S. retail. It took nearly 20 years for it to get to 10% market share.
Just one year later, partially thanks to the pandemic, e-commerce controlled 15% of all retail.
Of course, in each step of this growth story, people kept saying the same thing with the iPhone case, the surge is over.
Technology adoption is a journey, not an event and it often lasts longer than people expect. We’re just seeing the baby steps of a life-changing technology.
ChatGPT and other large language models (“LLMs”) aren’t fully packaged, ready-to-use end products. They’re more like an interface of AI technology.
Although they’re making life easier to some extent, these inventions are just tools right now. And only a handful of people that know how to use them have done so daily.
As new products integrate AI technology—and as we find new ways of using AI—we’ll see a jump in users.
And this time, they’ll be everyday users… not just one-time visitors.
The last time we saw anything like this, at least 10 different stocks soared 1,000% or more… while millions of Americans saw their stock portfolios devastated.
We can expect plenty of growth in AI usage from here… Conscious and beneficial usage in particular will bring money to AI stocks.
Anyone who believes the AI story has played itself out is mistaken.
IN CASE YOU MISSED IT:
AI has ushered in the biggest tech mania since the 1990s and has created 500,000 new millionaires—roughly 587 per day—since the launch of ChatGPT in late 2022.
In fact, Nvidia is already up more than 783% in the past two years and recently, the S&P 500 made a new all-time high, driven mostly by AI stocks.
While this may sound like good news, the world elite are already preparing for an AI crisis that could trigger a major catastrophe in the stock market.
When this crisis happens, it could impact your money—whether you own AI stocks or not.
If you want to protect yourself from this impending crisis, watch the replay of Professor Joel Litman’s most recent AI Panic Summit.
During the summit, Professor Litman discussed everything you need to know about the impending turmoil on AI stocks and what you can do to avoid massive losses and seize huge gains.
Click this link to watch the replay. This is completely free of charge.
Hope you’ll take the time to check it out!
Best regards,
Joel Litman & Rob Spivey
Chief Investment Strategist &
Director of Research
at Valens Research
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