Happy Holidays!
As we’ve done the past few years here at Smart Money, we’re going to look “forward” to the next year by looking back at what we’ve talked about this year.
But before we get to that, I wanted to deliver a holiday gift to you… a special report featuring my Top 7 Stocks for 2025 that’s free to you just for being an important Smart Money follower.
Each one of these stocks capitalizes on one of the powerful megatrends we talk about here. I hope you’ll check that out.
And this year, we’ve talked about a technology so powerful that its existence could either herald the end of the world – or, at the very least, the world as we know it – or usher in the beginning of an unprecedented utopia.
That development is artificial general intelligence, or AGI.
As we’ve only just begun traveling down the path toward AGI, I’d like the revisit a past Smart Money from this year where I answered your most pressing questions. Updates will be provided as needed.
This article is from August of this year, titled Answering Your Biggest AGI Questions…
Let’s jump right in…
When will AGI become mainstream?
Scientists and other bright minds have put forth a few different timelines as to when they believe AGI will be developed. For example…
- Leopold Aschenbrenner, a former mathematician at OpenAI, has said that he already started to feel AGI back in 2023.
- Elon Musk believes that an AGI breakthrough could surpass human intelligence by the end of next year, and then surpass the intelligence of all humans combined by 2029.
- And Shane Legg, cofounder of Google DeepMind, believes that there is a 50% chance that AGI will be achieved by 2028.
The truth is that we really don’t know when AGI will become a part of our lives. However, the common denominator here is that the technology is developing fast… and will be upon us soon.
What industries will benefit the most from AGI?
AGI is going to impact several industries in ways many folks — including those on Wall Street — have never even considered. They are industries that I also believe everyone should consider investing their capital in right now. I’m talking about data centers, raw materials and metals, energy, software, semiconductor chips, robotics, and healthcare.
How will AGI improve healthcare?
As AI infiltrates the medical field, the U.S. healthcare industry is on track to grow faster than any other sector in the U.S. economy.
Companies are converging with AI to bring about massive amounts of innovation in the healthcare industry. In the biotech sector, for example, AI could revolutionize the economics of drug discovery.
First, it could boost the success rates of new therapies by prequalifying potential drug candidates more expertly than traditional trial-and-error processes could. Second, it could reduce the average expense and timeline of advancing these candidates through clinical trials by shortening the drug-development time frame.
Today, without AI, it can take more than a decade and over $1 billion to bring a new drug to market.
AI could impart a game-changing efficiency to the drug-development process, and thereby shower pharmaceutical companies, in particular, with a pixie dust of enormous prosperity.
Collectively, the pharmaceutical industry seems to be banking on the pixie-dust scenario. For example, all 10 of the top holdings in the iShares Biotechnology ETF (IBB) are actively integrating some facet of AI into their drug-development processes.
Many of the biggest pharmaceutical companies in the world are paying tens of billions of dollars to snap up promising biotech companies. You could call it a biotech gold rush.
The volume of merger-and-acquisition deals in the global healthcare sector surged about 22% last year, according to data provider Dealogic, even though M&A activity across all industries dropped about 23%.
I believe that the pharmaceutical industry, in aggregate, will reap handsome rewards from the expansion of AI in healthcare, especially as AGI continues to advance.
Overall, I expect AGI to impart fantastic benefits to the healthcare industry.
Can you explain “stealth” AGI?
When I say “stealth AI,” I’m usually talking non-tech companies that will adopt and apply AI with the goal of reaping huge gains in efficiency, productivity, and profits.
In many old-school industries, like shipping or travel, new AI- and AGI-enabled processes could boost efficiency and fatten profit margins. I consider industries like these to be future-proof, meaning they’re not going anywhere, despite whatever AI and AGI do. And when you put stealth AI to work inside a future-proof industry, you have the potential for both reliable and outsized gains.
What metals will be used for AGI?
Artificial intelligence has added a powerful tailwind to platinum demand… a tailwind that AGI will kick in to high gear.
At present, electronics and technology end-uses account for only 3% of total platinum demand. However, thanks to AI, the tech sector’s platinum consumption could grow by double digits for several years in a row.
According to research from Metals Focus, a boom in demand for AI applications will create an echo boom in demand for the high-specification semiconductors and sensors that enable AI technologies to operate optimally.
Much of this next-gen hardware contains platinum. As the World Platinum Investment Council explains…
The performance of the myriad of miniature transistors and capacitors embedded into an integrated circuit is enhanced by the deposition of thin platinum films onto semiconductor wafers…
These platinum films are created using a technology known as sputtering, where platinum particles are ejected and deposited onto a surface, creating a thin (only a few atomic or molecular layers thick) platinum layer.
AI-driven platinum demand could add an additional kicker to any new bull market that emerges.
The rise of AGI is also boosting demand for copper, because data centers use enormous amounts of copper for power and cooling systems. Even moderately sized data centers can require several thousand tons of the metal.
All this makes copper a very attractive business to be in – for mining companies and investors alike.
There were great questions, folks.
As AGI develops, the future that lies ahead is not simply a continuation of what has been… it is a complete departure from anything we have ever known. So, I hope you’ve found these answers to your most pressing AGI questions helpful.
In fact, we could be months, weeks, or even mere days away from achieving AGI. After that happens, we may reach a point of no return.
And I’m tracking this information closely.
In fact, you will hear more about my 1,000 day countdown to AGI soon after the new year. It’s a comprehensive look at the most important technological revolution of our lifetime.
Finally, one last thing before I go…
Regarding the Top 7 Stocks for 2025 free report I shared with you up top… sometimes knowing when buy a stock is just as important as knowing which stock to buy.
And my colleagues at TradeSmith have developed a new way potentially double your money, by foreseeing the biggest jumps on 5,000 stocks, to the day, with 83% back-tested accuracy.
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Regards,
Eric Fry
