Let’s face it – last week’s Nvidia earnings report left a lot of investors bewildered. The company CRUSHED its numbers, beat estimates on every metric, guided higher than expected… and what happened? The stock dropped!
This reaction was a wake-up call. Even the mighty Nvidia is at the mercy of investors’ sky-high expectations, and their relentless hunger for even bigger gains.
But what if I told you that there’s a way to ride the coattails of Nvidia’s AI dominance without facing the heart-stopping volatility of its stock?
There is. And it rests on the ONE crypto that Nvidia currently holds on its balance sheet.
I’m talking about Ethereum (ETH), the second-largest cryptocurrency by market cap, and a little something called “Telepathic AI.” (More on that in a moment!)
Before we jump into Ethereum, let’s address the elephant in the room – Nvidia.
Nvidia: The AI King
Nvidia is the undisputed king of AI. Its GPUs are the brains behind the AI revolution, and they’re in high demand from the biggest tech companies on the planet. Even after its post-earnings drop, the stock has shot up more than 200% so far this year!
That said, as our colleague Davis Wilson pointed out in Altucher Confidential last week (read his full analysis here), the stock is experiencing a familiar pattern. Despite its continued revenue and profit growth, investors seem to take profits after each earnings report, and the stock’s price-to-earnings ratio dips back down to around 50X. Only to then slowly rise back up to 80X over the next three months.
He even goes on to give an incredibly bullish price target of 173 dollars, which he believes could be achieved by mid-October.
For long-term investors, this dip could present a good buying opportunity. However, for those who can’t stomach the stomach-churning volatility (or who missed the initial climb), there’s another play to consider…
Ethereum: The Fuel of Decentralized AI
Ethereum is unique in that it’s not just a cryptocurrency. It’s also a decentralized computing platform that enables developers to build and run smart contracts and decentralized applications (dApps).
And – pay close attention, because this is where the real opportunity lies– Ethereum is at the heart of a new AI revolution known as Distributed Training Over-the-Internet (DisTrO).
DisTrO promises to make training large AI models more efficient by reducing the amount of data that needs to be shared between GPUs by up to 10,000x or more! (This groundbreaking report from Nous Research explains how.)
The implications of this are huge. Decentralized AI training will make AI development accessible to a wider range of organizations, boosting competition and driving further innovation.
Ethereum is perfectly positioned to be the platform of choice for these decentralized AI projects, and that could push the price of ETH to new highs!
The 2 “Telepathic AI” Stocks to Buy Now
Here’s how I’m playing this opportunity:
- Ethereum (ETH): The surge in decentralized AI training will fuel demand for Ethereum and could drive its price to 10X or more within the next five years. Buy ETH now and hold it for the long term.
- Nvidia (NVDA): Nvidia isn’t just betting on its own chips to power the AI revolution. It’s also betting on Ethereum, and it has been quietly buying and holding ETH for years. This is a clear vote of confidence in the platform’s future. If you want to play the AI boom without going all-in on ETH, buying NVDA is a great alternative.
So there you have it – two stocks to buy now to play the next wave of the AI revolution. This week, we’ll be diving deeper into each play, so stay tuned…
Tomorrow: We have a contrarian guide to beat the “September Slump” with 5 unexpected stock picks.