The Herd Continues to Move Into This Sector

The AI craze continues...

Delivering World-Class Financial Research Since 1999 The Herd Continues to Move Into This Sector The artificial-intelligence ("AI") craze continues... Alphabet (owner of Google) CEO Sundar Pichai made a strategic move during a recent call with analysts, reminding them that the search-engine company has been "AI first" since 2016. This focus and investment is finally starting to pay off... Alphabet (GOOGL) is now worth more than $2 trillion. It's currently the world's fourth most valuable public company, right behind Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT). Take a look at how Alphabet's market cap has shot up recently... Alphabet reported blockbuster earnings last week. Earnings per share came in nearly 24% higher than analyst projections. Revenue was 2.3% higher than projected. And this is no easy feat as the company has a ton of eyeballs on it. Most of this growth was due to the success of Google's search engine. But Pichai knows what analysts want to hear... AI. Recommended Link: 'I Haven't Seen These Warning Signals Since 2007 – Watch Out' Porter Stansberry correctly predicted the 1998 emerging market crisis, the 2008 financial crash, the loss of America's AAA credit rating, and the recent banking collapses. Now, he's stepping forward with an urgent financial warning that goes directly against the establishment's narrative. If you have any money invested in the stock market, you could be blindsided. Until tomorrow, get Porter's exact game plan to prepare right here. Pichai highlighted the contributions of Google Cloud, which uses generative AI through Google's AI model, Gemini. Here's what he said... In Cloud, we have announced more than 1,000 new products and features over the past eight months. At Google Cloud Next, more than 300 customers and partners spoke about their generative AI successes with Google Cloud, including global brands like Bayer, Cintas, Mercedes Benz, Walmart, and many more. He also claimed Google is "positioned for the next wave of AI innovation and the opportunity ahead." Executives at tech firms – and just about any type of company nowadays – can take a lesson from Pichai. Investors want to hear about AI. They want to know the company is using AI to boost sales and profits. (Investors also loved to hear that Alphabet will start paying a dividend, something we value as shareholders.) Alphabet isn't the only company touting its AI offerings... Microsoft also had a big quarter, thanks to AI. Microsoft's revenue for the third quarter came in 17% higher than a year ago. You see, about a year ago, Microsoft began to put AI into everything it does. Specifically, it uses generative AI in its flagship cloud-computing product, Azure. Azure cloud revenue gained 31% for the quarter, much higher than expectations. Chief Financial Officer Amy Hood had this to say... While of course it's still early in the long-term AI monetization opportunity, we feel good about where we are. Microsoft's stock is about 8% off its all-time high stock price. It has a market cap of nearly $3 trillion. It's no secret what investors are clamoring for these days... If your company uses AI and promotes the fact that it uses AI, then the stock is likely near an all-time high. As you'd expect, investors have been piling into AI stocks in droves recently. The chart below looks at sector fund flows over the past 12 months. Since many companies that use AI are in the tech space, it makes sense that investors are buying tech stocks. What we're seeing today is an absurd rotation away from other sectors to tech... It's true that tech profits have been high in recent quarters. But seeing this chart gives me pause... As I've written about many times before, you don't want to be the person doing the exact same thing in the market as everyone else. While piling into the hottest trend may work for a while, it usually leads you to buy at a top... and ultimately get burned. I look at a chart like this and find myself getting interested in health care. Fund flows have been negative over the past 12 months. If folks are selling and aren't interested in the sector, that makes me want to be a buyer. As always, contrarian investing is the best way to get long-term gains in the market. Recommended Link: Former Goldman Sachs Vice President Reveals Mysterious 'Gold Bank' With Huge Upside Potential One analyst says the gains in this trade should be far greater than with just bullion or mining stocks. Some folks had the chance to see 995% gains the last time we shared this exact "gold bank." But most people know nothing about it (except the rich and elite). See his free reveal right here. What We're Reading... Google hits a new milestone: $2 trillion. Microsoft's heavy bet on AI pays off as it beats expectations in latest quarter. Something different: 'Not going to answer that': LeBron James quiet on future after Lakers' playoff exit. Here's to our health, wealth, and a great retirement, Dr. David Eifrig and the Health & Wealth Bulletin Research Team May 1, 2024 Follow us on Tell us what you think of this content We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions. Click here to rate this e-mail You have received this e-mail as part of your subscription to Health & Wealth Bulletin. If you no longer want to receive e-mails from Health & Wealth Bulletin click here. Published by Stansberry Research. You're receiving this e-mail at its028@gmail.com. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice. © 2024 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or stansberryresearch.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.