Do not get it twisted, we are in the midst of an extremely powerful bull market. The opportunities are here and now.
This boom is being driven by one of the greatest technological advancements in recent history, and I firmly believe any dips, pullbacks, or corrections should be treated as buying opportunities rather than seeds of doubt. It has evolved beyond a business or technological race. Today, it is a sovereign race, with governments around the world actively encouraging its acceleration.
We are now well into the third year of the Artificial Intelligence boom, and the current bull market still offers plenty of opportunity for gains. While it can feel uncomfortable to chase a trend that has already produced massive returns, history shows that powerful secular shifts often last far longer than most investors expect. The psychological hurdle of thinking “it’s too late” is rarely a good enough reason to sit out a generational investment wave.
Moreover, the data supports continued upside. The AI beneficiaries continue to grow profits and revenue at an impressive pace, the spending to keep up with the increasingly complex models is acting as a national economic stimulus and these companies still trade at reasonable valuations. And my favorite indicator, the market itself, makes record highs week after week.
With the stars aligning to create one of the ripest investment regimes in modern history, I encourage investors to remain confident in this market.
The Models Continue to Evolve
At the center of this boom are the models themselves. AI systems are evolving at an astonishing pace, moving from basic text and image generation to advanced reasoning, real-time learning, and domain-specific expertise. Though we have become a bit numb to the progress of these models, the rate of progress is really quite staggering if we look back at the first version of the LLMs we used to the ones we are using today. OpenAI, Anthropic, Meta, and Google are all pushing boundaries, creating a cycle of rapid innovation that demands ever more computing power.
These leaps in model capability not only drive demand for semiconductors and data center buildouts but also unlock new enterprise use cases, from productivity enhancements to drug discovery to autonomous robotics. As the models get better, the economic value they create expands exponentially.
So Do the Costs...
But innovation doesn’t come cheap. Training the largest AI models now costs hundreds of millions of dollars, and the inference costs at scale are just as staggering. Hyperscalers are pouring hundreds of billions annually into AI infrastructure, with some forecasts suggesting more than $1 trillion in AI-related capex by the end of the decade.
This spending spree has created an enormous opportunity not just for GPU makers like Nvidia, but also for the broader semiconductor supply chain, power and cooling systems, and energy producers that keep the servers running.
The boom in demand is so strong that it is already reshaping electricity markets and accelerating investment in renewable and alternative energy sources.
Keep reading . . .
------------------------------------------------------------------------------------------------------
See ALL Zacks’ Long-Term Picks for Only $1
Through good markets and bad, one unique stock-picking method has more than doubled the market’s average gain with an incredible +23.6% per year.
To help you take advantage of opportunities in today’s market, we’re opening the vault to reveal all our long-term recommendations. You’ll see stocks priced under $10… income investments… hidden value stocks and more. While future success isn’t guaranteed, recent gains have reached as high as +169.9%, +198.4%, and even +263.2%.¹
All for just $1.
Special opportunity ends at midnight Sunday, September 21.
See Stocks Now >>
------------------------------------------------------------------------------------------------------
The Industries That Will Reap the Profits
Big Tech: The Magnificent 7 remain the most obvious winners. The reality is that running large-scale AI models is a tremendously costly business endeavor and by using their monopoly-like profits to develop the technology and cloud computing and platforms to dominate distribution, they are the clearest winners out there. Their scale allows them to absorb costs, integrate AI into existing products and internal tools, and monetize through subscriptions, ads, and enterprise contracts. Furthermore, they are all hammering opportunities to improve their existing business models. Meta for instance, has incorporated the technology into its ad platform, and the other leading tech companies continue to increase revenue per employee rapidly. Microsoft has increased its top-line by some $250 billion with zero additional employees.
AI Infrastructure: These companies stand to benefit as designers and producers of critical chips. This entire layer of the market is powering the physical foundation of AI. The technology industry has quickly progressed from a digital, to a physical and industrial business, with these companies sitting in an extremely advantageous position. There are also opportunities in the more niche providers, like those producing the fiber optic connectivity and memory solutions.
Energy & Utilities: Data centers consume staggering amounts of power. For the first time in the technology industry’s history, energy has become a bottleneck. Utilities, grid operators, and renewable developers are poised to ride the wave, with solar, nuclear, and natural gas all seeing renewed investment interest.
Alternative Assets: Interestingly, AI is also fueling demand for Bitcoin and gold. In a world being rapidly reshaped by technology and uncertainty, investors are increasingly turning to these assets as alternative stores of value.
How to Invest
The best strategy may be a barbell approach: anchor a portfolio with Big Tech leaders that have proven staying power, while allocating selectively to high-growth infrastructure plays and alternative assets that benefit from AI spillover effects. ETFs and carefully chosen single-stock positions all provide ways to get exposure. The key is to stay invested and use volatility as an opportunity to accumulate. Additionally, by having positions in alternatives like Bitcoin and Gold, investors can add portfolio diversification and uncorrelated returns.
Finally, investors need to utilize proven tools to help identify leaders and trade in accordance with market sentiment. The Zacks Rank has done a remarkable job identifying AI winners well ahead of the market, consistently highlighting companies that went on to deliver outsized gains. Using the Zacks Rank as a starting point can provide investors with a systematic way to cut through the noise and zero in on stocks with the strongest earnings momentum.
The AI Boom Will Continue to Push Stocks Higher
While we may not be in the first inning of this boom, I believe we’re only about halfway through the game. Each stage of technological revolution, whether the railroad, radio, internet, or now AI, has created a multi-year period of outsized returns for equity markets and this time is no different.
Yes, valuations will stretch, and sentiment will swing between euphoria and skepticism. But the underlying drivers, massive infrastructure investment, exponential model improvement, and the integration of AI into every corner of the economy, remain intact.
For investors, the message is simple: the AI boom is far from over. The profits will continue to flow, and those who stay engaged are best positioned to ride this historic bull market higher.
Targeting Long-Term Gains in the AI-Driven Market
To help you make the most of this historic investing opportunity, we've opened up our Zacks Investor Collection, a bundle of our top subscription services for long-term investors. It's made for markets like this.
Over the next 30 days, for the total cost of only $1, you're welcome to catch all of the real-time buy and sell signals from all of our long-term investor portfolios, including...
• Real-time buys, sells, and market commentary from Stocks Under $10, Home Run Investor, Value Investor, ETF Investor, Income Investor, and Zacks Top 10 Stocks.
• Plus, you'll get full access to our powerful research, tools, and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener, and more, as part of Zacks Premium.
These portfolios have closed 40 double and triple-digit wins so far this year. Although we can't guarantee every pick will be a winner, recent gains have reached as high as +169.9%, +198.4%, and even +263.2%.¹
Bonus Report: If you act quickly, you'll also get our exclusive Special Report, High-Yield ETFs: 4 to Buy Now. Zacks' Director of ETF Research just identified the high-yield funds that blend peace of mind with substantial returns. One fund gained a whopping +286% in under 6 months. The following 6 months may be just as profitable.
So please don't wait - be sure to click below right now. This restricted $1 opportunity ends at midnight Sunday, September 21.
Click here for Zacks Investor Collection and High-Yield ETFs: 4 to Buy Now >>
All the best,
Ethan
Ethan Feller has a decade of experience trading in markets. He graduated from Ithaca College with a BA in Economics. Prior to joining Zacks, Ethan worked at a proprietary trading firm where he focused on statistically significant short-term trading strategies in stocks and futures. He invites you to check out all of Zacks’ long-term picks for 30 days for only $1.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.
Image: Bigstock
The AI Boom Continues: Key Sectors to Buy Now
Do not get it twisted, we are in the midst of an extremely powerful bull market. The opportunities are here and now.
This boom is being driven by one of the greatest technological advancements in recent history, and I firmly believe any dips, pullbacks, or corrections should be treated as buying opportunities rather than seeds of doubt. It has evolved beyond a business or technological race. Today, it is a sovereign race, with governments around the world actively encouraging its acceleration.
We are now well into the third year of the Artificial Intelligence boom, and the current bull market still offers plenty of opportunity for gains. While it can feel uncomfortable to chase a trend that has already produced massive returns, history shows that powerful secular shifts often last far longer than most investors expect. The psychological hurdle of thinking “it’s too late” is rarely a good enough reason to sit out a generational investment wave.
Moreover, the data supports continued upside. The AI beneficiaries continue to grow profits and revenue at an impressive pace, the spending to keep up with the increasingly complex models is acting as a national economic stimulus and these companies still trade at reasonable valuations. And my favorite indicator, the market itself, makes record highs week after week.
With the stars aligning to create one of the ripest investment regimes in modern history, I encourage investors to remain confident in this market.
The Models Continue to Evolve
At the center of this boom are the models themselves. AI systems are evolving at an astonishing pace, moving from basic text and image generation to advanced reasoning, real-time learning, and domain-specific expertise. Though we have become a bit numb to the progress of these models, the rate of progress is really quite staggering if we look back at the first version of the LLMs we used to the ones we are using today. OpenAI, Anthropic, Meta, and Google are all pushing boundaries, creating a cycle of rapid innovation that demands ever more computing power.
These leaps in model capability not only drive demand for semiconductors and data center buildouts but also unlock new enterprise use cases, from productivity enhancements to drug discovery to autonomous robotics. As the models get better, the economic value they create expands exponentially.
So Do the Costs...
But innovation doesn’t come cheap. Training the largest AI models now costs hundreds of millions of dollars, and the inference costs at scale are just as staggering. Hyperscalers are pouring hundreds of billions annually into AI infrastructure, with some forecasts suggesting more than $1 trillion in AI-related capex by the end of the decade.
This spending spree has created an enormous opportunity not just for GPU makers like Nvidia, but also for the broader semiconductor supply chain, power and cooling systems, and energy producers that keep the servers running.
The boom in demand is so strong that it is already reshaping electricity markets and accelerating investment in renewable and alternative energy sources.
Keep reading . . .
------------------------------------------------------------------------------------------------------
See ALL Zacks’ Long-Term Picks for Only $1
Through good markets and bad, one unique stock-picking method has more than doubled the market’s average gain with an incredible +23.6% per year.
To help you take advantage of opportunities in today’s market, we’re opening the vault to reveal all our long-term recommendations. You’ll see stocks priced under $10… income investments… hidden value stocks and more. While future success isn’t guaranteed, recent gains have reached as high as +169.9%, +198.4%, and even +263.2%.¹
All for just $1.
Special opportunity ends at midnight Sunday, September 21.
See Stocks Now >>
------------------------------------------------------------------------------------------------------
The Industries That Will Reap the Profits
Big Tech: The Magnificent 7 remain the most obvious winners. The reality is that running large-scale AI models is a tremendously costly business endeavor and by using their monopoly-like profits to develop the technology and cloud computing and platforms to dominate distribution, they are the clearest winners out there. Their scale allows them to absorb costs, integrate AI into existing products and internal tools, and monetize through subscriptions, ads, and enterprise contracts. Furthermore, they are all hammering opportunities to improve their existing business models. Meta for instance, has incorporated the technology into its ad platform, and the other leading tech companies continue to increase revenue per employee rapidly. Microsoft has increased its top-line by some $250 billion with zero additional employees.
AI Infrastructure: These companies stand to benefit as designers and producers of critical chips. This entire layer of the market is powering the physical foundation of AI. The technology industry has quickly progressed from a digital, to a physical and industrial business, with these companies sitting in an extremely advantageous position. There are also opportunities in the more niche providers, like those producing the fiber optic connectivity and memory solutions.
Energy & Utilities: Data centers consume staggering amounts of power. For the first time in the technology industry’s history, energy has become a bottleneck. Utilities, grid operators, and renewable developers are poised to ride the wave, with solar, nuclear, and natural gas all seeing renewed investment interest.
Alternative Assets: Interestingly, AI is also fueling demand for Bitcoin and gold. In a world being rapidly reshaped by technology and uncertainty, investors are increasingly turning to these assets as alternative stores of value.
How to Invest
The best strategy may be a barbell approach: anchor a portfolio with Big Tech leaders that have proven staying power, while allocating selectively to high-growth infrastructure plays and alternative assets that benefit from AI spillover effects. ETFs and carefully chosen single-stock positions all provide ways to get exposure. The key is to stay invested and use volatility as an opportunity to accumulate. Additionally, by having positions in alternatives like Bitcoin and Gold, investors can add portfolio diversification and uncorrelated returns.
Finally, investors need to utilize proven tools to help identify leaders and trade in accordance with market sentiment. The Zacks Rank has done a remarkable job identifying AI winners well ahead of the market, consistently highlighting companies that went on to deliver outsized gains. Using the Zacks Rank as a starting point can provide investors with a systematic way to cut through the noise and zero in on stocks with the strongest earnings momentum.
The AI Boom Will Continue to Push Stocks Higher
While we may not be in the first inning of this boom, I believe we’re only about halfway through the game. Each stage of technological revolution, whether the railroad, radio, internet, or now AI, has created a multi-year period of outsized returns for equity markets and this time is no different.
Yes, valuations will stretch, and sentiment will swing between euphoria and skepticism. But the underlying drivers, massive infrastructure investment, exponential model improvement, and the integration of AI into every corner of the economy, remain intact.
For investors, the message is simple: the AI boom is far from over. The profits will continue to flow, and those who stay engaged are best positioned to ride this historic bull market higher.
Targeting Long-Term Gains in the AI-Driven Market
To help you make the most of this historic investing opportunity, we've opened up our Zacks Investor Collection, a bundle of our top subscription services for long-term investors. It's made for markets like this.
Over the next 30 days, for the total cost of only $1, you're welcome to catch all of the real-time buy and sell signals from all of our long-term investor portfolios, including...
• Real-time buys, sells, and market commentary from Stocks Under $10, Home Run Investor, Value Investor, ETF Investor, Income Investor, and Zacks Top 10 Stocks.
• Plus, you'll get full access to our powerful research, tools, and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener, and more, as part of Zacks Premium.
These portfolios have closed 40 double and triple-digit wins so far this year. Although we can't guarantee every pick will be a winner, recent gains have reached as high as +169.9%, +198.4%, and even +263.2%.¹
Bonus Report: If you act quickly, you'll also get our exclusive Special Report, High-Yield ETFs: 4 to Buy Now. Zacks' Director of ETF Research just identified the high-yield funds that blend peace of mind with substantial returns. One fund gained a whopping +286% in under 6 months. The following 6 months may be just as profitable.
So please don't wait - be sure to click below right now. This restricted $1 opportunity ends at midnight Sunday, September 21.
Click here for Zacks Investor Collection and High-Yield ETFs: 4 to Buy Now >>
All the best,
Ethan
Ethan Feller has a decade of experience trading in markets. He graduated from Ithaca College with a BA in Economics. Prior to joining Zacks, Ethan worked at a proprietary trading firm where he focused on statistically significant short-term trading strategies in stocks and futures. He invites you to check out all of Zacks’ long-term picks for 30 days for only $1.
¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.