My simple thinking: If I find real value in AI, others will also. And all my “bets” on AI will pay off big, big-time — even more big-time than they have at present. Thank you Nvidia, and the Magnificent Seven, also called Nvidia’s customers.
We start with tomorrow, January 6. Jensen is delivering the keynote address to CES — Consumer Electronics Show — in Las Vegas.
Jensen Huang is speaking at 6:30 PM PT on Monday January 6..
You get an indication how big (and important) CES is if I tell you it’s the largest computer/communications/electronics show. This year 150,000 happy souls should visit. I have no idea how many people will watch Jensen on their laptops. He’s being streamed by YouTube. I’ll be watching. Figure several hundred thousand more. All of them have access to the “buy” button on their online brokerage account.
I am me. I don’t have a job. I spend my life “researching” (also called finding) investment opportunities and indulging myself playing tennis, buying stuff on Amazon I don’t need and managing (mismanaging?) my family’s life.
My AI application is research. I ask the various AI search engines specific and general questions about investment ideas I have. I don’t ask them for recommendations — to buy or sell is my job. The AI research engines — like Perplexity, ChatGPT, and Google — “read” more than I do. So they know more. I assemble their findings and make my own investment decisions, and usually write about them here — if I’m confident that it makes sense.
In my previous column, I wrote about “Where to invest in 2025 and highlighted these stocks:
+ Nvidia. Up 4.45% on Friday. Major supplier of everything in demand and booming and still cheap based on P/E.
+ Google. Up 1.25%. Gaining the most (at present) from monetizing AI.
+ Broadcom. Up 0.25%. Great networking and chipmaking expertise.
+ Amazon. Up 1.80%. AI-enhanced retailing is truly stupendous. I bet I know where all your Christmas presents came from?
+ Microsoft. Up 1.14%. Amazing growth of its cloud business.
+ Meta. Up 0.90%. Its various platforms see advertising exploding. Its Auto-fill is amazing.
+ Apple. Down 0.20%. I’m warming to its new iPhone 16 (which I just bought) and Apple Intelligence.
You can watch Jensen on YouTube or click here.
Jensen will lay out some of AI’s magic tonight. Here are popular applications of AI today (and you thought it wasn’t affecting everyone?):
+ Healthcare: AI is used for early disease detection, personalized treatment plans, drug discovery, and medical image analysis.
+ Customer Service: AI-powered chatbots and virtual assistants provide 24/7 support, improve customer experience and reduce response times.
+ E-commerce: AI enables personalized product recommendations, pricing optimization, and inventory management. AI salespeople do a much better job selling potential customers. There’s a great example of that in a company called Relevance.ai.
+ Finance: AI is used for fraud detection, risk assessment, algorithmic trading, and personalized financial advice.
+Transportation: Self-driving cars, traffic optimization, and route planning utilize AI technologies.
+Digital Assistants: Popular AI-powered assistants like Siri, Alexa, Google Assistant, and Cortana are widely used on smartphones and smart home devices.
+ Social Media: AI algorithms curate personalized content, detect fake news, and improve user engagement.
+ Education: AI enables personalized learning experiences, automated grading, and adaptive learning platforms.
+ Manufacturing: AI is used for predictive maintenance, quality control, and supply chain optimization.
+ Entertainment: AI powers recommendation systems for streaming services, generates content, and enhances gaming experiences.
+ Agriculture: AI applications include crop monitoring, yield prediction, and precision farming.
+ Cybersecurity: AI helps in detecting and preventing cyber threats and fraudulent activities3
The energy boom that is about to happen
+ Trump will remove Biden blocks on pipelines, energy exploration, energy transfer and LNG export.
+ Russia has stopped selling gas to Europe. It needs a lot.
+ Hyperscalers, driven by exploding AI demand, need huge amounts of new energy,. Ditto for big AI users.
+ Nukes are now in favor. Especially the little ones that are “easy” to build.
+ the U.S. has oodles of natural gas.
+ The price of natural gas is rising.
Google “gas flaring. “You’ll be blown away with the zillions of photos. of oil drillers burning off the gas they can’t sell it, for many dumb reasons. Sample photo from National Geographic:
Hence, my second biggest industry focus is on energy and these stocks:
+ Energy Transfer (ET).
+ GE Vernova (GEV).
+ Cheniere Energy (LNG).
+ Vistra (VST).
+ Constellation Energy (CEG).
I admit. I’m no expert on energy. But, it seems to my tiny brain, that the energy stars are aligned.
I issue a caveat: Energy sales and earnings flop around — e.g. they all did awfully in the 2022 pandemic. Right now, they seem to be in the right place at the right time. ET has a even decent dividend yield of 6.6%.
My favorite New Yorker cartoons
Final thoughts
I spilled coffee in my backpack. It stunk. I googled what to do about spilled coffee. It said, sprinkle baking soda. Leave it overnight. Cross your fingers.
When my Subaru Outback won’t recognize my wonderful Apple CarPlay, I stop the car, turn off the engine, count to ten and start it again. Bingo. Waze will now tell me where all the cops are on my trip.
Moral of this story: Everything these days is a computer and needs to be rebooted regularly.
Watch Jensen with me this evening. Wave to me. — Harry Newton
