This Big Bank Is Getting an AI-Powered Boost

Colin’s Note: The next stage of the artificial intelligence rollout is already underway… And more than just pure technology stocks are going to benefit.

Longtime readers will already know about the three phases of the AI rollout – hardware, software, then everywhere. We’ve seen the extraordinary profit potential in the hardware buildout over the past year or so with industry leaders like Nvidia…

Next up is the software phase. We’ve seen some key players making waves in this space already. But this time, it’s not just Big Tech companies fast-tracking the AI Revolution.

This week, I’ll be focusing on what’s next for AI as we shift further into the next stages… And how you can profit. First up, in today’s video… the banking industry.

Just click below to watch.

Bleeding Edge subscribers, hopefully, guys are having a wonderful day.

Now, needless to say, the ascent of artificial intelligence (AI) over the past year has been extraordinary. This time last year, Nvidia was $240 per share and Microsoft was $250 per share.

Recall that these stocks were the obvious leaders after Microsoft invested in OpenAI and Nvidia’s decade-long quest to see accelerating computing reach the mainstream finally came to fruition.

Other stocks like Supermicro are up even more – a staggering 1,000% just over the past year. To get here, you had to dodge the hand grenades Wall Street was tossing your way to distract you from the best-performing megatrend over the past decade.

Think about all the retirees who sat on the sideline and watched AI stocks soar over the past year. Many were paralyzed by the headlines meant to distract them from the obvious.

It was almost 12 months ago to the day when more than 1,000 tech executives – including Elon Musk, a co-founder of Apple, and many others – proclaimed that we needed a six-month pause on AI development.

They feared it was going too far too quickly. The truth is that they were looking out for themselves. They knew OpenAI, Nvidia, and Microsoft had leaped out in front and, in an act of desperation, were trying to get regulators and the general public to put enough pressure on AI companies to pause.

But it didn’t work.

The groundwork for the hardware phase of artificial intelligence was being laid by Nvidia for years. OpenAI’s advancement in software with ChatGPT was already out there. And it was only a matter of time before AI would be everywhere – hardware, software, everywhere.

You’ve heard us say it many times here in the newsletter. And if you follow that blueprint, the AI trade has probably been pretty profitable for you up to this point.

But what’s next? What’s on the horizon for AI?

This week, I’m going to outline what’s on the horizon and how to profit from that as an investor, just like we had over the past year investing in primarily semiconductor stocks and software stocks.

The next stage of AI is already underway, and more than just pure technology stocks are going to benefit from using AI.

Take, for example, JPMorgan. It’s one of the oldest companies in existence with roots dating back all the way to the 1800s.

The world’s largest consumer bank is providing clients with AI tools that started to make the financial world far more efficient. And it’s helping reduce costs.

Just last week, JPMorgan announced its cash flow intelligence tool meant for corporate clients has helped reduce manual work by close to 90%. Roughly 2,500 of JPMorgan’s clients are using the tool. And JPMorgan is confident that it might begin to charge for the service here very soon.

Now, forecasting cash flow is quite difficult. Particularly the larger an organization gets and cash is coming in and out from all these different places. While cash flow forecasting might reduce some work by humans in the finance department… if you have proper allocation and forecasting of cash within a business, it can keep the other areas of the business running far more efficiently and fully employed.

AI tools like this won’t grab the headlines like ChatGPT. And they’re certainly not going to go viral for being embarrassingly inaccurate like Google’s Gemini.

But these specialized tools that are helping thousands of companies run far more efficiently… this is exactly what the next stage of AI is going to be about. That’s because efficiency shows up on the bottom line.

Wall Street has priced in sales forecasts and projections and profits on a lot of the hardware and software makers… But it’s underestimating the earnings power 200-year-old financial institutions can generate using AI too.

That was The Bleeding Edge for today. I hope you guys have a wonderful day. We’ll be back again later this week. Good luck with your investments.