I know, I know, all we hear about anymore is Artificial Intelligence…The technology, the word itself, has become a part of our cultural zeitgeist.
And even if that term that seems to be everywhere annoys the heck out of you, it’s not going away anytime soon.
In fact, capital expenditure, or the money spent to buy or upgrade assets, by the largest companies on AI data centers during 2024 will surpass any previous level.
And by the way, if you’re interested in investing in AI stocks — and you should be — read what’s on my watchlist for 2024.
Microsoft Corp (NASDAQ: MSFT) recently reported spending growth of 31% in its Azure Cloud business over the first quarter…
That investment in Azure Cloud is about equal to this year’s cap ex of Saudi Aramco, the world’s largest oil producer. By the way, the energy industry is the most capital intensive out there so Microsoft’s number is pretty impressive…
Google (NASDAQ: GOOGL) said its Google Cloud expenditure grew 28% during the same time period…
And they expect these numbers to continue growing each quarter.
Meta (NASDAQ: META), or Facebook as most of us know it, expects its 2024 AI Cap Ex to be a whopping $40 billion.
And back to the oil industry for comparison, Meta’s AI budget is about equal to Exxon Mobil Corp. (NYSE: XOM) and Chevron Corporation (NYSE: CVX) combined!
So why am I talking about this?
Well, this crazy demand for AI is creating an insatiable thirst for new data centers…It has created a bottleneck in supply.
According to Bill Vass, VP of Engineering at Amazon Web Services, “A new data center pops up somewhere in the world every three days.”
And what does a huge and unmet demand for cloud data centers mean?
A spiking demand for power… from nuclear power to coal-fired plants…from solar power to wind power…
Data Center Power Demand Chart; Source: Goldman Sachs
The problem with all of these sources is that they’re either too expensive, potentially dangerous, and/or not renewable…
But I have the solution to the AI energy conundrum…
I call it “Eternal Energy” and it has the ability to produce the same amount of energy as the following:
- 4,350 gallons of oil
- 590,000 cubic feet of natural gas
- 22 tons of coal
- 16 tons of lithium
- 3 million solar panels
- And 412 wind turbines
All of this power could last 4 billion years and come at the cost of only 4 to 5 cents per kilowatt hour…
It was founded by one of Elon Musk’s former business partners.
It is poised to generate revenues hand over fist. And why wouldn’t it? The AI power bottleneck was unsolvable until this firm entered the picture. It is THE answer.
So how can you benefit from this?
By getting in on the ground floor before this company takes off.
You can learn all about it here. You really don’t wanna miss out on this.
I’m pretty good at finding smart investment opportunities like “Eternal Energy”… and I have many more ideas and trading strategies.
If you’re interested in learning about my other tips and tricks plus getting access to exclusive stock alerts, two webinars a day, my trading signal tool, and much, much more, subscribe to Daily Income Trader.
In the meantime, find out about everything I do and how I make money…Register for my free live webinar tonight at 8 pm Eastern. You don’t wanna miss it!
Have a great day everyone. See you back here next week.
Tim Bohen
Lead Trainer, StocksToTrade