Imagine you’re sitting in a board meeting for a tech company in Silicon Valley.
They’re running out of cash and need to raise capital. Problem is, their B2B SAAS company isn’t getting much traction, and their lead investors don’t want to be involved in another round.
So what do you do?
You put “AI” in your name. That should do it. Instead of being a B2B SAAS company, you’re now an “LLM-Driven Business Intelligence Dashboard.”
Funding secured.
It’s tough being an AI investor right now. There’s plenty of companies trying to ride the coattails of a few large firms, but they don’t offer much of an advantage.
And investing in the big names is virtually impossible. OpenAI and Anthropic are still private companies, and while Microsoft (MSFT) has a stake in some AI plays, the company is so large that it isn’t a “pure play.”
Instead, we focus on the picks and shovels in the AI space.
That’s why Nvidia (NVDA) is now a multi-trillion dollar company:
They’re selling the GPUs that all the AI companies use. And the stock is up 185% on the year.
That’s a solid run, even when you consider the stock has been stuck in a range for a couple months.
But there is another.
NVDA is not the best performing AI stock this year.
It’s actually another “pick and shovel” play that gave us two early warning signals alerting us to the opportunity:
The company is Lumen (LUMN), which used to be known as CenturyLink. They’re an internet and telecom company based out of Louisiana.
At this point you should be scratching your head wondering, “how the heck is this an AI play?”
It’s all about location.
They’re in Louisiana, which has cheap energy. Which is exactly what every AI company needs right now.
They’ve inked deals with Microsoft and Meta. Their free cash flow guidance increased from $200 million to $1 billion.
That’s a heckuva pivot for a boring telecom company, and investors were rewarded with a massive win.
We recommended the stock, along with some call options we alerted at 0.32 and are currently trading at 4.00.
That’s a 1,150% win.
Did I have some keen insight into this telecom company? Nope.
Did I have an “in” at Microsoft that told me about the deal? That would be cool, but also no.
It all comes back to those two early warning signals we detected in the stock. This signal gave us the “green light” to invest in the name because something big was brewing.
And right now we’ve got another “early warning” signal in an AI company that looks ready for some serious upside.
The last time this signal showed up, we were able to trade the stock for a fast win:
Now that same warning signal is flashing again, and it looks ready for a fast double on the stock – and another amplified return on the options.
Want to learn more about our early warning signal? Here’s a free training video that walks you through it step by step.
Original Post Can be Found Here