I never thought I'd see this again…
I thought what happened 25 years ago was a once- in-a-lifetime event… but how wrong I was… because a quarter of a century later it's happening again… and it's about to upend everything.
For those who understand what's unfolding, I believe this could be one of the greatest wealth-building phenomena of their lives.
But for those who bury their head in the sand… this change threatens to wipe out years of investment returns.
Here's the full story:
25 years ago, I started telling friends, family, and anyone who would listen about an unprecedented societal shift that was barreling down on us.
I'd discovered that a new technology was about to unleash massive, almost unimaginable, changes in America.
I likened the impact to that of the railroad boom… the Industrial Revolution… and the rise of personal computing.
At the time, I was working as an investment analyst for an elite research group, but my colleagues and bosses refused to listen to me.
No matter what I said, they simply would not acknowledge the sands shifting beneath their feet.
The legendary Dr. Kurt Richebacher – one of the world's leading Austrian economists – even called me and my ideas "radical."
But I was certain this new technology would trigger a transformation that was simply unfathomable to most people and those on the frontier could reap financial returns unlike any the world had ever seen before.
So, I decided to put my entire career – not to mention every cent I had – on the line to spread the story myself.
I left my job as a research analyst, went home to my third-floor apartment in one of Baltimore's worst neighborhoods, and with a borrowed laptop I wrote my first major financial prediction
In a report that was read by more than 100,000 people… I explained how the endless miles of new fiber optic cables being laid was creating a new railroad across America.
And that I believed this new "railroad" was going to upend the telecommunications industry and pave the way for a new internet economy.
I also warned it would decimate some of America's most dominant companies like AT&T.
At the time, this was an outlandish idea, with analysts calling AT&T "dominant", "unstoppable", and "the giant that no other company can topple."
But those who were willing to open their minds to my so-called "radical" ideas were not only able to sell these companies before they collapsed…
They also had the chance to get in early on the firms that would go on to command this new internet economy:
Amazon, Adobe, Qualcomm, SunMicrosystems, Uniphase, Texas Instruments, and many others.
While these are household names now, when I first recommended them in the late '90s, they were complete unknowns.
Since then, long-term readers will know that I've issued a number of other predictions – and while I'm not always right – many of them have come to pass.
Now, I'm coming forward with a new prediction that I believe could be the most important financial and economic story of the next several years.
Both for the good and the bad.
Because as I recently told my subscribers:
"This is the largest infrastructure build-out in America since the railroad boom. You know this will change your life and the lives of all Americans, in many ways.
You know fortunes will be made, fortunes measured in trillions of dollars.
But what you don't know is: most investors are about to lose everything."
I'm not talking about quantum computing, augmented reality, or the blockchain. I'm talking about the second wave of artificial intelligence.
You see, right now, there is a new railroad being built.
Hundreds of billions of dollars a year are going into AI data centers – computers the size of cathedrals, drawing electricity measured in gigawatts, rising out of farmland in Ohio, Wyoming, and Texas.
But just as we saw during the railroad boom and the fiber-optic boom, the "builders" are going to get completely crushed by their own infrastructure costs.
Worse yet because this colossal infrastructure build is triggering an efficiency shock that is driving the cost of compute down to near zero… the margins of major software and AI tech darlings could collapse.
So the question is not who is building the data centers. The question is: Which industry can absorb almost unlimited, near-free computing power and still defend its prices?
We have found the answer.
It's a completely abandoned sector of the market that represents the largest computational puzzle on earth.
More importantly, it is the only industry where the government hands you a legal, federally enforced monopoly to protect your product for decades.
I believe this sector is about to absorb the capex of the AI boom, and it could be among the best-performing sectors of the stock market… the next Mag7.
I've recorded a new step-by-step broadcast outlining exactly what is happening, and exactly where this capital is rotating.
During the broadcast, I even give you the name and ticker symbol of my #1 large-cap stock to buy right now for this second wave.
So click here to watch my Ignition Point event immediately.
Good investing,
Porter Stansberry
