When the experts lack vision about the future … why we are seeing that again with Artificial Intelligence … how to get in on the winners early I love it when experts get it wrong. I'm not just talking about the small things. Everyone is wrong sometimes. But experts often make big declarations about the future, and then it turns out they don't have any more insight about the world than anyone else. That triggers some serious schadenfreude for me… If you're not familiar with "schadenfreude," it's a German word that refers to the pleasure or self-satisfaction one feels from learning of or witnessing the troubles or failures of another. Here is one good example: The idea of a wireless personal communicator in every pocket is "a pipe dream driven by greed." That quote came from Intel CEO Andy Grove at the 1992 Mobile Conference. We all know how wrong that turned out. According to Pew Research Center, 97% of Americans now own a cellphone of some kind – and 90% of those own a smartphone, up from just 35% in Pew's first survey of smartphone ownership conducted in 2011. Worldwide, there are now more 8.5 billion mobile subscriptions according to the International Telecommunication Union. A complete lack of vision. Here's another… "The growth of the Internet will slow drastically, as the flaw in 'Metcalfe's law' becomes apparent: most people have nothing to say to each other! By 2005, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's" That was from Nobel-winning economist Paul Krugman in 1998, who has since owned-up to how spectacularly wrong he was. I could cite examples all day and enjoy every one. And a lot of "experts" are going out with another prediction now … one that could soon join the two examples above in the ranks of "worst calls." ADVERTISEMENT  October 21 could spark a mania among “next-generation” AI stocks. That’s the newest prediction from a Wall Street legend who predicted the dot-com mania, the 2020 boom, and found Nvidia before it rose up to 37,000%. To play this event, he’s issuing an urgent recommendation. Read his briefing here by October 21. | Don't listen to the Artificial Intelligence skeptics It has become fashionable for folks to talk and write about the "AI Bubble." You see headlines like this: The Los Angeles Times:  And Reuters:  To be fair, the valuations of some select AI stocks have become extreme. But that doesn't mean the AI phenomenon is fake. Or, that we're looking at an inevitable collapse. In fact, it's only just getting started. You see, so far, only very few stocks have really felt the benefit of the AI trend… the infrastructure plays. The chip makers led the way … companies such as Nvidia (NVDA) and Advanced Micro Devices (AMD). But the next chapter in the AI story is going to be more expansive … and even potentially more lucrative according to legendary quant investor Louis Navellier. I can understand some skepticism about another AI prediction. We've all heard a lot of words from a Why believe Louis? Because his method of identifying winners doesn't depend on feeling, or something he heard from a CEO at an investing event. Louis uses his proven quantitative stock grading system, with a track record of beating the market spanning decades, to find fundamentally superior companies. These stocks are graded on the familiar A to F scale we all used in school. Then he narrows that list down to the small cap firms that don't just talk the talk … but prove their superiority through great earnings. And that system has shown its value repeatedly. Louis used his system to recommend 18 stocks that have returned 10,000% or more and 675 that have more than doubled. He's been called the "King of Quants" by Forbes and "an icon among growth stock investors" by The New York Times. MarketWatch even recognized Louis as the first analyst to recommend Google, that went on to soar more than 2,000%. So, when he tells you select stocks are showing signs of skyrocketing due to AI … we all should listen. The firms Louis highlights aren't just talking about AI. They are making AI a reality and using it to improve their sales and earnings. Louis wrote this to his Breakthrough Stocks subscribers about what he calls the "Real AI Boom." The winners of the Real AI Boom will use generative AI to create profitable companies and reshape existing occupations. This will launch the kind of transformational change we only see once every 25 years. And these changes will roll out across society and reshape America on the same historic scale we saw in the late '90s. There will be a paradigm shift in society when, one day very soon, a college kid who says, "I want to go to medical school," will be laughed at. And that's because all the so-called "respectable jobs" of the 20th century will soon be either downsized, eliminated or knocked off the pay scale by such a large margin it'll lead to the death of entire industries. In fact, up to 800 million global workers could lose their jobs by 2030, according to a McKinsey study, and 70% of all existing occupations could see a pay cut, according to Wired magazine. Many of the everyday jobs that define America will slowly vanish, creating the biggest income gap in our nation's history as all the money and high-paying work flow to a much different part of our society instead. And it will flow on a massive scale, in a market that's expected to grow 20-fold to a whopping $15.7 trillion by 2023. That's almost the size of China's entire national output. I'm talking about next-gen AI companies. Simply put, these are the companies that use AI to reinvent or automate some of our oldest business models. These are the companies Louis is focused on finding in his Breakthrough Stocks service. ADVERTISEMENT  When Broadcom, TSM and Cirrus Logic partnered with Apple… Their stocks grew as much as 10x, 19x and even 100x in the years that followed… Now, Apple could ink deals with a new set of suppliers. These three stocks could be among them. | How to find the next-gen AI winners Louis' track record includes recommending chipmakers Micron Technology, before it rose 2,050%... Lam Research, up 4,350%... and Intel, up 3,228%... He also recommended Amazon before it rose 8,151%, and Netflix before it rose 7,749%. The only way to see gains like that is to identify the stocks early. Louis recommended these stocks long before they became household names or were covered endlessly on CNBC. And Louis is particularly excited about the environment for small cap stocks right now … the names you don't know that could be the future leaders in the industries. Why is now a great time? Interest rate cuts. Here is how Louis explained the importance of rate cuts for small cap stocks. Smaller-cap stocks are some of the biggest beneficiaries of lower interest rates. Smaller companies tend to have bigger debt loads than larger companies, and when interest rates decline, they benefit handsomely. The bottom line: The Fed's key interest rate cut – and forecast for more rate cuts at upcoming FOMC meetings – was a boon for the stock market, especially smaller-cap stocks. And now that all the uncertainty ahead of the Fed's policy decision has dissipated, I suspect stocks will continue to meander higher in the coming weeks. So, if the environment for small caps is very attractive, how can folks find which stocks will benefit the most? Here is how Louis describes his method of finding those stocks. I only recommend stocks that are in tip-top condition, and I avoid companies that are seeing their sales and profits shrink. Specifically, every small- to mid-cap stock I recommend must be A-rated with at least 25% sales growth and at least 50% earnings growth. As small cap companies begin to fully implement AI, their sales and earnings will continue to grow … and they will appear in Louis' system as the stocks move from C to B and then to A. And that's when they qualify to be part of Louis' Breakthrough Stocks service. Louis recently recorded an event talking about the Real AI Boom and which stocks his quantitative system shows could be among the biggest long-term winners. You can watch Louis' Real AI Boom by clicking here. AI scares a lot of people, and the prospect of an AI bubble scares some people even more. But you shouldn't be afraid of AI – you should invest in it! Enjoy your weekend, Luis Hernandez
Editor in Chief, InvestorPlace | 
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