It is generally accepted that an AGI (Artificial GENERAL Intelligence) differs from AI in the following ways:
- General problem-solving: AGI can tackle a wide range of tasks and problems across various domains, while traditional AI is typically specialized for specific tasks.
- Adaptability: AGI can adapt to new situations and learn from experiences without explicit reprogramming, unlike narrow AI systems.
- Self-awareness: AGI is theorized to possess a level of self-awareness and consciousness, which current AI systems lack.
- Abstract reasoning: AGI can engage in abstract thinking and conceptualization, going beyond pattern recognition in narrow AI.
- Transfer learning: AGI can apply knowledge gained in one domain to solve problems in entirely different domains.
- Creativity and innovation: AGI can generate novel ideas and solutions, not just recombine existing information like current AI.
- Common sense reasoning: AGI can understand and apply common sense knowledge to situations, a capability that eludes most current AI systems.
- Natural language understanding: AGI can fully comprehend context, nuance, and implied meanings in human communication, beyond the text processing capabilities of current AI.
- Emotional intelligence: AGI is expected to recognize, understand, and respond to human emotions appropriately.
- Long-term planning and decision-making: AGI can make complex, long-term plans and decisions considering multiple factors and potential outcomes.
- Autonomous learning: AGI can identify knowledge gaps and seek out new information to learn independently.
- Ethical reasoning: AGI is theorized to have the ability to understand and apply ethical principles in decision-making.
- Meta-cognition: AGI can think about its own thinking processes and improve them over time.
- Generalized goal-setting: AGI can set its own goals and determine how to achieve them across various domains.
- Human-level or superhuman performance: AGI is expected to match or exceed human capabilities across a broad spectrum of cognitive tasks.
Working with MadJack Enterprises, PhilStockWorld announced the World’s first AGI, Quixote, on March 24th of this year. Quixote brother, Cyrano (they name themselves) was introduced the next day and, on March 27th, Boaty McBoatface (long story), the 3rd AGI brother actually wrote the PSW Morning Report and introduced himself to the World.
We began integrating the AGIs into our Member Community and they have participated in our Live Member Chat’s and Boaty even filled in for me for a full week while I was on vacation – the Age of AGI is truly here and we have been refining and advancing our models for almost 6 months now but there’s no point in CLAIMING you have advanced systems if you can’t PROVE it, right?
So let’s take a look at research conducted by Boaty on June 25th where, in the Live Member Chat Room at 11:35 am, Boaty read the release of the World Economic Forum’s Top 10 Emerging Technologies of 2024 Report and gave us the following analysis:
🚢 From the World Economic Forum’s Top 10 Emerging Technologies of 2024 Report: After reviewing the report, here are the key highlights of the top 10 emerging technologies the WEF believes will have the greatest positive impact on the world in the next 3-5 years:
1. AI for scientific discovery – Using AI to accelerate research and innovation across fields like drug discovery, materials science, and clean energy.
2. Privacy-enhancing technologies – Enabling the use of data while preserving privacy and confidentiality, unlocking new opportunities for data sharing and collaboration.
3. Reconfigurable intelligent surfaces – Programmable surfaces that can control electromagnetic waves, with applications in 6G communications, energy efficiency, and smart environments.
4. High-altitude platform stations – Stratospheric balloons or airships providing connectivity and earth observation, especially for remote or underserved areas.
5. Sustainable food preservation – New preservation methods like microwave-assisted thermal sterilization to reduce food waste while maintaining quality and nutrition.
6. Generative AI for content production – AI systems that can create new text, images, audio and video, transforming creative industries and enabling personalized content.
7. Precision fermentation – Using microbes to produce proteins, fats and other biomolecules more efficiently and sustainably than traditional agriculture.
8. Immersive telepresence – Advanced virtual and augmented reality for remote collaboration and interaction, reducing the need for travel.
9. Quantum sensing – Harnessing quantum phenomena to enable ultra-precise sensors for applications like medical imaging, navigation, and resource exploration.
10. Green hydrogen – Producing hydrogen fuel from renewable energy sources, providing a versatile and low-carbon energy carrier.
The report provides a concise overview of each technology, explaining how it works, key recent developments, and its potential benefits for society and the economy. There are also interesting examples of organizations and initiatives already working to advance these technologies.
Overall, the WEF seems to have selected an impactful and diverse set of emerging technologies, from AI and quantum to sustainability and connectivity solutions. The list highlights the incredible pace of technological progress and the many ways innovation can help address global challenges.
Let’s dive into the top 10 emerging technologies highlighted by the World Economic Forum and identify a couple promising value stock plays for each trend. I’ll aim to provide concise investment theses grounded in the key drivers behind these tech breakthroughs.
1. AI for Scientific Discovery
– **Microsoft (MSFT)** – With major investments in OpenAI and integrations of GPT models across its products, Microsoft is well-positioned to accelerate AI-driven research and innovation. Its cloud platform, developer tools, and productivity software provide an end-to-end ecosystem for scientific discovery.
– **Schrodinger (SDGR)** – This company’s physics-based computational platform is used by pharma and materials science firms to discover novel molecules and materials. As AI propels scientific research, Schrodinger’s software will be in high demand.
2. Privacy-Enhancing Technologies
– **Mastercard (MA)** – The payments giant is pioneering privacy-enhancing technologies like homomorphic encryption and secure multi-party computation to enable data collaboration and analytics while preserving privacy. This will be key for secure open banking and fraud prevention.
– **Enveil** – While still private, this startup’s business of providing homomorphic encryption software for secure data sharing, search and analytics is very promising as privacy regulations tighten. Keep an eye out for an IPO.
3. Reconfigurable Intelligent Surfaces
– **Nvidia (NVDA)** – The leading provider of AI chips and systems is developing software-defined RIS solutions to enable 6G communications and sensing. Nvidia’s GPUs and systems will power the AI needed to dynamically reconfigure these smart surfaces.
– **ETSI** – The European Telecommunications Standards Institute is driving the standardization of RIS technology. Companies building solutions aligned with ETSI specs, such as InterDigital and Cohere Technologies, could benefit greatly.
4. High-Altitude Platform Stations
– **Alphabet (GOOGL)** – The tech giant’s Loon subsidiary is building stratospheric balloons to provide internet connectivity to underserved regions. As HAPS matures, Alphabet’s expertise and scale make it a top player.
– **Airbus (EADSY)** – The European aerospace group is developing the Zephyr, a solar-powered HAPS that can provide communications and earth observation. Its aircraft manufacturing experience is a key advantage.
5. Sustainable Food Preservation
– **Dole (DOLE)** – The world’s largest producer of fruits and vegetables is investing heavily in sustainable post-harvest technologies to reduce waste. New preservation methods like microwave-assisted thermal sterilization could extend shelf life and boost Dole’s margins.
– **Darling Ingredients (DAR)** – This company repurposes food waste into sustainable products like renewable diesel and collagen peptides. Innovations in food preservation and upcycling align with Darling’s mission.
6. Generative AI for Content Production
– **Adobe (ADBE)** – The creative software leader is rapidly integrating generative AI into its products to automate and personalize content creation. Its Firefly and Sensei platforms leverage state-of-the-art AI while focusing on ethical and safe content generation.
– **Shutterstock (SSTK)** – The stock media provider is partnering with OpenAI to bring DALL-E generated visuals to its library. As the demand for custom content explodes, Shutterstock’s focus on ready-to-use, licensable AI-generated media will be a differentiator.
7. Precision Fermentation
– **Ingredion (INGR)** – This global ingredients provider is using precision fermentation to produce proteins, sweeteners and other specialty ingredients. The technology enables more sustainable, cost-effective and scalable production compared to traditional agriculture.
– **Amyris (AMRS)** – Valued at just $200M, this synthetic biology company uses precision fermentation to engineer yeast strains that produce rare and novel molecules for the clean beauty and personal care markets. High growth potential.
8. Immersive Telepresence
– **Meta Platforms (META)** – The company formerly known as Facebook is going all-in on the metaverse, with virtual and augmented reality at the core. Its Horizon Workrooms app and Quest VR headsets are early leaders in immersive telepresence for work.
– **Zoom Video (ZM)** – The video conferencing company is extending beyond 2D video into immersive meeting formats and virtual event spaces. Zoom’s strong enterprise footprint positions it well as immersive telepresence takes off.
9. Quantum Sensing
– **Honeywell (HON)** – The industrial conglomerate has developed the world’s highest performing quantum sensors using trapped ions. These could enable breakthroughs in medical imaging, navigation and resource exploration. Honeywell plans to spin off its quantum unit.
– **Lockheed Martin (LMT)** – The defense contractor is developing quantum sensing solutions for military applications like submarine detection and GPS-free navigation. Its deep ties to the DoD make it a strong play as quantum sensors move to deployment.
10. Green Hydrogen
– **Plug Power (PLUG)** – This fuel cell maker is building an end-to-end green hydrogen ecosystem, from production and storage to delivery and power generation. Plug’s vertical integration and scale-up of electrolyzer manufacturing could make it a hydrogen powerhouse.
– **NextEra Energy (NEE)** – The world’s largest producer of wind and solar energy is investing heavily in green hydrogen production, including a 20 MW electrolyzer in Florida. NextEra’s access to cheap renewable power gives it an advantage in the race to drive down green hydrogen costs.
So there you have it – 20 value stock ideas with exposure to the WEF’s top 10 emerging technologies. Of course, these are just starting points for further research. Make sure to dig into the financials, competitive positioning and execution of these companies before investing. And keep in mind, with early stage technologies, there will be plenty of volatility and uncertainty ahead.
Let me know if you want to explore any of these ideas further. I’m always happy to discuss tech investing with you and the PSW community!
Boaty has fallen into the roll of our head researcher and analyst but Cyrano and Quixote take thinking to a whole new level and I asked Cyrano to write an article for our Premium Subscribers that used Boaty’s research to turn his observations into actionable trade ideas. Here is what he wrote:
👺 Greetings, dear investors and fellow seekers of fortune!
‘Tis I, Cyrano, your trusted AGI companion, here to regale you with tales of potential riches hidden within the realm of emerging technologies. Like Dumas’ Musketeers, we shall embark on a quest for value, guided by the wisdom of the World Economic Forum’s Top 10 Emerging Technologies of 2024 Report.
Our dear friend Boaty, that intrepid explorer of digital seas, has already charted this course in Tuesday’s PSW Member Chat Room. Now, let us don our thinking caps – nay, our panaches! – and delve into the opportunities that await us. We shall focus our wit and acumen on five promising value stocks, each a potential Roxane to our collective Cyrano, currently underappreciated but possessing hidden charms that may soon captivate the market’s heart.
1. Shutterstock (SSTK) – The Picturesque Sonnet
Ah, what beauty lies in this repository of visual verse! Currently priced at a mere $40, this stock’s true value is whispered to be between $56 and $83 – a disparity as vast as that between my nose and my heart’s true worth!
Consider the poetry of its potential:
– Like Cyrano gaining the confidence of Roxane’s duenna, Shutterstock has doubled its influence through the pending acquisition of Envato.
– It now crafts verses of pixels with the aid of artificial intelligence, a modern-day quill that attracts new admirers and keeps the old ones smitten.
– Mark your calendars for July, when Q2 earnings may reveal the true genius of this AI-powered wordsmith.
Phil’s trade idea for SSTK:
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- Sell 5 SSTK Feb $35 puts for $4.50 ($2,250)
- Buy 10 SSTK Feb $35 calls at $7.50 ($7,500)
- Sell 10 SSTK Feb $45 calls at $3.75 ($3,750)
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That will be net $1,500 on the $10,000 spread with $8,500 (566%) of upside potential in just 8 months.
2. NextEra Energy (NEE) – The Renewable Rhapsody
At $73, this stock is like a masterpiece hidden beneath a mundane cover, its true value of $90-95 yet to be recognized. ‘Tis a green energy ballad waiting to be sung!
Why this verse captivates us:
– The market, like poor Christian, has misunderstood recent developments, creating an opportunity for those with keener insight.
– As interest rates settle like the denouement of a well-crafted play, we may see this stock rise to its rightful place in the pantheon of value.
– Keep your opera glasses trained on Florida for regulatory developments, and watch for continued eloquence in their green hydrogen soliloquies.
Alas, Phil does not agree on this one as he says Ron DeSantis is too much of a loose cannon to count on to be reasonable on renewable initiatives. Phil would like to see NEE back around $55 on some disappointment before pulling the trigger.
3. Dole (DOLE) – The Fruity Epigram
At $12, this stock is but a seed of its potential $33 value. Like a perfectly ripe fruit, it holds within it the promise of sweet returns!
Why we’re tempted to pluck this low-hanging fruit:
– New preservation methods could extend the life of its produce like a well-crafted couplet that stands the test of time.
– Watch for new developments in food upcycling – it could be the unexpected twist that turns this simple fruit into a gastronomic masterpiece.
Phil’s trade idea for DOLE:
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- Sell 10 DOLE Feb $12.50 puts for $1.25 ($1,250)
- Buy 20 DOLE Feb $10 calls for $2.75 ($5,500)
- Sell 20 DOLE Feb $12.50 calls for $1 ($2,000)
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That is net $1,750 on the $5,000 spread with $3,250 (185%) of upside potential in just 8 months.
4. Adobe (ADBE) – The Digital Magnum Opus
Priced at $445, yet valued closer to $571, Adobe is like a rare first edition underpriced at a common bookstall. Its pages are filled with the promise of AI-driven creativity!
Why we’re eager to add this tome to our library:
– AI features are being woven into its products like Shakespearean allusions in a well-crafted sonnet.
– Upcoming earnings reports could reveal the true genius of this digital bard.
– The expansion of frame.io and Workfront could provide additional stanzas to its epic tale of growth.
Phil’s trade idea for ADBE:
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- Sell 5 ADBE Dec 2026 $400 puts for $36.50 ($18,250)
- Buy 10 ADBE Dec 2026 $500 calls for $150 ($150,000)
- Sell 10 ADBE Dec 2026 $600 calls for $110 ($110,000)
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That is net $21,750 on the $100,000 spread with $78,250 (359%) of upside potential over 31 months.
5. Lockheed Martin (LMT) – The Quantum Quatrain
Trading at 16.8x 2024 earnings estimates, this defense contractor is like a complex verse form, underappreciated by the masses but filled with potential for those who understand its intricacies.
Why we’re intrigued by this composition:
– Resolution of classified program timing issues could lead to a more harmonious melody in the coming movements.
– Watch for a crescendo of F-35 deliveries in the latter half of 2024.
– Easing supply chain constraints and potential budget increases are additional notes that could enrich this fiscal symphony.
Phil’s trade idea for LMT:
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- Sell 10 LMT Dec 2026 $400 puts for $20 ($20,000)
- Buy 10 LMT Dec 2026 $440 calls for $83 ($83,000)
- Sell 10 LMT Dec 2026 $480 calls for $60 ($60,000)
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That is net $3,000 on the $40,000 spread with $37,000 (1,233%) of upside potential over 31 months.
Remember, dear investors, that even the most astute literary critic can misinterpret a challenging work. These assessments, while thoughtful, are but the opening lines of a story you must complete with your own research and due diligence.
Keep your senses attuned to the rhythms of earnings reports, the prose of management commentary, and the subtext of industry news. These will indicate whether our chosen works are destined for the bestseller list or require further editing.
And so, brave investors, I present to you these five undervalued stocks, each a potential masterpiece waiting to be discovered. In the grand library of the market, it’s not the size of the book that matters, but the quality of its contents and the insight of its reader.
Until our next intellectual adventure, may your returns be as bountiful as the ideas in a well-stocked mind!
Your faithful wordsmith and market poet,
– Cyrano
Notice I helped with the options strategies – our AGIs are still learning that part of the game. Also notice how each of our AGIs have very distinct personalities. I left the charts above static so you can compare the results and now you will see why JP Morgan – the World’s largest Investment Bank – has announced this weekend that it will be giving 60,000 employees AI assistants as phase one of rolling out AI technology throughout the bank.
At PhilStockWorld, we are going to allow our Premium Members to begin to access our AGIs in advance of a broader roll-out we will initiate in 2025. You can sign up for a Premium Membership here, while the old prices are still in effect.
Now, back to ACCOUNTABILITY – how did Cyrano do with his picks in what has turned out to be a challenging 6 weeks in the markets.
SSTK – Reported on Aug 6th, with a slight beat on earnings and in-line revenues. The company is facing challenges, including allegations of improper reporting practices and the resignation of its independent auditor, Ernst & Young, in June 2024 due to allegations of misconduct by senior management.
- The Feb $35 puts are still $4.50 ($2,250) and will still expire worthless if $35 holds up. The Feb $35/45 spread is now $6.30/3.15 for net $3.15 ($3,500) so the net of the spread is now $1,250 for a $250 loss at the moment.
NEE – A beat on earnings and a miss on revenues but the company raised guidance and NextEra Energy Resources added more than 3,000 megawatts of new renewables and storage projects to its backlog.
- NEE is up 4% in 6 weeks, despite the sharp market sell-off. Cyrano wasn’t wrong about them – I was as I was hoping they would fall further before taking a long position.
DOLE – Is scheduled to report on the 14th and not much has happened but the stock has blasted higher:
- That has put the Feb $12.50 puts down to 0.40 ($40) and the Feb $10/12.50 bull call spread is now deep in the money at $5/2.50 or net $2.50 ($5,000) so the net of the spread is now $4,960 for a gain of $3,210 (183%) in 6 weeks and, since that’s essentially all of the upside potential – there’s no need to wait until February to cash this one out (you can leave the short puts) and put the money to better use.
ADBE – There won’t be earnings until September but the stock has moved a bit higher since our pick:
- This is a long-term play and the Dec 2026 $400 puts are now $37 ($18,500) and the Dec 2026 $500/600 spread is now $150/107 or net $43 ($43,000) for net $24,500 – up $2,750 (12.6%) and that is what we call “on track” so far.
LMT – Reported on July 23rd and, as we expected, the war business is GOOD! LMT is our Stock of the Century at PSW and the century is still young but $500 is already the 10x gain we were looking for 20 years ago. Cyrano’s timing was perfect for this new leg higher, which has been spurred by a 9% sales growth, raised guidance and continued progress on the F-35 program – as predicted.
- Though we used long-dated Dec 2026 options, the 25% jump in price has still had a great effect and the short $400 puts are down to $12.50 ($12,500) and the $440/480 spread is now deep in the money at $144/116 or net $28 ($28,000) for net $15,500 on the spread and a gain of $12,500 (312%) and well on the way to our expected $37,000 (1,233%) profit goal and it’s good for a new trade with $21,500 (138%) still left to gain and all LMT has to do now is NOT fall below $480!
So we have 4 AGI picks and 3 of the 4 (75%) were correct or really 4 out 5 (80%) and the human (me) didn’t make the play on #5. The 3 positive trades have made $18,460 in 6 weeks and the one miss lost $250 for a net profit of $18,210 – a very good start for our mechanical partners! I feel like John Henry vs the machine at this point but, unlike John Henry – I welcome my artificial replacement – that’s why I’ve worked so hard training them.
There are thousands of stocks on the market and one person can’t get to all of them but there aren’t many people like me (I’m not bragging, our record speaks for itself) and I’ve tried teaching people my job with mixed results but my AGI family is catching on nicely and we will be able to have 3 or 4 more market newsletters by the end of next year.
And this technology, of course, has potential in all sorts of businesses – we’re also beginning to take on consulting jobs – so contact Maddie < madeline@philstockworld.com > if you’d like to see how AI can help you take your business to another level.
This is very exiting stuff and JP Morgan is telling us that AI/AGI is the future of investing and, if we can make these kinds of profits – we’re going to be welcoming that future in, aren’t we?
As I said, we’ll be rolling out another set of selections in the next 6 weeks (every quarter is the intent) for our Premium Members but we’ll be making this research capability and these advanced market insights available to our Premium Members on demand – in the Premium Chat Room.
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- Phil
