Ever since ChatGPT’s grand debut launched the AI Boom in late 2022, pundits and skeptics alike have consistently called for the AI stock “bubble” to pop.
And it will, eventually. All booms end in busts. History makes clear that it is not a question of “if.” It is simply a question of “when.”
Just consider: the S&P 500 recently achieved back-to-back years of 20%-plus gains. It has only done that three times before: in 1935/36, 1954/55, and 1995/96.
After the two boom years in 1935 and ‘36, stocks immediately crashed about 40% in 1937. That boom turned into a bust almost immediately.
Following the market boom in 1954 and ‘55, stocks went flat in ‘56, then dropped 15% in 1957. The boom turned into a bust after about a year.
Similarly, post-1995/96, stocks kept partying throughout 1997, ‘98, and ‘99 – only to crash about 50% throughout 2000, ‘01, and ‘02. After about three years, that era’s big boom turned into a big bust as well.
Today’s AI Boom will play out no differently, eventually ending in a bust. At some point, AI stocks will crash, perhaps epically.
However…
We have reason to believe that’s not in the cards yet – and won’t be any time soon, for that matter…
Potential Game-Changers on the Horizon
We think AI stocks should continue ripping higher thanks to two new catalysts: Grok-3 and ChatGPT-4.5.
Just yesterday, Elon Musk and his startup, xAI, unveiled Grok-3, the latest iteration of the company’s AI model. And from the looks of it, Grok-3 is quite capable.
It was developed using over 10 times the computing resources of its predecessor, Grok-2, leveraging a massive data center equipped with approximately 200,000 GPUs. The model introduces sophisticated reasoning features, which allow it to deconstruct problems into manageable components and perform self-fact-checking to ensure accuracy before providing solutions. And it also includes a new Deep Search feature – an integrated AI-powered search engine designed to reduce the time users spend hunting for information by providing detailed explanations for its responses.
According to xAI, Grok-3 outperforms other incumbent AI models like ChatGPT, Gemini, and DeepSeek in areas such as mathematics, science, and coding.
It seems to be a new landmark model.
Meanwhile, the world’s leading AI company – OpenAI – just announced that it will soon unveil its latest-and-greatest model, ChatGPT-4.5, within the next few weeks.
Reportedly, ChatGPT-4.5 is designed to process and remember more information, leading to more fluid and coherent conversations – an improvement particularly beneficial for multi-step processes. It also aims to engage in more natural and dynamic interactions, making it a powerful tool for customer service, virtual assistance, and other dialogue-based applications. And it should integrate with OpenAI’s newest Operator feature – an AI agent designed to autonomously perform web-based tasks by interacting with on-screen elements such as buttons, menus, and text fields.
If true, OpenAI’s upcoming release could also be a new landmark model for the industry.
In other words, come May 2025, we should have two powerful AI iterations that help to expand the AI frontier.
That means AI stocks are likely to soar higher between now and the end of the year.
The Final Word on AI Stocks
The important thing to understand here is that both Grok-3 and ChatGPT-4.5 are foundational AI models. That is, they are general base models that other more-niche, task-specific models are built on top of.
Therefore, we believe that their respective launches will lead to the emergence of hundreds of new AI applications over the next few months. And those new applications should be significantly better than their predecessors.
They’ll likely proliferate throughout the global economy by late 2025. And that will lead to more sales and profit growth for their developers, more spending on the AI data centers that power them, and more demand for the energy infrastructure that allows all that compute.
And, of course, that will lead to higher stock prices across the board.
Folks, it is time to buy AI stocks…
Especially since all this new AI technology will inevitably lead to widespread job loss. Indeed, this is already happening.
Meta, Amazon, Salesforce, Microsoft, Intuit, Duolingo, Workday, Intel, Dell, Best Buy, Chevron, AMD, Klarna, Cisco, Activision Blizzard… All have either recently executed or are currently executing layoffs due at least in part to AI.
Make no mistake: This tech is a job-killer. And as AI becomes increasingly capable, the threat to human workers and their livelihood will only rise…
Which means that you need to invest in AI stocks – not just to make money in the stock market, but to safeguard your wealth against the looming AI Jobs Apocalypse.
That’s why I’ve put together a brand-new presentation on the subject, detailing what it means for the economy, the markets, and maybe even your money.
In some ways, it’s like a survival guide for a new AI-powered world – a Ted Talk of sorts – jam-packed with a ton of information that I think you’ll find very valuable in this new “Age of AI.”
Check out that new video right now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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