Bill Gates Bet BIG on This New Tech Trend
It all started with Superman III.
That was the first time I saw my comic book hero on the big screen.
Instead of squaring off with villains like Lex Luthor, the Man of Steel meets his match in the form of … a supercomputer.
I was only eight years old back then. And I remember watching awestruck as a giant computer became “alive.”
The movie’s human villains created the machine for financial gain, hoping to corner world energy markets.
But once it was self-aware, the computer decided to conquer the world.
Even Superman barely stopped it.
For millions of Americans (and me!), this was our introduction to artificial intelligence (AI).
It was only fantasy at the time.
But now, it’s part of our everyday lives.
That pizza you ordered last week?
The system used AI to make sure your pie arrived piping hot.
Those ads you see while browsing the web?
They were picked by AI.
You might even watch Superman III on Netflix or Hulu — because their AI recommended it to you.
Computer-powered trading makes up 60% to 75% of daily volume in the largest equity markets.
By 2024, the global algorithmic trading market will be worth $18.8 billion.
On average, there are 66.7 billion electronic trades every day.
That’s over three-quarters of a million trades every second!
And just like in the movie, this technology is transcending finance.
Only instead of taking over the world, it’s now positioned to save millions of lives.
The Times of London has called this breakthrough “a once-in-a-generation advance.”
Mark Cuban believes this trend could mint “the world’s first trillionaire.”
One Wall Street hedge fund even believes the opportunity is “more compelling than an early-stage Tesla.”
That’s saying quite a lot.
Look at Tesla’s long-term success:
And it’s not just talk, either.
Some of the world’s top tech minds are plowing a fortune into this new trend.
Interestingly enough, it’s one that most Americans use every day (often without realizing it).
Bill Gates: This AI Breakthrough Is “Worth 10 Microsofts”
When you’re investing in cutting-edge technology, it’s simple. Follow the smart money.
After all, there’s no one better at finding the next breakthrough … than the genius who found the last one.
Jeff Bezos’ early investment in Google is a perfect example.
He invested $250,000 back in 1998.
At today’s prices, his former stake is now worth $8 billion.
Peter Thiel is another billionaire tech mastermind.
After selling PayPal to eBay for $1.5 billion, Thiel didn’t rest on his laurels. Instead, he jumped into a promising new social media platform: Facebook.
He made an estimated 200,000% when Facebook went public.
And then there’s Elon Musk.
Some people think he founded Tesla. But he was actually an early investor back in 2004.
Since taking over in 2008, Musk has turned Tesla into the world’s fifth-largest tech company.
His stake is valued at $131 billion.
And some of these same tech insiders are all over a new subniche of AI stocks…
First is a company called Relay Therapeutics (Nasdaq: RLAY).
I’ve been telling my subscribers about this stock for years.
I’ll tell you more about its amazing technology in a moment.
But here’s what you need to know now…
SoftBank owns over a quarter of Relay.
SoftBank is the world’s largest tech-focused venture capital firm.
Last March, it booked the biggest profit ever for a Japanese company:
I imagine Board Director Masayoshi Son smiled like this when they told him.
Schrödinger (Nasdaq: SDGR) is another major player in this space.
Unsurprisingly, the Bill & Melinda Gates Foundation owns 22.68% of SDGR.
Back at the end of 2020, Gates sold more than 50% of his stake in Google, Apple, Amazon, Uber and Berkshire Hathaway.
This was the only company he bought into.
His foundation currently holds nearly 7 million shares!
Cathie Wood’s ARK Invest isn’t far behind.
In the last three months alone, ARKG purchased almost a million more shares:
ARK Invest now controls 4.15% of Schrödinger.
It’s not alone, either.
These heavy hitters are also invested:
- Vanguard owns 6.95%.
- BlackRock owns 5.22%.
- Credit Suisse owns 3.12%.
- Citadel owns 2.13%.
The world’s top tech investors are scrambling to control as much of this sector as fast as they can.
And they’re not hiding their motivations either.
Cathie Wood believes it could “approach $17 trillion in market cap — which would be 35 Amazons.”
And long before investing in SDGR, Bill Gates said “if you invent a breakthrough in artificial intelligence, so machines can learn, that is worth 10 Microsofts.”
Even Warren Buffett thinks it will have a “hugely beneficial social effect.”
So what exactly is this new trend?
How is it going to transform our world?
And what’s the best way to cash in?
Well, it starts with…
Like I said, most of us already interact with AI every day.
Most people don’t even realize when they do!
But every time you open your Netflix app, you’re using AI. That system scours mountains of data to serve up personalized recommendations.
And these systems create new data just as fast as they read old data.
So before long, Netflix “learns” what types of films you prefer.
The system personalizes your recommendations to keep you watching.
In my case, that means serving up ‘80s classics like Short Circuit.
The system is so successful that Netflix users watch 6 billion hours of content every month.
Here’s another example.
You’re reading up on an old hobby online. Then, suddenly, Facebook starts sending you ads for related products.
Or you’re planning a tropical vacation — and the ads switch to sunglasses and Tommy Bahama shirts.
There’s no human element to any of this.
Every decision is automated.
They’re driven by new AI systems that can learn and adapt.
It’s the kind of thing that wasn’t possible just a few years ago.
And now, this same technology is starting to penetrate the pharmaceutical space…
Let’s circle back to Relay and Schrödinger.
These companies both use AI-based platforms to design and test new chemical compounds.
Each company’s approach differs.
But they’re both thousands of times faster and cheaper than traditional methods.
Today’s Big Pharma companies test a few thousand new drug candidates every couple of years. These new platforms can explore billions in half the time:
This is a huge leap forward.
In all of history, scientists have catalogued a total of 100 million compounds.
These new platforms could explore 10 times as many in the next three years.
And the technology is already paying off…
Just last week, Relay Therapeutics soared 38% after its new phase 2 drug candidate exceeded expectations in a recent trial.
The drug was developed using Relay’s Dynamo platform.
Dynamo uses AI to simulate the way proteins move. That helps Relay design drugs that are hyperselective for disease-driving proteins.
That’s how its new medication proved twice as effective as the closest rival treatment in this trial.
It’s a huge milestone for Relay.
And of course, it’s not alone…
Schrödinger is also doing incredible things in the space.
Two new cancer treatments (Tibsovo and Idhifa) — developed on SDGR’s platform — have already been approved by the FDA.
Tibsovo is the first drug of its kind, and it’s changing the way doctors think about chemotherapy.
Dr. E.M. Stein from Sloan Kettering says it’s “the first therapy targeting cancer metabolism to demonstrate an impressive, significant benefit in event-free survival and overall survival…”
Idhifa is a groundbreaking treatment for relapsed leukemia cases.
According to the FDA, its use is associated with “a complete remission in some patients.”
The speed of innovation here is critical to success.
By fast-tracking research and development (R&D), AI can develop highly specific drugs for targeted conditions.
That’s why Relay’s new drug is so much more effective.
Schrödinger knows its platform is a winner too — and that’s why it’s licensing its breakthrough technology.
All of the top 20 pharma companies are using SDGR’s platform to find the next breakthrough drug.
And they’re making rapid progress:
But it’s not just Big Pharma using AI to cure diseases…
Aircraft giant Boeing is using AI to develop lighter, stronger materials for next-gen planes.
Even researchers from Harvard and more than 1,250 universities use the platform.
So I’m hardly alone in thinking this could be…
The Biggest Industrial Breakthrough Since Electricity
It’s tough to wrap your head around the sheer scope of this trend.
We haven’t seen an innovation this powerful in a century. That’s when electric power first reached American communities.
It was a massive breakthrough.
Imagine seeing the streetlights come on for the first time!
Electric power ushered in a tidal wave of new commerce and development.
Suddenly, every home in America needed not just lighting…
But also electrical appliances, like refrigerators and stoves.
Then came radios, televisions and eventually computers.
Electricity was the key to unlocking all those 20th century innovations.
Now, in the 21st century, AI is the key to unlocking the next major leap forward.
From personalized medications to custom materials and equipment, it could fast-track a whole new generation of progress.
And remember, the world’s most forward-thinking tech investors are already on board.
Given their track records, I wouldn’t miss out on this next-gen technology.
AI Is the Next Step in Technology — Are You Ready?
Do you ever think about the AI behind your Netflix recommendations or online ads?
How would you feel about taking a medication designed by AI?
What about handing over the steering wheel to a self-driving car?
This trend has massive breakthrough potential. But only if users are ready to adopt it…
I’m looking forward to hearing what you think!
Send your thoughts and questions to WinningInvestorDaily@BanyanHill.com.
I’ll respond in this Saturday’s RAD (Reader Appreciation Day).
My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.