ChatGPT has captured headlines since it was launched last November.
People seem enamored with its technology that can analyze information and formulate responses to complex questions with blazing speed. Its website has 60 million visits per day, and more than 170 million active users use its artificial-intelligence ("AI") software for everything from entertainment to work.
Microsoft (MSFT) got into ChatGPT early with its multibillion-dollar investment in OpenAI – the company behind the AI chatbot. And Alphabet (GOOGL) launched its AI-powered chatbot called Bard in February. It has reportedly gained about 30 million monthly visits already.
But another tech giant wasn't about to let its competition cut it out of the market...
Headline No. 1:
Apple (AAPL) is stepping into the AI chatbot arena.
McCall's Call: According to a recent Bloomberg report, Apple is developing an AI chatbot called "Apple GPT."
Like Microsoft and Alphabet, it's using large language models – algorithms that can analyze, translate, and summarize huge sets of data to generate humanlike responses – to train its AI technology.
According to the report, there are some concerns within Apple about how AI could change the way people use their devices...
This technology is already being woven into new products, software, and devices. And considering Apple sold $320 billion worth of smartphones, tablets, computers, and more last year, it can't afford to fall behind here.
Microsoft and Alphabet have a bit of a head start in this race. But if history is any indication, it's too soon to count Apple out... It has a long history of surprising its doubters.
Right now, the company is only using Apple GPT internally. Its access has even been restricted to a limited number of employees. That means there's likely some time before a commercial version hits the market.
But whatever happens with Apple GPT, it's clear companies have realized that they need to have AI tools in order to compete. And that makes me even more excited about the long-term potential of this industry.
Earlier this week, I spoke to one of my Stansberry Research colleagues, Dr. David "Doc" Eifrig, specifically about the booming AI trend. Doc has done it all – worked in medicine, biotechnology, and now finance. So I wanted to pick his brain and hear his thoughts on all things AI.
If you missed that podcast, I suggest taking a look by clicking here. Doc even shared some interesting insights about how AI could reshape health care.
Headline No. 2:
Existing-home inventory continues its decadelong downtrend.
McCall's Call: A lot of attention has been trained on the housing market in recent months. Between rising home prices and decade-high mortgage rates, housing affordability has fallen to its lowest level in nearly 30 years.
That has put a huge dent in home sales...
Existing-home sales came in at an annualized rate of 4.16 million in June. That was down 19% from June 2022 and marked the lowest level in 14 years.
But prices and mortgage rates aren't the only things hurting home sales. Inventory is playing a role, too. At the end of June, there were only 1.08 million homes for sale on the market. That was down 13.6% year over year and continues a sharp downtrend in housing inventory.
According to Freddie Mac, the market is nearly 4 million homes short of current demand.
This trend has benefited one niche of the housing market – new home construction. With fewer existing homes for sale, prospective buyers only have newly built homes as options.
Anyone who has ever built a home – or done remodeling – knows how long the process takes. So it will be some time before builders fill the gap between supply and demand. Tight supply will continue pushing buyers to newly built homes. And that tailwind will fuel the construction market for years to come.
But housing stocks have already run up quite a bit this year...
The SPDR S&P Homebuilders Fund (XHB) holds a basket of stocks that includes homebuilders and housing suppliers. It's up 37% so far in 2023 – and more than 60% from its June 2022 lows. And it's sitting within touching distance of its late 2021 all-time high.
Some housing stocks are trading at historically high valuations as a result of the market conditions. So now may not be the best time to add them to your portfolio.
But there's no question that there's a longer-term trend in place that will keep these companies climbing.
With existing-home inventory likely to stay in its downtrend for the foreseeable future, that's making new construction the only game in town.
Here's to the future,
Matt McCall
Editor, Daily Insight
July 21, 2023
P.S. In the future, AI's use cases won't be limited to chatbots...
In fact, it's already being integrated into new vehicles to help combat one of the biggest problems plaguing roads today – distracted driving.
Distracted driving results in the deaths of 3,000 people every year. That's nine people every day. In 2020 alone, more than 324,000 people were injured in car accidents related to distracted driving.
Forty-nine states have banned text messaging while driving and 34 states have hands-free laws in place. But it's not enough. We need something more than harsher punishments and stricter laws.
And that's where next-generation AI technology comes into play...
My MegaTrend Investor subscribers just added a company on the cutting edge of AI-powered voice-assistance technology – which allows you to control everything in your car with just your voice.
Click here to find out how to gain instant access to this company's name and ticker symbol – plus the names of the 25-plus other stocks that make up our model portfolio.
Did You Miss My Latest Podcast?
Most people in the market believe that inflation is on its way down and will continue to drift lower into next year. But on the latest episode of Making Money With Matt McCall, I welcome a guest who has a differing opinion. Jim Bianco thinks that inflation will remain "sticky."
That may sound like an ominous view on the economy and market. But Jim remains positive. He explains his viewpoints and discusses whether it could all lead to a recession.
We also look at the bigger picture – diving into tech stocks and the AI boom. Jim even shares some great insight on investing in a few AI-related stocks you probably haven't heard of. Find out their names by tuning in now.
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