3M Is Getting in on the AI Boom
The maker of Scotch tape is joining the AI hype party...
3M (MMM) is a familiar name. It makes the tape you use to wrap a birthday present... and the adhesive strips you use to hang a picture on the wall.
But 3M is much more than that...
The company produces more than 60,000 products across industrial, consumer, healthcare, technology, and transportation sectors.
3M can help you fly across the country, paint your car, or get crowns on your teeth.
And with its deep bench of inventions, it has a history of taking advantage of fresh opportunities...
For example, when the COVID-19 pandemic struck, 3M suddenly had huge demand for N95 face masks – which it had invented in 1972.
Now, with billions of dollars pouring into AI data centers, 3M is rushing to meet demand for another innocuous-sounding product.
Earlier this month, 3M announced it would provide its expanded beam optical ("EBO") fiber-optic connectors for Microsoft's (MSFT) data centers.
As the company explained in its press release:
EBO technology is designed to make fiber connections faster to install, more tolerant of contamination and easier to maintain. The technology will help Microsoft reduce the need for frequent cleaning and inspection while supporting reliable optical performance in dense, high-volume deployment environments.
3M CEO Bill Brown believes EBO could bring in another $40 million to $50 million in revenue this year. That may not sound like a lot for a huge business like 3M... But he sees demand surging fivefold within the next few years.
Lots of people are throwing their money into AI investments these days... And most of them are chasing all the same overhyped, overvalued names like Nvidia (NVDA) and SpaceX (SPCX).
As I wrote last week, SpaceX jumped after its recent IPO, but quickly fell well below that price. And Nvidia's stock kept seeing the monster gains it enjoyed at the beginning of the AI boom.
Most of the folks who made big gains on SpaceX and Nvidia were early investors. They got in ahead of the crowd. Those who joined later took on big risks for much lower gains... at best. In SpaceX's case, they're probably going to lose a lot of money.
So if you're itching to invest in AI, I recommend looking beyond the obvious plays.
3M is making money from AI, thanks to its new EBO technology... But it's also a great business with plenty of other revenue drivers.
AI can help 3M's returns, but the company won't get wiped out if an AI bubble bursts.
This is the sort of AI bet that I could get behind.
My colleague Luke Lango is also on the hunt for overlooked AI winners...
Luke, from our corporate affiliate InvestorPlace, discussed his strategy in yesterday's 2026 AI Megadeal event. And he explained how one little-known trend could shape the next phase of AI investing.
If you missed Luke's live event yesterday, you can watch a free replay right here.
Now, let's get to this week's Q&A... And as always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.
Hybrid Batteries Are Nothing to Worry About
Q: One of my relatives bought a used hybrid car a few years ago and the battery failed soon thereafter. Replacing the battery would cost more than the book value of the car, and it wouldn't run without a good battery. Which of the late model SUV hybrids can run as a straight conventional drive train if the battery fails? What age/mileage can one expect from recent model year hybrid batteries? – D.B.
A: I'll turn this question over to the auto expert on my team, Brady Holt...
In hybrid cars, electric motors work together with a gasoline engine to power the vehicle to save gas. If either part of that system fails, the car will stop working. It needs the full hybrid system to run.
Here's the good news...
First, hybrid batteries don't fail often. The technology has proved itself well in more than 25 years on American roads.
Federal law requires a minimum warranty coverage of eight years or 100,000 miles from new. California and some other states require 10 years or 150,000 miles for hybrid batteries. And some automakers include that higher coverage nationwide... notably Toyota, which sells more hybrids in America than anyone else.
It's not really possible to predict whether new hybrids – or any other new cars – will last a long time. The best we can do is look at older cars. And many 20-year-old hybrids are still on the road with more than 200,000 miles on them.
Second, you're right that replacing a hybrid battery can be expensive. But that's no different from replacing a nonhybrid car's engine or transmission. All typically cost thousands of dollars.
Here's another similarity: As with an engine or transmission, price quotes for hybrid batteries will vary a lot. It'll generally cost more if you go to a dealership than an independent shop. You can also often find reconditioned batteries, batteries salvaged from wrecked cars, and even batteries from third-party suppliers.
Here's how I'd look at it... Any older car can get a repair estimate that exceeds the car's value. That's especially true if you take the car to a dealer.
None of that is a reason to avoid a hybrid. If you're interested in small SUVs, I'm a big fan of the Honda CR-V, Toyota RAV4 and Corolla Cross, Hyundai Tucson, and Kia Sportage hybrids. They have lots of room and can get more than 40 mpg.
What We're Reading...
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Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
July 31, 2026