Wall Street Just Froze You Out of AI… Here’s the Smart Way to Get Back In

Wednesday afternoon, artificial intelligence (AI) leader Nvidia (NVDA) knocked the leather off the ball. To say they “beat” second quarter earnings expectations is akin to calling the Atlantic Ocean a “puddle.”

So, on Thursday morning while I was perusing the headlines on MarketWatch, I wasn’t surprised when I came across this:

The headline speaks for itself. I won’t spoil the MarketWatch recommendation because it happens to be pretty good. The fund manager they quoted locked onto a decent alternative.

But here’s the thing: When it comes to AI investing, you can do better than the Wall Street whales. A lot better.

And outperforming them is very much like shooting fish in a barrel. You see, of the 2,877 funds reporting to the Barclay Hedge Fund Index are up 6.07% through July.

Let that sink in… that’s less than half of the performance of the S&P 500!

Not to mention the blistering AI-driven returns of the Nasdaq.

Wall Street firms and funds are notorious for failing to even be on par with their benchmarks.

But as a small investor looking for exposure to AI, you have alternatives and flexibility those perennial underperformers simply don’t.

These AI Plays Means Big Profits for the Rest of Us

Now that we’re below the jump, I can open my kimono a little…

There was something about a hedge fund manager talking about Nvidia that just didn’t sit right with me.

Turns out my hunch was on the money: Large institutions own in the ballpark of 66% of outstanding Nvidia shares. They’ve practically frozen everyone else out of it. And at nearly $465 per share, we’re talking about some expensive table scraps.

But AI is a “big tent” investing trend – there’s room for everyone.

And, as you’ll see in a second, there are more moves to make than simply snatching up shares.

AI is already having a massive, profound impact on Americans’ lives. And there likely isn’t an investable sector the tech won’t touch. When I said it was a “big tent,” I wasn’t kidding. Healthcare, aerospace and defense, automotive, manufacturing, retail – artificial intelligence will move share prices in all of them and more.

And with Wall Street fixated on less volatile mega-caps like Nvidia, we’re free to travel anywhere we want to grab AI gains.

Take healthcare, for instance. Alex Kagin, Director of Technology Investing Research, recently turned his readers on to Lantheus (LNTH).

Lantheus is a significant AI player in health. And this segment is projected to reach $188 billion by 2031. The company’s PYLARIFY artificial intelligence platform is used to “standardize quantification for PSMA PET and CT scans.”

In plain English, Lantheus’ product helps doctors read prostate cancer screenings with greater accuracy and clarity, leading to earlier diagnoses. Its much easier to treat and cure prostate cancer – which kills more than 34,000 men every year – at early stages.

Lantheus is the stock to own here. It’s currently 33% off its earlier “AI Bubble” highs of $98. And today trades for a much saner and safer share price of $66.

Microchip Technology (MCHP) is also worth a look, according to Alex. Shares trade for less than one-fifth the price of Nvidia. But its systems make AI applications “work” across transportation, aerospace and defense, automotive, communications, and even consumer goods.

Microchip sits at the intersection of AI and these monster tech trends. And, like Lantheus, at $77 per share, it looks less frothy than it did just a few months ago.

Our Executive Publisher, Garrett Baldwin, believes Exxon Mobil (XOM) is a fantastic AI play.

Yes, you read that right – that’s Exxon the oil company.

That’s due to the fact that more and more companies, like Exxon, are using artificial intelligence to enhance the unsexy “screwdriver work” that’s essential to actually making money in oil.

Geological studies and exploration, operations, pricing – all of it is getting a much-needed AI boost. And before long, these AI impacts will permanently improve the oil patch’s notoriously iffy profit margins. Exxon is deploying AI in the oil-rich Permian Basin with impressive results. It’s much easier now for Exxon to manage maintenance and oil well development, for instance. That’s thanks to AI.

At $107 per share, Exxon seems expensive. But on a price-to-earnings (P/E) basis, it’s far, far cheaper than Nvidia. Exxon’s P/E ratio is 8.6… Nvidia’s is above 245.

Our experts are constantly picking outstanding artificial intelligence opportunities like this. But, as I mentioned earlier, there’s more to this than buy-and-hold investing.

The Smart Way to Play AI’s Mega Caps

Like virtually any other equity, it’s possible to trade options on AI companies. And it doesn’t have to be complicated, either – no spreads or iron condors necessary. I’m talking about simple calls and puts.

LEAPS optionslong-term equity anticipation securities – are the best ways to do this. Thanks to the one-, two-, or three-year timeframes involved, you can lock in steep discounts on gigantic players like Nvidia. Now, to be clear, you don’t have to wait up to three years to take profits (unless you want to avoid capital gains taxes). The “long-term” here really refers to the options’ expiration dates.

With LEAPS, you could easily pick up shares of Alphabet (GOOGL), Microsoft (MSFT) and, yes, even Nvidia for what amounts to pennies on the dollar. In fact, we’re talking a mere$99 for Nvidia, or less than 20 bucks for Alphabet.

Our Quantitative Analyst, Chris “CJ” Johnson’s numbers show it’s possible for LEAPS strategies to save 89% on long-term AI positions. It’s  an AI-stock fire sale that lasts three years. When it comes to AI investing, there’s really no better way I can think of to get in on the same playing field with Wall Street’s largest whales… and beat them at their own game. You can see for yourself how this works here, when you get a look at CJ’s research.

Go get ‘em

Greg Madison