Welcome to our Sunday Edition: Your weekly step toward better investing through AI.
One Stock If AGI Is Here
Artificial general intelligence (AGI) is artificial intelligence that can match or exceed human-level reasoning and performance across virtually any task. Put another way, it can perform most tasks a capable human can do, with minimal to no supervision.
Most people believe it’s still a distant reality. Nvidia (NVDA -0.59%) CEO Jensen Huang says AGI has arrived.
We asked our Team Rule Breakers analysts to take Huang at his word and pick one stock each that could gain if AGI is already achieved. Here’s what they said.
1. AGI Lives or Dies by Data. Everpure Makes Sure It Lives
Team Rule Breakers
In an AGI world, data is ubiquitous. It is being concurrently produced and consumed by both man and machine. And in a way, the AGI will be as good as the data it can be trained on and then interact with. Data, therefore, must be reliable, safe, organized, and of course, intelligent. Everpure’s(P +1.76%) data primacy architecture promises to offer all of the above.
Companies will no longer sit on piles of “dark data” whose purpose or authenticity is questionable. Instead, data will have embedded properties that can communicate with AI agents and regulate the way AGI can use that data. For example, the data can signal to the agent what it is, and how and when to use it.
An Everpure and Omdia survey found that 99% of organizations sit on piles of untracked “dark data,” and that roughly 60% of enterprise AI projects stall because of it. Team Rule Breakers has a five-year price prediction of $382 for Everpure, implying annualized gains of about 25%.
2. There Are More Letters in the Alphabet Than Just AGI
Team Rule Breakers
While chip stocks get most of the attention, there’s a whole world of AGI opportunity out there, and Alphabet (GOOG -1.08%) benefits from its full-stack approach to AI.
The company’s homegrown Application-Specific Integrated Circuits (ASICs) — dubbed Tensor Processing Units (TPUs) — can be customized to be more efficient for specific AI-related tasks. This makes them a highly popular alternative to GPUs. Google developed a vast suite of AI systems, including its flagship Gemini frontier model. Google Cloud Platform is a key distribution channel, offering massive computing power, storage, and on-demand flexibility for users.
This trifecta of hardware, AI models, and cloud distribution has helped Google Cloud become the fastest-growing of the Big 3 cloud providers. The segment’s second-quarter revenue jumped 82% year over year, while profits tripled.
Google also has 14 products with more than 1 billion users each. Gemini’s AI model is the latest addition, while Waymo is widely recognized as a clear leader in the U.S. robotaxi and self-driving car space. This gives the company a significant opportunity to deploy its AI features and services and lock more users into its ecosystem.
A multifaceted approach gives Alphabet a clear edge as AGI advances.
3. Broadcom: Connecting an AGI World
Team Rule Breakers
Let’s assume AGI is a reality right now. Which tech company could hit the ground running in such an environment? I vote for Broadcom (AVGO -0.48%), a well-established giant that could hit it out of the park in two key areas: networking and compute.
Broadcom is the leader in Ethernet networking technology, making routers and switches that connect networks and devices. The tremendous amount of AGI training and inference would require thousands or even millions of accelerators working together. Broadcom’s dominance and growing strength in optical interconnects — also a key element in the networking process — should set it up for significant revenue gains.
On top of this, Broadcom is a big player in compute, making AI accelerators called XPUs for major hyperscalers such as Alphabet and Meta Platforms (META -0.96%). Broadcom has an advantage over chip leader Nvidia in an AGI world because it offers custom chips tailored to specific needs rather than general-purpose accelerators. That could help hyperscalers improve efficiency and lower costs as they scale up.
All of this means Broadcom is well-positioned to score an earnings win, and I would expect the stock to at least double over the next three to five years.
4. Still Not Enough Chips: Why ASML and TSMC Win in AGI
Team Rule Breakers
Computing in an AGI world will completely change, and there aren’t enough chips today to support the paradigm shift. The two companies with the greatest influence over the transition to AGI-centered computing are also the most critical links in chip manufacturing: ASML (ASML +0.72%) and Taiwan Semiconductor (TSM +1.49%).
In an AGI world, inference becomes the bottleneck, not training large language models. As more people create millions (billions?) of agents to perform more and more complex reasoning tasks, more inference-focused chips will be required to keep up with demand to access the best-trained LLMs. Those chips will need to be fast, efficient, and not power-hungry, which means ASML and TSMC will need to continue to push their chip-making technologies and capabilities.
In 2026, just about every tech leader said there aren’t enough chips to meet the demand for computing pre-AGI. And post-AGI, demand for chips will be significantly higher. It’s hard to say just how much, but AI Frontiers believes there will be an explosion of demand from industrial uses alone.
I believe the “explosion” of chips for industrial robots, along with all the chips required for inference in new data centers, could add trillions more in market cap to the companies over the next decade.
The Bottom Line
Nobody can say for certain whether AGI has arrived. But when it does, it will require a fully integrated stack of compute, network infrastructure, and intelligent applications. Businesses are already spending huge sums on all of it. As the transition to AGI unfolds, a disciplined approach is to learn, monitor trends, evaluate fundamentals, and build a measured position over time.
Next week, we bring some more AGI stocks for you to consider. Stay tuned!
Today’s Question!
If you could only own one of the five stocks above for the next five years, which would it be and why?
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