AI Industry Rise of new 10-Bagger Stocks

Some analysts predicted that the day when FED rate pivots is when tech stocks will rally. Artificial Intelligence industry will see the rise of 10-bagger stocks.

10-bagger describes any investment that appreciates or has the potential to increase tenfold (1000% rise in share price). Lynch coined the term because he is an avid baseball fan, and “bag” is a colloquial term for a base. Thus “10-bagger” represents two home runs and a double or the stock equivalent of a hugely successful investment.

3 ways to identify AI Industry 10-bagger stocks:
1. AI Software & hardware breakthrough
For AI to move from ANI (Narrow Intelligence) to AGI (General Intelligence), there must be breakthrough in hardware - AI chip and software - Self-learning Algorithm. Companies with such breakthrough, the stocks will rally.
2. Level of AI
Level of AI is about how AI interact with the real world. Most of AI we're using are currently ANI e.g. ChatGTP and AlphaGo which is based on using mass data. AI must go beyond just being efficient and move to the next level AGI which is the ability of machine perceive the real world. Companies that announced AGI roll out will strive.
3. Reliability and Security
2 weakness of AI is that it can make mistake (reliability) and AI code is hackable (security). Quantum Computer (QC) which is a million times faster than the current Supercomputer may be the key to overcome AI weaknesses. Errors made by AI can be easily filtered with QC. AI code protected with QC Encryption is basically unhackable. Companies that can integrate QC to AI will succeed.
Bottom line
L4 or beyond Autonomous vehicle or Robotaxi (currently still at testing age) is unable to mass roll out partly is because of limitation in the machine to perceive the real world. This is not about sensor or HD mapping but Self-learning capability. Some predict that AGI (General Intelligence) can achieve that.

Government who see great potential and risk in AI technology has considered blocking or regulating. Cathie Wood, Founder and CIO of ARK Invest bought USD 42 millions in Tesla stock and predicted it's share price will rise 1000 times by year 2027 (sound like 10-bagger stock). Wood sees great potential in Tesla achieving autonomous vehicles or robotaxi using AI technology.