The NEXT Magnificent Seven

Genuine technological leaps are very rare. But when they happen, they always propel a few stocks into the stratosphere.

For example, the rise of personal computing and the internet as part of a broader digital industrial revolution has defined the last 50 years of market history.

Modern computing, simply put, is the most transformative innovation of the last half-century.

Even the emergence of smartphones was dependent on the rise of the internet, which was itself made ubiquitous by having a personal computer in every living room. That was the technological innovation that made the modern world possible.

And there are seven stocks, the original Magnificent Seven, it has propelled to unprecedented highs and whose growth has minted millionaire after millionaire. These are Alphabet, Microsoft, Apple, Amazon, Nvidia, Meta Platforms (formerly Facebook) and Tesla.

Each of those stocks represents one major aspect of the internet revolution…

Microsoft drove personal computing…

Apple basically invented the smartphone…

Online shopping owes Amazon everything…

Nvidia’s chips are the gold standard for both gaming and crypto mining…

Alphabet’s Google started out as one of many search engines, but it was so good it’s now practically the last one standing.

Meta Platforms invented the first mainstream social network, Facebook…

And Tesla used both social media and internet connectivity in its cars to make electric vehicles popular.

As a result of these innovations, these seven stocks have driven markets dramatically higher.

The average gain of the Magnificent Seven over the last 20 years comes in at over 16,000%.

That’s how big it can be to identify the dominant stocks in a world-changing technology.

But listen, the Magnificent Seven are now behind us.

The next big innovation is upon us. Artificial intelligence (AI) represents a leap as big as, if not bigger than, the internet itself.

AI is expanding into every corner of the economy at a lightning pace. It took just two months from when ChatGPT was introduced for it to reach 100 million users. It’s the fastest-growing consumer application ever.

The technology is expected to add $25.6 trillion to the global economy over the next six years. That’s more than the GDP of the economies of Japan, Germany, India, France, Canada and the United Kingdom… combined.

And just as there were with the rise of personal computing and the internet, there are seven AI-focused stocks that are set to dominate this new technological leap.

I’m calling them the Next Magnificent Seven.

Each of these companies satisfies all five of the Golden Metrics I look for…

1. It’s a leader in cutting-edge technology.
2. It sells breakthrough products used by hundreds of millions of customers around the world.
3. Its technology is protected by patents, trademarks and brand names.
4. It has massive sales growth.
5. It has the potential for dozens of blockbuster launches and announcements that would drive its stock higher.

And if you invest in each of them now, you’ll be profiting from it for years to come. Put $1,000 in each and all signs point to you looking at a million-dollar portfolio in six years.

Synthetic Brains for Artificial Intelligences

The starting point for all our modern computing technology is the integrated circuit semiconductor chip. Regardless of the make of your phone or computer, it’s using a semiconductor-chip-based processor.

These chips have allowed computers to become both smaller and more powerful. It’s why the phone in your pocket has more computing power than NASA had in total when they put a man on the moon.

AI is no different. All modern AI programs rely on these chips to run. And usually, an AI needs many of these chips working as one to act as its “brain,” so to speak.

And Arm Holdings (Nasdaq: ARM), our first “Next Magnificent Seven” stock, is one of the best in the space.

What Arm does is simple. It manufactures hardware, namely semiconductor chips and processors, that are used by a full 70% of the world’s population in their devices. And this hardware is primed to run any AI software.

Let’s start with a few numbers that explain why…

The company has shipped over 280 billion chips to date. Fifty percent of all chips with central processing units (CPUs) and graphics processing units (GPUs) are Arm-based. And 99% of all smartphones run on Arm-based processors.

It is becoming the leader in the space at a lightning-fast pace, easily satisfying the first of my Golden Metrics…

Nvidia’s Grace Hopper 200 Superchip uses Arm technology. Google’s Gemini Nano Pixel 6 and Samsung’s Galaxy S24 both use Arm’s technology. And Apple is one of this company’s biggest partners…

Arm and Apple signed a deal late last year that Apple would use Arm’s chip technology in iPhones and Macs out to 2040. And history tells us that’s immensely good news for early investors in Arm because of a little company you may have heard of called Broadcom.

Back in 1999, Broadcom signed a deal with Apple that saw its Wi-Fi chips put in the iBook. And it’s continued that partnership ever since. Apple turned Broadcom into a blockbuster.

If you’d bought Broadcom when it IPO’d back in 2009, you’d now be up 9,155%, or 12,623% with dividends reinvested.

There’s no guarantee that Arm is on the same trajectory, but it wouldn’t be the first time an Apple partnership made a blockbuster stock. And Arm’s technology is used in far more applications than an iBook.

Arm offers a foundational technology. It’s not building its own AI programs, but its technology is used in myriad AI applications as the hardware that runs the most advanced software on the market.

The company’s CPUs in both phones and laptops are small, flexible and ubiquitous. They can run numerous programs on small and portable devices. These processors are extremely common. Software developers and device manufacturers the world over are intimately knowledgeable about them.

That market presence and familiarity make Arm the obvious choice for AI companies looking for hardware. The widespread use of its products means it easily satisfies the second Golden Metric.

The company’s tech is used by hundreds of millions of people all over the world.

Its chips are already used in autonomous driving vehicles and in-vehicle entertainment systems. The company’s CPU is functioning as the basis for many AI brains. Arm’s platforms offer an energy-efficient foundation that, when used broadly, can reduce a company’s electric power usage by 15%.

And the company’s technology is also protected by 6,800 patents worldwide. So it easily satisfies Golden Metric No. 3.

For a company whose technology can be found in just about any smartphone or laptop on the market, Arm has the truly impressive balance sheet you might expect…

The company’s fiscal 2023 (which ended in March 2023) saw its revenue total $2.67 billion, its net income top $524 million and its earnings per share hit $0.50.

For the third quarter of the company’s fiscal 2024 (the latest quarterly report to date), it shipped 7.7 billion chips and took home total revenue of $824 million, up 14% year over year. That revenue growth satisfies the fourth Golden Metric.

Of that revenue, $354 million was from licensing and other revenues, and it represented 18% growth year over year. The remaining $470 million was from royalties, up 11% year over year. Royalties represent about 60% of the company’s revenue and continue coming in year after year. Talk about passive income.

Operating income for the quarter was $338 million, up 17% year over year, and free cash flow topped $251 million.

With numbers like that, is it any wonder people are saying that this company could become the seventh company in the world with a valuation of over $1 trillion?

I’m certain this will be one of the Next Magnificent Seven given its immense presence in the market and that companies like Apple, Google, Nvidia, AMD, Intel and Samsung all use its technology.

In addition, some of those companies are clients as well as shareholders. Nvidia and Google parent company Alphabet each hold about 1.9 million shares. Intel holds 1.17 million shares. They’ve all taken a personal stake in the success of Arm. That’s a serious vote of confidence.

Each new piece of technology released by one of Arm’s clients represents a catalyst that could drive Arm higher. Specifically, the two things set to drive Arm in the coming years and provide a catalyst for growth are the secular growth in the semiconductor market and the proliferation of AI technology reliant on heavy-duty processors.

The semiconductor market is a massive growth industry independent of any external factors. It grew 15.5% year over year in 2023 alone, and that trend is only set to speed up. For the remainder of the decade, the AI market, which Arm will also profit from, is growing at nearly twice the rate of semiconductors, with a projected compound annual growth rate (CAGR) of 28% until 2030.

Arm is set to profit from both of those, and they will act as catalysts for its share price growth. That makes Arm the ultimate pick-and-shovel play for the rise of AI, satisfying the fifth Golden Metric.

This is not an opportunity you’ll want to let sit for long. Take advantage of it before this $120 stock is propelled into the stratosphere.

Action to Take: Buy Arm Holdings PLC (Nasdaq: ARM) at market.

Reinventing the Internet

The second of the Next Magnificent Seven has an ambitious goal: to build a better internet.

Based in San Francisco, California, Cloudflare (NYSE: NET) integrates machine learning and AI into a global cloud platform that offers a broad range of vital technological services to businesses of all sizes.

In basic terms, Cloudflare makes companies’ operations more secure. It enhances the performance of their critical business applications. And it eliminates the cost and complexity of managing their own network hardware.

But that’s not all it does…

See, every time an internet user visits a website, their computer or smartphone retrieves it from a server in a data center. The site must load quickly. Otherwise, they won’t stick around long.

Cloudflare ensures a snappy upload thanks to its network of data centers in more than 300 cities around the world.

Safety, of course, is just as important as efficiency. That’s why Cloudflare integrates cybersecurity into its services, blocking approximately 170 billion cyberthreats per day.

This combination of cloud computing and cybersecurity is referred to as a secure access service edge (SASE). It is expanding rapidly as more organizations transition to cloud computing. It’s a leader in its industry, easily satisfying Golden Metric No. 1.

And although Cloudflare is not a household name, its global reach is astonishing…

Approximately 20% of all web traffic runs through Cloudflare’s network, in addition to mobile apps, corporate networks and AI infrastructure. I would say that 20% of all web traffic represents hundreds of millions of customers, satisfying Golden Metric No. 2.

Every time the firm “pushes code” – sending newly created computer instructions from creators to users – it automatically affects millions of internet properties.

Over 95% of internet users worldwide access the company’s services each day. It handles data from 180 countries – and serves 50 million hypertext transfer protocol (HTTP) requests per second on average.

And the firm’s client list includes more than 30% of Fortune 1000 companies. Major customers include everyone from IBM to Labcorp to DoorDash.

Bottom line? The company is creating an internet that is faster, more secure, more reliable, more efficient and more private.

Now, unlike Amazon Web Services, Google Cloud and Microsoft Azure, the key metric for Cloudflare is not how much data it can store for customers. Rather, it’s about connecting things across the internet to ensure the easy and secure flow of data.

Here’s why that is so important…

Virtually all businesses – from small startups to multinational corporations – use multiple clouds to take advantage of different features.

This requires security and efficiency. Cloudflare is the unifying fabric that connects these different networks.

And AI will only increase demand for its services, as it is the next groundbreaking technology for enterprise software firms.

It is already the most common cloud provider across all the major AI companies, and it has 291 patents protecting its software globally. It easily satisfies the third of my five Golden Metrics.

The ability to efficiently and cheaply move and connect data – from where it is located to where it is needed (edge computing) – is a huge business opportunity.

And Cloudflare is already capitalizing on it.

In September 2023, the firm introduced “Workers AI,” which is the most complete platform to date to allow fast, secure and compliant AI solutions at scale.

Co-founder and CEO Matthew Prince calls Workers AI “probably our biggest superpower” because the data that companies need to make decisions is already flowing through its network.

The numbers here – as you might expect – are superb, although they are about to get much better.

The company has topped the Wall Street earnings consensus by 79% on average over the last four quarters.

In the most recent quarter, net income improved 167% on a 32% increase in sales.

The number of paying customers rose 17%. Those paying over $100,000 a year jumped 34% to more than 2,500.

Cloudflare’s annual revenue is $1.2 billion. But its goal is to hit $5 billion within five years. It easily satisfies Golden Metric No. 4 with that sort of growth.

“The opportunity we have in front of us is enormous,” says Prince. “We’ve penetrated less than 1% of our identified market for the products we have available today.”

A large part of future growth will come from Workers AI as it partners with some of the world’s largest tech companies. And each time it does, the company’s share prices are liable to surge, providing plenty of catalysts to satisfy Golden Metric No. 5.

I estimate that earnings per share will double in 2024. The stock could do even better.

While the stock is moving higher, it is still less than half its high of more than $200 a share in the fourth quarter of 2021. Expect it to be a top performer in 2024.

Action to Take: Buy Cloudflare (NYSE: NET) at market. 

Going Dutch

The next of my Magnificent Seven is far from a household name like Apple, Microsoft, or Nvidia… yet.  

But the position held by ASML Holding NV (Nasdaq: ASML) is just as crucial and just as dominant.  

Founded in 1984 and based in the Netherlands, ASML specializes in the development, marketing, sale and servicing of advanced semiconductor equipment, specifically photolithography systems.  

Those are the sophisticated machines that semiconductor companies use to etch the circuit patterns onto silicon wafers, which are then developed into semiconductors.  

ASML provides its customers, many of the world’s leading chip manufacturers, with support and solutions throughout every stage of the chipmaking process. That includes the early design process all the way through to high-volume production.  

Each machine is the size of a bus and sells for $300 million apiece. But they are worth every penny. They enable chipmakers to achieve their highest yields and best chip performance at the most competitive costs.  

See, a modern computer chip can have more than 100 layers, all of which need to be aligned on top of each other with nanometer precision. It requires the most advanced precision manufacturing equipment to do correctly.  

And ASML has a unique edge in its industry as the world’s sole provider of extreme ultraviolet (EUV) lithography machines.  

These advanced systems are essential for creating chips with incredibly small features, smaller than the wavelength of light used to create them. They are indispensable machines the modern world cannot do without. That alone easily satisfies Golden Metric No.1, a leader in cutting-edge technology,  I look for.  

This capability is critical as the semiconductor industry pushes against the boundaries of Moore’s law. That’s the law of computing based on Intel Founder Gordon Moore’s correct prediction in 1965 that the number of transistors on a chip would double approximately every two years.  

In our age, one dominated by digital transformation, the demand for faster, more efficient and increasingly miniaturized electronic devices is relentless. At the heart of that technological evolution is the semiconductor industry, which produces the essential components that power everything from servers to smartphones to automobiles.  

And ASML is the pivotal player in the industry. 

Why? Because semiconductor manufacturers need its photolithography systemsto produce their chips.  

ASML’s unique position as the sole provider of EUV lithography systems doesn’t just give it a significant competitive edge. It gives it a lock on future sales and profit growth… which is  Golden Metric No. 2 on my list. .  

The barriers to entry in this field are extremely high due to the complexity of the technology and the huge amount of capital required to develop and produce lithography systems. And the company’s machines are protected by the nearly 20,000 patents it holds around the world, which checks the box for Golden Metric No.3. and prevents anyone else from edging in on its business.  

The virtual assurance of new and more powerful computers from major tech companies ensures a steady demand for ASML’s products. 

And ASML is a proven performer, with a long history of consistent revenue growth and profitability. 

Its financial health enables continuous investment in research and development, ensuring that ASML remains at the forefront of the industry. 

The firm’s major customers – companies like Intel, Samsung and Taiwan Semiconductor – are leaders in their respective markets. These players provide steady revenue growth and a long runway of future opportunities. 

Last year, ASML grew sales by 30% and lifted its gross margin to a whopping 51.3%. 

It returned over $3.4 billion to shareholders through a combination of dividends and share buybacks. 

By the end of the year, it had a backlog of product orders that exceeded $40 billion. 

And this came during disruptions in the world’s supply chains, a global economic slowdown and a period of rising interest rates. 

Near-term prospects look better than ever. I estimate that revenue will increase from $30 billion this year to at least $40 billion next year. 

So far in 2024, in the first quarter, the company generated revenues of $5.7 billion. In the second quarter , it generated $6.68 billion. Revenue has grown at a compound annual rate (CAGR) of 15.31% over the past three years. That’s exactly the sort of revenue and sales growth I like to see. ASML easily has Golden Metric No. 4 of massive sales growth I look for.  

The importance of the semiconductor industry can hardly be overstated. And neither can ASML’s value for chip manufacturers. 

ASML’s unparalleled technology, strategic importance, robust financial performance and (not least of all) monopoly position as the world’s sole provider of EUV lithography systems make this one of the most attractive plays in the whole tech industry. Every new company that expands its semiconductor production capabilities is a potential catalyst for ASML to grow.  

And given the precarious position of Taiwan, the world’s current leader in semiconductor production, many countries are looking to bring their semiconductor manufacturing closer to home. ASML is the obvious provider of the machines needed to do just that, which gives ASML Golden Metric No. 5 of potential blockbuster announcements I look for in a Magnificent Seven. 

Action to Take: Buy ASML Holding NV (Nasdaq: ASML) at market. 

Learn More, Know More, Do More

The next of the Next Magnificent Seven is using AI for medical applications…

Founded in 2012 and based in Pleasanton, California, the fourth of the Next Magnificent Seven, 10x Genomics (Nasdaq: TXG) is a life sciences company that builds tools for scientific research to advance human health.

Its instruments, reagents (consumables) and software allow researchers to examine cells and molecules at a resolution and scale never experienced before.

10x helps researchers examine biology at its roots, through three separate platforms. Two of them – Visium and Xenium – allow researchers to see and map out where cells and molecules stand in relation to one another. It’s on the bleeding edge of medical technology, satisfying Golden Metric No. 1.

The company’s products are used by all the top 100 global research institutions and by all the top 20 global pharmaceutical companies.

And its tools – protected by more than 1,750 patents – have been cited in more than 5,000 research papers. It easily knocks out Golden Metrics Nos. 2 and 3.

10x co-founder and CEO Serge Saxonov calls our era “the century of biology.”

Why? Because our understanding of biology is on an exponential curve, which is due to the convergence of two major trends.

One is miniaturization. We’re able to create smaller and smaller devices that can measure things at a larger and larger scale, with much greater and greater resolution.

Another is sheer computing power.

Today’s most advanced microchips – combined with AI – enable far greater computational abilities to crunch big data. Together these allow us to learn more, know more and do more.

The reason that’s important is biology is astonishingly complex. There is far more that we don’t know about human biology than we currently do.

For example, each of us is made up of an average of 40 trillion individual cells. Each of these cells has an enormously complex genome, one that expresses many kinds of molecules that interact with each other in various (and often unexplained) ways.

If everything is functioning perfectly, we enjoy good health. But if something is off – even a little bit – it can ultimately lead to the development of disease.

As we understand these processes better, we will be better able to treat and cure multiple diseases. And thanks to the trend of miniaturization in technology, we can now measure and observe those 40 trillion cells in greater detail than ever before.

Saxonov contends that feats that may seem like science fiction now – like curing cancer – will become reality in the decades ahead.

There’s an old saying, however: “If you can’t measure something, you really don’t understand it.”

Right now, there is a tremendous demand in the life sciences to measure biological phenomena at the right resolution and scale.

10x builds the tools that make this possible.

Scientists use its machines to research treatments for Alzheimer’s disease, cystic fibrosis, a number of cancers and many more diseases.

The company’s business is based on the razor-razorblade model.

First, it sells researchers the hardware they require. Then it sells them the chemistry and cartridges that allow it to run. And the business is growing rapidly…

Full-year 2023 revenues topped $618.7 million, up 19.8% over 2022’s and continuing a trend of five-year CAGR of 33.43%. This easily satisfies Golden Metric No. 4.

And the company’s other metrics are strong. For instance, 10x’s gross margin is 66%. And the company is sitting on more than $388.7 million in cash.

The future remains bright. 10x is the leading platform technology in the high-growth fields of single-cell and spatial biology. It is also a prime beneficiary of the increasing global research funds flowing into these emerging fields.

I’ll add that the people who made the most money in the legendary California gold rush of 1848 were not the more than 300,000 folks mining or panning for gold. (Most of them came up empty-handed.) It was the ones who sold them pickaxes, shovels and pans.

By the same token, it’s always a bit of a crapshoot to buy a pharmaceutical company based on its drugs in development.

The overwhelming majority of treatments that enter Phase 1 trials never become FDA-approved medicines.

But 10x sells the pickaxes and shovels that scientists and researchers need to separate the gold from the rock – and that makes eventual healthcare breakthroughs possible. Companies like this can deliver impressive gains, and each new company that partners with 10x provides a catalyst for growth, satisfying Golden Metric No. 5.

Action to Take: Buy 10x Genomics (Nasdaq: TXG) at market. 

The Rise of the (Manufacturing) Machines

Investors keep asking me whether artificial intelligence (AI) will truly increase productivity, boost the economy and raise our living standards… or whether this is mostly hype.

There is hype in parts of the sector, to be sure. But AI is a game changer.

And the fifth of the Next Magnificent Seven, Symbotic (Nasdaq: SYM), is a fine example.

Based in Wilmington, Massachusetts, the company is recreating the supply chain with its software platform and AI-powered robots.

It is reinventing the warehouse as a strategic asset for the world’s largest retail and wholesale companies, enabling them to move goods with unmatched speed, accuracy and efficiency.

Symbotic uses next-generation technology, high-density storage and machine learning to tackle even the most complex distribution challenges. It’s a clear leader in the space that easily satisfies Golden Metric No. 1.

Its robots can autonomously navigate a warehouse the size of a football field at speeds of over 20 mph.

And the firm’s proprietary software enables these robots to induct, store and retrieve products in a matter of minutes.

Symbotic allows supply chain leaders to store a limitless number of SKUs in existing warehouses, load a trailer in minutes instead of hours, and stock shelves much faster with aisle-ready pallets.

The company makes money in several ways. First, it sells more than 35 total systems, which are protected by 275 patents worldwide, satisfying Golden Metric No. 3.

And these systems come with 10-year contracts, creating long-term, recurring revenue from software, parts and service. And it has locked in some partnerships with America’s largest retailers…

Walmart, America’s No. 1 retailer, has partnered with Symbotic to use its robots in all 42 of the company’s regional distribution centers. In a large-scale warehouse, as many as 1,000 Symbotic machines could handle as many as 30 transactions per hour.

It allows Walmart to distribute products to its more than 4,700 stores quicker than ever before. Robots don’t take time off and, when it comes to damage, the stakes are much lower. A human may be severely injured when lifting heavy boxes and pallets, but a machine can be fixed or replaced.

Faster, safer and cheaper. It’s ideal for a massive retailer like Walmart. That’s why the No. 1 retailer in the country just signed a deal with Symbotic to install systems in every single regional distribution center nationwide. But while Walmart might be the largest company to adopt Symbotic’s robots, it’s far from the only one. Target, the seventh-largest retailer in America, is also incorporating Symbotic’s machines into its warehouse logistics.

For moving large pallets of goods from the distribution center to the truck, robotization is the cheapest and safest method. And the big players in the retail industry are picking up on that. Target and Walmart represent millions of retail shoppers’ purchases, meeting my Golden Metric No. 2.

And as a result, the numbers at Symbotic are excellent.

Revenues have been increasing at a 133% CAGR over the last three years. For 2023, revenues totaled $1.17 billion, up 98.4% over 2022’s. And the firm is sitting on $674.96 million in cash. Needless to say, Symbotic easily satisfies Golden Metric No. 4.

E-commerce growth is driving a need for efficient warehouse automation. And Symbotic’s robots fill this need.

The company is reshaping the supply chain. And its first-mover advantage will help it capture a significant share of this market. Each retailer that adopts Symbotic’s technology will be a catalyst (satisfying Golden Metric No. 5) to drive Symbotic higher.

Especially since the hundreds of millions of dollars it has spent on research and development has won it over 350 patents, putting a significant moat around the business.

Action to Take: Buy Symbotic (Nasdaq: SYM) at market. 

A Digital Shield Against the AI Assault

One of the biggest dangers that come with AI is that criminals will use it to steal people’s identities and hack into company systems. In response to this, billions of dollars have been flooding into the cybersecurity industry over the past couple of years.

And one of the chief recipients of that investment is our sixth Next Magnificent Seven company: CyberArk Software (Nasdaq: CYBR).

Based in Israel, CyberArk is the global leader in identity security.

It works to thwart online attacks that target identities (or credentials) to breach company systems. This is a $50 billion addressable market.

Identity and access management (IAM) is the second-highest spending priority behind network security, according to CFOs.

Many of the most dangerous cyberattacks involve hackers getting hold of employee credentials and using them to access important systems.

Yet CyberArk specializes in “privileged access management,” protecting users who have access to an organization’s most sensitive data and systems.

It starts with the concept of “Zero Trust.” Every user is viewed as a potential security threat and must be verified and authenticated.

This has become especially important in our new era of remote work. Virtually every organization has people at home logging on to its systems.

And CyberArk is the absolute leader in this space, satisfying Golden Metric No. 1.

AI can be used for nefarious purposes. Cyberthieves are already using it to make their attacks more potent.

But CyberArk uses AI innovation to fight the increasingly sophisticated efforts of bad actors.

That’s why its 8,000-plus customers include 55% of the Fortune 500. Its client list includes companies like American Express, BP, Deutsche Bank, UBS, Suncor, MetLife and even government organizations like NASA. That customer list and the company’s reach means it satisfies Golden Metric No. 2.

And the company’s technology is protected by 262 patents globally, satisfying Golden Metric No. 3.

CyberArk expects revenue to increase severalfold over the next few years.

That’s partly because 90% of its revenue is recurring, due to its almost 100% customer satisfaction rating.

The thing is, the company is already on a revenue tear and has been for years. Over the last decade, revenue has increased at a CAGR of 27.51%. In the most recent quarter, sales at CyberArk jumped 31%. That satisfies Golden Metric No. 4.

The balance sheet is also solid, with significantly more cash ($993.4 million) than debt.

No wonder institutions own 91% of the outstanding shares here. And each new company CyberArk partners with represents a catalyst to drive the stock higher and satisfy Golden Metric No. 5.

In short, this is an AI leader with a huge market, excellent management and superb growth prospects.

Action to Take: Buy CyberArk Software (Nasdaq: CYBR) at market.

The Magnificent Genetic Tailor

I’ve saved the best for last. The final stock of the Next Magnificent Seven is also in biotech – because I see more opportunity there than in any other industry… Not to mention it is quite literally a Nobel Prize winner. Needless to say, it easily fulfills Golden Metric No. 1.

Based in Zug, Switzerland, Crispr Therapeutics (Nasdaq: CRSP) is a biotech company that launched after researchers discovered the CRISPR gene-editing technology. It’s also my No. 1 stock for the coming year.

CRISPR stands for clustered regularly interspaced short palindromic repeats, which form the basis for genome-editing technology.

The platform uses molecular “scissors” to make cuts in patients’ DNA at specific places to add, remove or change their genetic code.

Often referred to as “molecular surgery,” these are not just therapies to treat patients. They can cure them for life.

This technology will lead to longer, healthier and happier lives for patients. It’s a true gift for humanity.

In November 2023, Crispr won U.K. approval for the first gene-editing treatment ever, Casgevy.

Casgevy is approved for patients age 12 and older with blood diseases known as sickle cell disease or beta thalassemia.

The FDA approved the drug for treating sickle cell disease on December 8, 2023, and approved it as a beta thalassemia medication on January 16, 2024.

“OK,” you may be thinking, “it’s a new drug approval for a relatively rare disease. What’s the big deal?”

Here’s the big deal…

The CRISPR technique was only discovered about 13 years ago. Jennifer Doudna and Emmanuelle Charpentier won the Nobel Prize in chemistry for it in 2011. And thanks to AI, its development is going into overdrive.

This futuristic technology has now won its first approval. And this breakthrough technology is gaining traction fast, satisfying Golden Metric No. 2. That technology is protected by 45 patents, satisfying Golden Metric No. 3.

Casgevy is what’s known as an ex vivo gene-editing drug. That means genetic editing is applied to the patient’s cells outside the body through the drug, rather than inside the patient.

Sickle cell patients experience malformed hemoglobin, a key protein involved in carrying oxygen to the blood. And beta thalassemia patients don’t make enough beta globin, one of the building blocks of hemoglobin.

But Casgevy helps the body make correct forms of hemoglobin.

The U.K. approved Casgevy for sickle cell disease in November 2023.

Sickle cell patients who have received the treatment have far fewer painful episodes that put them in the hospital. And beta thalassemia patients don’t need the blood transfusions that previously kept them alive.

Crispr hasn’t yet set a price for the drug, but it is likely to be high, as is generally the case with gene therapies that need only one treatment.

But the therapy is less expensive than continual, lifelong treatments. Plus, Crispr Therapeutics is no one-trick pony. The firm has numerous therapies in its pipeline.

It is testing two in vivo gene-editing treatments for atherosclerotic cardiovascular disease, known as ASCVD.

With this form of heart disease, plaque builds up in the arterial walls, increasing the risk of heart attacks, angina or stenosis (hardening of the artery walls).

Crispr is also testing immuno-oncology treatments, including drugs for lymphoma, kidney cancer and solid tumors. It is also working on a gene-editing treatment for diabetes.

CEO Sam Kulkarni expects these next-generation drugs will be 10 times more powerful than their predecessors.

Yet he insists this is just the beginning for Crispr, as the platform is easily scalable and expandable.

Kulkarni expects that in five years the company will have up to 20 different programs in the clinic. That’s 20 potential blockbusters.

We’re very early on this stock. It’s a young company with plenty of room to grow. And it’s already growing rather quickly. For the past three years, revenue has increased at an astounding CAGR of 702%. That easily satisfies Golden Metric No. 4.

This stock is well below its peak of nearly $200 a share in 2021, when the groundbreaking potential of CRISPR treatments was first recognized. But it could easily get there again as it produces new drugs.

Right now, the company has two cancer treatments in clinical trials and three others in the research phase. It also has treatments for Type 1 diabetes and Duchenne muscular dystrophy in the clinical and pre-clinical stages, respectively…

In sum, Crispr is at the cutting edge of a technological revolution that will save millions of lives and earn billions of dollars, making early investors rich over the long haul.

This is a speculative situation.

Genomics is one of the most exciting megatrends for 2024 and beyond, and it intersects with AI in a big way. And Crispr Therapeutics is the best way to play it, especially considering that any new drug news will be a catalyst with the potential to drive its share price higher and satisfy Golden Metric No. 5.

Action to Take: Buy Crispr Therapeutics (Nasdaq: CRSP) at market. 

Ride Off Into The Sunset With the Next Magnificent Seven

The seven stocks in this report, the Next Magnificent Seven, are set to dominate the new AI-driven economy.

All seven of these companies are on the absolute bleeding edge of AI and AI-assisted research and technology. Even a small portfolio, with just $1,000 in each one, could help you become a millionaire by the end of the decade.

That’s how big the potential is in AI. And every day you wait is another day you may be falling behind as AI takes off.

Every one of these companies has the potential to become a household name by the end of this decade.

And when you’re looking back in 2030, you’ll be glad you rode off into the sunset with the Next Magnificent Seven.