Editor's note: Everyone wants a piece of the AI boom today. But according to Joel Litman – founder of our corporate affiliate Altimetry – you don't need to buy the hottest AI stock to win big. In this article, adapted from a May issue of the free Altimetry Daily Authority e-letter, Joel explains why hidden opportunities in the AI revolution are a much better bet...

Everyone knows Nvidia (NVDA) is an AI superstar...

Shares of the chipmaker are up more than 200% over the past year. Most other AI stocks follow its lead. Its chips are the gold standard for running AI models.

But even outside the immediate circle of AI darlings like Nvidia, investors have also largely caught on to the wider investment trend...

One layer out, businesses like Constellation Energy (CEG) help support the AI boom. Constellation is building the data centers that host AI and the utilities that power those data centers. It's up an impressive 136% in the past year.

The market is "all in" on the first two layers of the AI revolution. So as I'll explain today, for the biggest gains... you have to look further out.

With so much attention on AI, investors need to get creative to find under-the-radar investments...

And one of the best hidden opportunities is in consulting.

Consulting firms don't make any AI models or the chips that power them. Instead, they help other companies use AI intelligently.

Industry giant Boston Consulting Group ("BCG") expects AI to turbocharge its business this year. Back in April, CEO Christoph Schweizer told the Financial Times that he expects AI to represent 20% of revenue in 2024. He believes that number will reach 40% by 2026.

BCG is a strategy consultant – which means it helps companies think about how to use tools like AI.

There are also companies like Tata Consultancy Services (TCS.NS)... a publicly traded consultant that specializes in IT implementation.

Tata helps companies actually set up AI tech. Its services will be crucial as everyone fights over pieces of the AI pie.

The company is ready to implement AI for its IT clients. Of its more than 600,000 employees, more than half are trained on AI.

With shares only up about 20% in the past year, the market is just catching on to Tata's potential. We can see this through a specific method we use at Altimetry – our Embedded Expectations Analysis ("EEA") framework.

The EEA starts by looking at a company's current stock price. From there, we can calculate what the market expects from future cash flows. We then compare that with our own cash-flow projections.

In short, it tells us how well a company has to perform in the future to be worth what the market is paying for it today.

Tata has already earned a Uniform return on assets ("ROA") of 40% or more since 2021. That's more than three times the corporate average... And the market projects that returns will nearly double by 2029. Take a look...

As you can see, the market has lofty expectations for Tata. We think its AI-driven results will continue to impress... and investors will keep bidding up the stock.

That said, there's one problem. Despite only being up almost 20% in a year, Tata is expensive today.

It currently trades at a 30 times Uniform price-to-earnings (P/E) ratio. That's well above the 20 times corporate average.

But other AI-related opportunities will soar – and take investors by surprise – as this AI revolution plays out...

That's why on Thursday, July 18, I'm sitting down to discuss an impending tech announcement that could upend the stock market.

In short, Silicon Valley is just days away from releasing a new form of AI. It will likely shock unprepared investors – with potentially devastating consequences for their portfolios.

We've seen a panic like this before. And there is a way to profit from this next phase of AI technology if you have the right tools. Click here to learn the details and reserve your free seat.

Tata is just one example of a company that could see explosive gains in the years to come. And there are plenty more soon-to-be AI blockbusters... if you know where to look.

Regards,

Joel Litman

Editor's note: Joel predicted the 2008 and 2020 market panics. Now, he's stepping forward with a new prediction – and he's sharing the details online next Thursday.

Joel believes the coming news from Silicon Valley will kick off a $10 trillion move, starting in a matter of days. And if it's anything like what we've seen in the past, everyday investors will suffer... while Wall Street insiders cash out.

If you have any money in the stock market – especially AI stocks – this is a message you need to hear... Click here to learn more.