Know The Difference Minute

During the 1849 Gold Rush, the ones who made the real money weren’t out panning for gold. They were the ones selling the picks and shovels to those panning for gold. 

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History lesson.
Welcome to the Know the Difference Minute for Thursday, May 25th.
During the 1849 Gold Rush, the ones who made the real money weren’t out panning for gold. They were the ones selling the picks and shovels to those panning for gold.
A pick-and-shovel play is an investment strategy that invests in underlying technology to produce a good or service instead of the final output.
The latest example is chipmaker Nvidia which reported strong first-quarter earnings followed by a stronger-than-expected forecast.
2023’s been a good year for Nvidia helped by optimism over AI. Data center product demand is up 14%. Overall sales this quarter are projected at $11 billion, about 50% higher than Wall Street estimates. AI chips are becoming increasingly important for cloud providers and other companies that run large numbers of servers.
When markets are volatile, work with someone who sees the bigger picture that just might include picks and shovels.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.