Investor's Playbook

📖Today’s Agenda

• Stock Market : Could the OpenAI Shake-Up Disrupt Microsoft's Momentum in Artificial Intelligence?

• Entrepreneurship : TOP 3 AI TOOLS OF THE WEEK

• Personal Finance : Here's What Happens When You Invest $10 a Week Over 10 Years

📈Stock Market

Could the OpenAI Shake-Up Disrupt Microsoft's Momentum in Artificial Intelligence?

OpenAI announced late Friday that Chief Executive Sam Altman is stepping down, saying the company's board "no longer has confidence in his ability" to lead the AI startup backed by Microsoft (MSFT). Expanding ties with OpenAI have spurred customer gains at Microsoft's cloud computing business, boosting MSFT stock.

"Mr. Altman's departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities," the company said in a blog post.

Altman will be replaced by Chief Technology Officer Mira Murati. The company had also announced that OpenAI co-founder and president, Greg Brockman will be stepping down as board chair but will remain the company. But Brockman later announced in a social media post that he was also leaving the company.

Latest Update : Early this morning, Microsoft announced it had hired ex-OpenAI CEO Sam Altman and President Greg Brockman to lead an advanced research lab after they were pushed out of their previous company by the board. The hires are seen as a business masterstroke by Microsoft CEO Satya Nadella, who was given lemons and turned them into the most delicious lemonade you’ve ever tried.

Nvidia Stock In Buy Range With AI-Fueled Earnings Due Next Week

On Nov. 13, Nvidia unveiled the highly anticipated H200, its latest graphics processing unit for training AI (artificial intelligence) models. The company is supposed to soon announce a new series of AI chips for customers in China. The chips reportedly were designed to comply with new U.S. government export restrictions. The curbs could have led to a possible $5 billion in order cancellations for Nvidia.

On Nov. 15, Microsoft (MSFT) announced a custom AI chip that could challenge Nvidia chips. Analysts say Nvidia could address concerns about AI competition and China during its upcoming Nov. 21 earnings call.

Shares of Nvidia nudged lower Friday in buy range from their latest breakout. NVDA stock topped a 476.09 double-bottom buy point earlier in November, while scoring a 10-day win streak. The buy zone goes to 499.89, according to IBD Leaderboard.

Volume has been an issue in the latest base, though Nvidia rose Nov. 9 in the highest volume since the base began to form, the IBD MarketSmith chart shows.

The relative strength line for Nvidia stock is forging new high ground, a positive sign. A rising RS line means that a stock is outperforming the S&P 500. It is the blue line in the chart shown.

Nvidia joined IBD Leaderboard after gapping up on earnings in February. It surged from May to August, hitting an all-time high, on AI-fueled earnings and outlook.

NVDA earns a best-possible IBD Composite Rating of 99. In other words, Nvidia stock remains in the top 1% of all stocks in terms of technical and fundamental metrics.

🎯Entrepreneurship

TOP 3 AI TOOLS OF THE WEEK

1. Chatgot

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Chatgot is a unique AI tool that enables you to integrate multiple chat assistants into one platform. With Chatgot, you can bring together Google PALM 2, Midjourney, GPT4 and Claude v2 onto one system to provide you with the perfect AI-powered chatting experience. Chatgot also gives you the ability to browse through web pages to get the latest information from Google or Bing, as well as create custom characters such as translators, SEO experts, or even virtual girlfriends.

2.Samurai AI

WEBSITE SCRAPPING / SUMMARIZER

Introducing Samurai AI - the revolutionary AI-first read-it-later app! Samurai AI helps to extract wisdom from any article, YouTube or TED video, and make it easier to manage and go through vast reading and watching resources. It comes out soon on iOS & Android.

3. SalesMind AI

SALES ASSISTANT / CRM

SalesMind AI is an AI-powered sales prospecting tool. Utilizing the power of generative AI, it is designed to revolutionize your B2B prospecting strategy by allowing for more personalized engagement with prospective leads on LinkedIn. It allows you to tap into the power of AI to gain insights into your data, text, and website performance.

💸Personal Finance

Here's What Happens When You Invest $10 a Week Over 10 Years

If you're sitting the market out because, like a lot of people, you don't believe you have enough money to invest, I'm here to tell you that you're wrong. Most of us knew next to nothing about investing when we started taking advantage of compound interest, but we learned a little at a time. And the longer we stuck with it, the more confident we became. All that to say, where you are and what you're feeling is natural. If you're interested in investing, there are all kinds of ways to make $1.43 a day (that's $10 a week) work for you.

Before we look at investment options, let's see what would likely happen if you were to invest $10 a week for 10 years. For the sake of this illustration, let's say your investment earns a 7% annual rate of return.

By the way: If you're wondering if 7% is a realistic rate of return, here's the average rate for several different spans of time:

PeriodAnnualized Real Return (adjusted for inflation)10 years: 2012-202112.4%30 years: 1992-20217.3%50 years: 1972-20215.4%

Data source: MoneyChimp.

One more thing about wondering if 7% is a realistic rate of return: That's a great question to ask any time you consider an investment. 

$10 a week for 10 years

Let's say you decide to tuck $10 a week under your mattress for 10 years. Since there are 520 weeks in a 10-year period, you would eventually have $5,200 to spend. However, if you invest that same $10 per week for 520 weeks, and that investment earns an average return of 7%, your savings will grow to $7,129. 

Some years, the average rate of return will be lower, and some years, it will be higher. What matters is how it does over the long term because investments are made to buy and hold. 

Just for fun, here's what would happen if you continued to invest $10 beyond the 10-year mark. 

• After 15 years of investing $10 per week, you could expect to have $12,967.

• In 20 years, that number would have grown to $21,154.

• In 25 years, that little $10 a week would be worth $32,637.

• In 30 years, you may be surprised to learn that it's worth $48,742. 

And that's just with $1.42 per day.

Options for investing

What's so great about investing is how many options you have. Here are three of them.

1. Certificate of deposit (CD)

If you're feeling a little nervous about risking any of your principal, you can buy a CD at a fixed rate from your bank or credit union. Currently, CDs are enjoying some great rates (although it would be rare to find one that hits 7%). In essence, buying a CD is like loaning your bank money and promising it can keep it for a specific amount of time. In return, your bank pays you a certain interest rate when the CD matures. 

Once time is up, you have the option of getting your principal back, plus interest. Or, you can roll it over into another CD. The majority of financial institutions require a minimum deposit of $500 or more, but here are a few that allow you to open a CD with no minimum deposit, and still pay great rates: 

Financial InstitutionAPYTermAlly High Yield CD5.00%12 monthsBarclays Online CD5.50%12 monthsAmerican Express National Bank CD5.00%11 monthsCapital One 360 CD5.00%12 months

Data sources: Ally, Barclays, American Express, Capital One.

2. Fractional shares

Fractional shares are like slivers of stock. Let's say you are wild about Chipotle, but at over $1,800 a share, buying an entire share is a little rich for your blood. So, instead, you buy a sliver of a share. As money permits, you can buy more slivers. In any case, as Chipotle prospers, any slivers you own increase in value. 

There's a lot to like about fractional shares. For one thing, they allow you slowly wade into the stock market, learning along the way without betting the entire farm.