Is the iPhone dead?… Luke Lango profiles the next big thing… the U.S. consumer continues to power the economy… why Louis Navellier isn’t concerned about inflation… last call for “Liberation Day 2.0”

Is the iPhone dead?

Our technology expert Luke Lango just dove into what’s coming on the tech front, and it’s not great news for Apple’s biggest source of revenue.

However, it could be fantastic news for investors who see the writing on the wall.

Let’s go straight to Luke:

The iPhone was built for the Age of the Mobile Internet. And we’re no longer in that era.

We’re now fully entering the Age of AI—and AI doesn’t want your thumbs. It doesn’t want your screen.

It wants your eyes, your ears, and your intent. And to serve that, it needs a new form factor.

So, what replaces the iPhone?

Glasses.

Why does Luke believe that?

Alphabet just announced a $150 million partnership with Warby Parker to launch AI-powered smart glasses. OpenAI just acquired Jony Ive’s AI hardware startup for $6.4 billion (we explained why this is so significant in a previous Digest).

Next up is Meta, which is going all-in on its partnership with Ray-Ban. Meanwhile, Amazon continues to ship Echo Frames, and Apple Glasses are in the works.

Back to Luke:

The smartphone won the 2010s because it was perfectly tuned for the Mobile Internet Era: app icons, touchscreens, notifications, browsing, scrolling, clicking.

But AI doesn’t thrive in that world. AI isn’t an app you tap. It’s an agent that observes, listens, and acts. It’s ambient. Contextual. Proactive. Invisible.

The next device isn’t a better phone—it’s a layer between you and the world.

The investment implications here are enormous.

Luke writes that, “just like with the iPhone, fortunes will be made—not just from the device, but from the ecosystem that helps it see, hear, think, and respond.”

So, how do we invest?

There are the mega-cap stocks that Luke just highlighted. But the competition there will be intense. And those mega-cap companies are already so enormous that 100%+ returns will be challenging.

But for smaller components makers that play an integral role in coming AI products – the “ecosystem” as Luke just called it – we have moonshot potential.

Back to Luke:

Whoever wins will likely rely on custom chips from Arm Holdings (ARM) or Qualcomm’s Snapdragon processors (already in Meta Ray-Bans). Nvidia (NVDA) will probably power much of the on-device AI.

Sony Group (SONY) may lead in camera sensor supply—its tech is already best-in-class. Lumentum Holdings (LITE), STMicroelectronics (STM), and Himax Technologies (HIMX) could supply optical sensors, LiDAR, and gesture-tracking modules. Ambarella (AMBA) might deliver the computer vision chips. Corning (GLW), a longtime iPhone supplier, could provide smart lens glass and optics.

SoundHound AI (SOUN) is vying for a spot in voice recognition APIs, though competition is stiff and Big Tech may prefer to build in-house. Twilio (TWLO) wants in, too.

Unity Software (U) is another wild card. AI glasses need a spatial OS—not just a pixel OS. Unity’s real-time 3D rendering engine is tailor-made for spatial rendering, gaze tracking, gesture recognition, and environmental overlays.

Then there’s Okta (OKTA), which could carve out a niche in identity and security management for AI-driven ambient systems.

Of course, the AI glasses ecosystem is still forming. But the field is full of strong contenders.

(Disclosure: I own GLW.)

As a reminder, Luke just created three proprietary AI indices that help investors identify the best AI stocks to buy today as this megatrend transforms the global economy.

First, there’s the “AI Foundational Five.” These are the five big tech leaders building and hosting the core AI models.

Second, the “AI Builders 15.” These are the 15 top hardware and infrastructure companies powering AI’s rise, building the critical backbone.

Third, the “AI Appliers 15.” These companies are the innovators using AI to transform how we live and work, building apps and tools on top of the infrastructure.

If you’re an Innovation Investor or Early Stage Investor subscriber, these baskets are available to you right now.

To review the specific holdings, click here to login as an Innovation Investor subscriber, and here as an Early Stage Investor subscriber.

To learn more about joining Luke in his flagship Innovation Investor service, click here.

It’s exciting stuff. And the investment opportunities – and wealth potential – are enormous.

Here’s Luke’s bottom line:

The smartphone era was about touchscreens and apps.

The AI era is about ambient intelligence and agents.

And that demands a new form factor.

The iPhone is dead. Long live AI glasses.

At the end of the day, it’s all about the consumer

They’re the workhorse of our economy, driving roughly 70% of U.S. GDP.

They decide whether to open their wallets… which drives corporate sales… which controls earnings… which rules stock prices (eventually)… which determines our portfolio values and investment wealth.

One of the biggest economic stories of the last several years has been the resilience of the U.S. consumer. The consumer-led recession that was supposed to materialize never happened.

Today, while threats to the consumer remain – the risk of higher prices from tariffs… the risk of reduced employment opportunities from AI… lingering elevated interest rates that squeeze family budgets – Main Street America continues to spend (despite various sour sentiment surveys).

Louis Navellier’s favorite economist, Ed Yardeni, unpacked this yesterday:

Trump’s Tariff Turmoil (TTT) continues to weigh on so-called “soft” economic data, such as surveys of consumer and business confidence.

So far, however, it has barely affected the “hard” data, which continue to depict a remarkably resilient economy.

To illustrate, Yardeni cites the revision of Q1’s real GDP estimate. After backing out a 42.6% spike in imports driven by efforts to front run Trump’s tariffs, he concludes:

Excluding these tariff-related effects, the underlying strength of the economy remained intact.

Yardeni also points toward hourly wages, which have risen to record highs in both nominal and real terms:

Aggregate hours worked, reflecting payroll employment and the average weekly hours in private industry, rose to another record high during April.

This, combined with record real hourly wages, is pushing real wages and salaries in personal income to record highs.

Then there’s personal consumption. Yardeni writes that it remains “on a solid uptrend in record-high territory, led by spending on services.”

Now, there are some signs of stress. Yardeni points toward rising delinquency rates on credit card payments, car loans, and tuition loans. But he pivots to a source of spending that could more than make up for those stressors…

Retiring Baby Boomers.

Back to Yardeni:

We still believe that one of the major drivers of consumer spending is retiring Baby Boomers. This age cohort has roughly $80 trillion in net worth, accounting for about half of the household sector’s net worth.

As they retire and no longer earn labor incomes, their personal saving rates will turn negative as they spend more on health care, restaurants, cruises, hotels, light trucks, furniture, and renovating their homes.

Altogether, this is very encouraging – and bullish.

Now, you might think: “Wait – what about the threat of tariff-led inflation still ahead? Might that not derail everything?”

Yardeni just illustrated how this isn’t happening today. But our Federal Reserve remains concerned about this possibility tomorrow – and this is where Louis has a problem.

Let’s jump to Friday’s Growth Investor Weekly Update, where he answered a subscriber question about tariffs and higher prices:

The Federal Reserve may still be worried about the “inflation boogeyman,” but the reality is that the CPI and Producer Price Index (PPI) are now at their lowest levels in four years and five years, respectively…

And falling consumer and wholesale prices are actually creating a more deflationary environment.

Now, an inflation hawk could still push back: “Louis, this data is backward looking. What about looking ahead? Won’t tariffs finally bite?”

That’s where the legendary investor would point toward the dollar:

I am still in the camp that the Trump administration’s 10% baseline tariffs will largely be offset by a stronger U.S. dollar.

Yes, the U.S. dollar lost about 5% of its value against other major currencies following Trump’s so-called “Liberation Day.”

But the fact is the U.S. dollar is finally starting to get its “mojo” back – and a stronger currency should help offset the baseline tariffs.

Below, we look at a chart of the U.S. Dollar Index since December.

After its early-May top, it fell until the last week of May, almost retesting its low from late-April. It’s since been consolidating and is now beginning to climb again.

If this bullish momentum snowballs as Louis anticipates, the dollar could be in for a swift move higher.

Here’s Louis’ bottom line on inflation risk:

The Fed needs to consider the actual inflation data – which shows that prices are cooling off – rather than anticipating an inflation boogeyman that isn’t likely to materialize.

The next FOMC meeting begins two weeks from today. According to the CME Group’s FedWatch Tool, there’s a 98.7% probability that the Fed will not cut rates.

We’ll keep an eye on this and will update you as the odds shift.

Before we wrap up…

We’re about to take offline the free replay of Louis’ Liberation Day 2.0 Summit from last week.

“Liberation Day 2.0” is the name that Louis has given to a series of new moves from President Trump with radical implications for taxes, domestic energy, and technology.

In the free replay, Louis dives into how to position your portfolio to profit from these sweeping changes. According to Louis, Trump’s $10 trillion economic blueprint is going to unleash a tidal wave of capital – an enormous opportunity for investors who get ahead of it.

If you’ve been meaning to watch the free replay, this is last call.

Have a good evening,

Jeff Remsburg