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Has the “meltdown” begun?… Louis says buy every dip… Nvidia’s surprising upside… the AI infrastructure play Eric spotted first…
As I worked through my inbox over coffee this past Saturday morning, one subject line caught my attention…
I won’t repeat it verbatim – no need to call anyone out. But it oozed with schadenfreude.
Based on last Thursday’s and Friday’s tech pullback, the author gleefully trumpeted that the long-awaited “market meltdown” he had assured his readers was coming had finally arrived.
He could not have sounded happier or more self-congratulatory.
Below is a visual of this alleged collapse. We’re looking at the S&P 500 over the last two years.
Now, let me quickly clarify…
I don’t know.
As I write on Tuesday, the AI trade is deep in the red again. So, perhaps last week was the start of a market collapse, and this author is right. Eventually, some bear always is.
But declaring a market implosion after a 3% pullback in the S&P and 5% drawdown in the Nasdaq requires a pessimism I don’t share, even with today’s selloff – and apparently, neither does legendary investor Louis Navellier.
In fact, Louis is looking at this market and seeing evidence of strength. Let’s jump to his Growth Investor Special Market podcast from yesterday:
I think if you just look at the fundamentals like we do, you’ll find that the market is quite healthy.
We just updated our back testing of Stock Grader. Basically, we went from the top 10% of Stock Grader stocks being the best place to invest to the top 20%.
So, it means the breadth and power of this market is expanding. And fundamentally, the breadth and power on our eight-factor model went from the top 30% to the top 65%.
If you’re new to the Digest, Louis’ Stock Grader is a quantitative stock-rating system that scores companies across eight fundamental factors – things like earnings growth and analyst revisions – and assigns letter grades (A through F) to help investors identify the strongest stocks to buy and the weakest to avoid.
So, that 30% to 65% expansion Louis referenced suggests the overall market is growing stronger, not weaker.
Given this, Louis’ advice to his readers was quite the opposite of that bearish victory lap:
Every dip is a buying opportunity.
Hang on, enjoy the ride.
But the story goes deeper
While Louis is bullish, he’s also been telling readers to prepare for summer bumpiness – and today’s market action is a great example of it.
From his update last week:
It’s no secret that volatility tends to rise during the summer months…
There will be a few distractions for investors this June – the CPI, PPI, and FOMC announcement – that could cause some volatility.
All these events have the potential to create some waves in the stock market.
In a calmer market environment, those waves would be easier to shrug off. But today’s backdrop makes them more challenging…
Valuations in parts of this market are at or near historic highs. Inflation is running close to double the Fed’s baseline rate. Investors are worried about rate hikes. The conflict in the Middle East isn’t going away – which means elevated oil prices aren’t either.
And into this environment, a growing chorus of voices is calling for the reckoning they’ve long predicted – like the author I read over coffee on Saturday.
This leaves investors with a challenging question that’s critical to answer correctly
When a drawdown hits our portfolios, how will we know whether it’s a normal pullback within an ongoing bull market – the kind you hold through, or even buy into, like Louis recommends?
Or whether it’s the early warning sign of something more serious – the kind of decline that creates real portfolio damage as investors wrongly wait on a bounce?
Getting it wrong in either direction will be costly…
Sell during a healthy reset, and you miss the recovery. Hold through the early stages of a real bear market and watch positions that took months to build give back years of gains.
But this is where we can move from Louis’ generalized bullishness to localized confidence for your specific portfolio holdings.
Here’s Louis:
For the past year, I’ve been working with the team at TradeSmith on something I’ve never attempted before.
Together, we’ve built a new form of AI that takes my Stock Grader system and adds a layer it didn’t have before: a precise, data-driven signal for when to get in and when to get out of the stocks I recommend.
The results from backtesting are striking.
AppFolio Inc. (APPF), which Louis recommended in 2017, delivered a 20% annualized gain for those who followed his original call – but pairing that recommendation with this new AI-enhanced timing layer would have pushed the annualized return to 74%.
Nexstar Media Group (NXST), recommended in 2013, went from a 23% average yearly gain to 173%.
Same stocks, same time frames – just smarter signals on when to act.
You can try this tool right now – 100% free – in your own portfolio
Louis and TradeSmith CEO Keith Kaplan will be presenting the full details of their collaboration tomorrow morning at 10 a.m. Eastern. But you don’t have to wait to take their system for a test drive.
When you register to join tomorrow’s event, you’ll get access to this indicator – just enter the ticker symbols of stocks you already own (or stocks you’re considering) and see how the system evaluates their short-term health.
Here’s Louis with more:
It allows you to type in any ticker to see if a stock is a short-term buy or sell based on a simple traffic light system. Green means buy. Yellow means hold. And Red means sell.
While my Stock Grader’s main focus is on what stocks to buy, Short-Term Health is all about when to buy them.
I’ve been hunting for edges in this market for 47 years. I’ve never seen one like this.
Whether Louis’ bullish case plays out smoothly or the summer gets rocky first, more confidence regardless is the real payoff – fewer gut-wrenching moments of “do I hold or do I sell?” thanks to a simple green, yellow, red system.
I think of it as a tool that tells you what’s fundamentally strong enough to buy, and when it’s technically attractive enough to pull the trigger – or not.
One bullish AI name that might surprise you – and what it points to next
To help round out today’s Digest, I want to share a bullish AI recommendation courtesy of the combined Louis/TradeSmith market timing system we just described.
To do that, let’s turn to Tom Yeung – our Sunday Digest writer and Eric Fry’s lead analyst in Fry’s Investment Report.
Tom got his hands on the system and ran some of today’s leading AI stocks through it for Sunday’s issue. One of his findings might surprise you – and in case you missed his Digest, I wanted to highlight it again…
It’s Nvidia (NVDA).
Now, you might think: Nvidia? After a multi-thousand-percent run? (Louis’ Growth Investor subscribers are up more than 4,750% in Nvidia as I write.) Surely that ship has sailed.
Here’s Tom with why the data says otherwise:
Nvidia continues to surprise even its greatest fans.
Last month, the company announced its 14th consecutive earnings beat. Earnings per share grew 95% to $1.87, surpassing consensus by 6%. The company has expanded its supply chain faster than Wall Street expected and kept its lead in AI chips.
By my calculations, that means Nvidia’s fair value is closer to $300 per share today, up 40% from its current share price.
The firm is dominating its industry, and its solid “B” rating in Louis’ Stock Grader suggests it’s an excellent company to buy, even after its multiyear run.
A 40% upside-case for one of the most widely owned stocks on the planet?
It’s an extraordinary reflection of how fast earnings have grown – even relative to Nvidia’s breakneck stock price surge of recent years.
But Tom’s Nvidia analysis raises a natural next question
It’s one that Nvidia’s CEO Jensen Huang himself answered at Computex 2026 last week.
Huang sat down with Marvell Technology Inc. (MRVL) CEO Matthew Murphy and made the same point we’ve covered here in the Digest for months now…
The AI industry is beginning to hit the physical limits of traditional copper wiring. The infrastructure that’s powered this buildout so far simply can’t keep up with where AI demand is headed.
The solution, Huang said, is a shift toward optical systems.
The market heard him.
Marvell surged 24%. And Corning Inc. (GLW) – a leading fiber-optic company whose glass cables can carry data at the speed of light over distances that would overwhelm copper – jumped nearly 13% in a single session.
In a matter of hours, billions of dollars flowed into the companies positioned for what Huang described.
Now, this wasn’t a surprise to Tom or Eric. They’d recommended GLW to Fry’s Investment Report subscribers years ago, long before the recent spotlight.
Here’s Eric writing in the wake of the Huang/Marvell/Corning news:
I’ve been trying to equip my readers for moments exactly like this, which is why I recommended Corning shares well before the recent fanfare arrived.
That recommendation has gained nearly 400% and is still advancing because of the long-term demand trends Huang mentioned.
If you’re curious what else Eric is seeing that the crowd hasn’t priced in yet, he’s put together a free presentation – his “Sell This, Buy That” broadcast – that walks through the specific AI plays he believes will generate maximum profits during the next phase of the boom.
It includes lesser-known picks-and-shovels plays, the sectors he expects to see the biggest AI-driven surges, and seven trades he’s giving away – completely free.
Coming full circle
From a bear declaring a meltdown to Louis calling every dip a buying opportunity to Jensen Huang pointing toward the next frontier of AI infrastructure – we’ve covered a lot today. But there’s still a logical throughline…
The investors who will come out ahead this summer aren’t the ones who panic at a 3% pullback or chase yesterday’s headlines…
They’re the ones who know what they own, why they own it, and when they’ll sell it.
If you’d like help with that, a reminder to tune in tomorrow for Louis’ and Keith’s new green, yellow, red system.
Have a good evening,
Jeff Remsburg
(Disclaimer: I own GLW.)
