Don’t you do it – don’t you buy the SpaceX (SPCX) IPO tomorrow.

Or, if you insist, at least do so with your eyes open.

The hype machine surrounding this IPO is unlike anything Wall Street has produced in years. Financial media is wall-to-wall with breathless coverage. And investor demand has reportedly topped $250 billion – more than three times the size of the offering itself.

Analysts are projecting valuations that would make SpaceX worth more than every company on earth except a handful.

It’s a simple and seductive narrative: this is a once-in-a-generation company, and if you don’t get in at the open, you’ll regret it forever.

Maybe.

But before you place that order tomorrow morning, meet Jay Ritter.

He’s a professor at the University of Florida and, without exaggeration, the world’s foremost academic authority on IPOs. His database covers 45 years of U.S. IPO history – more than 9,300 offerings.

Ritter produces the source material on which virtually every serious IPO analysis on Wall Street is built. Goldman cites it. JPMorgan cites it. The SEC cites it.

Tomorrow, I’ll publish a deep-dive on the upcoming spate of IPOs in my latest issue of Investing Insider – my separate weekly investment letter – going through Ritter’s data in greater detail. What follows in today’s Digest is an abbreviated version of what I found.

And I’ll be direct: it should give any retail investor serious pause before chasing tomorrow’s open, or any of the slew of high-profile IPOs on the way.

The first-day pop is not for you

When SpaceX starts trading tomorrow, financial media will lead with one number: the first-day return. And that number will almost certainly be large.

A first-day pop is a durable feature of IPO markets – Ritter’s data shows the average IPO from 1980 through 2025 closed its first trading day 19% above the offer price.

The problem is that you – Mr. or Ms. Average Investor – are highly unlikely to get the offer price.

That price goes to institutional investors – the mutual funds, hedge funds, and pension managers that the underwriting banks cultivate as clients. By the time the typical retail investor can buy SpaceX shares, the stock will already be trading at that inflated first-day price.

Now, SpaceX is reportedly trying a workaround here. It has reserved 30% of its total IPO shares specifically for retail investors. However, the deadline to request the $135 shares passed yesterday. If you didn’t place an order, you’ll have to wait until the stock begins trading on the Nasdaq.

Plus, the IPO is currently “oversubscribed,” meaning investors have requested up to fourtimes more shares than SpaceX has available. Because of this, brokerages cannot guarantee full orders.

So, once again, odds are that if you’re the average investor, you’re not buying at the offer price. You’re buying after the pop has already happened.

Which means that 19% Day-1 gain?

It was never yours.

So, who gets that?

Tomorrow brings a massive wealth transfer – from retail buyers to the insiders and institutions who were there first.

Ritter quantifies just one piece of this: since 1980, $250 billion has been left on the table through first-day underpricing alone – money that flowed to institutional allocatees who got shares at the offer price while retail buyers could only buy in after the pop.

There’s a phrase that circulates in certain financial circles: instead of “Initial Public Offering,” IPO stands for “It’s Probably Overpriced.”

But there’s a darker version I’ve referenced before in the Digest: “Introductory Public Offloading.”

In other words, IPO day is when insiders and early backers use the public markets to hand off risk to new buyers at peak valuations.

After 45 years of Ritter’s data, I’m not sure either label is wrong.

What happens after the pop

While most IPO coverage is obsessed with day one, Ritter spent decades measuring what happens over the three to five years that follow. The findings should be required reading for any retail investor thinking about buying into the coming IPO wave.

The bottom line: IPO buyers – purchasing at the day-one closing price, not the offer price – underperform the market by an average of 20.5% over the following three years.

That works out to roughly 5.5% per year of underperformance versus simply owning an index fund.

Think about that for a moment…

After all the excitement, all the media coverage, all the analyst upgrades – the average person who buys an IPO on or shortly after its debut would have been better off, by a meaningful margin, just buying the S&P 500.

But see for yourself…

The chart below dates to 2013. The red line is the S&P 500. The blue line is a basket of IPOs.

The performance differential – 428% for the S&P versus 155% for the IPO basket – is the cost of chasing new issues instead of owning the index.

Source: Max Martone / Morningstar 

The numbers get even worse when you break the data down by profitability.

Profitable companies going public already underperform the market by 13% over three years – a poor outcome on its own.

But what happens when an unprofitable company goes public?

SpaceX, OpenAI, and Anthropic are all going public without established profitability, while burning capital at a scale that would draw serious scrutiny in any other context (to be clear, SpaceX’s Starlink division is highly profitable, but SpaceX as a whole is losing billions of dollars).

Ritter’s data shows that unprofitable companies return -30.7% on a market-adjusted basis over the same time frame. That’s nearly two-and-a-half times worse.

Goldman’s own track record says: be careful

Ritter’s data tracks long-run IPO performance by lead underwriter – the bank whose name goes on the top left of the prospectus, whose job is to price the deal and generate investor enthusiasm.

Goldman Sachs is the lead underwriter on the SpaceX IPO. JPMorgan is involved as well.

So, how have Goldman-led IPOs performed for the investors who bought them?

From 2012 through 2021, Goldman led 272 IPOs. Those deals produced an average first-day return of 27.6% – a great day for institutional allocatees.

But for investors who bought at that first-day closing price and held for three years, the market-adjusted return was negative 25.6%.

To be clear, that’s not an absolute return. The investor didn’t lose 25.6%. This is the degree of underperformance relative to the market.

After all the excitement, all the media coverage, and the risk of buying a single unproven company, investors would still have been better off, by a wide margin, just owning the index.

JPMorgan’s track record over the same window: negative 10.5% on a market-adjusted basis.

The Hall of Fame of first-day doubles

Ritter tracks every IPO that doubled on its first day of trading. It’s a fascinating list – and it’s littered with companies that ended up in the graveyard.

• VA Linux: up 697%
• Globe.com: up 606%
• Webmethods: up 507%
• Free Markets: up 483%.

The companies that generated the most spectacular first-day pops are almost without exception either bankrupt, acquired for pennies, or trading far below their first-day close.

The latest example? NewsMax (NMAX).

It surged 735% on its first trading day in March 2025 – the single largest first-day pop for any IPO raising at least $40 million in recorded history.

But as I write on Thursday, NMAX trades at less than $9 a share. And as to that day-one pop, well, imagine buying at the top of the peak below…

The very feature that made those IPOs feel like the opportunity of a lifetime was the signal that something had gone wrong in the pricing process.

Bottom line: The more a stock pops on day one, on average, the more it underperforms in the years that follow.

So, if SpaceX surges 50% tomorrow, treat it as a yellow flag – not a green light.

The action step: focus on the foundations, not the castle

None of this means the AI and space revolution isn’t real. It is.

And none of it means there’s no money to be made in this moment. There is.

What the data shows – clearly, consistently, across 45 years – is that the money is rarely made by retail investors buying IPOs. It is made by the investors who owned the ecosystem around these companies before Wall Street showed up to reprice it.

I’m talking about the semiconductor supply chain. The power infrastructure. The networking equipment. The data centers. The picks-and-shovels plays that benefit from the AI buildout regardless of which company ultimately wins.

The economist Burton Malkiel once sorted all of investing into two camps: stocks that rest on firm foundations of profits and cash flow, and stocks built as castles in the air, held aloft by belief.

SpaceX may eventually become a massively profitable winner – but right now, it looks more like the grandest castle ever floated. But while everyone stares up at the castle, the foundations go on sale.

Our technology expert, Luke Lango, editor of Innovation Investor, has been building this framework for his subscribers.

Here he is explaining:

SpaceX is offering 555,555,555 shares at $135 apiece, valuing Elon Musk’s rocket company near $1.75 trillion — more than 90 times last year’s revenue. Morningstar ran its own numbers and landed nearly a trillion dollars short of that figure.

The biggest gains from landmark technology IPOs have almost never gone to the investors who bought on day one. They’ve gone to the investors who owned the ecosystem around those companies before Wall Street showed up to reprice it.

The window to get in ahead of that repricing is open right now. I don’t know how much longer it stays that way.

Luke calls this the Pre-IPO Backdoor – identifying the publicly traded companies that supply, power, and benefit from the AI giants, and owning them before the IPO roadshow begins.

For the specific stocks he thinks you need to own as SpaceX, Anthropic, and OpenAI reprice their sectors, click here to see Luke’s full research.

Tomorrow’s Investing Insider issue goes even deeper on Ritter’s data and what it means for the coming IPO wave. Click here to join me and access the full issue.

Wrapping up…

The SpaceX IPO will dominate the financial conversation tomorrow. Maybe it pops 30%. Maybe it doubles. Maybe it becomes one of the decade’s greatest investments.

But the data shows that, historically, the odds have not favored the average retail investor who buys on day one – and the more spectacular the pop, the worse those odds have tended to be.

So, if you still want to go in tomorrow, eyes open.

Own the foundations, not the castle.

Have a good evening,

Jeff Remsburg

The post What Wall Street Isn’t Telling You About SpaceX appeared first on InvestorPlace.

Before she came along, French cooking seemed intimidating to a lot of Americans. It felt fancy. It felt complicated. It felt like something best left to trained chefs.

Julia changed that.

On her cooking shows, she showed people that good cooking was not about fear. It was about understanding the ingredients, following the process and knowing when to adjust.

And folks, that is a pretty good way to think about this market.

The ingredients are strong. Artificial intelligence is still one of the biggest growth stories I have seen in my career. Corporate earnings remain healthy. Fundamentally superior stocks continue to lead.

But there are some tricky ingredients in the mix, too.

Inflation remains sticky in certain areas. Energy prices are moving around. Treasury yields can change the market’s mood in a hurry. And the Federal Reserve is still looking for enough evidence to cut interest rates without reigniting inflation.

That is why this week’s inflation reports mattered so much.

On Wednesday, we got the Consumer Price Index (CPI) and then the Producer Price Index (PPI) was released this morning. Together, these two reports gave us a better look at what is really happening beneath the surface of the economy.

So, in today’s Market 360, we’ll break down what these reports tell us and what they mean for the Federal Reserve. I’ll also share why this is exactly the kind of market where investors need to understand the ingredients, follow the data and have a more tactical way to know when to be aggressive – and when to be cautious.

The Consumer Inflation Picture

The CPI gave Wall Street plenty to chew on.

The Consumer Price Index showed that prices rose 0.5% in May and 4.2% over the past 12 months. That was the hottest annual reading since 2023.

But it is important to understand where the heat came from: energy.

Energy prices rose 3.9% in May, and that pushed the headline number higher.

When you strip out food and energy, the report looked much better. Core CPI rose just 0.2% in May, which was lower than expected. It’s now running at a 2.9% annual pace, which was right in line with estimates.

That is important, folks.

Core CPI tells us whether inflation pressures are spreading through the broader economy. And based on this report, they are not running away.

The other encouraging detail was shelter. Owners’ equivalent rent, which measures what homeowners would pay if they rented their own homes, rose 0.3% in May. That is down from 0.6% the month before.

In other words, rental costs are starting to dissipate. That is a big deal because shelter has been one of the stickiest parts of inflation for a long time.

Bottom line: The headline CPI number looked hot because of energy. But core inflation was better than expected, shelter cooled and Treasury yields moved lower after the report.

As long as the Treasury market likes the report, we should, too.

The Wholesale Inflation Picture

Then came the Producer Price Index – and energy was the story here, too.

The PPI rose 1.1% in May and is now up 6.5% over the past 12 months. That was hotter than economists expected – and the fastest annual pace since November 2022.

Looking deeper, final demand goods prices jumped 2.8% in May. Final demand services rose a much more modest 0.3%.

Energy explains a lot of that gap.

Final demand energy prices jumped 10.7% in May. Gasoline prices surged 23.4%. Diesel fuel, jet fuel, industrial chemicals, plastic resins and natural gas liquids also moved higher.

So, why does this matter?

Well, the PPI tells us what producers are paying. And when producers pay more for fuel, transportation and raw materials, those costs can ripple through the economy.

That is why the PPI is considered a leading indicator of consumer inflation.

Now, I do not want to overreact to one energy-driven report. Energy prices can move around a lot from month to month.

But this report does tell us something important: Higher energy costs are still working their way through the wholesale pipeline.

That does not erase the good news we saw in core CPI. But it does mean the Fed still has another tricky ingredient to consider.

The Rate-Cut Question

The CPI report was better than expected where it mattered most. Under the hood, the report showed inflation pressures are easing in some of the areas the Fed watches most closely, particularly shelter costs.

That tells me inflation pressures are not spreading through the broader consumer economy.

But wholesale inflation remains an important part of the picture. And if energy costs keep rising, companies may eventually try to pass them along to consumers.

That is what the Fed has to watch.

So, I still believe rate cuts can happen later this year. But after this week’s reports, the Fed will likely want to see more evidence that energy-driven inflation is cooling before it moves.

That may create some short-term volatility. But it does not change the bigger picture.

The earnings environment remains very strong. FactSet now expects S&P 500 earnings to grow 21.7% in the second quarter, up from 18.7% at the start of the quarter. That tells me analysts are still revising estimates higher, and fundamentally superior stocks should continue to lead.

But this is still a market where one inflation report or one move in Treasury yields can change the mood in a hurry.

That’s why having the right ingredients is only part of the recipe.

The Right Recipe for This Market

The other part is knowing when to adjust.

That was Julia Child’s real lesson. Good cooking was not about pretending nothing could go wrong. It was about understanding the process well enough to make the right adjustment at the right time.

That same lesson applies to investors right now.

The ingredients are there. But this is not a market where investors should simply close their eyes and hope everything comes together.

Inflation reports can surprise. Treasury yields can move. Fed expectations can shift.

And when markets are this sensitive to new information, investors need to stay flexible. You need to know when to press – and when to pull back.

That’s why I sat down with TradeSmith CEO Keith Kaplan yesterday morning.

During our special event, we discussed why today’s market reminds me of the late 1990s, why I believe the AI boom still has much further to run and how a new AI-powered approach could help investors become more tactical as volatility picks up this summer.

If you missed it, you can watch the replay right here.

I strongly encourage you to watch it as soon as you can.

Because in a market like this, you do not want to guess. You want to follow the data.

Sincerely,

Louis Navellier

Editor, Market 360

The post Don’t Let This Week’s Inflation Data Scare You Out of Stocks appeared first on InvestorPlace.

In today’s guest piece, Louis will share a lesson from the late 1990s that’s shaping how he’s thinking about artificial intelligence today.

Along the way, he highlights four companies prospering from the AI infrastructure boom and explains why he believes the biggest challenge for investors isn’t finding the trend — it’s staying with it.

Louis also held a special presentation yesterday with TradeSmith CEO Keith Kaplan, where they expand on these ideas. You can watch the replay here.

I think you’ll enjoy this one. Read on…

“How much would it cost me to buy you?”

That’s how Cisco Systems Inc. (CSCO) CEO John Chambers greeted the founder of telecom startup Cerent Corp. in 1999.

Not his company. You.

Cerent had only about $10 million in annual sales, but Cisco paid roughly $6.9 billion in stock because Chambers believed the technology and that founder were critical to the internet buildout.

At the time, Chambers had a simple solution whenever he found a bottleneck:

Buy it.

By the late 1990s, the internet was growing so fast that Cisco couldn’t build products quickly enough to keep up. So it started buying competitors, technologies, and choke points throughout Silicon Valley.

That strategy helped make Cisco the most valuable company in the world for a brief moment in March 2000.

Most people remember what happened next. I remember what came before.

The internet buildout was real. Networks got built, servers got installed, and infrastructure spending exploded. Investors who understood that trend made fortunes.

I’ve been thinking about Cisco lately because we’re watching the same movie again.

The AI buildout is real. First-quarter S&P 500 earnings grew nearly 29% from a year ago — more than double what analysts expected. Analysts keep revising estimates higher. The spending behind this is staggering and it’s accelerating.

That’s what I want to talk about today.

In this piece, I’ll show you four stocks prospering from the AI buildout beyond Nvidia and Micron…

Why I believe this infrastructure boom is still early…

And why the hardest part of the AI trade isn’t finding the right companies. It’s staying with them.

Everybody Wants the Next Nvidia

I’ve been investing through major technology shifts for nearly five decades. I was using computers to analyze stocks in the 1970s, long before it became common on Wall Street. Over the years, my quantitative systems helped identify winning stocks such as Apple Inc. (AAPL) and Nike Inc. (NKE) — and Nvidia Corp. (NVDA) and Microsoft Corp. (MSFT) — long before they became household names.

In the late 1990s, everybody wanted the next internet stock. Today, everybody wants the next AI stock.

That’s understandable. Nvidia has become one of the most successful investments in modern market history.

But investors often become so focused on one company that they miss the broader trend unfolding around it.

Artificial intelligence is no longer just a Nvidia story. There are a lot more AI-related stocks prospering now. Memory companies, networking companies, power-generation companies (we used to call those “utilities”)… all are benefiting.

Why? Because AI requires an enormous amount of infrastructure.

The average investor sees ChatGPT or Claude on their browser and thinks software. I see hundreds of billions of dollars flowing into an entirely new computing architecture.

To appreciate the scale, one proposed AI data-center project in Utah would cover nearly three times the area of Manhattan. Similar projects are being planned across the country. These facilities will require thousands upon thousands of chips, servers, and networking systems.

That’s why companies like Micron Technology Inc. (MU) have become so important.

Most investors still think of it as a cyclical memory-chip company from the middle of the country. But on May 26, Micron became Boise, Idaho’s first trillion-dollar company.

Wall Street sees something different. Sales are expected to grow more than 250%. Earnings are expected to rise more than 900%.

Those aren’t normal numbers. They’re what happens when a major technological shift is underway and demand overwhelms supply. Micron has reportedly sold out much of its high-bandwidth memory production under long-term contracts, and analysts expect supply shortages to persist for years.

It’s also why I want you to pay attention to companies like Dell Technologies Inc. (DELL), Hewlett Packard Enterprise Co. (HPE), Ciena Corp. (CIEN)… and, yes, Cisco. These aren’t the first names investors think about when they hear “AI,” but they’re increasingly prospering from the buildout.

The opportunity is getting bigger. Not smaller. When a major investment theme spreads beyond a handful of stocks and starts lifting entire industries, it usually means the trend is becoming more durable and more profitable — not less.

That’s what we’re seeing right now.

The Real Risk Isn’t What Most Investors Think

I focus on a combination of fundamental and quantitative measures — sales growth, earnings growth, analyst revisions, institutional buying pressure. That’s how my Stock Grader system has identified winning stocks for well over 40 years.

And right now, those indicators continue to point in the right direction. I think many of the best AI and data-center stocks still have substantial upside ahead of them before the year is over.

But being bullish doesn’t mean being complacent.

The spending behind this boom is staggering. Microsoft, Amazon.com Inc. (AMZN), Alphabet Inc. (GOOG), and Meta Platforms Inc. (META) are expected to spend roughly $700 billion on AI infrastructure this year alone. That’s data centers, networking equipment, chips, power generation, and everything needed to support the next generation of AI applications.

Those aren’t startup projections. They’re some of the largest and most successful companies in the world committing enormous capital because they believe AI will reshape the global economy.

The biggest risk facing investors right now isn’t that AI suddenly becomes less popular. It’s not that companies stop spending on data centers. And it’s not that earnings suddenly collapse.

The bigger risk is that investors get shaken out of fundamentally superior stocks during perfectly normal periods of volatility.

I’ve seen it happen throughout my career. A stock pulls back. The headlines get scary. Investors become nervous. They sell. Six months later, the stock is substantially higher.

The late 1990s were full of those moments. Even the biggest winners experienced sharp pullbacks from time to time. Investors who stayed focused on the long-term trend were rewarded. Investors who reacted emotionally often weren’t.

I think we’re approaching a similar period now. The market remains healthy, but summer can get bumpy. Trading volume thins out. Volatility increases. Short sellers become more aggressive.

That’s normal.

And it’s one reason I’ve been spending so much time with Keith Kaplan and the team at TradeSmith. Over the past year, Keith and I have been exploring a new AI-enhanced approach that combines my Stock Grader system with TradeSmith’s pattern-recognition technology. What interested me wasn’t the technology itself. It was the results.

More importantly, it showed how investors can stay with opportunities like Dell, HPE, Ciena, and Cisco when volatility inevitably shows up. Because the hard part isn’t finding promising AI stocks anymore. The trend is staring us in the face. The hard part is staying invested when the headlines turn negative and investors start questioning the same companies they loved a month earlier.

That’s exactly what Keith and I discussed earlier this week.

In our free, special presentation, we show investors how we’re using AI to become more tactical and amplify the gains you can make with the stocks I recommend.

You can watch a replay of the event right here.

Whether it’s Micron, Dell, HPE, Ciena, Cisco — or another company prospering from the AI buildout — the opportunity is still much bigger than most investors realize.

The challenge isn’t finding the trend.

The challenge is staying with it.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. Louis has been right about these infrastructure waves before. The internet buildout created enormous opportunities, but many investors got shaken out before they could fully benefit. Louis doesn’t want that to happen during this AI buildout. That’s one reason I urge investors to look more into the work he’s been doing with Keith. If you haven’t already, watch yesterday’s event here.

The post Cisco Did It in 2000, and These Four Stocks Could Do It Next appeared first on InvestorPlace.

The best non-AI trade of the decade might be hiding in your gym’s lobby.

Gen Z — the largest consumer cohort in history — is making a quiet but seismic spending decision. They are not going to bars or spending Friday nights out at restaurants. They are paying hundreds of dollars a month for premium gym memberships, boutique fitness classes, and recovery studios. And it has become the center of their social life.

Most investors are completely ignoring this shift — because it doesn’t involve a GPU. That’s exactly why it’s worth paying attention to. 

The Death of the Bar Tab: Gen Z’s Spending Shift Is Showing Up In the Data

According to a February 2026 Bank of America report, gym-related spending among Gen Z and millennials is rising sharply as alcohol consumption continues to decline. 

A separate survey from Mintel found that 77% of U.S. Gen Z consumers say they are more focused on wellness than they were a year ago, with 30% spending more on gym memberships and classes in that time.

With over 3.4 million posts under #Pilates on Instagram alone and TikTok overflowing with gym routines, “what I eat in a day” videos, and run club recaps, fitness isn’t something Gen Z does. It’s something Gen Z is. 

This is a structural identity shift. And it matters enormously for investors.

Why This Is a Structural Identity Shift, Not a Fad

This isn’t just about health. These premium gyms and boutique studios are functioning as social infrastructure — filling the community void once occupied by bars, restaurants, and even offices.

The data bears this out. According to Bank of America, Gen Z households spend 2.8 times more than baby boomers on fitness. Fitness club foot traffic has surpassed bars and pubs by 22 percentage points since 2021. Non-alcoholic beverage spending has outpaced alcoholic alternatives by 28 points over the same period. 

This is a generational reallocation of the “going out” budget — and it is accelerating. 

Spending on premium fitness carries a social ROI that a traditional gym membership never had. You don’t build your professional network at a $30/month big-box gym. But at a $300/month Equinox or a $40-per-class boutique studio? 

The switching costs and community lock-in are real. And the willingness to pay is, evidently, recession-resistant — these Gen Z consumers are spending $500-plus per month on fitness despite record rent burdens, student debt, and a brutal job market.

The Long Side: Three Wellness Stocks Built for This Generational Shift

Against this backdrop, three names stand out as the highest-conviction expressions of this trend in public markets.

The Short Side: Three Stocks Bleeding Out as Gen Z Abandons the Bar Tab

The wellness shift isn’t just a spending increase — it’s a substitution trade. Gen Z is explicitly reallocating their “going out” budget away from specific industries. That creates high-conviction short opportunities that mirror the longs.

The Pair Trades: Three Self-Hedging Expressions of the Same Thesis

If you want clean expression of this thesis:

• Long LTH/Short SAM — premium fitness social hub directly cannibalizing craft beer’s Friday night occasion
• Long XPOF/Short PLAY — boutique studio franchisor vs. bar entertainment venue, competing for the same Gen Z “where do I go tonight” budget
• Long BROS/Short Molson Coors (TAP) — morning fitness culture functional beverage vs. traditional beer whose core demographic is literally aging into retirement

Why This Is the Best Non-AI Trade In the Market Right Now

Almost every macro conversation in 2025 and ’26 has circled back to AI infrastructure. And rightly so — the ‘Pax Silica’ buildout remains the dominant investment theme of this era. But AI infrastructure investing is crowded, expensive, and requires navigating geopolitical risk, tariff exposure, and supply chain complexity.

The wellness trade is different. It’s a consumer behavioral shift playing out in plain sight, being documented in real time by Bloomberg, Bank of America, and Mintel. It requires no technology adoption curve, regulatory approval, or transformer architecture expertise. The tailwinds — Gen Z’s identity-level commitment to wellness, structural alcohol decline, and the social collapse that made boutique gyms the new “third place” — are durable across multiple years.

That same cultural force that is minting new revenue at Life Time and Xponential is quietly bleeding out Boston Beer and Dave & Buster’s. Long/short, the thesis is self-hedging and structurally clean.

Gen Z replaced the entire nightlife scene with something better — and built a $300-a-month subscription around it. 

For investors willing to follow the smoothie instead of the beer, the setup has rarely been cleaner.

That instinct — looking where the crowd isn’t — tends to be where the most interesting opportunities live.

The companies I’m most focused on right now aren’t household names, don’t dominate financial media, and won’t show up on most investors’ radar until it’s too late to get in at the right price. That’s exactly why I think the opportunity is as clean as anything I’ve seen in years.

Here’s what I’m watching — and why I think the window is narrowing fast.

The post The Best Trade Nobody’s Making Because It Doesn’t Involve a GPU appeared first on InvestorPlace.

The May Consumer Price Index (CPI) report came out this morning, and the initial read is about as good as investors could have hoped for given the circumstances.

Headline inflation came in at 4.2% year-over-year, matching expectations. Yes, that’s the highest print since April 2023, and yes, it crossed the 4% threshold for the first time in three years. But the monthly pace actually slowed – 0.5% in May versus 0.6% in April.

Meanwhile, the number that matters most to the Fed – core CPI, which strips out volatile food and energy – came in at just 0.2% month-over-month, cooler than both the 0.3% forecast and April’s 0.4% reading.

Gasoline accounted for the bulk of the headline monthly move, while shelter costs, food, and core goods were all well-behaved. Economists are increasingly calling May the peak – assuming Iran hostilities don’t reignite and push oil higher again.

The takeaway: so far, this is an energy-driven inflation surge, not a broad-based one – which makes it a moment of relatively good news in what has been a difficult inflation stretch. Had core inflation come in hot, it would have rattled a market that’s already looking fragile. So, bullet dodged.

That said, the CPI print tells us where we’ve been. What’s changed underneath the surface tells us where we’re going – and what’s changed is already significant enough that even a well-behaved core reading doesn’t alter the trajectory.

In other words, the inflation risk hasn’t gone away. And the fragile balance that’s been keeping the Fed from responding to it is starting to crack.

The handbrake is being released

For the better part of six months, the Federal Reserve has been frozen between two competing fires.

On one side: inflation running well above the 2% target…

The Iran conflict has added an energy shock, pushing headline CPI to 4.2% – a three-year high, as of this morning’s print. Cutting rates into that environment would mean pouring fuel on the fire.

On the other side: a labor market showing real signs of weakness…

It spent most of 2025 softening – slow hirings, job openings down, unemployment drifting toward 4.5% at its peak last November. Not in freefall, but fragile enough that hiking into it carried real risk.

But that two-handed weakness created a delicate balance. Inflation made it too hot to cut rates, yet the labor market was too fragile for hikes.

The result was paralysis: rates locked at 3.50% to 3.75% through three straight meetings, which was fine for Wall Street.

But that calculus may now be changing – and the evidence comes from an unlikely place.

One of the loudest arguments for labor market fragility has been the fear that AI was quietly hollowing out hiring. If that were true, it would give the Fed even more reason to stay put. But the data are telling a different story.

As regular Digest readers know, I’ve been questioning the “AI will take all jobs” narrative. I haven’t abandoned it, but a growing body of data is making me hold it with less conviction.

Yesterday, Torsten Slok, chief economist at Apollo Global Management, flagged the latest relevant data point.

Instead of snowballing job losses related to AI, Slok reports that the number of job openings per unemployed worker has started rising again and is now back above 1.0 – meaning there are more jobs available than workers to fill them. The May jobs report from last Friday reinforced this, with nonfarm payrolls jumping 172,000.

Here’s Slok:

If AI were triggering a jobs crisis, we would expect job openings to collapse and unemployment to climb, yet the opposite is happening.

Source: Torsten Slok / Apollo

This is big.

The labor market weakness that gave the Fed its excuse to stay put is fading. Which means one of the two constraints supporting the Fed’s delicate equilibrium is being removed.

What it means for Warsh’s first meeting

Kevin Warsh was sworn in as the 17th Fed chair on May 22, inheriting a central bank holding rates at 3.50% to 3.75%, a deeply divided FOMC – four dissents at the most recent meeting – and inflation that’s been above the 2% target for five straight years.

Three of those four dissenters weren’t opposed to pausing. They were opposed to the Fed’s easing bias – the language signaling that cuts, not hikes, remain the next move.

Why lean toward easing when inflation has been running hot this long?

At the June FOMC meeting – one week from today – it’s widely expected that Warsh will drop that easing bias entirely.

Now, that alone would be a meaningful hawkish signal. But the deeper question, with the labor market handbrake releasing, is whether a bias shift is enough – or whether the data are supportive of an overt head-nod toward a hike.

Markets are starting to price that possibility.

Below, we look at the CME Group’s FedWatch Tool, which shows the probability traders assign to different interest rate ranges in the future.

As you can see, the odds of at least one quarter-point hike by the December 2026 FOMC meeting now clock in at roughly 66%.

In other words, the question is now not so much “when do we cut?” but rather “when do we hike – and by how much?”

Two markets inside one – and where the AI trade fits

Let’s say that sometime in the coming months, Warsh hikes.

What happens then?

First, there’s a broad selloff. That’s a near-certainty based on how markets behave.

High-multiple growth stocks get nailed because higher rates mean higher discount rates, which compress valuations on companies whose earnings are weighted toward the future.

So, AI darlings like Nvidia (NVDA), ARM (ARM), and Marvell (MRVL) all suffer in the immediate aftermath of a hike announcement.

But as wise investors, we need to look beyond this. After all, the first move and the lasting move are entirely different issues.

While the knee-jerk selloff would treat all rate-sensitive assets roughly the same, the recovery wouldn’t.

To understand the difference, we must ask one key question…

What’s fueling today’s AI bull?

The answer: the hyperscalers. Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta (META).

But while these companies are using some debt in their AI capex buildout, the majority of that funding comes from operating cash flows and new equity issuance, totaling tens of billions of dollars per quarter.

A 25- or 50-basis-point rate hike doesn’t change that math. These companies don’t need cheap debt to build data centers. Their AI infrastructure spending is, in a meaningful sense, insulated from the Fed in a way that most of the market simply isn’t.

Compare that to what a genuine tightening cycle does to the rest of the market: leveraged real estate, small-cap companies running on thin credit lines, consumer discretionary names dependent on households that borrowed cheaply…

That pain is structural, not temporary – and it doesn’t bounce back the same way.

This will accelerate the “tale of two markets”

Regular Digest readers will recognize this dynamic. It’s the Technochasm we’ve written about for years at this point – the widening gap between the companies and investors positioned on the right side of transformative technology, and everyone else.

What’s worth understanding now is that a rising-rate environment doesn’t pause the Technochasm – rather, it likely accelerates it.

If monetary tightening hits rate-sensitive sectors hard while leaving hyperscaler AI capex largely intact, the performance gap between AI infrastructure and the rest of the market widens.

That’s a harder story to tell than “rates go up, growth stocks go down.” But it’s the more accurate one – and it’s the distinction that matters for how you think about positioning.

Which is exactly where legendary investor Louis Navellier comes in

Louis has spent 47 years identifying the fundamentally strongest stocks in the market. But in a bifurcating market – where the right names recover and the wrong ones don’t – finding quality is only half the equation.

The other half is timing: knowing when a stock’s short-term momentum supports taking action on a long-term thesis, and when it doesn’t.

This morning, Louis and TradeSmith CEO Keith Kaplan held a live event unveiling a new system that combines Louis’ fundamental stock-selection framework with TradeSmith’s market-timing technology. The goal is precisely the kind of edge this environment demands – not just what to own through a volatile, rate-sensitive stretch, but when to pull the trigger or step aside.

If you missed this morning’s event, you can catch a free replay right here.

Coming full circle

Today’s CPI print was relatively good news. But the real news is how the handbrake is now releasing.

One week from today, Warsh chairs his first FOMC meeting with inflation at a three-year high, a labor market that’s no longer fragile enough to justify inaction, and markets pricing a 66% chance of a hike before year-end.

The regime is shifting, and the Technochasm will be widening.

The investors who come out ahead will be the ones who recognize what this means, where it takes us, and how to position for it.

Have a good evening,

Jeff Remsburg

(Disclaimer: I own MSFT, GOOGL, and AMZN)

The post The Fed’s Excuse Just Disappeared appeared first on InvestorPlace.

In Ernest Hemingway’s 1952 novel, The Old Man and the Sea, a fisherman named Santiago sails out into the Gulf Stream’s deep waters, where he discovers a giant marlin.

After many sleepless nights, he finally catches the marlin and lashes it to the side of his boat… only to see sharks devour it on the journey home.

Santiago is left with nothing but its skeleton.

The market is going after its own giant marlin this week: SpaceX.

Elon Musk’s space exploration company is targeting a June 12 Nasdaq debut at a $1.75 trillion valuation, which would make it the largest IPO in history. Talk about a big fish.

Come Friday, thousands of investors – maybe millions – will drop a line in the water to snag this prize catch. But landing that fish profitably will be no easy task. From the moment SpaceX goes public, competitors will circle the company to take a bite out of its ambitions. In the early days, SpaceX’s share price will likely lose some flesh off the bones.

Admittedly, SpaceX is a marvel in many ways. But not even a cosmic explorer deserves such a stratospheric valuation. The company is still producing multibillion-dollar losses quarter after quarter. At some point, investors might decide that a $1.75 trillion company should turn a profit.

In the meantime, thanks to the SpaceX IPO, hundreds of billions of dollars in fresh investor attention will pour into the commercial space sector, searching for the companies that build, supply, and enable the new space economy.

Most of that attention will flow toward names investors already know. But the opportunity for the astute speculator lies elsewhere – in the companies doing the unglamorous, essential work that makes missions possible.

Indeed, history suggests the biggest gains often come from the companies operating one step downstream.

In major technological shifts, the companies that capture investors’ attention are rarely the only winners. Their success often helps fuel growth across related businesses.

So, in today’s Smart Money, let’s dig into why investing in the companies downstream of SpaceX is a better choice than buying a stake in the IPO itself.

The Beneficiary Trade Has Worked Before

Ignoring the biggest fish might feel counterintuitive. The advice can even feel downright “fishy.” But history shows that the most visible opportunities are rarely the only, or best, ways to invest in a major trend.

We saw this phenomenon play out with the rise of the internet.

Like SpaceX, Alphabet Inc.’s (GOOG) IPO was highly anticipated. The company went public on August 19, 2004, at $85 per share and generated roughly $1.67 billion. Since then – accounting for two large stock splits – GOOG shares are up by more than 17,000%.

But that remarkable return was only part of the opportunity.

Google’s success helped validate the internet economy as a whole. Investors gained confidence that web-based business models could scale globally and generate enormous profits.

That confidence didn’t benefit Google alone. As businesses increasingly moved online, software delivered through the internet – what we now call software-as-a-service (SaaS) – experienced explosive growth.

Salesforce Inc. (CRM), which went public in June 2004, was one of the biggest beneficiaries. The company priced its shares at $11 and raised about $110 million. Since then, Salesforce shares have climbed 6,355%, adjusted for its 2013 stock split.

Investors who recognized Salesforce as a downstream beneficiary of the internet economy were able to make a similar investment thesis play with far less competition.

Veeva Systems Inc. (VEEV), a cloud-based software company serving the life sciences industry that initially built its customer relationship management (CRM) product on Salesforce’s platform, went public in 2013 at $20 per share. Since then, it has delivered 734% returns, outperforming the S&P 500 and the broader software sector.

In short, Google validated the internet model, Salesforce rode the wave, and then Veeva rode Salesforce’s wave.

Each link in the chain represented a less obvious way to invest in the same underlying trend. And at a more favorable entry point.

SpaceX will likely create the same type of chain.

And when it does, the most attractive investments may not be found in SpaceX itself, but in companies positioned to benefit from the wave that follows.

The Space Economy Is Real – but the Best Stocks Aren’t Obvious

Here is the speculative heart of the thesis: A successful SpaceX IPO at its trillion-dollar-plus valuation would legitimize commercial spaceflight as an investable sector at scale, likely accelerating capital flows to competitors and suppliers alike.

Just as Google’s IPO accelerated investor interest in internet businesses, a landmark SpaceX debut will introduce millions of investors to the idea that space is not just a government program. It is an entire economy.

Many of those investors will want skin in the game. Most will buy SpaceX directly, especially considering how revenue soared by 33% year over year to $18.7 billion last year, driven mainly by a 32% increase in Starlink satellite internet sales.

But growth and investment returns are not always the same thing.

SpaceX also reported a significant GAAP net loss of $4.94 billion for full-year 2025 and a steep $4.28 billion loss in the first quarter of this year – mainly because of Musk’s push into AI infrastructure. (SpaceX invested about $12.7 billion last year in AI capital expenditures.)

Despite its impressive growth, SpaceX is still spending heavily, making near-term profitability unlikely.

That’s why I advise looking for SpaceX-related companies with real revenues, real contracts, and real hardware already in orbit.

I’ve identified a company in aerospace manufacturing that can credibly claim all three, and it’s already up double digits in less than a month since we added it to our portfolio in The Speculator.

I’ve also recently recommended another space-focused company, at The Speculator, on the opposite end of the spectrum. You can think of it as “space investing for chickens.”

Buried inside this very large, very profitable, very boring company is a robotics business with a direct connection to SpaceX. And as the SpaceX IPO approaches, that connection may prove more important than most investors realize.

Hemingway’s Santiago came home with a skeleton. He caught the biggest fish in the Gulf Stream, but had nothing to show for it.

The investors who buy SpaceX on Friday may tell a similar tale. The valuation is stratospheric, the losses are real, and the sharks are already circling.

The smarter play isn’t to chase the marlin. It’s to fish in the waters around it – the smaller, faster-moving fish that the whole ecosystem depends on.

That’s where these two companies live. And in our experience, those are the waters where the real money gets made.

To get the full details of these companies before SpaceX joins them on the stock market, click here to learn how to become a member of The Speculator.

Regards,

Eric Fry

Editor, Smart Money

The post Everyone’s Chasing SpaceX, but We’re Going After Something Better appeared first on InvestorPlace.

SpaceX is offering 555,555,555 shares at $135 apiece, valuing Elon Musk’s rocket company near $1.75 trillion… more than 90 times last year’s revenue. Morningstar ran its own numbers and landed nearly a trillion dollars short of that figure.

Steve Eisman, the money manager who famously shorted subprime, called the offering “a sci-fi story tailor-made for a sci-fi cult.” And Goldman Sachs, the lead underwriter, reportedly expects SpaceX’s AI revenue to grow a hundredfold within five years…

Even Musk hasn’t promised that.

The economist Burton Malkiel once sorted all of investing into two camps: stocks that rest on firm foundations of profits and cash flow, and stocks built as castles in the air, held aloft by belief. SpaceX may be the grandest castle ever floated. And the argument over whether it can stay aloft knocked the entire tech tape lower last week.

But while everyone stares up at the castle, the foundations went on sale.

Watch the full episode here. Also, be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content:

The SpaceX AI Buildout

The AI buildout that SpaceX is selling – the data centers, the fiber, the orbital compute – runs through companies posting record revenue with bookings stacked to the ceiling. On this week’s episode of Being Exponential, we argue the selling pressure is castle anxiety, while the foundations underneath keep getting stronger.

The numbers keep going up and to the right. That gap between fear and fundamentals is where we see a tactical buying opportunity in four stocks: Corning Inc. (GLW), Ciena Corp. (CIEN), Broadcom Inc. (AVGO), and Redwire Corp. (RDW). A fifth name, Strategy Inc. (MSTR), gets a very different verdict.

Corning (GLW)

Start with Corning itself. Every Blackwell GPU cluster needs fiber… a lot of it. Nvidia’s (NVDA) 72-GPU Blackwell nodes require 16 times more fiber than traditional cloud switch racks, and Corning dominates that supply.

The deals keep stacking up: $6 billion with Meta (META), a new multibillion-dollar partnership with Amazon (AMZN), a spot in Nvidia’s orbit. We peg Corning as a roughly 20% compounded top-line grower for the next four to five years, with EBITDA compounding 30% to 40% as margins expand. At 26 times forward EBITDA, we call the $150 to $170 range an accumulation zone.

Ciena (CIEN)

Ciena runs on the same logic, supercharged. Decades of operator underinvestment in global networks are colliding with explosive AI demand… the same supply-demand imbalance that broke the housing market after 2008, now playing out in optics.

We see a potential 40% to 50% compounded EBITDA grower trading at 34 times, with the stock sitting right on its 100-day moving average near $420 and RSI approaching oversold territory. Bounce time, in our view.

Broadcom (AVGO)

Then there’s Broadcom, the stock that arguably kicked off the whole selloff. The market nitpicked a slightly soft AI revenue guide and ignored everything else: total revenue up 48% to a record $22.2 billion, semiconductor revenue up 79%, AI semiconductor revenue up 143% to $10.8 billion, and more than $30 billion in AI bookings – nearly triple what the company shipped in the quarter. Luke calls that a demand tsunami and views the $340 to $370 zone, hugging the 200-day moving average, as accumulation territory.

Redwire (RDW)

Redwire is the smaller, higher-torque story. The company is the big dog in outer-space solar panels (it powers the International Space Station), which makes it a pure play on orbital compute, where energy costs approach zero.

That thesis just got a boost from the SpaceX filings themselves, with Anthropic signaling interest in gigawatts of orbital AI compute capacity. We told viewers not to chase the stock when it went vertical. The pullback we wanted has finally arrived at $15, a level that has acted as the stock’s flip line for nearly two years.

Strategy (MSTR)

And Strategy? The world’s largest Bitcoin (BTC/USD) treasury company is, by design, a leveraged bet on Bitcoin – and we believe Bitcoin keeps falling through this inter-halving dead zone, with MSTR potentially breaking below $100 before bottoming.

Our timeline for the crypto reawakening: late 2026 into early 2027, once the IPO wave passes and the next halving cycle approaches. Until then, our guidance is blunt. Own AI. Wait on crypto.

We’re in the later innings of this bull market, and the music is still playing. The full episode walks through every chart, every support level, and the complete bull case on all five names.

Be sure to watch and subscribe to Luke’s X feed for more of his insights!

The post The Grandest Castle Ever Floated (and the Stocks to Profit From It) appeared first on InvestorPlace.

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.

Click here to join Louis and Keith tomorrow at 10 a.m. Eastern, and access the free Short-Term Health Indicator now.

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.)

The post Nvidia Still Has 40% Upside – Here’s the Math appeared first on InvestorPlace.

On Monday, it looked like the pain might be over. But that selling pressure continued today.

As I write this, the S&P 500 is down 0.8%, the NASDAQ dropped 1.7% – after briefly paring losses of as much as 3.5% – and the Dow is currently flat.

As I explained in a Special Market Podcast to my followers, the weakness has been mostly tied to profit-taking in AI-related stocks. The reality is the market was overbought after the big run we’ve seen in chip, memory and AI infrastructure names.

What’s more, concerns are rising that persistent inflation could keep the Federal Reserve on hold – or worse, force a rate hike.

If that weren’t enough to put investors on edge, U.S.-Iran tensions flared again today. Hours after President Trump suggested peace talks were on track, he announced the U.S. would respond to an Iranian attack on a U.S. military helicopter.

That’s the kind of headline that can turn a relief rally into a selloff fast.

That said, I want you to understand that the situation is more contained than the headlines suggest. Ships are getting through the Strait of Hormuz with U.S. escorts, domestic oil production has increased significantly, and inventories are being filled. This bottleneck is not going to be a long-term problem, folks.

And let’s not forget, buried in the headlines today was a bright spot. Existing home sales rose 3.2% – the strongest reading this year. Housing has been one of the weakest parts of our economy, so that’s an encouraging sign.

The Next Big Test for This Market

Looking ahead, there’s plenty to get excited about this week.

Meanwhile, the IPO market is heating up in a big way: SpaceX is set to go public Friday, aiming to raise $80 billion at a $1.77 trillion valuation – the largest IPO in market history. And after Monday’s close, the company behind ChatGPT, OpenAI, confidentially filed IPO paperwork. That follows rival Anthropic, the company behind Claude, which took the same step just a week earlier.

Both companies could be trading on Wall Street as soon as this fall.

But as exciting as all of that is, this week’s inflation reports matter more for the market’s direction.

On Wednesday, we’ll get the Consumer Price Index (CPI). Economists expect headline CPI to rise 0.5% in May and 4.2% over the past 12 months. Core CPI, which excludes food and energy, is expected to rise to 2.9% year-over-year, compared to 2.8% the prior month.

Then on Thursday, we’ll get the Producer Price Index (PPI). Expectations call for headline PPI to rise 0.6% in May compared to 1.4% in April, while core PPI is expected to increase 0.4%.

Bottom line, while the market is worried about the tech trade, cooler-than-expected inflation readings could help calm the investors – while hotter numbers could put more pressure on stocks and Treasury yields.

But what I want you to understand is that these oscillations are normal. The market gets hit, bounces, retracts, then bounces again. Sometimes it retests the lows two or three times before the next leg higher.

That’s why I don’t chase headlines. I follow the data.

And right now, the data tells me the bears are getting this market wrong.

Why the Bears Are Getting This Wrong

Now, not everyone is on the same page as me. A Bank of America strategist made headlines this week, warning that the market could fall 6% – arguing that the tech-heavy top half of the market will get dragged down by the weaker bottom half.

I respectfully disagree. In fact, my latest backtest of Stock Grader data shows that the breadth & power of the market are improving.

This strategist is making a mean reversion argument that completely ignores the fundamentals. Earnings grew 29.3% last quarter. Analysts are forecasting 21.5% growth for the full year – and those estimates are still being revised higher.

You don’t get a sustained 6% correction when earnings are accelerating like that.

Notably, even some of Wall Street’s most persistent bears are coming around. One strategist who spent years telling investors to get out of stocks has turned more positive. When the bears start capitulating, that tells you something.

The bottom line: I think we’re looking at 5% to 6% GDP growth next quarter, housing is picking up, and earnings momentum is intact. The oscillations we’re seeing now are a normal part of any bull market – not a reason to abandon fundamentally superior stocks.

That’s why I stay focused on the data. And right now, the data is telling me this market has more room to run.

But folks, this is a market where you have to be selective.

Good stocks can bounce like fresh tennis balls. Bad stocks can fall like rocks.

So, before you make any moves in this market, I want you to check the short-term health of the stocks you already own. And I’ve been working on a brand new tool with my friends over at TradeSmith that can help you do it…

Tomorrow at 10 a.m. Eastern, I’m hosting a special event where I’ll show you a groundbreaking new form of AI that takes the power of Stock Grader and uses it to generate investing signals with some of the highest upside potential that I’ve seen in my entire 47-year career.

You don’t have to be a sophisticated Wall Street “quant” or math whiz to understand it or use it.

And before the event, you can test-drive part of that system for free.

Just type in any ticker symbol, and you’ll see whether the system currently views that stock as healthy, neutral, or at risk in the short term.

Go here to register for tomorrow’s event and check your stocks now.

Sincerely,

Louis Navellier

Editor, Market 360

The post Don’t Let This Pullback Shake You Out of Great Stocks appeared first on InvestorPlace.

Two months ago, software stocks were in freefall. Today, they’re within striking distance of all-time highs. 

Same companies. Same AI threat. Completely different prices.

Something changed. The question worth asking — before you chase this rally — is what, exactly, that something was.

The SaaS Comeback Nobody Saw Coming — and What It Actually Means

The iShares Expanded Tech-Software ETF (IGV)— the benchmark index for software stocks — just made an unexpected comeback.

Back in April, IGV was sitting nearly 40% below its all-time highs, in bear market territory. People began questioning if the entire sector had a future. And some of those questions were legitimate — more on that in a moment.

But then the rally began. IGV ripped 45% off its lows in a matter of weeks. It blew through its 50-, 100-, and 200-day moving averages like they weren’t even there. Today, it sits less than 10% off its all-time highs.

This type of reversal off the 200-week moving average has only happened a handful of times in the past 15 years. Each time — in late 2011, early 2016, and early 2023 — turned out to be generational buying opportunities.

Technically speaking, this rally looks like the real deal. Institutional money came back hard and fast. Positioning is no longer washed out. The macro backdrop — no recession, tariff de-escalation, the AI capital expenditure cycle running full steam — is supportive. 

For traders, fighting this tape in the near term is likely a losing game.

What the Rally Did Not Fix: The Three AI Waves Still Threatening SaaS

Now, here’s the uncomfortable truth: the stock prices recovered. The fundamental risks did not.

For years, Wall Street loved the Software-as-a-Service business model. Businesses would pay per employee per month to access a software platform that managed some part of its operations — sales pipeline, expense reports, project timelines, creative assets. 

Recurring, predictable, high-margin revenue. 

AI is now dismantling that very business model that made these companies worth hundreds of billions in the first place.

The disruption is playing out in three distinct waves, each more threatening than the last:

Wave 1: The Point Solution Wipeout

AI agents can now perform tasks without a SaaS subscription attached. Why pay $15 per employee per month when AI can now manage tasks for far less? The lowest-value software offerings are being hollowed out first, and the pace is accelerating.

Wave 2: The Pricing Compression Squeeze

For mid-market horizontal platforms — i.e. project management, customer relationship management, collaboration tools — the threat is subtler but equally dangerous. AI is reducing the switching cost of leaving these platforms. 

If an AI agent can replicate much of what a software platform does at a fraction of the price, customers don’t necessarily churn immediately. But they start to negotiate. Renewal rates slip. Pricing power evaporates. 

These are low-multiple businesses masquerading in high-multiple clothing.

Wave 3: The Business Model Disruption

Even the biggest, most entrenched platform companies — the ones with large enterprise relationships and genuine data moats — will survive. Though, to do so, they will have to transform from seat-based subscription businesses into consumption-based AI platforms. 

Usage-based pricing sounds modern and exciting. It is also inherently lower-margin and lower-multiple than the model Wall Street has been paying 30x revenue for. This is not a crisis. But it is a permanent structural reset.

Beta vs. Conviction: How to Tell Which Software Stocks Deserve the Rally

IGV went up as a block. It will not come down that way. 

When macro sentiment flips — fear turns to greed, institutional money re-risks — it buys everything in a sector first and asks questions later. That is what happened with IGV. 

However, inside that ETF, there are companies with genuinely AI-native business models that will compound through this transition, and there are companies bouncing on pure beta that will re-test their lows the next time AI demonstrates its abilities.

The Compounders: SaaS Stocks That Benefit as AI Proliferates

The names worth holding are those that make up the nervous system of the AI economy — the infrastructure, security, observability, and physical-world data. 

Palantir (PLTR), CrowdStrike (CRWD), Palo Alto Networks (PANW), Datadog (DDOG), Axon (AXON), Samsara (IOT): these businesses benefit directly from a world where more AI agents are running, more data is being processed, and more attack vectors need strong defense.

The Faders: SaaS Stocks Bouncing on Macro, Not Fundamentals

Then there are the names worth fading on this bounce. And this is where the SaaSmageddon thesis bites hardest.

Broader SaaS incumbents — legacy CRM platforms, creative tool suites, HR and payroll software, project management tools — face a more complicated road. Some are investing aggressively in AI and may survive the transition. But many are bouncing on macro tailwinds rather than fundamental improvement, and their pricing power story is getting harder to tell with each AI capability improvement.

Workday (WDAY), HubSpot (HUBS), and Adobe (ADBE) each face acute pressure from the second and third waves — bouncing hard on macro tailwinds while their pricing power stories quietly erode.

One of the most ironic shorts in the market right now is UiPath (PATH) — a company whose entire business is automating workflows, now being disrupted by better automation. UiPath built its model on robotic process automation: software bots that mimic human clicks, keystrokes, and navigation across legacy enterprise systems. It charged enterprise customers handsomely to deploy and manage those bots. Now, AI agents can do the same work — and increasingly more — without the rigid rule-based scripting UiPath requires, at a fraction of the cost, and without a dedicated implementation team. The product that was the future of automation is being made obsolete by the next version of it. The robots are eating the robot-makers.

The Bottom Line: Own the Nervous System, Fade the Workflow

In the near term, there is no reason to be aggressively bearish on software stocks. The technical setup is as good as it has been in years, institutional positioning supports continuation, and the macro backdrop is not fighting the tape. 

But looking out 12 to 24 months? The fundamental reckoning that the market postponed is still coming. Enterprise AI adoption data — renewal rates, churn patterns, pricing concessions — will start to surface in earnings calls over the next several quarters. And as that happens, the distinction between AI-native compounders and beta-driven bounces will become impossible to ignore.

Own the nervous system. Fade the workflow.

Software that becomes more valuable as AI proliferates — security, observability, data infrastructure, physical-world intelligence — deserves a permanent place in your portfolio. The rest deserves skepticism, regardless of how good the chart looks today.

One thing this rally made clear? The market doesn’t wait for permission.

When institutional money decided software was worth owning again, it came back all at once, in a matter of weeks, before most retail investors had time to react. 

The same thing will happen when OpenAI and Anthropic file their S-1s — except the repricing won’t be contained to one sector. It’ll ripple across the entire AI ecosystem simultaneously.

I’ve already mapped where I think that money lands first. Not the IPOs themselves — the companies underneath them that Wall Street will be forced to reprice the moment the filings go public.

Here’s the full picture — including the specific names I think move first.

The post SaaSmageddon Isn’t Over. It’s Just on Pause. appeared first on InvestorPlace.

Semiconductor giant Broadcom, Inc. (AVGO) reported earnings after the bell last Wednesday.  

The company posted 48% year-over-year revenue growth and 54% year-over-year earnings growth. Both were a slight surprise.  

But investors weren’t satisfied after the company maintained its previous forecast for semiconductor revenue of $100 billion. And that sent Broadcom shares plummeting more than 25% on Thursday and Friday.

Since Broadcom is one of the leaders of the AI Revolution, it dragged the entire NASDAQ down with it. As a result, the tech-heavy index finished down by nearly 5% on the week.

At first glance, this may seem like alarm bells are going off for the AI boom. After all, chipmakers have been among the biggest drivers of the market’s rally over the past year.

So, the question is: What is Wall Street actually rewarding right now?

In my opinion, there’s nothing wrong with the market. It’s just that after a long period of gains, the market has to take a breather from time to time.

So, money isn’t leaving the market. It’s just being reshuffled into areas that may offer greater upside from here. It’s now rewarding smaller AI companies.

And in this week’s Navellier Market Buzz, I explained why investors are rotating away from some of the biggest AI winners and into a new group of AI infrastructure stocks benefiting from the massive data center buildout.

Click the image below to watch now.

To see more of my videos, click here to subscribe to my YouTube channel.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they’re rated.

What If You Could See the Shift Before Everyone Else?

Personally, I think the pullback was a gross overreaction to Broadcom’s outlook and view the dip as a good buying opportunity.

So, a pullback in a stock like Broadcom doesn’t change my long-term outlook on AI.

In fact, I believe some of the biggest opportunities in AI are still ahead of us.

But as we’ve seen over the past week, investor sentiment can shift quickly. The stocks that drove yesterday’s gains aren’t always the ones that drive tomorrow’s.

When shifts like this happen, it always helps to have a signal – a way to cut through the noise and identify where money may be flowing next.

Before it becomes obvious to everyone else.

That’s exactly why I’m stepping forward this Wednesday, June 10, at 10 a.m. Eastern, with my colleague and friend, Keith Kaplan, to reveal what I believe could be the most important upgrade to my Stock Grader system in decades.

Based on our extensive backtesting, this upgrade could have dramatically improved results on many of my past recommendations.

For example…

• It could’ve already turned a 26% gain on Generac Holdings Inc. (GNRC) into a 1,178% gain…
• A 130% gain on Regeneron Pharmaceuticals, Inc. (REGN) into a 241% gain…
• And boosted a mere 7% gain on Carpenter Technology Corporation (CRS) into an incredible 416% winner.

During this special event, I’ll show you exactly how it works and explain why I believe it could become an essential tool for navigating today’s fast-moving market.

Plus, if you join us, I’ll give away two stocks that this system is flagging – one to buy and one to sell.

Click here to reserve your spot now.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Broadcom, Inc. (AVGO) and Carpenter Technology Corporation (CRS)

The post Broadcom Fell, But Here Are 5 AI Stocks Winning Now appeared first on InvestorPlace.

As I write on Monday morning, the markets are trying to claw back from last Friday’s tech rout triggered by the blowout jobs report – it was the last thing an inflation-rattled market wanted to see.

The May employment report landed well above expectations. The U.S. added a seasonally adjusted 172,000 jobs in May, more than doubling expectations of 80,000. Meanwhile, the unemployment rate held steady at 4.3%.

Stepping back, payroll gains have averaged 188,000 over the past three months – a pace not seen since March 2024.

Now, this would appear to be great news – so, why the Friday tech-wreck?

Because the report landed on top of the latest Personal Consumption Expenditures (PCE) inflation reading of 3.8% – the highest since May 2023 – and two consecutive inflation prints trending in the wrong direction. A robust labor market, in this environment, doesn’t give the Fed any room to cut interest rates. If anything, the conversation now shifts to rate hikes.

White House National Economic Council Director Kevin Hassett told Bloomberg Television that investors are “terribly wrong” to interpret the strong report as evidence that the Fed will hike rates – his argument: oil-price shocks historically produce temporary, not lasting, inflation.

We’ll find out soon enough. Fed officials meet next week under the leadership of new Chairman Kevin Warsh – and Friday morning’s data just made that meeting considerably more interesting.

But Fed policy aside, is this report really a glowing reflection of Main Street health?

Let’s break it down.

The headline vs. what’s underneath

Friday’s jobs number looks strong on the surface. Underneath, there’s a different picture.

Beyond the 172,000 new jobs, the same report showed that year-over-year average hourly earnings rose just 3.4% in May – down from 3.6% in April. With PCE inflation running at 3.8%, that means real wages are deeply negative. Translation: workers are getting raises that don’t keep up with what they’re paying at the pump and the grocery store.

Meanwhile, the long-term unemployment rate – people out of work for 27 weeks or longer – jumped to 27.5% in May. That’s up from 25.3% in April, and the highest level since December 2021.

So, under the glossy “172,000 jobs” headline, there are widening cracks.

And it gets more complicated…

Even as long-term unemployment ticks up and real wages decline, our technology expert Luke Lango, editor of Innovation Investor, has been tracking a strange paradox.

Here’s Luke:

Nominal personal spending growth rose in April from 5.7% to 5.9% — the strongest reading since January 2025. 

Consumers haven’t pulled back at all. If anything, they’re spending more. But the fundamental support for that spending has completely collapsed underneath them.

So, if wages aren’t funding this spending binge, what is?

Savings.

Luke reports that the U.S. personal savings rate crashed to 2.6% in April 2026 – one of its lowest levels in modern history.

But savings aren’t the only source of this spending – it’s also coming from debt. And some cracks are forming.

Here’s CBS News:

Credit card delinquencies across the U.S. have reached their highest level since 2011…

Nationwide, about 13% of all credit card accounts were in arrears in the first quarter.

CBS went on to report on data from Fidelity that more Americans are taking out loans and making hardship withdrawals from their 401(k)s.

So, while Friday’s headline unemployment rate suggests the labor market is strengthening, the picture for the American consumer is considerably more troubling.

Here’s the Wall Street Journal‘s summary from Friday:

American consumers report feeling miserable about the economy, gasoline prices, inflation and the labor market.

A key measure of consumer sentiment has hit new all-time lows in recent months amid anxiety about future inflation. 

Where does all this take us?

Here’s Luke’s latest prediction:

Over the next 12 months, the consumer situation goes from bad to worse.

Sometime in 2027, they hit the wall. Spending collapses. Consumer confidence craters.

And since consumer spending still drives roughly 70% of U.S. GDP, the broader economy starts to crack. 

And here’s where the AI jobs-displacement narrative that we’ve been tracking kicks in.

Luke predicts that when the economy starts to crack, corporate revenues will be hit. So, how will management respond?

By accelerating the transition from human workers to AI.

That dynamic feeds directly into Luke’s “2028 election” forecast – a populist, bipartisan anti-AI movement pushes through legislation. That could look like different things – perhaps a tax on AI profits, a forced limit on hyperscaler capex, or maybe mandatory review processes for new AI models – but whatever the form, it derails the AI trade.

Back to Luke:

By late 2028 or early 2029, those politicians follow through…

That’s the March 2000 moment for the AI bull market.

We’ll keep tracking this.

And on that note, last Thursday, the data gave us something new to track…

The AI jobs debate just got more data

Over the last several months, I’ve been in what I’d call a “convince me” posture about AI-driven job displacement.

Long-time Digest readers know I’ve spent years flagging the risk. But over the last 12 months, I’ve encountered increasing data and analysis that counter that narrative. At a minimum, on its timing.

Most recently, I came across research from Citadel Securities reporting that job postings in AI-exposed sectors are now rising, not falling. Meanwhile, executives are framing AI as a complement to their workforce, not a substitute for it.

Today, while still concerned about the job displacement thesis, I’m holding it with less conviction than before as I track the data, which brings us to last Thursday’s Challenger, Gray & Christmas report.

The headline:

AI drives May cuts to 97,006, the highest May total since 2020.

For the third straight month, firms cited artificial intelligence as the leading reason for layoffs – accounting for 40% of all May cuts.

AI-driven job cuts have now reached 87,714 so far this year, already up roughly 60% versus all of 2025, with seven months still to go.

Luke saw the report and offered a pointed response:

Jevons’ Paradox… meet Engels’ Pause. 

To make sure we’re all on the same page, Jevons’ Paradox holds that when a resource becomes more efficient, total consumption of that resource tends to rise rather than fall.

Applied to AI: cheaper, more capable AI might expand demand for workers who use it, not shrink it.

Meanwhile, Engels’ Pause refers to a period during Britain’s Industrial Revolution – roughly 1790 to 1840 – when GDP growth exploded, and corporate profits surged, while average workers’ real wages remained flat or fell for 50 years.

The wealth eventually trickled down. The jobs eventually multiplied. But it took half a century.

Luke argues that AI is compressing that same dynamic into a single decade. The steam engine took a century to deploy. ChatGPT hit 100 million users in two months.

So, while the Jevons argument has its believers, Luke isn’t one of them – at least not right now:

While I understand those arguments in the long-term, I’m not sure I believe them in the short-term, because the numbers and announcements tell a pretty clear story.

That story added a new chapter last Thursday.

We’ll keep following this evolution here in the Digest.

What’s driving volatility this week

If Friday’s 4.2% pullback in the Nasdaq had you feeling rattled, you’re not out of the woods yet. This week is stacked with catalysts that could move markets.

Wednesday brings the May Consumer Price Index report – the latest data on the Iran War’s impact on consumer costs.

Thursday follows with the Producer Price Index, showing how that same inflation is hitting businesses.

Friday brings the latest Consumer Sentiment report.

All of it feeds directly into the Fed’s calculus ahead of next week’s FOMC meeting, now the most consequential Fed gathering in years.

New Chairman Warsh will have to weigh Friday’s strong labor market reading against inflation running nearly double the Fed’s target – with rate-hike pressure building from multiple directions.

Now, amidst that packed calendar, there’s one more wildcard.

This Friday, SpaceX is expected to price its IPO at a $75 billion valuation – already oversubscribed, according to Bloomberg. It could be the largest IPO in history, arriving in the middle of one of the most consequential macro weeks in recent memory.

Luke has been preparing his subscribers for this moment – and his view may surprise you. Buying a landmark IPO on day one is usually the wrong trade.

Here’s Luke:

The biggest gains from landmark technology IPOs have almost never gone to the investors who bought on day one. They’ve gone to the investors who owned the ecosystem around those companies before Wall Street showed up to reprice it.

That’s exactly the opportunity I’ve been preparing for. I call it the Pre-IPO Backdoor — a small group of publicly traded companies that supply, power, and benefit from both OpenAI and Anthropic, and that I believe will get significantly repriced the moment those S-1 filings land.

The window to get in ahead of that repricing is open right now. I don’t know how much longer it stays that way.

For everything Luke has found – including the specific stocks he thinks you need to own before the IPOs arrive – click here.

Bottom line: Between inflation data, Fed policy, AI disruption, and a historic IPO pipeline, investors have plenty to digest. Buckle up!

Have a good evening,

Jeff Remsburg

P.S. Louis Navellier is doing something I’ve never really seen him do before

The legendary investor is partnering with TradeSmith to unveil a new AI-powered investing approach designed to help investors become more tactical in a fast-moving market.

What’s especially interesting is that you don’t have to wait for the event to get a taste of it. You can use the free ticker tool to check the short-term health of stocks you already own, then join Louis on June 10 for the full presentation.

I’ll bring you more on this tomorrow. But to learn more now, just click here.

The post What to Look For Before the SpaceX IPO appeared first on InvestorPlace.

What happens when AI starts finding security flaws that humans missed for 27 years?

Governments don’t ignore it. They want access.

Anthropic recently agreed to give the European Union (EU) access to Mythos – its highly advanced cybersecurity-focused AI model – after months of discussions between the company and EU officials.

Anthropic initially released a limited version of Claude Mythos in April. It reportedly uncovered zero-day vulnerabilities across every major operating system, including one security flaw that had remained hidden for 27 years. (Zero-days are hidden software flaws that hackers can exploit to steal data, take over systems, or launch cyberattacks.)

Because of its capabilities, Anthropic immediately restricted access to the model to a small group of organizations involved in critical infrastructure, finance, and cybersecurity under its “Project Glasswing” initiative.

So, the EU gaining access to Mythos signals a broader shift in the AI race and where capital may start to flow. Here’s why…

Mythos features powerful autonomous and agentic capabilities. Many of you have heard the term “agentic AI” for months, but the model is a concrete example of why it matters.

To briefly review, agentic systems are the “next generation” of AI technologies that can make decisions by themselves and adapt to changes. They are essentially like the brain behind a smart assistant or AI robot, able to perceive their environment and act accordingly.

You can learn more about the agentic AI – and the opportunities it presents – here.

Mythos is agentic AI applied to cybersecurity.

Traditionally, cybersecurity has relied on highly skilled analysts spending weeks or months searching for vulnerabilities. But if AI can discover software vulnerabilities that humans missed, the opportunity changes from “AI helping workers” to “AI performing work that previously required highly specialized experts.”

That shift points to cybersecurity AI as an emerging market in its own right.

In other words, the next phase of the AI boom may not be about helping workers write emails faster… but about helping governments and corporations protect digital infrastructure, like data centers and software systems, from increasingly sophisticated threats.

And governments getting access to models like Mythos suggests that advanced AI is being viewed less like normal software and more like critical infrastructure, similar to cloud systems, or even energy systems.

This could drive more spending on AI security and defense tools that will most likely be run by agentic AI themselves.

And if Mythos is any indication, the real opportunity in agentic AI extends even beyond cybersecurity. The same autonomous capabilities that can identify software vulnerabilities could eventually be applied to scientific research, engineering, healthcare, manufacturing, and countless other fields that rely on specialized expertise.

That means agentic AI has the potential to become a new kind of digital worker that helps organizations solve complex problems faster, cheaper, and at a much larger scale than before.

I discuss everything you need to know about agentic AI in my special broadcast, which you can check out here.

Now, let’s take a look back at what we covered here at Smart Money this week.

Smart Money Roundup

AI Could Help You Live Longer – and Invest Smarter

June 6, 2026

Many investors think of AI as a story about chips, software, and the companies building the technology. But its biggest impact may be far broader than that.

My colleague Louis Navellier has been exploring how the same deep-learning systems that are accelerating breakthroughs in medicine, scientific research, and drug discovery could also transform the way investors identify opportunities in the stock market.

This Market Looks Like 1999, and That Should Make You Pay Attention

June 4, 2026

Louis has been investing through major market cycles for nearly 50 years, including the internet boom of the late 1990s. Recently, he told me that the AI boom reminds him of that period in surprising ways.

Not because he thinks the market is about to crash, but because he believes investors need to be prepared for both opportunity and volatility. Here’s what he has to say.

SoftBank Calls AI 50X Bigger Than Dot-Com — Here’s Who Actually Profits

June 3, 2026

“I think this is like more than 10X, probably 50X bigger than dot-com,” SoftBank CEO Masayoshi Son told CNBC. The “this,” of course, is the AI Revolution.

And if AI delivers even a fraction of the impact Son predicts, the greatest opportunities will not be in the technology itself, but the infrastructure required to power it.

Looking Ahead

Anthropic isn’t just making moves across the pond.

It kicked off its initial public offering process after confidentially filing paperwork with U.S. regulators last week.

The confidential filing is the early, private step where regulators review the company’s financials. That means the details, like share price, IPO date, and final valuation, are not yet public. However, the company was recently valued at about $965 billion after a massive funding round – surpassing OpenAI’s valuation for the first time.

Anthropic is joining the AI IPO race alongside OpenAI and SpaceX – the latter of which is set to go public on Friday.

The three companies’ huge valuations show strong demand for AI tools and suggests investors believe the AI boom – from software to chips and data centers – is still far from over.

We’ll further discuss SpaceX’s IPO later this week. So, be sure to keep an eye out on your inbox.

Regards,

Eric Fry

The post The Next AI Boom Could Be Driven by Cybersecurity appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, Market 360

The post Bristol-Myers Upgraded, Broadcom Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

Editor’s Note: There are people on Wall Street who say they’ve been using data and quantitative systems to pick stocks their whole career. And then there’s Louis Navellier — who was actually doing it in the 1970s, on a mainframe computer, before most of his peers thought it was even worth trying.

I share that because what Louis is about to tell you isn’t a story about jumping on the AI trend. It’s a story about someone who has spent nearly five decades refining a system — and just found the most powerful upgrade of his career.

Read what he has to say below, and I think you’ll understand why I took notice.

Louis is hosting a free event on June 10 at 10 a.m. Eastern with TradeSmith CEO Keith Kaplan to demonstrate the full system. When you register, you’ll get immediate access to a free tool that lets you check whether any stock you own is currently a short-term buy, hold, or sell — before the event even starts.

Sign up right here.

If you’re under 50 and you stay healthy, you could live to 150.

To you and me, that may sound like science fiction. But to Demis Hassabis, it sounds conservative.

Hassabis is the computer programmer and neuroscientist who founded DeepMind — the pioneer deep learning lab that Google bought in 2014.

Deep Learning is the method of training software to recognize patterns by feeding it enormous amounts of data and letting it learn from its own mistakes. And it’s the core technology behind OpenAI’s ChatGPT, Anthropic’s Claude, Google’s Gemini and most of what people mean when they say “AI” today.

In 2024, Hassabis won the Nobel Prize in Chemistry for building an AI model — called AlphaFold2 — that mapped virtually all 200 million known proteins. This touched off a revolution in drug discovery. 

Most drugs work by binding to a specific protein in your body — much like a key fits into a lock. For 50 years, figuring out the shape of those locks was so slow and expensive that it bottlenecked the entire drug discovery process. 

Thanks to AlphaFold2’s mapping, what used to take researchers years in the lab now happens in hours on a computer.

The progress is so fast that Hassabis estimates we’ll cure ALL disease within 10 years.

I’m 67 — well past the 50-year-old cutoff he’s talking about. But when I look at what’s come out of medical research in just the last two months, he might be right:

• A drug just doubled survival in pancreatic cancer — the deadliest cancer there is.
• A one-time gene-editing infusion permanently cut bad cholesterol by 62% from a single dose.
• A lung cancer pill held back a spreading tumor for five full years — longer than any drug has ever managed.
• The Mayo Clinic built an AI that detects pancreatic cancer on routine CT scans up to three years before a doctor can spot it.
• Eli Lilly’s new anti-obesity drug achieved 30% body weight loss in its Phase 3 trial — and, along the way, cut knee arthritis pain by 76%.

These aren’t random breakthroughs. They were all either discovered, accelerated, or made possible by the kind of deep-learning AI models Hassabis pioneered.

And, folks, these models are only accelerating as AI learns to write code to create more powerful models… which write code for even more powerful models… and so on.

Which brings me to the question that I’ve been thinking about a lot lately.

If AI is rewriting what’s possible in a field as complex as human biology — what is it about to do to financial markets?

I’ve spent 47 years building computer systems to find growth stocks before the crowd catches on. So, I know what it looks like when a new technology changes the game for investors.

In the 1970s, I was one of the few people using a computer to pick stocks. Most of my peers thought it was eccentric at best… and a fool’s errand at worst. Today, computers are responsible for about 80% of daily stock trading volume.

And I believe what’s coming with AI is a change of a far greater magnitude. 

I’ll show you what I mean in a minute — including how adding AI to my own quantitative models could turn a 615% gain on a stock like DXP Enterprises Inc. (DXPE) into a 3,626% winner, or a 292% gain on Broadcom Inc. (AVGO) into 6,284%.

First, though, let me take you back to the early 1970s when I had my first “eureka moment” about how machines could crack the secrets of the stock market. 

The 1970s Eureka Moment That Launched 47 Years of Market-Beating Quant Investing

It was my junior year at Cal State Hayward (now Cal State East Bay), where I was studying finance. 

One of my professors was working for Wells Fargo — using its mainframe computer to build the stock market indexes that were just emerging. He asked me if I could help.

The flashiest technology I’d touched up to that point was a slide rule. Getting access to that mainframe was like an 1800s gold prospector being shown a diesel-powered excavator.

My job was to build a model portfolio that mimicked the S&P 500 using just 320 stocks. But something unexpected happened. Instead of just tracking the market — my version beat it.

That wasn’t supposed to happen. The prevailing theory at the time — which every finance textbook repeated as gospel — was that you couldn’t consistently beat the market. It was impossible. 

My data said otherwise.

So, I dug deeper. I ran the statistical tests. And I found a pattern that would define the next five decades of my career. Some stocks move independently of the broader market and have their own signal. Find them early enough, and the gains can be extraordinary.

Folks on Wall Street call it “alpha.” From that moment on, I was obsessed with building systems to find it.

676 Stocks That Doubled: The 47-Year Track Record Behind the System

That discovery launched a career I could never have predicted.

Over the next five decades, I built quant models that powered some of the most successful investment newsletters in America. 

My system has identified 676 stocks that went on to double — including recommendations like Microsoft Corp. (MSFT) in 1987, Nike Inc. (NKE) and Apple Inc. (AAPL) in 1988, and Nvidia Corp. (NVDA) a full 17 years before most people had ever heard of ChatGPT.

That last one alone would have turned $1,000 into more than $1 million.

None of those wins came from hunches or gut feelings. They came from what I discovered with the help of that Wells Fargo mainframe in the 1970s — a systematic, data-driven process for finding fundamentally superior stocks backed by powerful institutional buying pressure. 

The process got more refined over the decades. The data got richer. The models got more powerful. 

In other words, I’ve spent my career looking for the crème de la crème of the stock market. But I never had access to a technology as powerful as what I’m about to show you.

What Happens When AI Meets a Time-Tested Quant System: The Results Are Extraordinary 

As I like to say, good stocks bounce like fresh tennis balls, while bad stocks fall like rocks. The key is knowing the difference before the market starts shaking.

That’s why, for the past year, I’ve been working with the team at TradeSmith on something I’ve never attempted before.

If you don’t know them already, it’s the financial technology company behind some of the most sophisticated portfolio tools available to individual investors today.

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. 

It includes a layer of the same kind of pattern-recognition AI technology that’s diagnosing cancer three years earlier and designing drugs in hours instead of years.

The difference it makes is extraordinary.

Take AppFolio Inc. (APPF), a stock I recommended in 2017. 

Anyone who acted on that recommendation has enjoyed an annualized gain of 20%. Compounded over time, that’s excellent. But according to our backtesting, this new AI-enhanced system would have delivered a 74% annualized gain.

Or take Nexstar Media Group (NXST), which I recommended in 2013. A 23% average yearly gain becomes 173%.

Same stock over the same stretch of time. Just smarter timing.

Across the board, backtesting suggests that pairing this new AI with my Stock Grader ratings could generate up to 20 times more money than following Stock Grader alone.

That’s why I say this is the biggest edge I’ve seen in my 47 years as a professional investor. It’s not a new stock picking system — it’s a new layer of intelligence on top of what I’ve already built.

And if we get more stock market gyrations this summer, I believe that kind of intelligence could be more valuable than ever.

Why AI Stock Picking Changes Everything 

Back in the 1970s, the idea of using a computer to pick stocks seemed absurd to most people on Wall Street. I did it anyway. The results spoke for themselves.

Today, the idea that AI can reliably improve on a 47-year track record might seem equally hard to believe. I get that skepticism. I felt it myself. But then I looked at the testing and had to admit that AI plus my system works like gangbusters.

I’ve been hunting for edges in this market for 47 years. I’ve never seen one like this.

To see exactly how it works — and get the full list of stocks it’s flagging as urgent buys and sells — join me for my online event with TradeSmith CEO Keith Kaplan next Wednesday, June 10, at 10 a.m. Eastern. 

When you register your interest, you’ll get access to TradeSmith’s Short-Term Health indicator. 

While Stock Grader’s main focus is on what stocks to buy, Short-Term Health is all about when to buy them.

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.

Here’s that link again to access the unlocked version.

The post The Nobel Prize-Winning AI That’s Coming for the Stock Market appeared first on InvestorPlace.

When people talk about the year “1999,” most investors will immediately tense up. That year was the start of a terrible stretch for the value-focused buy-and-hold crowd. The dot-com bubble burst meant that anyone who bought the Nasdaq Composite in January that year would have been in the red until 2006… just in time for the global financial crisis two years later. 

Experienced growth investors will also shudder at the thought of 1999. Many internet companies saw their share prices peak early that year, including Lycos (March), Priceline (April), and TheStreet.com (May). In fact, many smaller dot-coms were already on their way out by the time 1999 began. 

That means when Louis Navellier says he thinks today’s market looks a lot like 1999, he’s really saying two things: 

• Bullish. Much like the internet, AI is justifying more gains to come. Consumers and companies are paying handsomely for the best AI models, and industry leaders are generating record profits as a result. Anthropic, an AI startup that lost roughly $5.2 billion last year, expects to swing to an operating profit this quarter. 
• Bearish. However, high valuations today make for an extremely fragile bull market. Smaller AI laggards are already fading away, and indebted ones like Oracle Corp. (ORCL) are showing cracks in their balance sheets. Louis forecasts a highly volatile summer and the possibility of a meaningful pullback. 

After all, if so many AI stocks are starting to look like hockey-stick charts like the one from Intel Corp. (INTC) below, it’s easy to see how ugly a selloff can get. 

INTC stock price 

Source: LSEG 

To navigate this increasingly brittle rally, Louis has become far more selective in the stocks he’s recommending. And to do that, he’s partnered with TradeSmith CEO Keith Kaplan to build a new AI-driven investing system that combines his Stock Grader research with TradeSmith’s market-timing technology. 

The result is a new Tactical Profits Portfolio that selects the best AI-focused companies with strong fundamentals that can withstand drawdowns. It also helps flag weaker players at risk of losing ground. 

On Thursday, June 10, Louis will sit down with Keith and explain the work they’ve done with their system and how their stock-selection tools have helped investors navigate past volatility. 

You can sign up for their presentation here.

Today, I’d like to give a sample of five stocks that pass this threshold, and another three that fail it. And if you’re worried about the stocks in your own portfolio, you can register for their event and use their free ticker tool for a limited time to check their short-term health.

Five High-Quality Names for a Volatile Summer 

Readers will immediately notice that the five companies in this list are wide-moat firms trading at surprisingly reasonable prices. All run like quasi-monopolies, giving them the strength to outlast a market selloff. And all were recently ranked well by both Louis’ Stock Grader and TradeSmith’s market-timing system. 

1. Nvidia Corp. (NVDA). The “king of AI” continues to expand its domain. Last week, at Computex 2026, CEO Jensen Huang revealed that the chipmaker plans to move into personal computers (PCs) with a new chip called the RTX Spark that combines AI and traditional computing power. 

His rationale is straightforward: PCs are looking much like the “dumb phones” from the 1990s. Their purpose has not changed in decades, even though technology has marched ahead. Today, smartphones are used for everything except making calls. Why can’t the same happen for a reinvented laptop? 

In addition, 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. At Computex 2026, the company additionally announced that its next-gen Vera Rubin AI supercomputer is already ramping into full production – delivering on a promise Nvidia made in 2024. 

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. 

2. Alphabet Inc. (GOOGL). Meanwhile, Google’s parent company is the only major hyperscale AI data center firm expected to remain cashflow positive in every quarter this year. Analysts expect net cash inflows of $18 billion in 2026 (despite $185 billion in data center spending). That’s thanks to a combination of: 

That suggests Alphabet’s fair value is somewhere in the mid-$400s range, according to my math. The company’s vertical integration is proving to be a durable competitive advantage, and the advantage looks set to expand over time. Louis’ and TradeSmith’s system both agree. 

3. Advanced Micro Devices Inc. (AMD). Over the past several years, AMD has capitalized on Intel’s stumbles to establish itself in the CPU market. It has gone from less than 10% market share to about a third overall – and provides nearly half of all server CPUs. Its evolution from near-bankrupt company to world-beater got CEO Lisa Su named Time magazine’s CEO of the Year 2024. 

Markets might still be underestimating AMD’s potential. 

In a recent earnings call, Su noted that the CPU-to-GPU ratio should move from a 1-4 or 1-8 ratio today to 1-1 in the coming years. She joins the bosses of Intel and Arm Holdings PLC (ARM) in predicting the return of the CPU. 

I believe they’re right (even though they’re all CEOs of CPU companies). 

That’s because AI is shifting from mostly training and simple inference to agentic inference. This new type of AI requires far more “thinking,” where AI models will plan, call tools, run code, inspect results, and sometimes run in circles before asking for help. GPUs are still needed to run AI models, but CPUs are then used to orchestrate and analyze results. 

That should put AMD on a far faster growth track than people expect. Analysts are currently expecting growth to taper off by the end of 2027, but I expect demand could last through 2030. Louis’ and Keith’s systems both agree, awarding AMD their top bullish scores. 

4. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM). Taiwan Semi (also known as TSMC) is the world’s largest contract chip manufacturer. The firm controls roughly 70% of the market and is the only chipmaker capable of manufacturing the advanced 2-nanometer process at profitable scale. It is now working on the A16 and A13 nodes. 

Expectations for the company are surprisingly modest. TSMC trades at just 28X forward earnings and 21X forward cash flows – well below less established firms like Intel and China’s Semiconductor Manufacturing International Corp. (SMIC). Investors have become conditioned by years of boom-bust cycles in the chip “fab” business and typically view incumbents with skepticism. (Upstarts typically get a free pass during boom times.) 

Yet, skeptics will ignore the Taiwanese firm at their own risk. Like Nvidia, TSMC has been able to raise prices thanks to insatiable AI demand. The company expects capacity to rise just 7% in 2026, meaning that over two-thirds of its 31% revenue growth is coming from price increases. Its monopolistic position means further price increases are likely. 

Consolidation among semiconductor companies has also created demand for more complex chips. Larger firms like Nvidia and AMD are combining GPUs, CPUs, and memory components into integrated products, and these complicated chips require the type of leading-edge nodes that TSMC produces. Though Taiwan Semi is more of a “grind higher” company because of its capital investment needs, it’s still a solid enough company that should weather a selloff. The company earns top marks in Louis’ and Keith’s system. 

5. Analog Devices Inc. (ADI). Finally, we have Analog Devices, one of the world’s largest analog and mixed-signals chipmakers. The company has a particularly wide lead in high-performance signal processing chips – the devices that convert real-world information (light, sound, temperature, voltages) into the usable “0s” and “1s” that digital chips need. 

Profits are high thanks to years of investments and high customer switching costs. Operating margins have hovered around 40% since 2020. Growth is also quite reasonable, thanks to the rise of electric vehicles, robotics, and “internet of things” devices. Analysts expect revenues to increase 34% this year. 

The AI boom now offers three new paths for growth. 

Together, that makes Analog one of my top long-term companies to buy. The company has a durable moat in analog chips, and its strong quantitative scores from Louis and Keith suggest there’s still time to get in on this high-quality firm. 

Knowing When to Sell 

Louis’ and Keith’s systems also make it clear that some AI stocks are off the table. These include: 

• Accenture Plc (ACN) 
• Adobe Inc. (ADBE) 
• Intuit Inc. (INTU) 

Not only are the fundamentals at these firms deteriorating – often from AI competition – but short-term momentum is also turning decidedly negative. That’s a highly bearish sign in this returns-chasing market. No retail investor wants to hold a sinking stock. 

These are not the only companies at risk. 

In their upcoming presentation, Louis and Keith caution why the months ahead could be much more volatile than many investors expect… and why comparisons to 1999 are both an encouragement and a warning for investors today. 

You can register for their presentation here.

I’ll be out of town next week, so I’ll see you back here in two weeks 

Regards, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post Party Like It’s 1999: 5 Stocks to Buy Without Getting Bubble-Burned  appeared first on InvestorPlace.

Oura is going public at the perfect cultural moment. And that is exactly what makes the IPO dangerous.

The smart-ring maker has confidentially filed its draft IPO paperwork with the Securities and Exchange Commission, according to CNBC. The company says it is on track to pass 5 million paid members this quarter. Revenue has reportedly grown fourfold over the past two fiscal years. Oura was valued at $11 billion last October after a $900 million Series E round, and it has raised more than $1.5 billion in total.

Those are monster numbers. They also explain why this IPO may already have too much good news baked in.

Wall Street has discovered wearable health. Wellness has become dinner-table conversation. People who used to brag about 80-hour weeks now brag about zone 2 cardio, magnesium glycinate, eight hours of sleep, and a morning readiness score.

That shift is real. It may last for decades.

But buying the hottest private company after the market has already found the theme is still a dangerous way to make money.

Just ask Peloton.

The Peloton Warning: Seeing the Future Doesn’t Make the IPO Safe

Peloton understood the future early.

Fitness was moving into the home. Hardware could become a social product. A bike could become a media platform. A workout could become a subscription habit. 

Peloton was right about the culture. Investors paid pandemic multiples for that story. Then demand normalized, competitors caught up, and the world reopened.

That is the Oura risk in miniature.

Oura may be a great product. It may keep growing. It may even become one of the defining consumer health brands of this decade. The IPO can still be a poor entry point.

At an $11 billion private valuation, Oura is being valued less like a hardware company and more like a platform. CEO Tom Hale told CNBC the company was on track for about $1 billion in 2025 sales and could approach $2 billion in 2026. Even if it hits the high end of that 2026 target, the last private valuation still implies roughly 5.5x those future sales.

That can work if Oura proves it has high-retention software economics. Though the math gets much tougher if the S-1 shows a premium hardware business with a subscription wrapper.

Hardware gets copied. Sensors get cheaper. Wellness fads cool. The winner turns health obsession into durable habits, services, locations, devices, records, and treatment loops.

Oura owns a strong measurement point. The public-market winners could own the rest of the system.

The Health Boom Is Much Bigger Than the Oura Ring

Oura’s pitch is simple: a small device watches your body all day and all night, then turns that stream of signals into advice.

That sounds like a ring story. The trail of money is bigger.

People are changing what they spend on. More dollars are going into health, energy, fitness, sleep, appearance, longevity, and self-command. A premium gym membership can signal more than a nicer briefcase. A shoe rotation can matter more than another suit. A lab panel, a running watch, GLP-1 care, a recovery score, or a training plan can become part of how someone sees themselves.

Oura is following the money. It has:

• Pushed into AI coaching through Oura Advisor
• Moved into metabolic health through Veri and a Dexcom partnership
• Launched Health Panels with Quest Diagnostics, offering about 50 biomarkers for $99 with in-app interpretation. 
• Bought medical-record technology through Galen AI
• Invested in women’s health, cardiovascular risk, and enterprise wellness.

That is the correct map.

The issue is ownership. How much of the economics can Oura keep when the same trend feeds gyms, shoes, watches, phones, labs, treatment platforms, and clinical data companies?

10 Wellness Stocks to Buy Instead of the Oura Ring IPO

As it turns out, a lot of those better-positioned stocks are already public. 

Life Time: the Cleanest Lifestyle Play

Life Time Group (LTH) may be the most culturally relevant stock in this whole basket. Oura tracks the body. Life Time gives the body somewhere to go.

The company operates premium athletic country clubs built around fitness, recovery, pools, classes, childcare, coworking, cafes, spas, and social life. 

For a certain kind of buyer, the new status symbol is a body that works, a sleep score that is decent enough to share, a trainer, a sauna, a pickleball court, and a place to spend Saturday morning without feeling like garbage. That is Life Time’s lane.

• Sales: $3.1 billion | Quarterly growth: 11.7% | Operating margin: 16.9% | Forward P/E: ~19x
• Risks: real estate, debt, consumer spending, premium-gym execution
• The trend fit is unusually clean. This is the higher-upside lifestyle pick.

Garmin: the Better Wearable Business

Garmin (GRMN) is the cleaner public wearable stock. It wins through trust instead of fashion — runners, cyclists, hikers, divers, pilots, golfers, and endurance athletes buy Garmin because the products work.

Its fitness segment revenue rose 42% year over year in Q1 2026.

• Sales: $7.5 billion | Quarterly growth: 14% | Operating margin: 26% | Profit margin: 23%
• Garmin is mature, profitable, and built for committed users — not wellness tourists.

Hims & Hers Owns the Action Layer

Hims & Hers (HIMS) is a very different kind of Oura-adjacent stock. Oura measures and nudges. Hims sells action.

The company has built a direct consumer health funnel across sexual health, dermatology, mental health, weight loss, and GLP-1-related care. It also has a natural path into biomarkers, diagnostics, and AI coaching — giving it a broader monetization surface than a wearable brand.

• Sales: $2.4 billion | Gross margin: 57% | Price-to-sales: 2.5x | Short interest: ~31% of float
• The short interest tells you the market sees both sides. Hims has more upside than the mature names — and more ways to get hurt.

Quest: the Boring Biomarker Engine

Quest Diagnostics (DGX) is dull in a useful way.

Oura’s Health Panels run through Quest — but Quest already does this job at much larger scale. It runs bloodwork and biomarker testing for physicians, hospitals, employers, and direct consumers. Oura is one front door into that lab system. It is not the whole building. Consumer-direct revenue at questhealth.com grew in the high-20% range in Q1, with partnership-driven testing growing even faster.

• Sales: $11.3 billion | Quarterly growth: 9.2% | Operating margin: 14.6% | Forward P/E: ~16.7x
• Bloodwork is harder to hand-wave than a readiness score. DGX is the boring toll road behind the shiny wearable.

Dexcom: the Better Oura-Linked Sensor Play

Dexcom (DXCM) invested in and partnered with Oura — combining glucose data with sleep, activity, and recovery signals. It is already profitable, already scaled, and already central to the continuous-glucose-monitoring market.

• Sales: $4.8 billion | Quarterly growth: 15% | Operating margin: 21.5% | Forward P/E: ~23x
• Risks: reimbursement, competition, pricing, and the pace at which CGM expands beyond diabetes into mainstream metabolic health.
• If metabolic tracking becomes a normal consumer habit, Dexcom is one of the cleaner public ways to play it.

Google Just Made the Oura Trade More Dangerous

Earlier this month, Google announced Fitbit Air — a screenless fitness tracker starting at $99.99, designed for 24/7 health monitoring, paired with Google Health Coach, a Gemini-powered fitness, sleep, and wellness advisor.

Alphabet (GOOGL) is a mature mega-cap with health optionality. Fitbit Air will barely move its revenue by itself. The bigger point: Google has Android, Fitbit, Gemini, cloud infrastructure, and consumer reach. If wearable health becomes an AI coaching market, Google competes at the software layer while Oura fights hardware margin pressure.

Oura may sell a better object. Google may own the decision layer.

Apple: Best Device Footprint, Hardest AI Question

Apple (AAPL) belongs in this conversation whether Oura bulls like it or not. The Apple Watch is already on millions of wrists. The Health app already sits on the iPhone. Apple has the hardware, the trust, the privacy pitch, the payments relationship, and the developer ecosystem.

The caveat: Apple’s health-coaching ambitions have lagged its hardware. The AI layer isn’t ready yet. Apple can still win — the win may just arrive later and with less force than investors expect.

AAPL is a core trend participant. It is a slower, safer way to own the theme.

Tempus and Illumina: the Health-Data Brain and Plumbing

Tempus AI (TEM) and Illumina (ILMN) are the data stack under the ring-stock story.

Tempus sits closer to oncology, clinical AI, and diagnostics than to consumer wellness. 

• Sales: $1.4 billion | Quarterly growth: 36% | Gross margin: 62% | Operating margin: negative | Short interest: ~25%
• Speculative growth — higher upside, higher drawdown risk
• If AI health-data platforms work, Tempus could matter. If investors tire of unprofitable AI-health stories, it can get punished fast.

Illumina is the sequencing infrastructure name — less sexy after years of overhangs, but still near the base of biology-as-data. 

• Sales: $4.4 billion | Operating margin: 20.6% | Profit margin: 19.4% | Forward P/E: ~25x
• If longevity, prevention, and cancer screening keep expanding, sequencing remains part of the machinery.

Deckers: the Lifestyle Dividend

Deckers (DECK), through Hoka, captures the easiest version of the trend to understand. Hoka sits directly in the behavior shift toward walking, running, and low-impact endurance training.

• Sales: $5.5 billion | Quarterly growth: 8.7% | Operating margin: 22.8% | Forward P/E: ~13.7x
• Profitable, real trend exposure; fashion-cycle risk.

This is the “touch grass and buy better shoes” part of the health trade.

Two Cautionary Tales: What Not to Buy In the Wellness Boom

Peloton (PTON) and Lululemon (LULU) are cautionary tales worth studying — and leaving off the buy list.

Peloton proves that trend accuracy cannot save a stock when the valuation, hardware cycle, and demand assumptions break.

Lululemon proves that wellness identity alone is thin protection. The brand can still be valuable. The stock can still be cheap. The growth story has lost its clean shape, and Mirror already showed how hard it is to bolt connected fitness onto an apparel brand.

They are worth knowing. Neither belongs on the buy list. 

The Bottom Line: Let Someone Else Buy the Oura Ring IPO

Oura is part of an undeniable boom. Yet that alone only gets investors so far.

This company is going public after the market already understands the story: sleep tracking, recovery, metabolic health, AI coaching, preventive care, and longevity. The product is cool. The brand is strong. The growth is impressive.

The stock may still be a trap if investors pay platform prices before the S-1 proves platform economics.

I want to see the revenue split and hardware gross margin versus subscription gross margin. I want to see churn, paid-member attach rate, cohort retention, customer acquisition cost, replacement cycles, and the economics of labs, CGMs, employer programs, and AI coaching.

Until then, I would let someone else buy in at IPO-hype prices.

The better trade is to buy the companies that can survive after the fad burns off.

Oura may become a great company. It may even become a staple of health wearables someday, the kind of product people put on at night as automatically as they charge their phone.

That still says very little about whether the stock will be a good deal on IPO day. A great product can come public at a bad price. In this market, the better way to play the health boom may be to skip the IPO and buy the companies already holding the pieces that last.

Oura won’t be the last IPO to test your discipline this year.

The window is already closing on what I believe are the two most important pre-IPO trades in a generation. Most investors will find out about them on IPO day — which is precisely when the best opportunity has already passed.

I’ve spent months mapping the ecosystem. I know which stocks I want to own before the headlines arrive.

Here’s what’s on that list — and why the clock is running.

The post Skip the Oura Ring IPO. Buy These 10 Stocks Instead. appeared first on InvestorPlace.

My colleague Louis Navellier has been exploring how the same deep-learning systems that are accelerating breakthroughs in medicine, scientific research, and drug discovery could also transform the way investors identify opportunities in the stock market.

After nearly five decades of building quantitative investment models, Louis believes AI may represent the most powerful advancement he’s seen yet – not as an investment theme, but as a tool for making better investment decisions.

Next week, he’ll be joining TradeSmith CEO Keith Kaplan for a free event to demonstrate exactly what he means. You can reserve your spot for that here.

Before that event, I asked Louis to share some of his thinking here. Take it away…

If you’re under 50 and you stay healthy, you could live to 150.

To you and me, that may sound like science fiction. But to Demis Hassabis, it sounds conservative.

Hassabis is the computer programmer and neuroscientist who founded DeepMind — the pioneer deep learning lab that Google bought in 2014.

Deep Learning is the method of training software to recognize patterns by feeding it enormous amounts of data and letting it learn from its own mistakes. And it’s the core technology behind OpenAI’s ChatGPT, Anthropic’s Claude, Google’s Gemini and most of what people mean when they say “AI” today.

In 2024, Hassabis won the Nobel Prize in Chemistry for building an AI model — called AlphaFold2 — that mapped virtually all 200 million known proteins. This touched off a revolution in drug discovery.

Most drugs work by binding to a specific protein in your body — much like a key fits into a lock. For 50 years, figuring out the shape of those locks was so slow and expensive that it bottlenecked the entire drug discovery process.

Thanks to AlphaFold2’s mapping, what used to take researchers years in the lab now happens in hours on a computer.

The progress is so fast that Hassabis estimates we’ll cure ALL disease within 10 years.

I’m 67 — well past the 50-year-old cutoff he’s talking about. But when I look at what’s come out of medical research in just the last two months, he might be right:

• A drug just doubled survival in pancreatic cancer — the deadliest cancer there is.
• A one-time gene-editing infusion permanently cut bad cholesterol by 62% from a single dose.
• A lung cancer pill held back a spreading tumor for five full years — longer than any drug has ever managed.
• The Mayo Clinic built an AI that detects pancreatic cancer on routine CT scans up to three years before a doctor can spot it.
• Eli Lilly’s new anti-obesity drug achieved 30% body weight loss in its Phase 3 trial — and, along the way, cut knee arthritis pain by 76%.

These aren’t random breakthroughs. They were all either discovered, accelerated, or made possible by the kind of deep-learning AI models Hassabis pioneered.

And, folks, these models are only accelerating as AI learns to write code to create more powerful models… which write code for even more powerful models… and so on.

Which brings me to the question that I’ve been thinking about a lot lately.

If AI is rewriting what’s possible in a field as complex as human biology — what is it about to do to financial markets?

I’ve spent 47 years building computer systems to find growth stocks before the crowd catches on. So, I know what it looks like when a new technology changes the game for investors.

In the 1970s, I was one of the few people using a computer to pick stocks. Most of my peers thought it was eccentric at best… and a fool’s errand at worst. Today, computers are responsible for about 80% of daily stock trading volume.

And I believe what’s coming with AI is a change of a far greater magnitude.

I’ll show you what I mean in a minute — including how adding AI to my own quantitative models could turn a 615% gain on a stock like DXP Enterprises Inc. (DXPE) into a 3,626% winner, or a 292% gain on Broadcom Inc. (AVG) into 6,284%.

First, though, let me take you back to the early 1970s when I had my first “eureka moment” about how machines could crack the secrets of the stock market.

My Eureka Moment

It was my junior year at Cal State Hayward (now Cal State East Bay), where I was studying finance.

One of my professors was working for Wells Fargo — using its mainframe computer to build the stock market indexes that were just emerging. He asked me if I could help.

The flashiest technology I’d touched up to that point was a slide rule. Getting access to that mainframe was like an 1800s gold prospector being shown a diesel-powered excavator.

My job was to build a model portfolio that mimicked the S&P 500 using just 320 stocks. But something unexpected happened. Instead of just tracking the market — my version beat it.

That wasn’t supposed to happen. The prevailing theory at the time — which every finance textbook repeated as gospel — was that you couldn’t consistently beat the market. It was impossible.

My data said otherwise.

So, I dug deeper. I ran the statistical tests. And I found a pattern that would define the next five decades of my career. Some stocks move independently of the broader market and have their own signal. Find them early enough, and the gains can be extraordinary.

Folks on Wall Street call it “alpha.” From that moment on, I was obsessed with building systems to find it.

Nearly 700 Gains of 100% or More

That discovery launched a career I could never have predicted.

Over the next five decades, I built quant models that powered some of the most successful investment newsletters in America.

My system has identified 676 stocks that went on to double — including recommendations like Microsoft Corp. (MSFT) in 1987, Nike Inc. (NKE) and Apple Inc. (AAPL) in 1988, and Nvidia Corp. (NVDA) a full 17 years before most people had ever heard of ChatGPT.

That last one alone would have turned $1,000 into more than $1 million.

None of those wins came from hunches or gut feelings. They came from what I discovered with the help of that Wells Fargo mainframe in the 1970s — a systematic, data-driven process for finding fundamentally superior stocks backed by powerful institutional buying pressure.

The process got more refined over the decades. The data got richer. The models got more powerful.

In other words, I’ve spent my career looking for the crème de la crème of the stock market. But I never had access to a technology as powerful as what I’m about to show you.

The Difference Is Extraordinary

As I like to say, good stocks bounce like fresh tennis balls, while bad stocks fall like rocks. The key is knowing the difference before the market starts shaking.

That’s why, for the past year, I’ve been working with the team at TradeSmith on something I’ve never attempted before.

If you don’t know them already, it’s the financial technology company behind some of the most sophisticated portfolio tools available to individual investors today.

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.

It includes a layer of the same kind of pattern-recognition AI technology that’s diagnosing cancer three years earlier and designing drugs in hours instead of years.

The difference it makes is extraordinary.

Take AppFolio Inc. (APPF), a stock I recommended in 2017.

Anyone who acted on that recommendation has enjoyed an annualized gain of 20%. Compounded over time, that’s excellent. But according to our backtesting, this new AI-enhanced system would have delivered a 74% annualized gain.

Or take Nexstar Media Group (NXST), which I recommended in 2013. A 23% average yearly gain becomes 173%.

Same stock over the same stretch of time. Just smarter timing.

Across the board, backtesting suggests that pairing this new AI with my Stock Grader ratings could generate up to 20 times more money than following Stock Grader alone.

That’s why I say this is the biggest edge I’ve seen in my 47 years as a professional investor. It’s not a new stock picking system — it’s a new layer of intelligence on top of what I’ve already built.

And if we get more stock market gyrations this summer, I believe that kind of intelligence could be more valuable than ever.

The Biggest Edge I’ve Seen

Back in the 1970s, the idea of using a computer to pick stocks seemed absurd to most people on Wall Street. I did it anyway. The results spoke for themselves.

Today, the idea that AI can reliably improve on a 47-year track record might seem equally hard to believe. I get that skepticism. I felt it myself. But then I looked at the testing and had to admit that AI plus my system works like gangbusters.

I’ve been hunting for edges in this market for 47 years. I’ve never seen one like this.

To see exactly how it works — and get the full list of stocks it’s flagging as urgent buys and sells — join me for my online event with TradeSmith CEO Keith Kaplan next Wednesday, June 10, at 10 a.m. Eastern.

When you register your interest, you’ll get access to TradeSmith’s Short-Term Health indicator.

While Stock Grader’s main focus is on what stocks to buy, Short-Term Health is all about when to buy them.

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.

Here’s that link again to access the unlocked version.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. What caught my attention here is that Louis isn’t talking about AI as an investment theme. He’s talking about AI as a tool for becoming a better investor. That’s a very different idea, and one he’ll explore in much greater detail during his free event with TradeSmith. Be sure to reserve your spot if you haven’t already.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Broadcom Inc. (AVGO) and NVIDIA Corporation (NVDA)

The post AI Could Help You Live Longer – and Invest Smarter appeared first on InvestorPlace.

We’re in rare air.

According to Dow Jones Market Data, the S&P 500 entered Friday on a nine-week streak of weekly gains. That has happened only four times in the last 40 years (1989, 2004, 2023, and this year).

When I sat down to write Friday morning, the market looked poised to finish the week higher once again, which would have marked 10 consecutive weeks of gains – a streak not achieved in 40 years! But the market turned south, and as I write this on Friday, it looks like we won’t get there. By the time you read this, the market’s final verdict for the week will be in.

Either way, that statistic is striking. The last time the S&P 500 achieved a streak of 10 or more consecutive positive weeks was a 12-week run that ended in December 1985.

I was skeptical of this market stat at first. Surely this must have happened another time within the last 40 years…

During the dot-com boom? During the post-COVID bounce?

Nope.

Despite dozens of bull markets, corrections, and rallies, there have apparently been no 10-week streaks since 1985.

To put that in perspective, here’s what was happening the last time investors witnessed a streak like that:

The Number One song then was “Say You, Say Me” by Lionel Richie.

NFL quarterback legends Dan Marino (Miami Dolphins) and John Elway (Denver Broncos) faced each other for the first time, with Miami winning 30-26.

“Rocky IV,” starring Sylvester Stallone, was the top movie of the holiday season, but “Back to the Future” was the highest-grossing movie of the year.

Even the nine-week streak, given how rare it is, could lead some investors to declare it’s time to sell – that the market must be in store for a hard correction.

But the bigger story isn’t whether the market finishes this week up or down.

It’s how quickly things can change.

One day, investors are celebrating new highs. The next day, they’re worrying about President Donald Trump’s new tariffs, rising Treasury yields, geopolitics, or the latest economic report.

The market seems capable of shifting from optimism to pessimism – and back again – in just a few hours.

I’d like to call this environment unusual – after all, there’s always volatility. But according to DataTrek, the S&P has become noticeably more volatile in recent years. Historical baselines have nearly doubled due to unprecedented macroeconomic shocks, intense concentration in Big Tech in the indices, and the rapid rise of algorithmic trading.  

There’s every reason to believe that the ride is only getting bumpier.

But volatility isn’t always bad.

When Volatility is Your Friend

For decades, investors have been taught the same basic lesson: Find great stocks and hold them for the long run.

There’s certainly wisdom in that approach. Louis Navellier’s near-5,000%-gain in Nvidia (NVDA) attests to the value of holding a top-tier position for a long time. Meanwhile, Amazon (AMZN), and Microsoft (MSFT) ultimately rewarded patient investors with life-changing gains.

But given today’s increasing volatility, market moves are coming faster than ever.

Information travels at the speed of a click. Algorithms dominate trading. Retail investors can respond to market news in seconds and make trades on their phones. Entire sectors can surge – or collapse – in just a few days. What once took months now happens in hours.

And in many of these cases, volatility works to our advantage.

A great example is Tower Semiconductor (TSEM), which Louis recommended in his Accelerated Profits not three months ago. Since his recommendation, the stock has almost doubled.

Doubling your money in less than three months, in a mid-cap stock valued at more than $26 billion, can make any investor feel dizzy.

Even with that acceleration, the stock is still below Louis’ buy below price. He believes it has the potential to run higher.

But finding great stocks is only half the battle.

The Challenge of Trade Management

The other half is knowing how to manage your positions when the other kind of volatility inevitably strikes – the kind that sends our portfolios into the red.

Most people will simply hold and hope for the best. Is that the best we can do?

While Louis remains highly optimistic about the long-term outlook for stocks, he also believes the months ahead could bring selloffs that catch many investors off guard.

And that’s what makes an upcoming event so interesting.

Louis already knows how to find winning stocks. His track record speaks for itself.

From Nvidia to countless other market leaders, Louis has spent decades refining a system designed to identify companies with the earnings growth, sales growth, and institutional demand necessary to generate outsized gains.

The harder question is often what comes next. If a stock drops on any particular day, how should you react?

And perhaps most importantly, how do you know whether to hold your position for the long haul versus step aside to protect your profits?

That’s where TradeSmith CEO Keith Kaplan comes in.

For years, Keith and his team have been developing tools designed to help investors make better decisions about timing, risk, and portfolio management.

Louis’ focus is on what to buy, and Keith’s focus is on helping investors determine when to act. Together, they believe they may have created a powerful combination for today’s market environment.

One side of the equation is designed to uncover potentially exceptional stocks.

The other is designed to help investors navigate the increasingly volatile path those stocks often travel.

At a special event next week, Louis and Keith will explain how their approaches complement one another, why they believe this partnership arrives at exactly the right moment for investors, and how they are using this combined framework to identify opportunities in today’s AI-driven market.

On June 10^th at 10 a.m. Eastern, they’re releasing what they believe could be the most important – and lucrative – upgrade to the TradeSmith platform since its founding.

You can sign up for this event by clicking here.

The market’s weeks-long winning streak may have ended, but you can make sure you stay on the right side of the volatility.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post How to Profit From Stock Market Volatility in the AI Era appeared first on InvestorPlace.

Not Walmart Inc. (WMT). Not General Electric Co. (GE). Not Exxon Mobil Corp. (XOM).

At the time, a lot of people thought that was absurd. After all, Cisco wasn’t a consumer brand. It didn’t make cars. It didn’t drill for oil. Most people couldn’t have told you exactly what the company did.

But Wall Street understood something important.

The internet was changing everything.

Businesses were wiring offices. Telecom companies were laying fiber. Data traffic was exploding. Every company wanted to connect employees, customers, suppliers and partners to this new digital world.

Cisco wasn’t selling the internet itself.

It was selling the infrastructure that made the internet possible.

Today, when people look back on that period, they usually focus on the crash. They remember Pets.com. They remember the speculation. They remember all the companies that disappeared.

What they forget is that the infrastructure buildout was real. Fiber got laid, networks got built and servers got installed.

And investors who understood that trend made a tremendous amount of money.

I’ve been thinking about Cisco lately because we’re living through another tech infrastructure boom.

Not identical. History never repeats exactly. But in my nearly five decades of investing, I have learned that major technological shifts tend to rhyme.

In fact, one company in particular keeps coming to mind.

Most investors still think of Micron Technology Inc. (MU) as a cyclical memory-chip company from Boise, Idaho. Yet today, Wall Street is searching for the next great AI leader after NVIDIA Corporation (NVDA) – and Micron is at the center of the conversation.

Sales are expected to grow more than 250%. Earnings are expected to rise more than 900%.

Those aren’t normal numbers. That’s what happens when a major technological shift is underway and demand overwhelms supply. And it’s where the fundamentally superior companies start to separate themselves from the pack.

In fact, Micron joined the trillion-dollar market-cap club last Tuesday, May 26, because demand for advanced AI memory has become one of the biggest bottlenecks in the entire AI ecosystem. The company has reportedly sold out much of its high-bandwidth memory production under long-term contracts, and analysts expect supply shortages to persist for years.

That’s why I want you to ignore all the doom-and-gloom forecasts you hear every day.

The stock market has a very good foundation under it. First-quarter S&P 500 earnings grew nearly 29% from a year ago – more than double what analysts expected coming into the quarter. Analysts continue revising estimates higher, and many AI-related companies have seen earnings forecasts jump dramatically over the past year.

The AI buildout is real.

And the spending behind it is staggering.

Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), Alphabet Inc. (GOOG) and Meta Platforms Inc. (META) are expected to spend roughly $700 billion on AI infrastructure this year alone. That’s data centers, networking equipment, chips, power generation and everything needed to support the next generation of AI applications.

Those aren’t startup projections.

Those are some of the largest and most successful companies in the world committing enormous amounts of capital because they believe AI will reshape the global economy.

That’s what I want to talk about today.

More importantly, I want to explain why I think many investors are focusing on the wrong thing.

I’ll show you four stocks that are prospering from the AI buildout beyond NVIDIA and Micron… why I believe the AI boom is broadening into one of the biggest infrastructure spending waves I’ve ever seen…

And why I’m teaming up with one of the best AI developers in this business to discuss a new way investors can stay bullish without getting blindsided by volatility.

Everybody Wants the Next NVIDIA

I’ve been investing through major technology shifts for nearly five decades.

I was using computers to analyze stocks in the 1970s, long before it became common on Wall Street. Over the years, my quantitative systems helped identify winning stocks such as Apple Inc. (AAPL) and Nike Inc. (NKE) – and NVIDIA and Microsoft – long before they became household names.

One thing I’ve learned is that investors are always looking for the next leader.

In the late 1990s, everybody wanted the next internet stock.

Today, everybody wants the next AI stock.

That’s understandable. NVIDIA has become one of the most successful investments in modern market history.

But investors often become so focused on one company that they miss the broader trend unfolding around it.

Artificial intelligence is no longer just a NVIDIA story.

There are a lot more AI-related stocks prospering now.

Memory companies are benefiting. Networking companies are benefiting. Construction companies are benefiting. Data-center companies are benefiting. Even power-generation companies are benefiting (we used to call those “utilities”).

Why?

Because AI requires an enormous amount of infrastructure.

The average investor sees ChatGPT or Claude on their browser and thinks software.

I see hundreds of billions of dollars flowing into an entirely new computing architecture.

To appreciate the scale, one proposed AI data-center project in Utah would cover nearly three times the area of Manhattan. Meta is building a massive AI campus in Louisiana, and similar projects are being planned across the country.

These facilities will require thousands upon thousands of chips, servers and networking systems.

That’s why companies like Micron have become so important.

It’s also why I want you to pay attention to companies like Dell Technologies Inc. (DELL), Hewlett Packard Enterprise Co. (HPE), Ciena Corp. (CIEN)… and, yes, Cisco. These aren’t the first names investors think about when they hear “AI,” but they’re increasingly prospering from the buildout.

The opportunity is getting bigger. Not smaller.

When a major investment theme spreads beyond a handful of stocks and starts lifting entire industries, it usually means the trend is becoming more durable and more profitable – not less.

That’s what we’re seeing right now.

The Real Risk Isn’t What Most Investors Think

I focus on a combination of fundamental and quantitative measures– sales growth, earnings growth, analyst revisions, institutional buying pressure. That’s how my Stock Grader system has identified winning stocks for well over 40 years.

And right now, those indicators continue to point in the right direction. I think many of the best AI and data-center stocks still have substantial upside ahead of them before the year is over.

But being bullish doesn’t mean being complacent.

The biggest risk facing investors right now isn’t that AI suddenly becomes less popular. It’s not that companies stop spending on data centers. And it’s not that earnings suddenly collapse.

The bigger risk is that investors get shaken out of fundamentally superior stocks during perfectly normal periods of volatility.

I’ve seen it happen throughout my career. A stock pulls back. The headlines get scary. Investors become nervous. They sell.

Six months later, the stock is substantially higher.

The late 1990s were full of those moments.

Even the biggest winners experienced sharp pullbacks from time to time. Investors who stayed focused on the long-term trend were rewarded. Investors who reacted emotionally often weren’t.

I think we’re approaching a similar period now.

The market remains healthy, but summer can get bumpy. Trading volume thins out. Volatility increases. Short sellers become more aggressive.

That’s normal.

And it’s one reason I’ve been spending so much time with Keith Kaplan and the team at TradeSmith.

Over the past year, Keith and I have been exploring a new AI-enhanced approach that combines my stock-selection system with TradeSmith’s pattern-recognition technology.

What interested me wasn’t the technology itself. It was the results.

More importantly, it showed how investors can stay with opportunities like Dell, HPE, Ciena and Cisco when volatility inevitably shows up.

Because the hard part isn’t finding promising AI stocks anymore. The trend is staring us in the face.

The hard part is staying invested when the headlines turn negative and investors start questioning the same companies they loved a month earlier.

That’s exactly what Keith and I will be discussing on June 10 at a free event. We’ll show investors how we’re using AI to become more tactical without losing sight of the bigger opportunity, and you can register for that event right now.

Twenty-six years ago, Cisco became the most valuable company in the world because of the internet buildout. Last week, Micron became Boise’s first trillion-dollar company because of the AI buildout.

Whether it’s Micron, Dell, HPE, Ciena, Cisco – or another company prospering from the AI buildout – the opportunity is still much bigger than most investors realize.

The challenge isn’t finding the trend. The challenge is staying with it.

Save your seat for our free event here.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Ciena Corp. (CIEN), Cisco Systems Inc. (CSCO), Alphabet Inc. (GOOG), Micron Technology Inc. (MU), NVIDIA Corporation (NVDA) and Walmart Inc. (WMT)

The post These Four Stocks Could Do What Cisco Did in 2000 appeared first on InvestorPlace.

Editor’s Note: Louis Navellier has been managing money through major market cycles for nearly five decades. He was in the room in 1999 — and when someone who lived through that moment tells me today’s AI market is starting to rhyme with it, I pay attention.

Louis is still bullish. So am I. But what he’s written below makes a compelling case — that the difference between investors who build real wealth through this boom and those who lose it in a pullback comes down to one thing: getting tactical before the volatility arrives, not after.

He’s hosting a free event on June 10 at 10 a.m. Eastern with TradeSmith CEO Keith Kaplan to show investors exactly how he’s approaching that — and there’s a free tool available right now that lets you check the short-term health of stocks you already own before the event even starts.

Register for that event here — and read what Louis has to say below.

In 1999, Jeff Bezos was doing something that drove Wall Street absolutely crazy.

Amazon.com Inc. (AMZN) was already a public company. And it was already capable of producing profits — if Bezos had wanted to. But instead, he kept aggressively reinvesting. Instead of worrying about profits, he was building warehouses, distribution infrastructure, and technology systems. 

Every quarter, the margins that should have been there weren’t, because every dollar was going right back into the Amazon machine.

Analysts were furious. Where are the profits? What exactly are we owning here?

Meanwhile, all around Amazon, the dot-com boom was producing companies with no revenue, no product, sometimes no coherent business model at all — and their stocks were tripling. The whole market was chasing a story. 

Who looks most like the future? Who has the best narrative? Wall Street was funding them fast and asking questions later.

Bezos wasn’t playing that game.

What he understood — and almost nobody else did back then — is that 1999 capital was a once-in-a-generation resource. Every dollar of market enthusiasm could be converted into permanent infrastructure: fulfillment capacity, distribution reach, systems that got cheaper the more volume they handled. He wasn’t optimizing for this quarter. He was building something that would be almost impossible to replicate once the window closed.

When the Music Stopped, the Infrastructure Survived

When the music stopped in 2000, it stopped for everybody. The story companies – do I need to mention Pets.com? – vanished almost overnight. 

Amazon went through its own brutal drawdown, but the infrastructure Bezos built was still there. The customer relationships were still there. The cost curves were still bending in the right direction.

By 2005, Bezos looked like a genius. In 1999, he just looked tactical.

I was managing money through all of it. And I’ll tell you — 1999 was one of the best years of my career. It was also one of the strangest markets I’ve ever seen in nearly 50 years in this business. Capital was flowing faster than fundamentals could justify. 

My Stock Grader system kept me focused on what actually mattered: real earnings, real institutional conviction. A lot of the dot-com darlings never showed up in my system at all — and a lot of them went to zero.

But the companies with genuine fundamentals underneath the noise survived. And the ones — like Amazon — that used the window tactically didn’t just survive. They won the whole decade.

Right now, the AI boom is rhyming with that moment in ways that I find both exciting and instructive. But at the same time,  this is not the dot-com boom — the fundamentals are far stronger. 

So, in this piece, I want to show you why this AI boom reminds me so much of the late 1990s… why I believe some AI stocks could be much higher by year-end… and why the smartest move today is not to run for the exits when things get choppy, but to get more tactical.

And finally, I’ll tell you about a new tool that can help you do just that…

The ChatGPT Moment: What Lit the Fuse This Time

I recently got my hands on a chart from our friends at Bespoke Investment Group comparing the Nasdaq Composite’s performance during the internet boom of the late 1990s with its current path during the AI boom.

The comparison is striking.

ChatGPT appears to have done for AI what Netscape did for the internet.

When Netscape came along, investors realized the internet wasn’t just a neat new technology. It was a business revolution. Money poured into the companies building that new world, and the Nasdaq soared.

We’re seeing that same basic story today.

ChatGPT woke people up to what AI can actually do. And Wall Street quickly figured out how much infrastructure that was going to require.

The fact is that the boom is backed by real sales, real earnings, and real order backlogs. 

Look at Bloom Energy Corp. (BE), for example. The company helps make fuel cell generators, which data centers need to produce power on-site so they don’t have to rely on the electrical grid. 

Bloom Energy’s current product backlog is about $6 billion, while its total backlog exceeds $20 billion.

At this rate, it will take years to deliver what is already in the pipeline. And Bloom Energy isn’t an outlier. This story is playing out across the AI and data center space.

Companies are receiving more orders than sales. That makes this a real capital spending cycle.

That is why I remain bullish. Personally, I think the AI and data center stocks across my premium services could be another 30% to 40% higher between now and the end of the year.

But that does not mean investors should get complacent.

Summer Volatility Is Coming — Don’t Let It Shake You Out

August and early September tend to be volatile. Seemingly everyone on Wall Street and in Europe are on vacation, trading volume thins out, and unscrupulous short sellers come out of the woodwork.

So, I would not be surprised if the market gets bumpy.

In fact, Bespoke also shows that the Nasdaq took a significant dip between late May and October 1998 — right in the middle of what turned out to be a historic bull run. I wouldn’t be surprised to see something similar this summer.

But here’s the key insight: If the AI Revolution continues to follow the internet boom’s path, a summer pullback would not mark the end of this bull market. It could simply set the stage for much higher levels later in 2026 and beyond.

That is why I do not want you to follow the “sell in May and go away” crowd to the exits.

We remain in one of the best earnings environments of our lifetime. Analysts continue to revise estimates higher. Companies keep beating expectations. Fundamentally superior stocks with accelerating earnings and sales growth should continue to lead.

But there is a big difference between staying invested and just closing your eyes.

The late 1990s created tremendous wealth. But that market did not move in a straight line. Even great stocks got hit hard from time to time. The investors who panicked during those pullbacks often missed the biggest gains that came next.

That is the real risk this summer.

Not that a great stock has a bad week. The real risk is that you let a bad week scare you out of a great stock right before the next leg higher.

And that’s why I’ve been working with my friends over at TradeSmith on something special – something that’s specifically designed for times like this.

The Strategy for What Comes Next: Stay Bullish, Get Tactical

In my view, the answer is simple: Stay bullish, but get tactical.

That means focusing on fundamentally superior companies. It means paying attention to earnings momentum, sales growth, and analyst revisions. It means having a better way to track whether the stocks you own are still healthy in the short term.

And it’s why I’ve been paying close attention to what my friends at TradeSmith have been building.

On Wednesday, June 10, at 10 a.m. Eastern, I’m teaming up with TradeSmith CEO Keith Kaplan for a special event.

Keith and his team have spent years building technology designed to help investors make more tactical decisions. And during this event, we’re going to show you a new AI-powered approach to navigating today’s faster-moving market. 

I don’t want to give away the full story today. That is what the event is for. But here’s the basic idea…

If this market really is rhyming with the late 1990s, investors need to be prepared for two things at once:

Before the event, you can even test-drive part of the technology for yourself. You can enter the ticker symbols of stocks you already own – or stocks you are thinking about buying – and see how the system evaluates their short-term health.

That is exactly the kind of tool I believe investors should have at their fingertips in a market like this.

When volatility picks up, you don’t want to guess. You don’t want to rely on fear. And you do not want to get shaken out of a great long-term opportunity because the market has a bad week.

That’s why I encourage you to sign up for our free event. And to try out the free ticker tool before the event.

Jeff Bezos didn’t close his eyes in 1999 and hope for the best. He got tactical. 

That’s exactly what I’m asking you to do right now.

The post What Bezos Knew In 1999 That AI Investors Are Missing Today appeared first on InvestorPlace.

In today’s Friday Digest takeover, legendary investor Louis Navellier draws a fascinating comparison between today’s AI-driven market and the internet boom of the late 1990s. Not because he believes a crash is imminent, but because he sees many of the same forces at work: massive capital spending, powerful technological change, and investors trying to separate lasting winners from temporary hype.

The difference, Louis argues, is that today’s boom is backed by something many dot-com companies lacked: real earnings, real sales, and massive order backlogs.

Of course, that doesn’t mean the ride will be smooth. Below, Louis explains why he believes AI stocks have substantial upside ahead, but also why those gains will test investors’ nerves.

He’ll share more on all this during a special event next Wednesday, June 10, with TradeSmith CEO Keith Kaplan. The two will discuss a new AI-powered approach to navigating market volatility. You can register right here.

If Louis is right, the biggest risk this summer isn’t volatility itself. It’s letting that volatility shake you out of a great stock at exactly the wrong time

I’ll let him take it from here.

Have a good evening,

Jeff Remsburg

In 1999, Jeff Bezos was doing something that drove Wall Street absolutely crazy.

Amazon.com Inc. (AMZN) was already a public company. And it was already capable of producing profits — if Bezos had wanted to. But instead, he kept aggressively reinvesting. Instead of worrying about profits, he was building warehouses, distribution infrastructure, and technology systems.

Every quarter, the margins that should have been there weren’t, because every dollar was going right back into the Amazon machine.

Analysts were furious. Where are the profits? What exactly are we owning here?

Meanwhile, all around Amazon, the dot-com boom was producing companies with no revenue, no product, sometimes no coherent business model at all — and their stocks were tripling. The whole market was chasing a story.

Who looks most like the future? Who has the best narrative? Wall Street was funding them fast and asking questions later.

Bezos wasn’t playing that game.

What he understood — and almost nobody else did back then — is that 1999 capital was a once-in-a-generation resource. Every dollar of market enthusiasm could be converted into permanent infrastructure: fulfillment capacity, distribution reach, systems that got cheaper the more volume they handled. He wasn’t optimizing for this quarter. He was building something that would be almost impossible to replicate once the window closed.

When the music stopped in 2000, it stopped for everybody. The story companies – do I need to mention Pets.com? – vanished almost overnight.

Amazon went through its own brutal drawdown, but the infrastructure Bezos built was still there. The customer relationships were still there. The cost curves were still bending in the right direction.

By 2005, Bezos looked like a genius. In 1999, he just looked tactical.

I was managing money through all of it. And I’ll tell you — 1999 was one of the best years of my career. It was also one of the strangest markets I’ve ever seen in nearly 50 years in this business. Capital was flowing faster than fundamentals could justify.

My Stock Grader system kept me focused on what actually mattered: real earnings, real institutional conviction. A lot of the dot-com darlings never showed up in my system at all — and a lot of them went to zero.

But the companies with genuine fundamentals underneath the noise survived. And the ones — like Amazon — that used the window tactically didn’t just survive. They won the whole decade.

Right now, the AI boom is rhyming with that moment in ways that I find both exciting and instructive. But at the same time,  this is not the dot-com boom — the fundamentals are far stronger.

So, in this piece, I want to show you why this AI boom reminds me so much of the late 1990s… why I believe some AI stocks could be much higher by year-end… and why the smartest move today is not to run for the exits when things get choppy, but to get more tactical.

And finally, I’ll tell you about a new tool that can help you do just that…

The ChatGPT Moment

I recently got my hands on a chart from our friends at Bespoke Investment Group comparing the Nasdaq Composite’s performance during the internet boom of the late 1990s with its current path during the AI boom.

The comparison is striking.

ChatGPT appears to have done for AI what Netscape did for the internet.

When Netscape came along, investors realized the internet wasn’t just a neat new technology. It was a business revolution. Money poured into the companies building that new world, and the Nasdaq soared.

We’re seeing that same basic story today.

ChatGPT woke people up to what AI can actually do. And Wall Street quickly figured out how much infrastructure that was going to require.

The fact is that the boom is backed by real sales, real earnings, and real order backlogs.

Look at Bloom Energy Corp. (BE), for example. The company helps make fuel cell generators, which data centers need to produce power on-site so they don’t have to rely on the electrical grid.

Bloom Energy’s current product backlog is about $6 billion, while its total backlog exceeds $20 billion.

At this rate, it will take years to deliver what is already in the pipeline. And Bloom Energy isn’t an outlier. This story is playing out across the AI and data center space.

Companies are receiving more orders than sales. That makes this a real capital spending cycle.

That is why I remain bullish. Personally, I think the AI and data center stocks across my premium services could be another 30% to 40% higher between now and the end of the year.

But that does not mean investors should get complacent.

Summer Could Get Bumpy

August and early September tend to be volatile. Seemingly everyone on Wall Street and in Europe are on vacation, trading volume thins out, and unscrupulous short sellers come out of the woodwork.

So, I would not be surprised if the market gets bumpy.

In fact, Bespoke also shows that the Nasdaq took a significant dip between late May and October 1998 — right in the middle of what turned out to be a historic bull run. I wouldn’t be surprised to see something similar this summer.

But here’s the key insight: If the AI Revolution continues to follow the internet boom’s path, a summer pullback would not mark the end of this bull market. It could simply set the stage for much higher levels later in 2026 and beyond.

That is why I do not want you to follow the “sell in May and go away” crowd to the exits.

We remain in one of the best earnings environments of our lifetime. Analysts continue to revise estimates higher. Companies keep beating expectations. Fundamentally superior stocks with accelerating earnings and sales growth should continue to lead.

But there is a big difference between staying invested and just closing your eyes.

The late 1990s created tremendous wealth. But that market did not move in a straight line. Even great stocks got hit hard from time to time. The investors who panicked during those pullbacks often missed the biggest gains that came next.

That is the real risk this summer.

Not that a great stock has a bad week. The real risk is that you let a bad week scare you out of a great stock right before the next leg higher.

And that’s why I’ve been working with my friends over at TradeSmith on something special – something that’s specifically designed for times like this.

Stay Bullish, but Get Tactical

In my view, the answer is simple: Stay bullish, but get tactical.

That means focusing on fundamentally superior companies. It means paying attention to earnings momentum, sales growth, and analyst revisions. It means having a better way to track whether the stocks you own are still healthy in the short term.

And it’s why I’ve been paying close attention to what my friends at TradeSmith have been building.

On Wednesday, June 10, at 10 a.m. Eastern, I’m teaming up with TradeSmith CEO Keith Kaplan for a special event.

Keith and his team have spent years building technology designed to help investors make more tactical decisions. And during this event, we’re going to show you a new AI-powered approach to navigating today’s faster-moving market.

I don’t want to give away the full story today. That is what the event is for. But here’s the basic idea…

If this market really is rhyming with the late 1990s, investors need to be prepared for two things at once:

Before the event, you can even test-drive part of the technology for yourself. You can enter the ticker symbols of stocks you already own – or stocks you are thinking about buying – and see how the system evaluates their short-term health.

That is exactly the kind of tool I believe investors should have at their fingertips in a market like this.

When volatility picks up, you don’t want to guess. You don’t want to rely on fear. And you do not want to get shaken out of a great long-term opportunity because the market has a bad week.

That’s why I encourage you to sign up for our free event. And to try out the free ticker tool before the event.

Jeff Bezos didn’t close his eyes in 1999 and hope for the best. He got tactical.

That’s exactly what I’m asking you to do right now.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. I think Louis makes an important point here. The question isn’t whether the AI boom is over. The question is how investors navigate the inevitable volatility along the way. That’s exactly what he’ll be discussing during his upcoming event with TradeSmith. If you haven’t registered for Louis’ free event yet, I’d encourage you to do so now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Bloom Energy Corporation (BE)

The post The AI Boom Is Still Going Strong, but Don’t Expect a Smooth Summer appeared first on InvestorPlace.

To you and me, that may sound like science fiction. But to Demis Hassabis, it sounds conservative.

Hassabis is the computer programmer and neuroscientist who founded DeepMind – the pioneer deep learning lab that Google bought in 2014.

Deep Learning is the method of training software to recognize patterns by feeding it enormous amounts of data and letting it learn from its own mistakes. And it’s the core technology behind OpenAI’s ChatGPT, Anthropic’s Claude, Google’s Gemini and most of what people mean when they say “AI” today.

In 2024, Hassabis won the Nobel Prize in Chemistry for building an AI model – called AlphaFold2 – that mapped virtually all 200 million known proteins. This touched off a revolution in drug discovery.

Most drugs work by binding to a specific protein in your body – much like a key fits into a lock. For 50 years, figuring out the shape of those locks was so slow and expensive that it bottlenecked the entire drug discovery process.

Thanks to AlphaFold2’s mapping, what used to take researchers years in the lab now happens in hours on a computer.

The progress is so fast that Hassabis estimates we’ll cure ALL diseases within 10 years.

I’m 67 – well past the 50-year-old cutoff he’s talking about. But when I look at what’s come out of medical research in just the last two months, he might be right:

• A drug just doubled survival in pancreatic cancer – the deadliest cancer there is.
• A one-time gene-editing infusion permanently cut bad cholesterol by 62% from a single dose.
• A lung cancer pill held back a spreading tumor for five full years – longer than any drug has ever managed.
• The Mayo Clinic built an AI that detects pancreatic cancer on routine CT scans up to three years before a doctor can spot it.
• Eli Lilly’s new anti-obesity drug achieved 30% body weight loss in its Phase 3 trial – and, along the way, cut knee arthritis pain by 76%.

These aren’t random breakthroughs. They were all either discovered, accelerated, or made possible by the kind of deep-learning AI models Hassabis pioneered.

And, folks, these models are only accelerating as AI learns to write code to create more powerful models… which write code for even more powerful models… and so on.

Which brings me to the question that I’ve been thinking about a lot lately.

If AI is rewriting what’s possible in a field as complex as human biology – what is it about to do to financial markets?

I’ve spent 47 years building computer systems to find growth stocks before the crowd catches on. So, I know what it looks like when a new technology changes the game for investors.

In the 1970s, I was one of the few people using a computer to pick stocks. Most of my peers thought it was eccentric at best… and a fool’s errand at worst. Today, computers are responsible for about 80% of daily stock trading volume.

And I believe what’s coming with AI is a change of a far greater magnitude.

I’ll show you what I mean in a minute – including how adding AI to my own quantitative models could turn a 615% gain on a stock like DXP Enterprises Inc. (DXPE) into a 3,626% winner, or a 292% gain on Broadcom Inc. (AVGO) into 6,284%.

First, though, let me take you back to the early 1970s when I had my first “eureka moment” about how machines could crack the secrets of the stock market.

My Eureka Moment

It was my junior year at Cal State Hayward (now Cal State East Bay), where I was studying finance.

One of my professors was working for Wells Fargo – using its mainframe computer to build the stock market indexes that were just emerging. He asked me if I could help.

The flashiest technology I’d touched up to that point was a slide rule. Getting access to that mainframe was like an 1800s gold prospector being shown a diesel-powered excavator.

My job was to build a model portfolio that mimicked the S&P 500 using just 320 stocks. But something unexpected happened. Instead of just tracking the market – my version beat it.

That wasn’t supposed to happen. The prevailing theory at the time – which every finance textbook repeated as gospel – was that you couldn’t consistently beat the market. It was impossible.

My data said otherwise.

So, I dug deeper. I ran the statistical tests. And I found a pattern that would define the next five decades of my career. Some stocks move independently of the broader market and have their own signal. Find them early enough, and the gains can be extraordinary.

Folks on Wall Street call it “alpha.” From that moment on, I was obsessed with building systems to find it.

Nearly 700 Gains of 100% or More

That discovery launched a career I could never have predicted.

Over the next five decades, I built quant models that powered some of the most successful investment newsletters in America.

My system has identified 676 stocks that went on to double – including recommendations like Microsoft Corp. (MSFT) in 1987, Nike Inc. (NKE) and Apple Inc. (AAPL) in 1988, and Nvidia Corp. (NVDA) a full 17 years before most people had ever heard of ChatGPT.

That last one alone would have turned $1,000 into more than $1 million.

None of those wins came from hunches or gut feelings. They came from what I discovered with the help of that Wells Fargo mainframe in the 1970s — a systematic, data-driven process for finding fundamentally superior stocks backed by powerful institutional buying pressure.

The process got more refined over the decades. The data got richer. The models got more powerful.

In other words, I’ve spent my career looking for the crème de la crème of the stock market. But I never had access to a technology as powerful as what I’m about to show you.

The Difference Is Extraordinary

As I like to say, good stocks bounce like fresh tennis balls, while bad stocks fall like rocks. The key is knowing the difference before the market starts shaking.

That’s why, for the past year, I’ve been working with the team at TradeSmith on something I’ve never attempted before.

If you don’t know them already, it’s the financial technology company behind some of the most sophisticated portfolio tools available to individual investors today.

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.

It includes a layer of the same kind of pattern-recognition AI technology that’s diagnosing cancer three years earlier and designing drugs in hours instead of years.

The difference it makes is extraordinary.

Take AppFolio Inc. (APPF), a stock I recommended in 2017.

Anyone who acted on that recommendation has enjoyed an annualized gain of 20%. Compounded over time, that’s excellent. But according to our backtesting, this new AI-enhanced system would have delivered a 74% annualized gain.

Or take Nexstar Media Group (NXST), which I recommended in 2013. A 23% average yearly gain becomes 173%.

Same stock over the same stretch of time. Just smarter timing.

Across the board, backtesting suggests that pairing this new AI with my Stock Grader ratings could generate up to 20 times more money than following Stock Grader alone.

That’s why I say this is the biggest edge I’ve seen in my 47 years as a professional investor. It’s not a new stock picking system – it’s a new layer of intelligence on top of what I’ve already built.

And if we get more stock market gyrations this summer, I believe that kind of intelligence could be more valuable than ever.

The Biggest Edge I’ve Seen

Back in the 1970s, the idea of using a computer to pick stocks seemed absurd to most people on Wall Street. I did it anyway. The results spoke for themselves.

Today, the idea that AI can reliably improve on a 47-year track record might seem equally hard to believe. I get that skepticism. I felt it myself. But then I looked at the testing and had to admit that AI plus my system works like gangbusters.

I’ve been hunting for edges in this market for 47 years. I’ve never seen one like this.

To see exactly how it works – and get the full list of stocks it’s flagging as urgent buys and sells – join me for my online event with TradeSmith CEO Keith Kaplan next Wednesday, June 10, at 10 a.m. Eastern.

When you register your interest, you’ll get access to TradeSmith’s Short-Term Health indicator.

While Stock Grader’s main focus is on what stocks to buy, Short-Term Health is all about when to buy them.

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.

Here’s that link again to access the unlocked version.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Broadcom Inc. (AVGO) and NVIDIA Corporation (NVDA)

The post The Biggest Edge I’ve Found in My 47-Year Career appeared first on InvestorPlace.

Recently, he told me the AI boom reminds him of that period in some surprising ways. Not because he thinks the market is about to crash, but because he believes investors need to be prepared for both opportunity and volatility.

I asked Louis to explain what he’s seeing—and why he’s teaming up with TradeSmith for a free special event on June 10 to help investors navigate what’s next. You can register for that free broadcast here.

And here’s Louis…

In 1999, Jeff Bezos was doing something that drove Wall Street absolutely crazy.

Amazon.com Inc. (AMZN) was already a public company. And it was already capable of producing profits — if Bezos had wanted to. But instead, he kept aggressively reinvesting. Instead of worrying about profits, he was building warehouses, distribution infrastructure, and technology systems.

Every quarter, the margins that should have been there weren’t, because every dollar was going right back into the Amazon machine.

Analysts were furious. Where are the profits? What exactly are we owning here?

Meanwhile, all around Amazon, the dot-com boom was producing companies with no revenue, no product, sometimes no coherent business model at all — and their stocks were tripling. The whole market was chasing a story.

Who looks most like the future? Who has the best narrative? Wall Street was funding them fast and asking questions later.

Bezos wasn’t playing that game.

What he understood — and almost nobody else did back then — is that 1999 capital was a once-in-a-generation resource. Every dollar of market enthusiasm could be converted into permanent infrastructure: fulfillment capacity, distribution reach, systems that got cheaper the more volume they handled. He wasn’t optimizing for this quarter. He was building something that would be almost impossible to replicate once the window closed.

When the music stopped in 2000, it stopped for everybody. The story companies – do I need to mention Pets.com? – vanished almost overnight.

Amazon went through its own brutal drawdown, but the infrastructure Bezos built was still there. The customer relationships were still there. The cost curves were still bending in the right direction.

By 2005, Bezos looked like a genius. In 1999, he just looked tactical.

I was managing money through all of it. And I’ll tell you — 1999 was one of the best years of my career. It was also one of the strangest markets I’ve ever seen in nearly 50 years in this business. Capital was flowing faster than fundamentals could justify.

My Stock Grader system kept me focused on what actually mattered: real earnings, real institutional conviction. A lot of the dot-com darlings never showed up in my system at all — and a lot of them went to zero.

But the companies with genuine fundamentals underneath the noise survived. And the ones — like Amazon — that used the window tactically didn’t just survive. They won the whole decade.

Right now, the AI boom is rhyming with that moment in ways that I find both exciting and instructive. But at the same time,  this is not the dot-com boom — the fundamentals are far stronger.

So, in this piece, I want to show you why this AI boom reminds me so much of the late 1990s… why I believe some AI stocks could be much higher by year-end… and why the smartest move today is not to run for the exits when things get choppy, but to get more tactical.

And finally, I’ll tell you about a new tool that can help you do just that…

The ChatGPT Moment

I recently got my hands on a chart from our friends at Bespoke Investment Group comparing the Nasdaq Composite’s performance during the internet boom of the late 1990s with its current path during the AI boom.

The comparison is striking.

ChatGPT appears to have done for AI what Netscape did for the internet.

When Netscape came along, investors realized the internet wasn’t just a neat new technology. It was a business revolution. Money poured into the companies building that new world, and the Nasdaq soared.

We’re seeing that same basic story today.

ChatGPT woke people up to what AI can actually do. And Wall Street quickly figured out how much infrastructure that was going to require.

The fact is that the boom is backed by real sales, real earnings, and real order backlogs.

Look at Bloom Energy Corp. (BE), for example. The company helps make fuel cell generators, which data centers need to produce power on-site so they don’t have to rely on the electrical grid.

Bloom Energy’s current product backlog is about $6 billion, while its total backlog exceeds $20 billion.

At this rate, it will take years to deliver what is already in the pipeline. And Bloom Energy isn’t an outlier. This story is playing out across the AI and data center space.

Companies are receiving more orders than sales. That makes this a real capital spending cycle.

That is why I remain bullish. Personally, I think the AI and data center stocks across my premium services could be another 30% to 40% higher between now and the end of the year.

But that does not mean investors should get complacent.

Summer Could Get Bumpy

August and early September tend to be volatile. Seemingly everyone on Wall Street and in Europe are on vacation, trading volume thins out, and unscrupulous short sellers come out of the woodwork.

So, I would not be surprised if the market gets bumpy.

In fact, Bespoke also shows that the Nasdaq took a significant dip between late May and October 1998 — right in the middle of what turned out to be a historic bull run. I wouldn’t be surprised to see something similar this summer.

But here’s the key insight: If the AI Revolution continues to follow the internet boom’s path, a summer pullback would not mark the end of this bull market. It could simply set the stage for much higher levels later in 2026 and beyond.

That is why I do not want you to follow the “sell in May and go away” crowd to the exits.

We remain in one of the best earnings environments of our lifetime. Analysts continue to revise estimates higher. Companies keep beating expectations. Fundamentally superior stocks with accelerating earnings and sales growth should continue to lead.

But there is a big difference between staying invested and just closing your eyes.

The late 1990s created tremendous wealth. But that market did not move in a straight line. Even great stocks got hit hard from time to time. The investors who panicked during those pullbacks often missed the biggest gains that came next.

That is the real risk this summer.

Not that a great stock has a bad week. The real risk is that you let a bad week scare you out of a great stock right before the next leg higher.

And that’s why I’ve been working with my friends over at TradeSmith on something special – something that’s specifically designed for times like this.

Stay Bullish, but Get Tactical

In my view, the answer is simple: Stay bullish, but get tactical.

That means focusing on fundamentally superior companies. It means paying attention to earnings momentum, sales growth, and analyst revisions. It means having a better way to track whether the stocks you own are still healthy in the short term.

And it’s why I’ve been paying close attention to what my friends at TradeSmith have been building.

On Wednesday, June 10, at 10 a.m. Eastern, I’m teaming up with TradeSmith CEO Keith Kaplan for a special event.

Keith and his team have spent years building technology designed to help investors make more tactical decisions. And during this event, we’re going to show you a new AI-powered approach to navigating today’s faster-moving market.

I don’t want to give away the full story today. That is what the event is for. But here’s the basic idea…

If this market really is rhyming with the late 1990s, investors need to be prepared for two things at once:

Before the event, you can even test-drive part of the technology for yourself. You can enter the ticker symbols of stocks you already own – or stocks you are thinking about buying – and see how the system evaluates their short-term health.

That is exactly the kind of tool I believe investors should have at their fingertips in a market like this.

When volatility picks up, you don’t want to guess. You don’t want to rely on fear. And you do not want to get shaken out of a great long-term opportunity because the market has a bad week.

That’s why I encourage you to sign up for our free event. And to try out the free ticker tool before the event.

Jeff Bezos didn’t close his eyes in 1999 and hope for the best. He got tactical.

That’s exactly what I’m asking you to do right now.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. I think Louis makes an important point here. The question isn’t whether the AI boom is over. The question is how investors navigate the inevitable volatility along the way. That’s exactly what he’ll be discussing during his upcoming event with TradeSmith. If you haven’t registered for Louis’ free event yet, I’d encourage you to do so now.

The post The Biggest Mistake AI Investors Could Make This Summer appeared first on InvestorPlace.

The backlash was brutal. The same newspapers that had cheered him began trading in ideas that Field’s entire operation had been a swindle from the start… a scheme to pump a worthless stock and dump it on a gullible public.

A few even insisted the messages had been faked. So, what am I getting at here? It’s simple: Field had run headlong into what I call “the reality wall.”

SpaceX’s Reality Wall

The Reality Wall is the moment the hype runs out of road and the hard, unforgiving truth of the engineering catches up.

Most ventures die at that wall. But Field’s did not.

He spent eight more years chasing it (going broke in the process); and in 1866, he finally laid a cable that worked. Once it held, it went from being an experiment and borderline scam, to becoming the nervous system of global finance, commerce, and news for the next hundred years.

I’ve been thinking about Cyrus Field all week, because the SpaceX IPO just hit its reality wall. The $2 trillion hype trade that had been carrying every space stock higher slammed into its first real valuation and governance gut-check. The financial commentators came out swinging – “the number is absurd,” they said, “the index fast-tracking is a grift on retail,” “this is a dump on your 401k.” The whispers have started. So, is the parade is over?

Here’s the question that actually matters, the one that separates the initial public offerings that mint fortunes from the ones that vaporize them: does this trade burst through the reality wall, or die at it?

“Everyone else is 10, 15, 20 years behind.”

Every IPO has hype. Every IPO eventually meets the wall. GoPro (GPRO) met it and never recovered. Fitbit (FIT) met it and faded. Facebook (META) met it too… a brutal drawdown in its first couple of years… and then bulldozed straight through and became one of the most valuable companies on earth. The difference is never the hype. It’s what’s standing behind the hype.

What’s Behind the SpaceX IPO

Behind SpaceX is the hardest business on the planet. They literally call it rocket science.

Just how hard it is became apparent this past week, when Blue Origin’s rocket exploded before it even cleared the ground. This is Jeff Bezos we’re talking about – one of the great business minds of our era, with effectively unlimited capital – and his rocket blew up on the pad.

Only two companies on earth have turned rocket science into a reliable, repeatable commercial machine: SpaceX and Rocket Lab (RKLB). That technical moat is enormous, and in an age where most moats are eroding, this one is getting wider.

Everyone else is 10, 15, 20 years behind.

Now layer on what that moat unlocks – orbital computing, satellite intelligence, geospatial observation, national defense, eventually point-to-point travel that gets you from Los Angeles to Beijing in about an hour. Does that last one sound like science fiction? Of course it does. So did a mainstream $30,000 electric car when Tesla (TSLA) went public in 2010, and people laughed at that, too.

Sixteen years later, Tesla is the most valuable automaker in the world. This is a founder who has turned science fiction into reality before – more than once, with the most ambitious projects imaginable.

If I’m betting on anyone to break through the wall, it’s the man with the longest track record of doing exactly that, a fresh IPO war chest of roughly $75 billion, and Tesla’s balance sheet behind him.

And that “grift on your 401(k)” accusation? Take the emotion out and it falls apart. You want the indices to own a $2 trillion company.

Picture an index fund that doesn’t hold one of the four or five most valuable businesses on earth – that isn’t protecting you, it’s handing you a broken, inefficient portfolio. The fast-tracking is the market scrambling to build a sensible index for a wave of trillion-dollar IPOs the rules were never written for.

“Knowing which is which is the whole game.”

Here’s where it gets interesting for your portfolio, though, because the reality wall isn’t only a space story. The same pattern is flashing across the entire AI Boom.

The AI Signal Under the Noise

Take Nvidia’s (NVDA) move into the PC chip market for the first time in its history – a market Intel has owned for decades. Read past the headline and it tells you two things.

First, the smartest company in AI is now betting heavily on Physical AI – pushing intelligence out of the cloud and onto the device, which puts names like Dell (DELL) and HP (HPQ) squarely in the path of the next leg of this buildout. Second, that new chip is built on ARM (ARM) architecture.

All roads lead back to the foundry when it comes to printing chips. All roads lead back to ARM when it comes to running them. Every one of those chips sold sends a royalty back to ARM. That’s a quiet toll booth on the entire AI economy.

Then there’s the software bounce, where I’ll do something most analysts won’t: admit I got it wrong. I called this a dead-cat bounce. It wasn’t. A 45% rally off the lows, a clean bounce off the 200-week moving average – that’s real technical strength, and I’m not going to pretend otherwise.

But strength in the tape doesn’t resolve the long-term risk that AI eventually collapses demand for ordinary software. The market is finally getting selective. The names that own proprietary data and live inside a workflow AI can’t easily replace – the nervous-system businesses – deserve their bounce. The pure-function names riding the same tide don’t.

Knowing which is which is the whole game.

And watch the drones. They went red-hot before the Iran War, then ice-cold the moment the thesis got validated and everyone sold the news. Now an unexpected jolt of good news out of the White House looks like it could reawaken the trade.

We’ve seen this exact movie with quantum stocks a few weeks ago: red-hot, ice-cold, a policy catalyst, then liftoff. The drone names – AeroVironment (AVAV), Kratos (KTOS), Red Cat (RCAT) – look to be a few weeks behind that same blueprint.

Pull it all together and the signal underneath the noise is the one we’ve been pounding the table on for months. Seven, eight, nine of the 11 sectors can close red while tech rips 2% to 3% higher.

That isn’t random.

That’s the cleanest expression yet of an economy being weighed down by stagflation while the AI train refuses to slow.

We are in the later innings here. Not the ninth but not the fourth, either. The music is still playing, and you stay on the floor as long as it does. The trade is simple, and it hasn’t changed: own AI, and forget almost everything else.

In this week’s episode of Being Exponential With Luke Lango, we walk through exactly where these reality-wall setups sit on the charts… the technical support levels worth watching across space, chips, and drones, and the specific names we think burst through rather than break against the wall.

Watch the full episode here. Also, be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content.

The post The SpaceX IPO Just Hit the Reality Wall (Plus, the Trades Behind It) appeared first on InvestorPlace.

As I write Thursday morning, chip stocks are selling off, pulling the AI complex down alongside it.

The culprit: Broadcom (AVGO) reported earnings last night that were, by any objective measure, extraordinary. AI semiconductor revenues climbed 143% year over year, and Q3 guidance calls for $29.4 billion in revenue.

And yet Wall Street is hammering the stock, down 13% as I write.

Why?

Mostly because Broadcom didn’t raise its full-year AI chip guidance. CEO Hock Tan reiterated the existing forecast rather than upgrading it.

Beyond that, the software segment results were light. And Tan said Broadcom would offer “chips only,” rather than the complete integrated AI systems the company had previously said it would provide to customers.

On a stock that had run more than 60% since its late-March low, this was enough to trigger profit-taking – and the ripple has spread to the broader AI trade this morning.

Now, let’s be clear…

The selloff isn’t about Broadcom’s AI business. That business didn’t disappoint – it more than doubled, and AI revenue is expected to triple to $16 billion next quarter. That makes this selloff a valuation story: what happens when a stock priced for perfection only delivers excellence instead.

But that doesn’t mean we can write it off. It prompts a genuine question that all AI investors must answer…

Is this the beginning of growth rates failing to match lofty expectations? Or is the underlying AI buildout powerful enough to keep delivering at the scale the market needs?

To help answer that, let’s rewind to Monday’s news that Alphabet (GOOG) is raising $80 billion – not to survive a downturn, but because the demand for its AI products is outrunning its ability to build the infrastructure to deliver them.

This has massive implications for tomorrow’s AI growth story.

In yesterday’s Digest, I wrote: “If you’re nervous today, listen to your fears – but frame them in facts.”

So, as the AI complex sells off this morning, let’s take our own advice.

A breather or a bust?

As we try to read where we are in this AI bull run – and how much growth remains in front of us – Alphabet’s $80 billion raise is one of the clearest signals we’ve seen. Let’s talk about why.

Every time you ask Gemini a question or run an AI-powered search, that query flows through a data center packed with specialized chips, networking equipment and cooling systems.

Billions of people do this daily. But that’s just consumer-side demand…

On top of that, corporations are paying Google directly to run their AI workloads – customer service systems, coding tools, data pipelines – all of it pulling on the same infrastructure.

Now, is Google making money on all this?

Yes, handsomely.

Google Cloud’s operating margin expanded to nearly 33% last quarter. Search revenue grew 19% as AI features drove queries to all-time highs.

On the consumer side, advertising revenue subsidizes the free users. On the enterprise side, companies are paying directly and profitably. Net income jumped 81% year over year to $62.58 billion.

So, with cash flooding in Google’s front door, why raise $80 billion?

Because it’s winning so fast that even one of the most profitable companies on earth can’t build AI infrastructure quickly enough to keep up with its own demand.

It’s no wonder why, when asked earlier this year what keeps him up at night, CEO Sundar Pichai’s answer was two words: compute capacity.

The only way to solve that is to spend at a scale that even Alphabet’s cash machine can’t fully self-fund.

If you’re worried about an AI bubble, trillion-dollar valuations with nothing underneath, or hype outrunning reality – this is one of the most ringing endorsements of the real thing you’re going to see.

A Wall Street elephant just put $10 billion behind that same conclusion

Our technology investing expert, Luke Lango, editor of Innovation Investor, reported that Berkshire Hathaway just sunk a boatload of money into Google, and their piece of this deal carries significance well beyond Google’s compute capacity problem:

Either Berkshire finally started understanding technology — or they stopped seeing Alphabet’s AI infrastructure buildout as a technology investment and started seeing it as a utility.

Regulated demand. Contracted revenue. Infrastructure moat. Predictable cash flows at scale. The framework Berkshire has used for railroads, energy pipelines, and insurance for decades.

When Berkshire sees utility economics, they write enormous checks.

That $10 billion tells us more about the AI infrastructure thesis than any earnings report could.

But the implications run well beyond Google. Microsoft (MSFT), Amazon (AMZN), Meta (META) and the rest are locked in the same arms race.

If Alphabet is pulling in $80 billion to accelerate, the pressure on everyone else to keep the gas pedal down only intensifies.

Here’s Luke on what that means for investors:

The winners are the chipmakers, memory suppliers, networking vendors, server builders, power providers, cooling companies, and high-beta compute clouds supplying the rails of the AI economy.

Luke has been positioning Innovation Investor subscribers in precisely those names…

And he believes the biggest catalyst for repricing them is still ahead.

OpenAI and Anthropic are on track for what could be the two largest IPOs in American history – reportedly targeting valuations of roughly $1 trillion and $900 billion, respectively.

When those S-1 filings hit, every Wall Street analyst and institutional investor will scramble to identify the AI infrastructure companies supplying, powering and enabling those businesses – many of them will be the same ones benefitting from Google’s AI ramp-up.

Luke calls getting there first the “Pre-IPO Backdoor.”

The historical pattern supports this. When Facebook went public in 2012, the IPO buyers had a rough ride. But a chipmaker supplying the memory behind the data-center buildout that powered the social media boom quietly returned hundreds of percent over the same window. Luke believes that pattern is about to repeat – at a far larger scale.

The window to position ahead of the repricing is now, before the filings arrive.

Luke lays out the full Pre-IPO Backdoor strategy here — including a free ticker that gives ordinary investors exposure to both OpenAI and Anthropic while they’re still private.

Now, as we assess the overall AI trade and future growth rates, the buildout is one thing. But what about the applications?

Get ready for what’s coming…

The age of agentic AI just arrived in your brokerage account

Last week, Robinhood (HOOD) announced two new products: Agentic Trading and an Agentic Credit Card.

The first lets you connect a third-party AI assistant to your brokerage account to execute investing strategies on your behalf – rebalancing your portfolio, monitoring themes, executing trades – with minimal human involvement.

The second lets a separate AI agent hunt for deals and complete purchases using a designated virtual credit card.

In other words, you set the goals, the AI handles the execution.

Robinhood isn’t alone. Google has already launched agentic checkout across Search and Gemini – a live “Buy for me” button that executes purchases directly on merchant websites.

Meanwhile, Amazon’s AI shopping assistant Rufus now serves 300 million users. Etsy (ETSY) and over a million Shopify (SHOP) merchants are live with agentic commerce capabilities.

And that’s just retail…

Gartner projects agentic AI will autonomously resolve 80% of common customer service issues without human intervention by 2029, cutting operational costs by 30%.

The pace of all this is striking. According to research from the Institute of Electrical and Electronics Engineers (IEEE), 96% of global technologists predict that agentic AI development and integration will accelerate through 2026, with many experts expecting near-mass consumer adoption this year.

Here’s TechRadar with the impact:

For consumers, this shift is profound, as autonomous agents begin managing the complexities of personal finance, travel, and household logistics, turning once-manual digital tasks into hands-off, automated experiences.

We’re not talking about a chatbot that answers questions. We’re talking about AI that acts on your behalf, in the real world, right now.

For investors still on the fence about whether AI is real or just hype, this is your answer.

But still, for nervous AI investors watching their portfolio sink into the red today, is there another proof point to calm nerves?

“We’re just rewiring the world”

If Alphabet’s $80 billion raise and Robinhood’s agentic trading accounts didn’t convince you about AI, consider what Brookfield Asset Management (BAM) is doing.

Brookfield built one of the world’s great fortunes on bridges, toll roads, freight railways, and utilities – the unglamorous, load-bearing infrastructure that quietly powers civilization.

It doesn’t chase trends. It doesn’t do hype. It writes enormous checks into assets it expects to collect cash from for decades.

It is now going all-in on AI infrastructure.

The firm is raising $50 billion across a new suite of AI-focused infrastructure funds. Its first major deployment: a $5 billion commitment to install Bloom Energy (BE) fuel cells at AI data centers – with the first project tied to an Oracle (ORCL) data center campus spanning 1,400 acres of New Mexico desert, built to support OpenAI’s compute needs.

Brookfield CEO Bruce Flatt recently summed up the firm’s view at the Milken Institute Global Conference:

We’re just rewiring the world.

This framing should sound familiar…

Earlier in this Digest, Luke noted that Berkshire sees Alphabet’s AI buildout through the lens of utility economics – railroads, pipelines, contracted cash flows.

Brookfield is saying the same thing, just more explicitly.

Its CEO, Connor Teskey, described the strategy as “focused on investing in long-life, critical assets,” betting that well-structured contracts will deliver reliable cash flows for years – regardless of which AI model or platform ultimately wins the race.

And here’s Bloomberg, noting the scope of the growth in the area:

These asset managers are plowing ever-more cash into AI, stepping in to finance deals when banks can’t supply the sheer magnitude of cash needed to construct massive data facilities.

The ever-larger deals are turning infrastructure, once a staid and sleepy corner of finance, into a buzzy space that’s sparking both ebullience and trepidation.

That last point is critical for investors to recognize.

Brookfield and these asset managers at large aren’t betting on OpenAI versus Anthropic, or Nvidia versus the next chipmaker. They’re betting on the physical layer beneath it all – the power, the land, the cooling, the connectivity. That’s a bet that pays off no matter who wins the AI arms race above it.

The scale of the opportunity, in Brookfield’s own assessment: $7 trillion.

Bridges. Toll roads. Freight railways. Now AI data centers…

Brookfield doesn’t do bubbles – it does decades.

The bottom line

Step back from this morning’s selloff for a moment and look at what today’s Digest actually contains.

Three stories. Three different vantage points – a tech giant, a retail brokerage, and a global infrastructure empire. All pointing in the same direction.

Yes, AVGO is down 13% as I write. But Broadcom’s AI revenue more than doubled, and next quarter it’s expected to triple. The stock is being punished for not beating elevated expectations by enough. That’s a very different problem from a broken thesis.

Meanwhile, Alphabet is raising $80 billion because it can’t build AI infrastructure fast enough to meet demand. Berkshire is writing $10 billion checks because it sees utility economics. Brookfield is committing $50 billion because it sees a $7 trillion opportunity. And AI agents are already executing trades and buying groceries on behalf of ordinary consumers.

A stock getting punished for tripling its AI revenue doesn’t change any of that.

As always, factor in valuations, your personal timeline and your own risk tolerance before acting. Smart investing is never one-size-fits-all. But on the foundational questions – is this AI boom real? And can massive growth continue?

The evidence speaks clearly.

Have a good evening,

Jeff Remsburg

(Disclaimer: I own AVGO, GOOGL, AMZN, and MSFT.)

The post Is Broadcom the First Crack in the AI Bull Market? appeared first on InvestorPlace.

Amazon.com, Inc. (AMZN) was already a public company. And it was already capable of producing profits – if Bezos had wanted to. But instead, he kept aggressively reinvesting. Instead of worrying about profits, he was building warehouses, distribution infrastructure, and technology systems.

Every quarter, the margins that should have been there weren’t, because every dollar was going right back into the Amazon machine.

Analysts were furious. Where are the profits? What exactly are we owning here?

Meanwhile, all around Amazon, the dot-com boom was producing companies with no revenue, no product, sometimes no coherent business model at all – and their stocks were tripling. The whole market was chasing a story.

Who looks most like the future? Who has the best narrative? Wall Street was funding them fast and asking questions later.

Bezos wasn’t playing that game.

What he understood – and almost nobody else did back then – is that 1999 capital was a once-in-a-generation resource. Every dollar of market enthusiasm could be converted into permanent infrastructure: fulfillment capacity, distribution reach, systems that got cheaper the more volume they handled. He wasn’t optimizing for this quarter. He was building something that would be almost impossible to replicate once the window closed.

When the music stopped in 2000, it stopped for everybody. The story companies – do I need to mention Pets.com? – vanished almost overnight.

Amazon went through its own brutal drawdown, but the infrastructure Bezos built was still there. The customer relationships were still there. The cost curves were still bending in the right direction.

By 2005, Bezos looked like a genius. In 1999, he just looked tactical.

I was managing money through all of it. And I’ll tell you – 1999 was one of the best years of my career. It was also one of the strangest markets I’ve ever seen in nearly 50 years in this business. Capital was flowing faster than fundamentals could justify.

My Stock Grader system kept me focused on what actually mattered: real earnings, real institutional conviction. A lot of the dot-com darlings never showed up in my system at all – and a lot of them went to zero.

But the companies with genuine fundamentals underneath the noise survived. And the ones – like Amazon – that used the window tactically didn’t just survive. They won the whole decade.

Right now, the AI boom is rhyming with that moment in ways that I find both exciting and instructive. But at the same time, this is not the dot-com boom – the fundamentals are far stronger.

So, in this piece, I want to show you why this AI boom reminds me so much of the late 1990s… why I believe some AI stocks could be much higher by year-end… and why the smartest move today is not to run for the exits when things get choppy, but to get more tactical.

And finally, I’ll tell you about a new tool that can help you do just that…

The ChatGPT Moment

I recently got my hands on a chart from our friends at Bespoke Investment Group comparing the Nasdaq Composite’s performance during the internet boom of the late 1990s with its current path during the AI boom.

The comparison is striking.

ChatGPT appears to have done for AI what Netscape did for the internet.

When Netscape came along, investors realized the internet wasn’t just a neat new technology. It was a business revolution. Money poured into the companies building that new world, and the Nasdaq soared.

We’re seeing that same basic story today.

ChatGPT woke people up to what AI can actually do. And Wall Street quickly figured out how much infrastructure that was going to require.

The fact is that the boom is backed by real sales, real earnings, and real order backlogs.

Look at Bloom Energy Corp. (BE), for example. The company helps make fuel cell generators, which data centers need to produce power on-site so they don’t have to rely on the electrical grid.

Bloom Energy’s current product backlog is about $6 billion, while its total backlog exceeds $20 billion.

At this rate, it will take years to deliver what is already in the pipeline. And Bloom Energy isn’t an outlier. This story is playing out across the AI and data center space.

Companies are receiving more orders than sales. That makes this a real capital spending cycle.

That is why I remain bullish. Personally, I think the AI and data center stocks across my premium services could be another 30% to 40% higher between now and the end of the year.

But that does not mean investors should get complacent.

Summer Could Get Bumpy

August and early September tend to be volatile. Seemingly everyone on Wall Street and in Europe is on vacation, trading volume thins out and unscrupulous short sellers come out of the woodwork.

So, I would not be surprised if the market gets bumpy.

In fact, Bespoke also shows that the Nasdaq took a significant dip between late May and October 1998 – right in the middle of what turned out to be a historic bull run. I wouldn’t be surprised to see something similar this summer.

But here’s the key insight: If the AI Revolution continues to follow the internet boom’s path, a summer pullback would not mark the end of this bull market. It could simply set the stage for much higher levels later in 2026 and beyond.

That is why I do not want you to follow the “sell in May and go away” crowd to the exits.

We remain in one of the best earnings environments of our lifetime. Analysts continue to revise estimates higher. Companies keep beating expectations. Fundamentally superior stocks with accelerating earnings and sales growth should continue to lead.

But there is a big difference between staying invested and just closing your eyes.

The late 1990s created tremendous wealth. But that market did not move in a straight line. Even great stocks got hit hard from time to time. The investors who panicked during those pullbacks often missed the biggest gains that came next.

That is the real risk this summer.

Not that a great stock has a bad week. The real risk is that you let a bad week scare you out of a great stock right before the next leg higher.

And that’s why I’ve been working with my friends over at TradeSmith on something special – something that’s specifically designed for times like this.

Stay Bullish, but Get Tactical

In my view, the answer is simple: Stay bullish, but get tactical.

That means focusing on fundamentally superior companies. It means paying attention to earnings momentum, sales growth, and analyst revisions. It means having a better way to track whether the stocks you own are still healthy in the short term.

And it’s why I’ve been paying close attention to what my friends at TradeSmith have been building.

On Wednesday, June 10, at 10 a.m. Eastern, I’m teaming up with TradeSmith CEO Keith Kaplan for a special event.

Keith and his team have spent years building technology designed to help investors make more tactical decisions. And during this event, we’re going to show you a new AI-powered approach to navigating today’s faster-moving market.

I don’t want to give away the full story today. That is what the event is for. But here’s the basic idea…

If this market really is rhyming with the late 1990s, investors need to be prepared for two things at once:

Before the event, you can even test-drive part of the technology for yourself. You can enter the ticker symbols of stocks you already own – or stocks you are thinking about buying – and see how the system evaluates their short-term health.

That is exactly the kind of tool I believe investors should have at their fingertips in a market like this.

When volatility picks up, you don’t want to guess. You don’t want to rely on fear. And you do not want to get shaken out of a great long-term opportunity because the market has a bad week.

That’s why I encourage you to sign up for our free event. And to try out the free ticker tool before the event.

Jeff Bezos didn’t close his eyes in 1999 and hope for the best. He got tactical.

That’s exactly what I’m asking you to do right now.

Sincerely,

Louis Navellier

Editor, Market 360

The post The Biggest Mistake AI Investors Could Make This Summer appeared first on InvestorPlace.

Not because he thinks the market is about to crash, but because he believes investors need to be prepared for both opportunity and volatility.

I invited Louis here today to explain what he’s seeing – and why he’s teaming up with TradeSmith for a free special event on June 10 to help investors navigate what’s next. You can register for that free broadcast here.

And here’s Louis…

In 1999, Jeff Bezos was doing something that drove Wall Street absolutely crazy.

Amazon.com Inc. (AMZN) was already a public company. And it was already capable of producing profits — if Bezos had wanted to. But instead, he kept aggressively reinvesting. Instead of worrying about profits, he was building warehouses, distribution infrastructure, and technology systems.

Every quarter, the margins that should have been there weren’t, because every dollar was going right back into the Amazon machine.

Analysts were furious. Where are the profits? What exactly are we owning here?

Meanwhile, all around Amazon, the dot-com boom was producing companies with no revenue, no product, sometimes no coherent business model at all — and their stocks were tripling. The whole market was chasing a story.

Who looks most like the future? Who has the best narrative? Wall Street was funding them fast and asking questions later.

Bezos wasn’t playing that game.

What he understood — and almost nobody else did back then — is that 1999 capital was a once-in-a-generation resource. Every dollar of market enthusiasm could be converted into permanent infrastructure: fulfillment capacity, distribution reach, systems that got cheaper the more volume they handled. He wasn’t optimizing for this quarter. He was building something that would be almost impossible to replicate once the window closed.

When the music stopped in 2000, it stopped for everybody. The story companies – do I need to mention Pets.com? – vanished almost overnight.

Amazon went through its own brutal drawdown, but the infrastructure Bezos built was still there. The customer relationships were still there. The cost curves were still bending in the right direction.

By 2005, Bezos looked like a genius. In 1999, he just looked tactical.

I was managing money through all of it. And I’ll tell you — 1999 was one of the best years of my career. It was also one of the strangest markets I’ve ever seen in nearly 50 years in this business. Capital was flowing faster than fundamentals could justify.

My Stock Grader system kept me focused on what actually mattered: real earnings, real institutional conviction. A lot of the dot-com darlings never showed up in my system at all — and a lot of them went to zero.

But the companies with genuine fundamentals underneath the noise survived. And the ones — like Amazon — that used the window tactically didn’t just survive. They won the whole decade.

Right now, the AI boom is rhyming with that moment in ways that I find both exciting and instructive. But at the same time,  this is not the dot-com boom — the fundamentals are far stronger.

So, in this piece, I want to show you why this AI boom reminds me so much of the late 1990s… why I believe some AI stocks could be much higher by year-end… and why the smartest move today is not to run for the exits when things get choppy, but to get more tactical.

And finally, I’ll tell you about a new tool that can help you do just that…

The ChatGPT Moment

I recently got my hands on a chart from our friends at Bespoke Investment Group comparing the Nasdaq Composite’s performance during the internet boom of the late 1990s with its current path during the AI boom.

The comparison is striking.

ChatGPT appears to have done for AI what Netscape did for the internet.

When Netscape came along, investors realized the internet wasn’t just a neat new technology. It was a business revolution. Money poured into the companies building that new world, and the Nasdaq soared.

We’re seeing that same basic story today.

ChatGPT woke people up to what AI can actually do. And Wall Street quickly figured out how much infrastructure that was going to require.

The fact is that the boom is backed by real sales, real earnings, and real order backlogs.

Look at Bloom Energy Corp. (BE), for example. The company helps make fuel cell generators, which data centers need to produce power on-site so they don’t have to rely on the electrical grid.

Bloom Energy’s current product backlog is about $6 billion, while its total backlog exceeds $20 billion.

At this rate, it will take years to deliver what is already in the pipeline. And Bloom Energy isn’t an outlier. This story is playing out across the AI and data center space.

Companies are receiving more orders than sales. That makes this a real capital spending cycle.

That is why I remain bullish. Personally, I think the AI and data center stocks across my premium services could be another 30% to 40% higher between now and the end of the year.

But that does not mean investors should get complacent.

Summer Could Get Bumpy

August and early September tend to be volatile. Seemingly everyone on Wall Street and in Europe are on vacation, trading volume thins out, and unscrupulous short sellers come out of the woodwork.

So, I would not be surprised if the market gets bumpy.

In fact, Bespoke also shows that the Nasdaq took a significant dip between late May and October 1998 — right in the middle of what turned out to be a historic bull run. I wouldn’t be surprised to see something similar this summer.

But here’s the key insight: If the AI Revolution continues to follow the internet boom’s path, a summer pullback would not mark the end of this bull market. It could simply set the stage for much higher levels later in 2026 and beyond.

That is why I do not want you to follow the “sell in May and go away” crowd to the exits.

We remain in one of the best earnings environments of our lifetime. Analysts continue to revise estimates higher. Companies keep beating expectations. Fundamentally superior stocks with accelerating earnings and sales growth should continue to lead.

But there is a big difference between staying invested and just closing your eyes.

The late 1990s created tremendous wealth. But that market did not move in a straight line. Even great stocks got hit hard from time to time. The investors who panicked during those pullbacks often missed the biggest gains that came next.

That is the real risk this summer.

Not that a great stock has a bad week. The real risk is that you let a bad week scare you out of a great stock right before the next leg higher.

And that’s why I’ve been working with my friends over at TradeSmith on something special – something that’s specifically designed for times like this.

Stay Bullish, but Get Tactical

In my view, the answer is simple: Stay bullish, but get tactical.

That means focusing on fundamentally superior companies. It means paying attention to earnings momentum, sales growth, and analyst revisions. It means having a better way to track whether the stocks you own are still healthy in the short term.

And it’s why I’ve been paying close attention to what my friends at TradeSmith have been building.

On Wednesday, June 10, at 10 a.m. Eastern, I’m teaming up with TradeSmith CEO Keith Kaplan for a special event.

Keith and his team have spent years building technology designed to help investors make more tactical decisions. And during this event, we’re going to show you a new AI-powered approach to navigating today’s faster-moving market.

I don’t want to give away the full story today. That is what the event is for. But here’s the basic idea…

If this market really is rhyming with the late 1990s, investors need to be prepared for two things at once:

Before the event, you can even test-drive part of the technology for yourself. You can enter the ticker symbols of stocks you already own – or stocks you are thinking about buying – and see how the system evaluates their short-term health.

That is exactly the kind of tool I believe investors should have at their fingertips in a market like this.

When volatility picks up, you don’t want to guess. You don’t want to rely on fear. And you do not want to get shaken out of a great long-term opportunity because the market has a bad week.

That’s why I encourage you to sign up for our free event. And to try out the free ticker tool before the event.

Jeff Bezos didn’t close his eyes in 1999 and hope for the best. He got tactical.

That’s exactly what I’m asking you to do right now.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. I think Louis makes an important point here. The question isn’t whether the AI boom is over. The question is how investors navigate the inevitable volatility along the way. That’s exactly what he’ll be discussing during his upcoming event with TradeSmith. If you haven’t registered for Louis’ free event yet, I’d encourage you to do so now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Bloom Energy Corporation (BE)

The post This Market Looks Like 1999, and That Should Make You Pay Attention appeared first on InvestorPlace.

They lose because they don’t have a system — a written, repeatable process that tells them why they’re in a trade, how much they’re risking, when to add, and when to get out.

Without that foundation, every position becomes a fresh emotional decision, and the wins and losses average out to something painfully close to zero.

I spent the early part of my career on the floor of the Chicago Mercantile Exchange and later as a market maker at the Chicago Board Options Exchange. The traders who survived weren’t the ones with the best instincts. They were the ones with the tightest process. They were the best at managing money.

In today’s essay, I’m laying out a framework I’ve refined over more than two decades — six principles that, taken together, form the spine of a structured high-probability trading practice.

1. Have a ‘Why’ for Every Trade

The best traders can articulate, in one or two sentences, why they’re in a position. If you can’t write down the reason before you click buy, you don’t have a trade — you have idea.

A defined reason isn’t “I think XYZ will trade higher.” It’s something testable: This refiner is the cheapest of its peer group relative to the crack spread which is trading at multi-month highs. Or: This stock is sitting at the bottom of its 30-day expected move and smart-money call buyers keep hitting the tape. The reason gives you something to fall back on. If the reason breaks — the crack spread turns, or the unusual flow reverses — you have a clear exit.

The simplest discipline I know is this: keep a one-line “thesis” field in your trade log for every position. If you can’t fill it in, don’t take the trade.

2. Manage Risk at the Portfolio Level, Not the Trade Level

This is the rule that most retail traders get backwards, particularly when trading options.

Conventional advice says: pick a stop loss for every trade. For stock that can work. For options it often doesn’t, because options gap, they decay, and a 50% intraday drawdown on a long premium position can reverse in an afternoon. If you set a stop based on a fixed dollar loss, you’ll be stopped out of trades that ultimately work.  

The alternative is to define your total acceptable risk across all open positions and size each trade so that, in aggregate, you stay inside your defined risk. If your maximum portfolio risk is $5,000, that’s the sum of what you can lose across every open position if they all went to zero. You then allocate that risk: maybe four bullish trades and two bearish trades as offsets, none of them larger than your per-trade cap.

The practical version, when buying options: decide what you’re comfortable losing on a trade before you enter, buy a few contracts that matches that figure, and accept that as your defined risk to expiration. If you want to risk $500, the undisciplined exposes $1000 and tries to ‘stop themselves out’.   Risk what you are willing to lose.

3. Choose the Right Vehicle to Express the View

Investors often miss a step. They form an opinion — “I’m bullish gold” — and immediately buy the underlying. But the underlying is rarely the most efficient expression of the view.

Every directional opinion can be expressed in several ways, each with different exposures to direction, volatility, and time:

• Long stock — pure delta exposure, no leverage, no time decay.
• Long calls — long delta, long volatility, short time (theta decay works against you).
• Short puts — long delta, short volatility, long time (decay works for you).
• Vertical call spread — long delta with capped upside and reduced volatility exposure, useful when premium is expensive.

If you’re bullish but volatility is elevated, buying calls means paying up for vol that might be extremely expensive. Selling puts or using a spread may give you the same directional payoff with better economics. If you’re bullish and volatility is cheap, long calls can be the better expression because you’re getting leverage and a long-vol position.

The discipline is to slow down between “I have a view” and “I click buy” long enough to ask: which structure gives me the cleanest risk/reward for this specific view in this specific environment?  Should you buy stock?  Buy an option?  There’s so many ways to express a similar view, but not all are created equal.

4. Use Market Context to Decide When to Add — and When to Pull Back

A trading system isn’t just a list of setups. It’s also a set of conditions that govern when you press and when you ease off. Two tools I use daily:

The VIX curve. The VIX itself measures 30-day implied volatility on the S&P 500, but the broader curve — 9-day, 30-day, 90-day, one-year — tells a richer story. When the front end spikes and then quickly reverts, that’s typically a healthy fear flush and a constructive backdrop. When longer-dated VIX is grinding higher and taking out prior highs, that’s a market that doesn’t want to rally, regardless of what the headlines say. In that regime, the rule in my own book is simple: stop adding long delta. Existing positions can run; new bullish exposure waits.

The expected move. For any liquid name, the options market prices an implied 30-day range — roughly one standard deviation up and down. For most large-cap stocks, price stays inside that band 70%–85% of the time. That makes the boundaries of the expected move useful reference points. A stock pushing against the top of its expected move on heavy call volume is often a place to take profits, not chase. A stock at the bottom of its expected move with bullish flow is often a more favorable entry than the same stock 5% higher.

Neither tool is a prediction. Both are filters that help you size up or down without having to forecast.

5. Trade Less and Hold Trades Longer

After working with thousands of traders, I’d summarize the two biggest mistakes in one sentence: everybody trades too often and everybody trades too big.

Overtrading is usually driven by boredom or by needing to “do something” after a loss. The fix is structural, not motivational: cap the number of open positions, cap the number of new entries per week, and require that each new trade meet your written criteria. If nothing meets the criteria, the correct action is to do nothing.

Trade less, hold positions longer.

Oversizing is usually driven by the desire to make a loss back quickly or by confusing conviction with edge. The fix is a hard rule that maximum trade size is a function of recent performance, not recent feelings. Which leads to the next piece.

6. Chart Your Own P&L and Let It Govern Your Risk

The single highest-leverage habit I picked up on the floor of the Chicago Mercantile Exchange (CME) was charting my own equity curve and treating it like any other instrument. When the curve was making new highs, I was allowed to add size. When the curve was pulling back, I cut size — sometimes dramatically — until it stabilized. The logic is simple: a drawdown in your P&L is information. It’s telling you that whatever you’re doing isn’t matching the current market, and the correct response is to take less risk, not more.

A practical version: track daily and weekly P&L in a spreadsheet or charting tool. Set a rule that if your equity curve breaks below its 20-day moving average, you reduce position sizing by half until it recovers. Set another rule that you can only increase size after a fresh equity-curve high. These are arbitrary numbers — pick what fits your style — but the principle is what matters: let the data, not your mood, set your exposure.

This applies even to traders who are learning. Before risking real capital, paper trade with a tiered goal: make $300 on paper for a week, then earn the right to try for $600. If you fail at the lower tier, you don’t get to the higher one. The point isn’t the dollars — it’s establishing, in advance, that size is a privilege you earn through demonstrated performance.

Putting It Together

A repeatable active trading system isn’t a magic indicator. It’s the combination of six disciplines: a defined reason for every trade, risk managed at the portfolio level, the right vehicle for each view, market context to govern exposure, structural defenses against overtrading and oversizing, and an equity curve that dictates your risk appetite.

None of these are exciting in isolation. Together they’re the difference between traders who are still in the game a decade in and traders who aren’t. The market doesn’t reward cleverness as reliably as it rewards process. Build the process first.

The creative trader always wins,

Jonathan Rose

Founder, Masters in Trading

The post Building a Repeatable, Active Trading System: A Framework for Discipline, Risk, and Review appeared first on InvestorPlace.

The average American is in serious trouble. 

Inflation is rising. Wages are falling. Real wage growth is running negative. Yet consumers are still spending — by raiding their savings — which is dragging the savings rate toward record lows. If those savings run dry before inflation is fixed, consumers will literally run out of money to spend. 

All the while, more AI-driven layoff announcements are hitting the tape every week, threatening the very labor market providing Americans’ paychecks.

This situation is unsustainable. 

If you’re feeling squeezed right now, you’re not imagining it. The data backs you up completely. 

But history also shows that the periods of greatest economic stress for Main Street have often coincided with the most aggressive bull runs on Wall Street. (Including, potentially, the two largest IPOs ever attempted… which could arrive sooner than the market is pricing in.)

The next two years may be no different.

There’s a pattern here… and it’s not the one most people expect.

The Inflation Problem Is Worse Than the Headlines Are Telling You

Let’s start with the inflation data, which is quite alarming.

The personal consumption expenditures (PCE) inflation rate — the Federal Reserve’s preferred gauge — hit 3.8% in April 2026. That’s the highest reading since May 2023, the highest since August 2008 if we exclude the COVID-era distortion, and nearly double the average PCE inflation rate (~2%) going all the way back to 1992. The Cleveland Fed’s Nowcast model is already projecting that number rises further in May, potentially reaching 4%.

Core PCE inflation, which excludes food and energy, hit 3.3% in April. That’s its highest since November 2023… since April 1992, excluding COVID… and roughly 65% above its long-run average of ~2%. The Cleveland Fed Nowcast sees that number climbing to ~3.4% in May.

So inflation is hot — very hot — and getting hotter.

The Wage Problem Makes the Inflation Problem Even Worse

The inflation picture is bad. The income picture is worse. 

Nominal personal income growth clocked in at just 2.5% in April, down sharply from 5.5% a year ago. That means wages are decelerating while inflation is accelerating. When you do the math — income growth of 2.5% minus PCE inflation of 3.8% — you get a real wage growth rate of negative 1.3%. Consumers are falling behind by over a point a month, in real terms.

Based on current estimates, that number likely deteriorates further in May, potentially hitting negative 1.5% or worse.

One year ago, the consumer picture was very different. Nominal income growth was running at 5%, inflation was 2.6%, and real wage growth was a healthy positive 2.4%. 

Today, real income growth is deeply negative — and as we’re about to see, consumers are spending at the exact same pace anyway.

The Spending Paradox: Americans Are Broke and Spending More Than Ever 

Nominal personal spending growth rose in April from 5.7% to 5.9% — the strongest reading since January 2025. 

To be clear: that is the same spending rate we saw back when real income growth was positive 2.4%. Consumers haven’t pulled back at all. If anything, they’re spending more. But the fundamental support for that spending has completely collapsed underneath them.

So if wages aren’t funding this spending binge, what is?

Savings.

Savings Cliff: The Only Real Historical Analog Is 2008

The U.S. personal savings rate crashed to 2.6% in April 2026 — one of its lowest levels in modern history. The only comparable readings are the roughly 2% savings rate we saw in the year leading up to the 2008 financial crisis and the brief dip to ~2% in 2022 — which was less impactful because consumers had just exited 2021 with savings rates north of 20%, flush with COVID-era stimulus cash.

Today’s situation has no such cushion. Just a year ago, the personal savings rate was 5.5% — more than double where it sits today. In other words, U.S. consumers have burned through more than half their financial buffer in 12 months, during a period when real wages are going negative and getting worse every single month.

It seems the only honest historical analog for what’s happening right now is the run-up to the 2008 financial crisis. 

Three Ways This Ends — and Why Only One Is Realistic

This is not a sustainable dynamic. Something has to give… and soon. The way I see it, there are three possible outcomes:

Option 1: The inflation problem gets fixed. Oil falls, PCE cools, real wages go positive again. Consumer crisis averted.

Option 2: Wages surge unexpectedly. Labor regains leverage, income growth reaccelerates, consumers get back ahead of inflation.

Option 3: Consumers hit a brick wall. Savings run dry. Spending collapses.

But unfortunately, options 1 and 2 are increasingly unlikely in the near term.

Even with the U.S.-Iran peace deal reportedly in progress, oil is still sitting in the $90–$100 range — which, all else equal, should keep PCE inflation north of 4% for the foreseeable future. That means the inflation problem isn’t getting fixed anytime soon.

And on the wage front? Good luck negotiating a raise when your boss just announced he’s laying off 20% of the company because of AI. Wix just became the latest CEO to join that chorus. When employers have AI as a credible replacement threat, workers lose all bargaining leverage. Wages aren’t going up from here.

That leaves us with Option 3.

The Prediction: A Consumer Brick Wall, a Political Revolt, and a March 2000 Moment for AI

Here’s how I think this plays out over the next few years.

Over the next 12 months, the consumer situation goes from bad to worse. Sometime in 2027, they hit the wall. Spending collapses. Consumer confidence craters. And since consumer spending still drives roughly 70% of U.S. GDP, the broader economy starts to crack. Companies respond to slowing revenue by accelerating AI-driven layoffs to protect margins. More people lose jobs. The savings rate hits zero. Financial stress becomes widespread.

And then the politics get ugly.

When people lose jobs, can’t pay bills, and watch a handful of billionaires get exponentially richer from the same technology displacing them, the backlash is inevitable. AI will become the face of economic inequality in a way that no amount of industry PR will be able to neutralize.

A populist, bipartisan anti-AI movement takes shape in late 2027 and gains serious momentum heading into the 2028 elections. Politicians on both sides of the aisle adopt anti-AI stances to acquire or keep power. And by late 2028 or early 2029, those politicians follow through with legislation — whether that’s a tax on AI profits, a forced cap on hyperscaler capex, mandatory review processes for new AI models, or a mountain of red tape that collectively slows the AI build-out.

That’s the March 2000 moment for the AI bull market — the point at which the Nasdaq peaked, the dot-com bubble burst, and a generation of investors who had ignored every warning sign watched years of gains evaporate in months. It didn’t matter that the internet was real. What mattered was that the valuations had run so far ahead of reality that any catalyst — regulatory, economic, or political — was enough to break the spell. 

The Twist

But there’s a bullish twist here that makes this a trade, not just a warning.

Wall Street doesn’t stop rallying when the ominous signs appear. It rallies harder. The best part of every major bull market has always been the final chapter, when fundamentals become irrelevant, greed overwhelms caution, and prices defy all logic. I expect that to be especially true this time — because I think a significant portion of the so-called smart money already sees the expiration date coming.

Look at the behavior: The tech elite are aligning themselves with political power to protect their opportunity. SpaceX, OpenAI, and Anthropic are all rushing IPOs at historic valuations while the window is open. The hyperscalers are spending at a pace that only makes sense if they already know what’s coming.

The motto of the next two years? Make as much as you can, as fast as you can.

And that means the bid in AI stocks will be relentless. The FOMO will dwarf 1999. The money will keep flowing. And AI stocks could soar more than anyone expects over the next 12 to 24 months — before the inevitable reckoning.

The Bottom Line: The Final Leg Runs. Position for Both Sides of It.

Ordinary Americans are getting squeezed, the safety net is fraying, and the technology driving it all is about to make a small group of investors extraordinarily wealthy one last time before the backlash arrives.

You can have opinions about whether that’s right. You can also have a portfolio that reflects the reality of it.

The final leg runs. The reckoning follows. 

Position yourself for both.

What does positioning yourself for the final leg actually look like?

Start with the IPOs.

I’ve already mentioned that OpenAI and Anthropic are rushing to go public while the window is open. What I haven’t shared yet is that buying either company on IPO day is probably the wrong trade — even if the timing is perfect.

The biggest gains from landmark technology IPOs have almost never gone to the investors who bought on day one. They’ve gone to the investors who owned the ecosystem around those companies before Wall Street showed up to reprice it.

That’s exactly the opportunity I’ve been preparing for. I call it the Pre-IPO Backdoor — a small group of publicly traded companies that supply, power, and benefit from both OpenAI and Anthropic, and that I believe will get significantly repriced the moment those S-1 filings land.

The window to get in ahead of that repricing is open right now. I don’t know how much longer it stays that way.

Here’s everything I’ve found — and the stocks I think you need to own before the IPOs arrive.

The post Everyone Is Asking If the AI Bubble Will Burst. That’s the Wrong Question. appeared first on InvestorPlace.

Two articles landed this week, making different cases about the same market. One said we’re in a bubble. The other said we’re probably earlier in the cycle than later.

Both are worth taking seriously – but which one is right?

On Monday, Fast Company made the bear case, comparing today to the dot-com bubble, citing three pieces of evidence:

• The S&P 500 closed May at a record high, but only 20 of those 500 companies hit their own all-time highs.
• Concentration in a handful of mega-cap names.
• AI startups raising billions ahead of IPOs. Echoes of 1999.

But then yesterday, Goldman Sachs CEO David Solomon sat down with CNBC and said something a bit different…

Asked whether markets could absorb a string of massive equity offerings from OpenAI, Anthropic, and SpaceX, Solomon said that there’s plenty of liquidity, greed has overtaken fear, and – importantly:

Exuberance can go on for big periods of time…

There’s a good chance that we’re earlier in the cycle than later.

He also noted that gains generated by AI companies could create a self-reinforcing cycle as employees and investors recycle profits into taxes and new ventures.

Same market conditions. Different conclusions.

So, which framework should we use as we try to position our portfolios wisely?

The bears aren’t wrong to be nervous

Billionaire Ray Dalio, founder of the world’s largest hedge fund, Bridgewater, has called the AI boom “the early stages of a bubble,” comparing current euphoria levels to roughly 80% of what preceded the dot-com crash.

This is not an ignorable permabear on Reddit. He’s one of the most rigorous macro thinkers alive.

The breadth concern Fast Company raised is also legitimate. When a handful of stocks are doing most of the heavy lifting, it’s a fair question whether the rally is built on a broad or narrow foundation.

Plus, there are real macro headwinds on the calendar right now.

In yesterday’s issue of Accelerated Profits, legendary investor Louis Navellier flagged four potential volatility triggers in the next 15 days alone:

• The Consumer Price Index on June 10,
• The Producer Price Index on June 11,
• The first FOMC meeting under new Fed Chair Kevin Warsh on June 16-17,
• And a quadruple witching day on June 18 (a quarterly stock market event when four different types of financial derivatives expire simultaneously, leading to a massive surge in trading volume).

Louis isn’t dismissing the risk of outsized volatility in the wake of any of these events.

So, there are plenty of valid reasons to be cautious today. Anyone pretending otherwise isn’t being straight with you.

But as we’ve been highlighting in the Digest recently, the bears are focusing too much on just one direction

Backwards.

I’ve been stressing this because it’s a critical awareness that investors must hold.

The Fast Company article compared today’s market to the dot-com mania. For perspective, the technology sector’s aggregate forward P/E was 50 back then. Today it’s roughly 30.

Richly priced? Yes. Nosebleed? No.

More importantly, the companies driving the dot-com bubble were, in aggregate, destroying capital. Cisco (CSCO) traded at 200 times earnings. Pets.com had no earnings. The entire thesis rested on future revenue from an internet economy that, while real, was years away from generating cash.

The companies driving today’s AI rally – Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN) and Meta (META) – are among the most profitable in corporate history. Nvidia alone reported net income exceeding $120 billion in fiscal 2026. Microsoft, Alphabet, Amazon, and Meta generated a combined $350 billion in free cash flow in their most recent fiscal years.

Can a market throw off record profitability and be a classic bubble at the same time? Those two things are definitionally at odds.

Which brings us to an important question…

What are earnings telling us?

The most recent FactSet Earnings Insight report, published last Friday, provides the answer – and it’s striking.

Q1 2026 S&P 500 earnings growth came in at 28.6%. That’s the highest earnings growth rate reported by the index since Q4 2021, and the sixth consecutive quarter of double-digit growth.

Plus, at the start of the quarter, analysts had projected 13.1% growth. Reality came in more than double that estimate.

It gets better…

In a typical quarter, analysts reduce earnings estimates during the first two months of the following quarter. The historical average reduction over the past 20 years is 3.2%. This time around, analysts increased Q2 estimates by 2.5% – the largest such upward revision in the first two months of a quarter since Q3 2021.

Finally, the S&P 500’s blended net profit margin for Q1 2026 is 14.8%. If that holds, it will be the highest net profit margin FactSet has recorded since it began tracking this metric in 2009.

The previous record was 13.2% – set just last quarter.

It’s no wonder why Louis just told his Accelerated Profits subscribers:

We remain in one of the best earnings environments of our lifetime.

FactSet currently estimates the S&P 500 will achieve 21.6% average earnings growth and 12% average sales growth in the second quarter.

But it’s likely S&P 500 companies will report even higher earnings growth for the second quarter.

Bubbles often feature loads of companies burning cash rather than posting record profits. The data and the narrative are pointing in different directions.

If the earnings picture is this strong, why do analysts keep underestimating it?

One big reason: the spending commitments behind these earnings are larger than most models account for.

Google, Amazon, Microsoft, and Meta collectively committed $725 billion in capital expenditures for 2026 alone – up 77% from last year’s already historic levels. That money flows directly into the revenues of every company supplying the buildout: the chip makers, the data center operators, the power infrastructure providers, the networking equipment companies.

And that’s just 2026…

On Nvidia’s most recent earnings call, CEO Jensen Huang projected that global AI infrastructure spending will reach $3 to $4 trillion annually by 2030. Wall Street’s current consensus model has hyperscaler capex hitting $1.03 trillion in 2028.

The gap between those two numbers – consensus versus Huang’s reality – is precisely why earnings keep arriving well above what analysts project. The models are anchored to old assumptions. The spending is not.

The core question that provides clarity

Bubble warnings. Geopolitical risk. A Fed that’s cornered. Quadruple witching. Consumer confidence wobbling. Stagflation whispers.

It’s a lot.

Louis has spent decades watching investors get shaken out of winning positions by exactly this kind of noise.

But over those same decades, to help investors, he’s distilled markets down to a single organizing principle – one so reliable, so consistently validated by history, that he gave it a name.

Here’s Louis’ “Iron Law of the Stock Market” in his own words:

Stock price trends can diverge from earnings trends for a while, but over the long term, if a company grows and grows the amount of cash it takes in, its share price is sure to head higher.

That’s it – the whole framework.

Notice what the Iron Law does not require…

It doesn’t ask you to resolve the bubble debate. Or know whether Dalio or Solomon is right. Or predict what Fed Chair Warsh will say on June 17. Or how the market will react to the CPI print on June 10.

It asks you one question – though it’s really a two-parter: are the companies you own growing their earnings, and is today’s price reasonable relative to where those earnings are going?

That second part matters. A growing company trading at an absurd multiple relative to its future earnings is a different animal from one whose forward valuation still makes sense.

This is why trailing P/E – which looks backward – can be so misleading right now. The companies in the direct path of the AI buildout aren’t just growing earnings today. Analysts are raising their forward estimates at the fastest pace in five years.

And here’s another thing worth remembering…

The market isn’t one big monolith. It’s thousands of individual companies, each with its own earnings story.

Some AI-adjacent stocks may well be overpriced relative to their fundamentals. Others aren’t – our job is to know which is which.

Of course, that’s exactly why the fears on the table right now – Iran, stagflation, a paralyzed Fed, stretched valuations in certain corners of the market – are worth taking seriously at the individual stock level, but are not a reason to abandon positions in companies with accelerating earnings and forward valuations that the data supports.

So, let’s be clear…

Volatility is coming – Louis said so himself. But volatility is not the same as permanent loss.

Especially not for companies posting record profit margins, blowing past earnings estimates by the largest margin in years, and sitting in the direct path of the most consequential infrastructure buildout in the history of technology.

If you’re nervous today, listen to your fears – but frame them in facts.

What the Iron Law looks like in practice today

If you want a live example of this framework in action, look at Super Micro Computer, Inc. (SMCI), one of Louis’ current top picks in Accelerated Profits.

Super Micro builds the high-density servers that power AI data centers. It’s exactly the kind of company the Iron Law was built for.

Here’s Louis:

For its third quarter in fiscal year 2026, Super Micro Computer achieved 122.6% year-over-year sales growth and 171% year-over-year earnings growth. 

Adjusted earnings per share beat estimates by 35.5%.

Analysts have increased fourth-quarter earnings estimates by nearly 27% in the past month alone, now calling for 73.2% year-over-year earnings growth.

That’s not a story about a speculative startup chasing an AI narrative. That’s the Iron Law operating in real time – a company in the direct path of $725 billion in annual spending.

Louis has SMCI rated a buy below $49. As I write on Wednesday, it trades just under $47.

The bottom line

The bubble debate will keep making headlines. Dalio will keep sounding the alarm. Fast Company will keep finding patterns that rhyme with 1999.

None of that is without merit – but none of it changes what earnings are doing right now.

Stay focused on the right question, own the right companies, and let the Iron Law do what it has always done.

By the way, Louis is working on something big today – as always, anchored in his earnings-centered market approach. More on that later this week.

Before we sign off…

Today’s the last day to catch a free replay of last week’s Convergence Summit with market veterans Jonathan Rose and Marc Chaikin.

They’ve spent the last several months combining two of the most powerful “smart money” indicators into a single “Convergence Trigger.”

This combined trigger, back-tested across nearly 200 real trades, produced an 81% win rate and 147% average gain – and filtered out two of every three losing trades.

Today’s the last day to check it out, so if you’ve been meaning to watch, this is your last call.

Have a good evening,

Jeff Remsburg

(Disclaimer: I own MSFT, GOOGL, and AMZN)

The post Is This an AI Bubble? Here’s the Only Question That Matters appeared first on InvestorPlace.

“I think this is like more than 10x, probably 50x bigger than dot-com,” SoftBank Corp. (SFTBY) CEO Masayoshi Son told CNBC on Monday.

The “this,” of course, is the AI revolution.

And while this 50-to-1 impact remains to be seen, Son’s argument is supported by one simple reality: AI adoption is happening at an extraordinary pace.

A December 2025 study from researchers at the Computer & Communications Industry Association (CCIA), for instance, found that generative AI is now the fastest-adopted technology in U.S. history.

Workplace AI adoption reached 40% of U.S. workers within roughly two years of ChatGPT’s launch.

Comparatively, U.S. internet usage rose from roughly 14% of adults in 1995 to about 41% by 2000. A five-year growth story, not two.

AI appears to be achieving in a few years what took the internet much longer to accomplish. And some of the world’s largest investors are putting billions of dollars on that belief that this is only the beginning.

SoftBank itself is backing the conviction with enormous capital commitments in AI infrastructure.

To understand why Son is so confident in AI’s future, it’s worth taking a closer look at where SoftBank is actually putting its money – and what those investments reveal about the real winners of the AI boom.

After all, if AI delivers even a fraction of the impact Son predicts, the greatest opportunities will not be in the technology itself, but the infrastructure required to power it.

Let’s jump in…

Why Japan’s Most Valuable Company Is Going All-In on France

SoftBank announced on Sunday that it will invest 45 billion euros ($53 billion) over the next five years to build AI infrastructure… in France!

Oh là là! This new investment – SoftBank’s largest-ever in Europe – is part of a 75-billion-euro ($87 billion) program to produce 5 gigawatts (GW) of AI data center capacity in France, with plans to build 3.1-GW AI data centers in Dunkirk, Bosquel, and Bouchain by 2031.

During a press briefing on Monday about the 75-billion-euro investment, Son indicated that the all-in investment might hit a whopping  $750 billion when all systems are taken into account.

These are serious commitments for SoftBank, especially when added to the list of the company’s other investments:

• Along with Oracle, it has invested $500 billion in the Stargate project,
• Made a $40 billion commitment to OpenAI,
• And is building a 10-GW data center and additional power plants in Ohio.

Son mentioned that the company will mainly use project financing instead of its own funds for the investment, citing the data center project in Ohio that will soon finalize long-term agreements with customers.

He even suggests help from hyperscalers, saying, “Our own money that we need is very, very condensed, so I’m confident that we’re going to get big purchase orders from our customers that we already have relationships [with], so we can extend that momentum into France.”

The bottom line is that investments in AI development are growing in significance and scale.

And Softbank isn’t the only major company spending major coin.

Last year alone, Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Meta Platforms Inc. (META), and Alphabet Inc. (GOOGL) collectively poured nearly $300 billion into capital expenditures (CapEx), mainly focused on AI and data center demand. That figure will more than double this year to an eye-watering $635 billion.

Given the size of these investments, the speed at which they’re happening, and AI’s remarkable progress, the value the AI boom has created is surpassing that seen during the dot-com era.

That means profit potential is higher, and anything involved in building the AI infrastructure will be in even greater demand.

The companies supplying the “picks and shovels” of the AI economy will continue to see subsequent growth: utilities, power equipment manufacturers, construction firms, data-center operators, semiconductor companies, and networking providers.

Luckily, there is no shortage of these beneficiaries to choose from. But selectivity is still incredibly important. Here’s why…

The Real Winners of the AI Gold Rush

Rising AI demand does not lift all infrastructure boats equally.

Take it from another CEO, Nvidia Corp.’s (NVDA) Jensen Huang.

Just yesterday, he and Marvell Technology Inc. (MRVL) CEO Matthew Murphy discussed the importance of optical links and the growing role of AI infrastructure. Huang emphasized that while copper remains essential to powering AI systems, the industry is beginning to run into the physical limits of traditional electrical wiring.

As a result, the industry is transitioning toward optical systems to keep up.

This conversation sent Marvell’s stock up 24% and leading fiber-optic company Corning Inc. (GLW) up nearly 13% – highlighting how quickly money is moving into this shift in AI infrastructure.

I’ve been trying to equip my readers for moments exactly like this, which is why I recommended by 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 on Monday.

But Corning is not the only AI beneficiary that is gaining momentum. I’ve put together my “Sell This, Buy That” presentation to share the specific AI plays I believe will make investors maximum profits during the next phase of the AI boom.

During the video, I explain the serious potential of lesser-known – and sometimes highly misunderstood – picks-and-shovels plays… which sectors of the market I believe will see huge surges due to AI… and give away seven trades completely for free.

Click here to watch now.

Regards,

Eric Fry

The post SoftBank Calls AI 50x Bigger Than Dot-Com — Here’s Who Actually Profits appeared first on InvestorPlace.

It all started simple enough. Over the last several months, Marc and I started comparing notes. And here’s what we discovered: We’ve both spent our entire careers tracking the same thing—the smart money—just from completely different angles.

My work identifies where big, high-conviction positioning is showing up. Marc’s Money Flow confirms where institutional capital is actually flowing in the underlying stocks.

One signal measures conviction. The other confirms direction. Together, they form something neither of us had alone—a super signal that tips us off to the biggest directional bets in the options market before the crowd catches on.

I’m telling you all this at the top because this exact system is at the center of today’s essay.

Back in December 2024, I recorded a free YouTube video on my five favorite drone stocks for 2025.

I said — and I quote my terrible pun here — that drones were “really going to take off” in 2025. I also called Kratos Defense a favorite when it was trading around $28. It went on to hit $134 in January 2026.

In today’s essay, I’m breaking down exactly where I see the next opportunities emerging in the defense sector from here – and how we’ve used the system I’ve been researching for 28+ years to find them.

And if you want to learn more about how our Convergence Trigger helped us find profitable picks in sectors from defense to chip manufacturing, I’ve made a free replay of last week’s presentation available—but only until midnight tonight. So make sure you jump in as soon as you can.

On May 27, the Wall Street Journal reported that the Pentagon is actively negotiating to take direct equity stakes in American drone companies.

Not loans. Not contracts. Actual government ownership — something the U.S. has almost never done with private companies.

The market reacted the way it always does to big news: it moved the wrong stocks first.

A company called Unusual Machines (UMAC) — which did $11 million in revenue last year — jumped 52% in a single day. Meanwhile, AeroVironment, which has $1.9 billion in revenue guidance and a record backlog, moved just 8%.

That gap is where the opportunity lives. Let me explain what’s actually happening here — and which stocks I think are worth owning for real.

Why the Pentagon Is Buying Drone Stocks

Think of it this way. For decades, the government has been a customer. It pays defense companies to build things. A contract to build 500 missiles. An order for 10,000 drone components. That’s how it has always worked.

What’s being discussed now is different. The Pentagon wants to become an investor.

There’s a relatively new office inside the Department of Defense called the Office of Strategic Capital. Most people have never heard of it. Its job is to find companies critical to national security and help finance them — not just as a customer, but as an owner.

According to a recruiting document obtained by Foreign Policy, this office plans to deploy up to $200 billion over three years through equity stakes in strategic companies. That would be the largest accumulation of government ownership positions in American history.

We already have one real example of how this works. The Pentagon invested roughly $400 million in rare earth miner MP Materials, took a 15% ownership stake, added a $150 million loan, and locked in a 10-year purchase agreement with guaranteed minimum prices. The company knew exactly what it was going to sell, to whom, at what price, for the next decade.

That is the template. If the Pentagon applies that model to drones, the winning companies get guaranteed revenue, government financing, AND a long-term purchase contract. For the right company, that is genuinely transformative.

There is a catch, though — and the market hasn’t fully priced it yet. Government equity stakes usually come in the form of preferred shares and warrants. That dilutes the common shareholders who own the stock today.

So the headline “Pentagon invests in drone company” isn’t automatically good news for retail investors holding that stock. You have to read the fine print.

The Drone Stock Catalyst Nobody Is Talking About: January 1, 2027

Here’s what I think is the most important thing happening in the drone sector right now — and it has nothing to do with this week’s headline.

On January 1, 2027, a federal ban on Chinese-made drone components goes into full effect across all U.S. government programs.

Right now, a significant portion of government drone programs — from local police departments to FEMA disaster response to border patrol — rely on parts made in China. Motors. Sensors. Flight controllers. Cameras. That’s all becoming illegal for any federally funded program within the next seven months.

Here’s the number that puts this in perspective. Before this administration, the Pentagon accounted for less than 2% of all U.S. government drone purchases annually. The other 98% — every fire department, every sheriff’s office, every infrastructure inspection crew, every emergency management agency — all of them use drones, and many use Chinese components.

Every one of those programs has a compliance clock ticking right now. That is a forced-buyer event for American drone companies that arrives whether or not any Pentagon equity deal ever gets announced.

This is what I call common sense investing. You don’t need to predict which companies get a government equity stake. You just need to own the American drone companies that are positioned to capture the mandatory replacement cycle that starts in January 2027.

The Best Drone Stocks to Buy Now

Not every drone stock is worth owning. Here are the three names positioned to capture the real opportunity — and why each one fits a different kind of investor. Plus, one to approach with caution.

AeroVironment (AVAV): The Institutional-Grade Drone Stock

I’ve been talking about AeroVironment stock since that December 2024 video, and the thesis hasn’t changed — it’s only gotten stronger.

AeroVironment makes the Switchblade loitering munition. You launch it from a tube, it flies to a target, and it destroys it. Ukraine has used thousands of them. NATO allies are buying them. It’s not a concept — it’s a proven weapon system in active use around the world.

The numbers as of the most recent earnings: quarterly revenue of $408 million, up 143% year-over-year. Record funded backlog of $1.1 billion — that’s money the company has already been contracted to earn. Nine-month bookings of $2.1 billion. Full-year 2026 guidance of $1.85 to $1.95 billion.

There was an accounting write-down last quarter — $151 million related to the Space segment — that caused a headline loss and spooked some investors. The core drone and counter-drone business is growing fast. That’s what I’m focused on.

On the day UMAC jumped 52%, AVAV moved 8%. That’s not because AVAV is less important to this story. It’s because institutional investors — the ones managing hundreds of millions of dollars — can’t buy an $11-million-revenue company like UMAC. When real money rotates into this theme over the next 12 months, AVAV is the name it flows into.

AVAV is the boring choice. In defense investing, boring usually wins.

Kratos Defense (KTOS): The Best Drone Stock for Long-Term Investors

Kratos Defense stock is the name I’ve been most excited about going back to 2024, when KTOS was trading in the $20s. The thesis then was simple: who wouldn’t want to be long the company building attack drones for the U.S. government?

The thesis now is even stronger.

Kratos makes the XQ-58A Valkyrie — a jet-powered drone designed to fly alongside manned fighter jets as an autonomous wingman. In January 2026, the Marine Corps selected the Valkyrie for its Collaborative Combat Aircraft program, in partnership with Northrop Grumman. Initial contract value: $231.5 million. Kratos expects to deliver 15 to 20 Valkyries to customers this year alone.

The company did $1.35 billion in revenue in 2025, up 17% year-over-year, and is guiding for up to $1.675 billion in 2026. Backlog stands at $1.57 billion. And separately, Kratos won a $1.45 billion hypersonics contract that barely registers in today’s revenue but could be a major growth driver by 2027 and 2028.

Here’s what I like most about KTOS as a trade. It wins under both possible futures. If the Pentagon equity program succeeds and scales, Kratos benefits from the rising tide in the whole sector. If the program gets challenged in Congress or becomes politically complicated, money rotates into companies that already have the contracts and don’t need a government bailout. Kratos fits that description perfectly — no government equity stake on its cap table, just real revenue and real contracts.

KTOS is the stock I want to own if I’m thinking about where this sector is in three years, not just three months.

Ondas Holdings (ONDS): The Aggressive Growth Drone Stock With Real Backlog

Ondas is the most aggressive name on this list. More upside potential, more execution risk. Not for everyone — but worth understanding.

A year ago, Ondas was a relatively small drone software company. In 2026, it went on a buying spree — six acquisitions including Mistral, a defense prime contractor with a $982 million U.S. Army loitering munitions program. That single deal changed what Ondas is.

The result: pro forma backlog jumped from $68 million at year-end 2025 to $457 million by Q1 2026. Revenue guidance for the full year has been raised to at least $390 million — roughly ten times what they did last year. The company ended Q1 with over $1 billion in cash.

Counter-drone is where Ondas is building real traction globally. Its Sentrycs system was selected to protect the 2026 FIFA World Cup. Iron Drone is seeing demand across multiple countries. These aren’t future products — they’re deployed today.

The valuation is rich. This stock has run hard and requires flawless execution on a very ambitious plan. But the backlog is real, the contracts are real, and the January 2027 compliance deadline creates a demand tailwind that isn’t going away anytime soon.

Unusual Machines (UMAC): The Hype Stock With a Math Problem

I’d be doing you a disservice if I didn’t address the stock everyone is actually talking about today.

UMAC has a real thesis. It makes American drone components — motors, frames, electronics — at exactly the moment the government is demanding American-made parts. It has a real Army contract: a $12.8 million order for 160,000 drone components. Donald Trump Jr. joined its advisory board in late 2024 and owns about 331,000 shares.

But here’s the math problem. UMAC did $11.2 million in total revenue last year and lost $19 million doing it. After this week’s run, the stock was valued at over $1 billion — more than 90 times revenue.

I’m not saying UMAC can’t work from here. I’m saying you need to know exactly what kind of bet you’re making. The Trump Jr. association sent the stock up 52% on news day. It could also become a liability if Congress starts investigating Pentagon equity deals after the 2026 midterms. This is a speculative trade, not a fundamental investment.

If you buy UMAC, know why you own it. Size it like a speculation. Don’t treat it like AVAV — they are not the same kind of position.

The Best Drone Stocks to Buy Now: Final Takeaway

In December 2024, I told my YouTube audience that drones were going to be one of the most important sectors to watch in 2025. That turned out to be true. The Pentagon’s move into equity investing is the next chapter — and it has another two to three years to fully play out.

The January 2027 Chinese parts ban creates a massive, mandatory replacement cycle for American drone companies that runs independent of any government equity deals. The question is simply which companies are positioned to capture that demand.

My ranking: AVAV for investors who want institutional-quality exposure with a 12-month horizon. KTOS for the investors thinking three years out. ONDS for investors comfortable with aggressive growth and real execution risk. And UMAC for traders who understand the speculative nature of the position.

I cover setups like this live every weekday morning at 11 AM ET on Masters in Trading Live — free on YouTube @LiveOptionsWithJR. The whole point of the show is finding where the market’s pricing hasn’t caught up to reality yet. Right now, in the drone sector, there’s a lot of that going around.

P.S. What happens when a 50-year Wall Street legend and a 14-year floor trader combine their absolute best indicators?

You get a double-confirmation “Super-Signal” that eliminates the guesswork and tracks institutional capital in real time. This exact mechanism has already pinpointed massive, short-term spikes up to 833% during recent market chaos.

Like I mentioned at the top, Marc Chaikin and I recently went live to reveal the entire strategy for free—and we named 10 stocks that could double your money over the next 12 months. Make sure you check out the presentation right here before we take it down at midnight.

The post The Pentagon Is Betting $200 Billion on These Companies appeared first on InvestorPlace.

Here’s the thing about markets: the biggest money often gets made when a technology built for one war gets drafted into another. The hardware was already there. It just needed a new battlefield. I’m watching that exact pattern play out across the AI infrastructure buildout right now, and it’s minting winners faster than most investors can update their watchlists.

The catch? For every honest reinvention story that runs, there’s a hype trade wearing the same costume. Telling them apart is the whole game. This week on Being Exponential, we walked through five stocks that show you both sides of that coin. Four I really like. One I wouldn’t touch with your money, let alone mine.

There’s Marvell Technology Inc. (MRVL), which we see carving a genuine path toward a $1 trillion valuation as custom silicon and connectivity become the twin bottlenecks of the AI buildout. There’s Dell Technologies Inc. (DELL), still filed under boring PC maker, whose AI server revenue grew 757% year over year on $24.4 billion in fresh orders and a $51.3 billion backlog. There’s Fluence Energy Inc. (FLNC), a left-for-dead battery story now growing 48% as its storage technology finds new life inside power-starved data centers. And there’s Redcat Holdings Inc. (RCAT), a tiny drone maker with revenue climbing 274% as Washington warms to the dronification of modern warfare.

The fifth name, a fund trading as VCX, is the one to leave alone, even though it remains the only public doorway to one of the most coveted private companies in the world. The full podcast explains why the math refuses to work, and the single price that would change his answer.

Watch the latest episode of Being Exponential With Luke Lango below:

Let’s start with Marvell stock…

Nvidia Corp. (NVDA) CEO Jensen Huang name-checked it on stage, and the stock jumped 20% to 30% in a day. Marvell sits in two of the most important bottlenecks in all of AI: custom silicon and connectivity. Nvidia’s GPUs own training. For inference, the day-to-day running of these models, custom chips win on economics.

Marvell and Broadcom Inc. (AVGO) are the two big dogs building that silicon alongside the hyperscalers. And all those AI clusters have to talk to each other in real time, which is where Marvell’s connectivity gear comes in.

If they hold, the company’s 42% revenue growth can hold too. Push that forward and you get $50 billion in revenue, $25 billion in earnings, and at a 40 times multiple, a $1 trillion valuation, the fourth chip stock to join that club next to Nvidia, Broadcom, and Micron Technology Inc. (MU). I love it long term, but it’s overbought now, so I’d wait for a pullback toward $200.

Then there’s Fluence Energy stock, the clearest reinvention story of the bunch. This was a $40 stock that collapsed into the single digits when its grid-storage dream stalled out. Now it’s roaring back, because the batteries it built for the grid are exactly what power-starved data centers are desperate for.

We’ve seen this movie before. Bloom Energy Corp. (BE) went from a mid-teens stock to north of $300 by pointing its fuel cells at data centers. The money everyone wrote off as wasted spend on electric vehicles and renewables is suddenly the answer to the AI power gap.

Fluence’s data center pipeline jumped 30% sequentially, it’s signed supply agreements with two major hyperscalers, and it’s guiding toward an estimated 48% revenue growth this year while trading at just 1.4 times revenue. I like it from $30 to $40 near term.

Speaking of reinvention, look at Dell stock. Everybody still files it under “boring PC company.” The golden goose is the server business. When you build an AI data center, the Nvidia chips have to go into something, and increasingly they go into Dell’s full-rack solutions.

Last quarter, Dell’s AI-optimized server revenue grew 757% year over year. Total revenue climbed roughly 88%. The company booked $24.4 billion in AI orders, exited with a $51.3 billion backlog, and raised its full-year AI server target toward $60 billion. Some of that came from rival Super Micro Computer Inc. (SMCI), which was beating Nvidia in 2023 and 2024 before accounting problems and federal investigations made it untouchable for many hyperscalers. Those orders found a sticky new home at Dell. The stock’s run hot, so I’d expect a retreat toward the $300 area. Dell is becoming the premier AI server play in the market.

Now the one to avoid. There’s a Fundrise fund trading as VCX that hands ordinary investors a public doorway to private AI darlings, with roughly 20% in Anthropic plus stakes in OpenAI, SpaceX, Anduril, Databricks, and Ramp. It’s the only public wrapper on Anthropic, and I get the appeal.

You can buy OpenAI and SpaceX exposure elsewhere. Anthropic, you cannot. Here’s the problem, and it’s just arithmetic. VCX trades at roughly 10 times its net asset value. Run the optimistic case where Anthropic, OpenAI, and SpaceX all balloon into $10 trillion companies, and the fund’s underlying value still wouldn’t clear $100 a share. It’s been trading around double that, propped up by a liquidity-starved hype trade.

The day Anthropic IPOs, that premium evaporates, and I could see VCX falling toward $50 or $60. That’s where it gets interesting. Not today. And never buy options on this thing. It has swung from $20 to $500 and back to the low hundreds in months. That’s how you lose your shirt.

Finally, Redcat Holdings Inc., a high-torque pure play on the dronification of modern warfare. We’ve watched it in Ukraine and the Middle East, where cheap, consumable drones now dominate the fighting. Redcat has graduated from a niche hopeful to a legitimate U.S. defense supplier, with a flagship Black Widow drone tied to a U.S. Army reconnaissance program.

And Washington is reportedly weighing direct stakes in drone makers. That’s a convergence, and I love a convergence: geopolitical, technological, and company-specific tailwinds all arriving at once. Revenue is expected to surge 274% to $152 million this year.

The enterprise value sits around $2 billion, so you’re paying roughly 10 times next year’s sales, but defense primes like Lockheed Martin and Northrop Grumman command rich multiples. If Redcat executes, this could grow into a $20 billion to $40 billion company. The execution risk is enormous. So is the prize.

One last thing, and it matters. Most of these names are small, fast, and high-beta. That tells you where we are in this bull market: deep into the late innings.

The market reaches for this kind of high-torque, speculative stock as a cycle matures, and the names that are trending are a tell about the moment we’re in.

So play accordingly. You ride these while the music plays, and the band probably keeps going another year or two. You don’t marry them until 2030. Size your positions like you know which game you’re playing.

Want every chart, every price target, and the full case on all five? Watch this week’s episode of Being Exponential. Also, be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content.

The post 5 Stocks Riding the AI Buildout’s Reinvention Playbook (and 1 to Avoid) appeared first on InvestorPlace.

Is silver about to break out?

For more than a year, we’ve been tracking the horse race between gold and silver, flagging which metal appeared better suited for outperformance due to the gold-to-silver ratio.

The quick recap: In early 2025, with the gold-to-silver ratio above 105, silver was deeply undervalued. We flagged its asymmetric upside, and between July 25 and January 15, silver exploded 137% while gold climbed a respectable 37%.

Then, with silver’s explosive run having reset the ratio to around 51 – its lowest since 2012 – we flipped the script and said gold was the better bet. Sure enough, gold outperformed as the ratio climbed back toward equilibrium.

When we last checked in on April 23, the ratio sat near 61 – squarely in the middle of its historical range. That resulted in the following takeaway:

With the gold-to-silver ratio back to equilibrium, there’s no lopsided imbalance that tips the odds squarely in one camp.

Sure enough, since then, there’s been no breakout performance either way. Both gold and silver have drifted slightly lower, so the gold-to-silver ratio is roughly 60.

But if Senior Analyst Brian Hunt is right, there’s a different potential catalyst racing toward us that could send silver higher…

The fundamental case for silver

Brian, editor of the free daily e-letter Money & Megatrends, has been long and bullish silver for years – both for its dollar-debasement hedge properties and what he calls its “high-tech tailwind.”

From Brian:

Silver has the highest electrical and thermal conductivity of any metal. This makes it a critical component in AI infrastructure, solar energy systems, and other electrical systems.

That structural demand story hasn’t changed. If anything, it’s deepening.

Brian notes that as AI moves toward “the edge” – running on local devices like phones, cars, robots and satellites – the performance demands on electrical components tighten:

These systems don’t just demand more electrical performance — they demand better electrical performance within increasingly tight thermal and power constraints.

Every watt matters. Every degree of heat matters.

Silver is present across every critical piece of that infrastructure.

Meanwhile, the supply picture remains structurally constrained…

According to the 2025 World Silver Survey, cumulative market deficits since 2021 have reached roughly 680 million ounces. And roughly 80% of silver is mined as a byproduct of base metals – meaning higher prices alone can’t simply call more supply into existence.

As Brian puts it:

The market cannot drill its way out of a silver shortage.

“But why now?”

As we walked through earlier, the gold-to-silver ratio remains in relative equilibrium today.

So, what’s the catalyst that could send silver higher?

Here’s Brian:

The chart below shows how, over the past few months, silver has traded in what I call a “compression pattern.”

Its recent range of highs and lows is tighter than that which preceded it.

Such compression patterns often lead to strong moves in the direction of the primary trend.

For broad exposure, the iShares Silver Trust (SLV) is your simplest play – it’s the largest physically backed silver ETF with over $40 billion in assets.

If you want a more concentrated bet, Brian highlights Pan American Silver (PAAS) – the world’s largest silver-focused producer, with 10 mines across the Americas and $1.3 billion in cash on the balance sheet.

I’ll throw in a fun wrinkle before we move on…

Guess what’s also in its own compression pattern?

You guessed it – gold.

Are we on the verge of a jump in both silver and gold, which would effectively mean the gold-to-silver ratio remains in rough equilibrium?

It’s certainly possible. And if both metals move together, the gold-to-silver ratio stays roughly where it is, which would make the size of the move more important than which metal you own.

Whatever you decide, if you want to fine-tune your entry of either gold or silver even further, I’d point you to last week’s Convergence Trigger event with master traders Jonathan Rose and Marc Chaikin.

The biggest moves in gold and silver typically start with institutions – not retail investors. By the time the average trader sees what’s happening, the easy money has already been made.

Jonathan and Marc have made respective fortunes in the market by solving exactly that problem – tracking where institutional money is moving before it becomes obvious.

Last week, they held their first-ever joint event – The Convergence Summit – to explain how they do it and which setups they’re watching right now.

If silver – or gold – is about to break out of its compression pattern, Jonathan’s and Marc’s “convergence trigger” indicator will spot the institutional fingerprints before the rest of the market does. So, if you’d rather not just buy both metals and wait, you can track the institutional money and use their activity as your starter pistol. 

Here’s the free replay to last week’s event for all the details.

Now, silver’s high-tech tailwind runs through nearly every emerging defense and infrastructure technology – including one that’s been quietly building one of the strongest fundamental cases in the market right now.

The math that’s driving the next defense megatrend

Silver’s role in the drone buildout is one reason the metal’s industrial demand story keeps deepening. But the drone opportunity itself deserves its own look – and for one reason that’s impossible to argue with…

The bottom-line math.

To illustrate, let me pull from an issue of Investing Insider that I wrote in early May:

The Shahed drone, which Iran mass-produces and fires in swarms, costs roughly $20,000 to build.

The Patriot interceptor that the U.S. fires to shoot it down costs approximately $3–$4 million.

This is like using a Ferrari to destroy a used Honda Civic – except the Civic keeps coming, a thousand at a time.

That cost asymmetry isn’t just a talking point. It’s the central math problem driving U.S. defense procurement right now.

And with the Iran conflict still unresolved and the Strait of Hormuz situation remaining fragile, Washington isn’t treating this as a future problem – Congress and the White House have just made that explicit.

While the final $839 billion defense spending bill for fiscal 2026 earmarked $13.4 billion for autonomous systems and $3.1 billion for counter-drone technologies, active warfare has shattered those boundaries.

Because the conflict has heavily depleted U.S. missile interceptor and drone stockpiles, the Pentagon has pivoted toward a historic fiscal 2027 defense blueprint – a $1.5 trillion total request – that includes $53.6 billion for autonomy and drone platforms and another $21 billion for counter-drone systems and advanced capabilities.

That’s roughly $74 billion combined.

For context, the Pentagon’s dedicated drone office – the Defense Autonomous Warfare Group – received just $225.9 million this fiscal year. The proposed jump to $54 billion is one of the most dramatic single-year spending increases in Pentagon history.

Once capital of that magnitude hits the market, supply chains form, contracts ramp, and permanent, multi-year industrial demand tends to follow.

The broader strategic case has been building for years. And Jonathan has been all over it, helping his readers make triple-digit returns on drone stocks over the last year. Looking forward, he says the fundamentals are still constructive:

Drones are rapidly becoming core military infrastructure — a foundational pillar of the next global defense build-out.

The data backs him up – drones accounted for 27% of civilian deaths in Ukraine as of early 2025, according to the UN, surpassing every other weapon system. Meanwhile, The New York Times reported they account for at least 80% of Russian frontline losses.

But here’s the catch – despite all this, drone stocks are down on the year.

It’s a reminder that timing matters as much as thesis…which circles us back to Jonathan and Marc and their Convergence Trigger.

A drone breakout driven by defense contract flows and geopolitical escalation is precisely the kind of move that shows up in their system before it shows up on CNBC.

Bottom line: Though the timing of the next surge is unclear, the fundamental case for drone stocks is incredibly strong.

Finally, this bull market just got a name

In recent weeks, we’ve been making the case that the bears’ predictions of a market crash keep misfiring because they’re reading backward-looking valuations in a market being driven by forward earnings momentum.

In our May 28 Digest, we walked through exactly this argument using Micron (MU) as a live example – while its trailing P/E looks alarming, its forward P/E, based on beefy forward earnings projections, tells a completely different story.

Last week, veteran market strategist Ed Yardeni put a name on this dynamic.

Yardeni – president of Yardeni Research and Louis Navellier’s favorite economist – coined the term “FEMO” on Bloomberg Television.

To be clear, this isn’t “FOMO” – “fear of missing out.” This is FEMO: “fabulous earnings momentum.”

Yardeni said, “the big difference is earnings,” adding that the forward price-to-earnings ratio for the S&P 500, at 20 to 22, looks reasonable if the economy avoids recession over the next few years. 

That’s precisely the distinction we’ve been drawing. The bears point at stretched trailing multiples and call it a bubble. Yardeni – and the numbers – point at where earnings are headed and call it a rational rally.

His 2026 S&P 500 target sits at 8,250 – the highest among analysts tracked by Bloomberg – with a path to 10,000 by decade’s end in what he calls the “roaring 2020s” scenario.

We hope he’s right.

Coming full circle

While the bears are reading yesterday’s numbers, FEMO is about tomorrow’s earnings.

And in a market where AI capex could be on the verge of juicing silver prices yet again, and drones are underfunded relative to a $74 billion policy mandate, “fabulous earnings momentum” is a valuable frame for what’s ahead.

The harder question isn’t whether these trends play out. It’s when the spark will hit that sends them higher – and whether you’re already positioned when it does.

That’s the challenge Jonathan and Marc set out to solve with the Convergence Trigger.

We’ll keep tracking these stories here in the Digest.

Have a good evening,

Jeff Remsburg

(Disclaimer: I own MU.)

The post These Breakouts Are Coming appeared first on InvestorPlace.

One thing I’ve learned over the years is that the biggest opportunities aren’t always found in the company making headlines. When a major trend takes off, it often creates winners across an entire industry.

That’s what Jonathan focuses on in today’s guest essay.

He explains how professional traders look for what he calls “family trades,” companies connected to a major trend that may benefit as the story develops. In this case, he shares three stocks tied to the broader SpaceX story and explains why following institutional money can be just as important as following the headlines.

Jonathan and Wall Street veteran Marc Chaikin recently discussed this strategy in more detail during their Convergence Summit event, including how they look for signs that big money is moving into a stock before the crowd catches on.

But don’t wait too long, because the replay will only be available until midnight tomorrow evening. Click here to watch it now.

If you’ve been looking for a different way to approach the SpaceX opportunity, I think you’ll find this perspective interesting…

*****************

One of the biggest differences between retail investors and professional traders is the question they ask first.

Most investors will ask, “What stock should I buy?”

Professional traders ask, “What else moves if this story becomes important?”

That distinction matters enormously during major technological shifts.

And it’s exactly what I was thinking about earlier this week while my livestream chat became obsessed with Elon Musk’s Neuralink project.

Not Tesla Inc. (TSLA). Not the SpaceX IPO. Not xAI chatbots.

Brain implants.

The chat was flying: “When’s the IPO?” “How do we invest?” “Is there a ticker yet?”

Honestly, I get it. The idea sounds like science fiction. Tiny devices connecting computers directly to the human brain. People controlling machines with thought alone.

How amazing would that be?

It’s the kind of story the media and Wall Street immediately become obsessed with.

But here’s the part that caught my attention.

At almost the exact same time Musk is pouring money into Neuralink, Sam Altman is backing another brain-computer startup. Two billionaires. Two of the most powerful people in technology are suddenly racing into the exact same sector.

When that happens, traders pay attention.

Not because we think we’re going to wake up tomorrow with a Neuralink IPO ticker. But when smart money starts flooding into a brand-new industry, the real opportunities often appear around the edges of the headline before the public even realizes there’s a trade developing.

Bruce Lee had a line that perfectly captures how traders should think about opportunities like this one:

It is like a finger pointing away to the moon. Don’t concentrate on the finger, or you will miss all that heavenly glory.

So instead of asking: “How do we invest in Neuralink?”

When we see money flooding into a new sector, we should be asking completely different questions:

• Who builds the chips?
• Who makes the microscopes?
• Who supplies the memory?
• Which public companies benefit if this entire sector suddenly gets repriced higher?

That’s the framework.

And honestly, it’s the exact same pattern of behavior we saw earlier last week with the coming SpaceX IPO.

Too many investors never make it past what’s directly in front of them. They’re going to focus entirely on SpaceX itself. The date. The ticker. The valuation. The hype.

Meanwhile, the smart money is already starting to move into the “family” surrounding the story. That’s where the second-order trade often lives.

And that’s what I want to show you today.

In this piece, I’m going to explain how professional traders think about “family” trades during massive IPO cycles…

Show you three publicly traded stocks already connected to the SpaceX thesis…

And explain why the real edge comes from waiting for confirmation from the smart money before the crowd catches up.

The Family Trade

Floor traders learn very quickly that markets move in clusters. Nothing trades in isolation.

Everything has a family:

• If semiconductors move, suppliers move.
• If AI spending explodes, infrastructure moves.
• If uranium rallies, utilities and miners move.
• And if SpaceX eventually IPOs at the kind of valuation Wall Street expects, the companies surrounding that ecosystem are going to get repriced too.

That’s the game. And once you start seeing the market that way, you stop chasing headlines and start looking for relative value instead.

That’s exactly what’s happening around SpaceX right now.

Alphabet Inc. (GOOGL) is one of the most overlooked names tied to the thesis. Most investors still think of Alphabet as a search-and-cloud company. But Alphabet also owns a significant stake in SpaceX that suddenly becomes much more visible once SpaceX starts trading publicly. That’s the kind of hidden exposure Wall Street often ignores… until suddenly everybody notices it at once.

Rocket Lab USA Inc. (RKLB) is another interesting “family” trade because the moment Wall Street starts assigning enormous valuations to reusable rockets and orbital infrastructure, analysts are forced to rethink what the public peers should be worth too. The comparable set changes overnight.

Then there’s AST SpaceMobile Inc. (ASTS), which sits directly inside the satellite-connectivity story that SpaceX’s Starlink system helped create in the first place. If investors suddenly decide space-based communications deserves dramatically higher valuations after the SpaceX roadshow begins, names like ASTS immediately get pulled into the conversation.

Now here’s where even smart investors make a mistake. They find the family, buy the stocks, and hope.

That’s not a terrible idea, but that’s not how I trade. Because stories and ideas alone are not enough.

And honestly, this is one of the biggest lessons I learned after 28 years trading futures, bonds, and options professionally:

Sometimes the narrative is completely right… and the trade still fails because the big money never actually confirms the move.

The Confirmation Layer

That’s why I focus so heavily on unusual trading activity.

Big money leaves footprints.

When that big money starts aggressively building positions in names most retail investors barely know yet, that activity tends to show up before the headlines fully catch up. That’s the signal I’ve built my system around from the beginning.

But over the last year, I realized something important: Finding the signal was only half the job.

I’m very good at identifying unusual trading activity and volatility. I’m very good at finding where the smoke is building before the crowd sees it. But direction? Bullish or bearish?

I’ve said this openly to my members for years: Sometimes direction is a coin flip.

That’s exactly why partnering with Marc Chaikin made so much sense.

Marc spent decades building institutional money-flow tools used everywhere from Bloomberg terminals to professional research desks. My tools identify where unusual positioning is building in trading activity. Marc’s Money Flow tools confirm whether institutional money in the underlying stock is flowing in the same direction.

When both signals line up, that’s what Marc and I have started calling the Convergence Trigger. It’s completely changed how I think about second-order trades like this.

Because now we’re not just asking: “Is this stock connected to the SpaceX story?”

We’re asking: “Is big money actually accumulating this name right now?”

Huge difference.

And right now, parts of the SpaceX family are already starting to show that confirmation layer — especially inside infrastructure, AI compute, satellite connectivity, and the quieter derivative plays most investors still are not paying attention to.

Once you understand how to think this way, you start seeing the market differently:

• What’s the second-order effect?
• Which names forgot to move?
• Where is institutional money quietly accumulating?
• Which setups are actually being confirmed?

That framework works almost everywhere.

Marc and I went live last Thursday night to break down exactly how we’re using our Convergence Trigger to identify these kinds of setups right now — including several names connected to the SpaceX and AI infrastructure trades already flashing on our screens.

If you missed the live event, you can catch the full replay right here.

The creative trader wins,

Jonathan Rose

Founder, Masters in Trading

P.S. Jonathan Rose has a very different way of looking at the market than most analysts — and honestly, that’s probably why his work has been getting so much attention lately. Instead of chasing headlines, he focuses on where institutional money may already be quietly positioning before the crowd catches on. That’s exactly what he and Wall Street veteran Marc Chaikin discussed during their Convergence Summitevent Thursday night. If you missed it live, you can catch the replay right here.

The post While Everyone Else Is Chasing SpaceX, Buy These 3 Stocks Instead appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Downgraded: Neutral to Weak

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, Market 360

The post Dell Upgraded, Costco Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

Instead, it barely registered.

Financial media stayed fixated on earnings headlines and short-term noise while one of the most important technological developments of the decade slipped past investors in plain sight.

I’m bringing it up today for one simple reason:

Anyone ignoring this story may be missing the next major narrative in tech.

Because buried in that paper was a conclusion that should have stopped investors cold.

How Quantum Broke Bitcoin

Google’s research suggests the encryption protecting every Bitcoin and Ethereum wallet on Earth could be broken using fewer than 500,000 physical qubits — roughly a twenty-fold reduction from prior consensus estimates.

And according to the paper, that milestone may be reachable by 2032.

Now, that timeline alone is important.

But one detail matters more than all the others:

Nine minutes.

That’s how long a sufficiently advanced superconducting quantum computer could theoretically need to derive a Bitcoin private key from its public counterpart.

Bitcoin’s average block confirmation time?

Ten minutes.

Think about what that means.

If a machine can crack a wallet faster than the network can confirm a transaction, this stops being some distant sci-fi problem.

That’s a live vulnerability.

That is the thesis we sat down with the next morning on my free daily show, Masters in Trading LIVE.

We pulled the chart. We did the math. We walked through a whole basket of stocks including IBM, RGTI, IONQ, QBTS, QUBT, INFQ, GFS, LAES. None of it was hidden. All of it was free.

If you want to see the precise moment the thesis was built, the nine-minute clip from that morning is right here.

Six weeks ago, this was just a story the media wasn’t picking up. Nothing more than a scientific breakthrough hidden among a string of headlines.

Today, it’s moved from speculation to a frantic race in the financial sphere. Because the government just signaled its confidence in the future of quantum cryptography with a massive stake that could turn one legacy player into the next Lockheed Martin.

The Government’s Big Bet on Quantum

Two weeks ago, the Department of Commerce wrote IBM a $1 billion check. And while most people probably weren’t clued into the story, I had been circling this deal for weeks.

Over at my free daily show, Masters in Trading LIVE, I went live as soon as the story broke.

The stock opened around $230 on Tuesday. By the end of the day, it closed over $250 — roughly twenty dollars a share, over a single trading session.

Anyone who owned a hundred shares of IBM walked into their kitchen, opened their phone, and discovered they had made about $2,000 in a day. They had earned that money the way the best money is always earned in this business: by being early, by being right, and by being patient enough to wait for the rest of the world to catch up.

Anyone who didn’t own IBM woke up to a CNBC chyron explaining what had happened. And underneath that chyron, the same unanswerable question that haunts every retail trader who has ever missed a move:

How did everybody else seem to know before me?

The answer is that they didn’t seem to know. They showed up early – and they used the unmistakable trail of smart money bets on the quantum complex preceding the deal to do so.

That’s the exact dynamic I highlight every day on Masters in Trading LIVE. And while I’ve been putting this story on my viewers’ radars for months, there’s an even bigger story brewing beneath the surface.

Because right as quantum breaks into the mainstream, I’m seeing a whole range of potential new trade setups emerging for smart investors.

In today’s essay, I’m revealing one of those exact picks to you for FREE. Because I believe every investor should have some exposure before quantum truly takes off.

But I don’t want you to stop at just one recommendation.

Last week, I laid out the exact system I’ve used for decades to discover opportunities just like today’s free pick.

It’s all in a special presentation I hosted with my friend and colleague Marc Chaikin. We broke down one system that analyzes more than 20 different factors—technical and fundamental—and turns all that noise into something simple: Bullish. Neutral. Bearish.

We call it the Convergence Trigger. And I’ve made a special replay of the full event available to anyone who’s interested. Just click here to learn all about the Convergence Trigger.

Now, let me show you why the quantum investing wave is only getting started…

One Thesis. Eight Names. One Vertical Day.

Here is what the quantum complex did on a single trading session — the same complex we walked through, name by name, the morning after the Google Quantum AI paper dropped:

• IBM +6.4%   —   roughly $1,400 in a single session on 100 shares
• RGTI +25.33%   —   now $21.16
• QBTS +27.31%
• INFQ +29.96%
• QUBT +17.63%
• GFS +13.15%   —   also a CHIPS Act recipient
• IONQ +10.62%   —   now $58.04
• LAES (SEALSQ) around $3.83   —   $6 analyst target, +116% from here

Most of these names were beaten down year-to-date going into that morning. IBM and RGTI were both off roughly 24%.

The sector had been left for dead by most of Wall Street. Dismissed as a science project. Too speculative to bother covering.

But the thesis we built six weeks ago was not that these stocks were about to rip in a straight line.

I argued that quantum stocks were the most underpriced setup in the market. But with Google’s white paper, we now had a new timeline most institutions hadn’t yet adjusted to. That meant the patient money would eventually be rewarded when the larger story caught up.

Last week, the U.S. Treasury made the patient money look right – even if only the small caps like Rigetti and D-Wave got the initial headlines.

But the real story underneath the move is still IBM.

Think about it. One billion dollars under the CHIPS Act, matched by another billion in cash from IBM itself, to build the nation’s first purpose-built quantum chip foundry inside the Albany NanoTech Complex in upstate New York.

And the government did not write that check as a grant. It took an equity stake.

When the federal government becomes a shareholder in your company, the calculus of every other capital allocator on Wall Street changes overnight.

This is no longer venture-stage speculation. This is the same move the United States made when it chose Lockheed for aerospace, when it chose Intel for semiconductors, when it chose Boeing for civilian aviation. The country has picked a national champion, and that champion is IBM.

And here is the part that almost no other newsroom will explain to you in the coverage of this story: the foundry IBM is building will not just produce wafers for IBM.

It’s designed to manufacture quantum wafers for the entire industry, the same way Taiwan Semiconductor (TSMC) manufactures classical chips for everyone else in semiconductors.

TSMC did not become a seven-hundred-billion-dollar company by designing chips. It became one by manufacturing the chips that AMD, Apple, and NVIDIA designed.

IBM is now being positioned to occupy that same role in the quantum era. And the only way to own that piece of the value chain is to own IBM.

IBM specifically – and not one of those small caps – will keep ripping harder from here. And its entrenched position means it will maintain an edge in quantum for years to come. Just consider this…

• IBM already has two decades of leadership in superconducting qubit technology
• Over ninety deployed quantum systems worldwide — more than every other industry player on Earth, combined.
• The IBM Quantum cloud platform is already used by thousands of researchers and Fortune 500 enterprises.
• A credible hardware roadmap — Condor, Heron, Flamingo — points toward commercial, fault-tolerant quantum by 2029.
• Add a three-percent dividend, a two-hundred-billion-dollar market cap, and now two billion dollars of foundry capital with the United States government as a co-investor.

IBM’s own projection, cited in that announcement, is that quantum computing will create $450 to $850 billion of global economic value by 2040, sustaining a $90 to $170 billion market for hardware and software providers.

IBM is positioned to capture the largest single slice of that opportunity. And the U.S. Treasury has just confirmed, in cash, that it agrees.

Luckily for us, we saw that shift early. And we managed to build a position in a less-than-conventional asset tied directly to the quantum cryptography revolution.

How We Turned IBM’s Move Into Profits

When the Google quantum paper hit the wires six weeks ago, I spent that night reading all fifty-seven pages.

The next morning, I brought the thesis to the show. We pulled up IBM and walked through why the U.S. government would, eventually, need a national champion.

We pulled up the LAES options chain and looked at an 87% call-side skew on the 2027 LEAPS. We pulled up Rigetti, IonQ, D-Wave, the rest of the basket — and we built a framework.

The free trade I called that day was something different.

The last thing most of us want to do is open a crypto exchange account and learn what a wallet address is. And yet the free trade I shared the morning after the Google paper dropped was a coin.

It was Algorand, ticker ALGO — the only major blockchain that had already shipped post-quantum cryptography on its mainnet. It was already up roughly 20% by the time I called it on the show. It kept running.

What I did not expect were the messages that came in afterward. Members writing to tell me that ALGO was the first cryptocurrency they had ever owned in their lives.

Lifelong stock traders, in their fifties and sixties, opening a Coinbase account for the first time because the thesis was that clear and the setup made that much sense.

You don’t talk a lifelong equity trader into buying their first coin with hype. You do it with a fifty-seven-page Google paper and a quiet, careful walkthrough of why the math has changed.

That is the show. That is what we do every morning.

The retail investor finds out from CNBC. The professional finds out from the exact order flow we watch here at Masters in Trading LIVE. That’s our edge.

And that brings me back to the special event Marc Chaikin and I just hosted.

There is exactly one analyst in this country whose work I respect above all others when it comes to reading that institutional flow, and his name is Marc Chaikin.

Marc spent four decades on the trading floor. He built the Chaikin Money Flow indicator, which is now embedded in virtually every professional trading desk on Wall Street.

He has called the major market turning points of the last twenty years with a consistency that is, frankly, unfair to the rest of us. His analytical engine reads exactly the kind of institutional positioning that lifted IBM by six and a half percent before most of America even sat down for breakfast.

Last Thursday, we laid out a whole new way to read that institutional flow — live, on camera, for the first time.

The Convergence Trigger combines my pro setups – and Marc’s work on institutional money flow – to highlight the most profitable setups in the stock market.

We laid out exactly how the system works – and what the next IBM-style setup will look like before it announces itself.

The window where you can still position quietly, with conviction, ahead of the next leg — it’s still open right now.

But it closes the moment I take down this special replay of last week’s broadcast. After that, the rest of the crowd starts looking in the same place we are.

Watch the full replay right here.

The creative trader always wins,

Jonathan Rose

Founder, Masters in Trading

The post IBM Just Became the Quantum King – Here’s the Trade Hiding in Plain Sight appeared first on InvestorPlace.

For 30 years, one architecture has ruled the Windows PC: x86.

Intel (INTC) built it. AMD (AMD) adopted it. Microsoft (MSFT) optimized for it, and the entire Windows software ecosystem was written around it. It became so entrenched that challenging it seemed almost pointless.

Apple (AAPL) proved it could be done. In 2020, Apple Silicon made the switch from x86 to Arm. MacBooks got faster, cooler, and longer-lasting.

But Apple only moved Apple. The Windows world remained locked in to x86.

Until yesterday, when Nvidia (NVDA) CEO Jensen Huang’s reveal at Computex 2026 blew up 30 years of PC orthodoxy…

What Is the Nvidia RTX Spark Superchip?

Nvidia, the company that owns AI in the data center, has just announced its PC play: the RTX Spark Superchip — a processor designed to turn Windows into an agentic AI OS.

A few years ago, this kind of AI horsepower required a server room. The RTX Spark puts it in a laptop — 1 petaflop of AI compute, 6,144 CUDA cores, 128 GB of unified memory, all inside a thin chassis. Translation: your next laptop won’t just run AI apps. It will run AI.

The CPU and GPU are connected via NVLink C2C — an ultra-high-speed interconnect that Nvidia normally uses to link chips inside massive AI data center servers. It has essentially miniaturized data-center-grade chip communication and stuffed it into a laptop. Co-developed with Microsoft and MediaTek, this is as much a feat of engineering as it is a business strategy — Nvidia is binding its software ecosystem to every premium Windows device from day one. 

Qualcomm (QCOM) has been trying to make Arm-based Windows chips work for years. The Snapdragon X Elite had competitive hardware. But competing with Nvidia on Arm isn’t just a hardware race — and that’s the problem we’ll come back to.

Nvidia’s first-ever PC processor will eventually power over 30 laptops and 10 compact desktops from Dell (DELL), HP (HPQ), Lenovo, Asus, MSI, and Microsoft’s own Surface line, with the first products arriving this fall. 

The Real Weapon Isn’t the Chip — It’s CUDA 

The hardware is impressive. But the real story here is about CUDA: Nvidia’s proprietary software platform.

CUDA lets developers write code that runs on Nvidia GPUs. Over the past 15 years, virtually every major AI model, every AI framework, every serious GPU-accelerated application has been built on CUDA. It’s been the industry’s deepest software moat. And until now, it has lived entirely in the cloud and in high-end workstations.

RTX Spark is the first Windows laptop chip to run the full CUDA software stack natively. That means the entire ecosystem will now run on your laptop, right out of the box, no compromises.

This is why Qualcomm’s Snapdragon X Elite has struggled to gain real traction: good hardware, no software gravity. Nvidia brings 30 years of software ecosystem with it from day one.

The Agentic PC: Intelligence Moves From the Cloud to Your Device

Nvidia is selling more than a faster chip. It’s selling a vision: one where the intelligence lives on your device, not in someone else’s data center. 

Today, powerful AI requires the cloud — which means it requires trust. Trust that your documents and personal information are handled responsibly by servers you don’t own, running software you can’t inspect, operated by companies whose incentives don’t always align with yours.

RTX Spark changes the equation. With 128 GB of memory and 1 petaflop of AI compute, these machines run 120-billion-parameter models entirely on-device. No upload, subscription, or third-party server required. Nvidia and Microsoft are building OpenShell to turn Windows into a full agentic OS — persistent AI agents, running locally, working on your behalf around the clock.

Jensen Huang calls it an AI supercomputer for your home. Given what’s under the hood, that’s not hyperbole.

Winners and Losers: How to Position Around the RTX Spark Launch 

Great product. Better trade. 

Nvidia is the obvious winner. RTX Spark opens an entirely new revenue stream — consumer PC silicon — layered on top of its already-dominant data center AI business. Jensen Huang has suggested the CPU market is exploding toward $200 billion. If Nvidia captures even a modest slice of the premium PC segment, that translates to tens of billions in incremental annual revenue over the next decade. The stock has already priced in AI dominance, but the market hasn’t fully priced in Nvidia as a full-stack, every-device, everywhere AI platform company. That repricing takes time — but it’s coming.

The cleanest, most underappreciated winner, however, is Arm Holdings (ARM). It collects a royalty on every single RTX Spark chip sold. The RTX Spark’s CPU cores are based on Arm architecture. And MediaTek — which co-designed the CPU — is itself a major Arm licensee. Arm bears zero execution risk, zero supply chain complexity, zero OEM relationship headaches. It just clips a coupon on every premium PC sold, in the highest-ASP segment of the market, as x86 displacement accelerates industry-wide. This is the purest expression of the trade. Apple Silicon proved Arm could beat x86 in laptops. Nvidia’s RTX Spark may prove it can dominate them.

Intel (INTC) faces the most acute long-term threat here. It’s being squeezed from above by Apple Silicon on the premium end and now Nvidia on the AI-performance end, while AMD attacks the middle. That said, Intel’s stock is currently trading on its data center AI turnaround thesis (Gaudi roadmap, foundry strategy), not on PC market share. RTX Spark is a real fundamental negative for Intel’s client computing business — but it’s not what moves the stock near-term. Similarly, AMD and Qualcomm face incremental PC headwinds, but their market narratives are tied to data center AI momentum, which RTX Spark doesn’t reach.

The Bottom Line: The PC Market Just Changed — and the Royalty Collector Wins

The AI era is rewriting the rules of every market it touches.

Most investors are watching it happen in semiconductors, data centers, PCs, and robotics. They’re asking the same question in every category: who wins the AI race?

But there’s one market where that question hasn’t been asked yet — and it’s the largest market in the world.

Money itself.

The $480 trillion global financial system runs on infrastructure that hasn’t meaningfully changed in decades. The rails that move your paycheck, your Social Security payment, your tax bill — they were built for a different era. And for the first time in a generation, someone is rebuilding them from scratch.

I think it could be the most consequential infrastructure story of the decade. 

Here’s what I’m watching.

The post The Biggest Winner From Nvidia’s RTX Spark Announcement Isn’t Nvidia appeared first on InvestorPlace.

As I write on Monday near lunch, U.S. oil prices have surged 7%, with West Texas Intermediate Crude jumping to nearly $94 a barrel and Brent crude approaching $97 a barrel.

Driving the price action is news that Tehran is halting negotiations with the U.S. and threatening to fully close the Strait of Hormuz in response to Israel’s escalating ground offensive in Lebanon.

The headline arrives at a fragile moment in the Middle East. Despite an uneasy ceasefire that took effect in early April, U.S. warplanes struck Iranian radar and drone facilities on Qeshm Island over the weekend. Meanwhile, Iran launched missiles and drones at Kuwait. Both sides claimed the other fired first.

Despite what appears to be a deteriorating geopolitical situation, yesterday, President Trump posted on Truth Social:

Iran really wants to make a deal…

Just sit back and relax, it will all work out well in the end.

Whether that optimism is warranted is unclear. Axios reported over the weekend that Trump had requested several amendments to the draft agreement his envoys had reached with Iranian officials. Apparently, nuclear commitments and the scope of sanctions relief are two key issues.

As oil jumps higher this morning, the markets are pricing in uncertainty more than reassurance. And the range of outcomes here is wide.

Rystad Energy’s head of geopolitical analysis told CNBC that a full breakdown in talks – with fighting resuming in earnest – could send Brent to $180 a barrel by August. On the other hand, a comprehensive deal could see prices fall back toward $70 by year-end.

It’s a striking thought that this Strait – barely 21 miles wide at its tightest point – largely controls the fate of global energy markets, inflation forecasts, and economic growth across three continents.

We’ll keep you updated.

“They robbed us. That’s the only way I can put it.”

That’s our trading expert Jonathan Rose, referring to what happened with the Figma Inc. (FIG) IPO – which we detailed in Friday’s Digest.

Here’s Jonathan’s quick recap if you missed it:

A performance-based trigger almost no one knew about was in place.

The stock opened 158% above the threshold, and so the trigger fired on Day 1. By 36 days later, the people who understood the structure were selling at $80.

Eight months later, Figma was at $22 – down 81% from the peak and 33% lower than the IPO price itself.

That structure wasn’t an accident. It was the playbook.

This story echoes a saying I heard somewhere along the way…

“IPO” doesn’t stand for “Initial Public Offering,” but rather “Initial Public Offloading” – a time when insiders dump their shares to the unsuspecting public.

An IPO wave is on the way – at a scale we’ve never seen. SpaceX, Anthropic and OpenAI represent over $3 trillion in combined valuation coming to market, each structured by the same investment banks using the same mechanics.

Given this, Jonathan just flagged five warning signs that a deal is built for insiders, not you. I want to share three with you.

Three IPO red flags to watch for

The first thing to check is the float. If less than 10% of shares are being offered, Jonathan says be careful:

Small floats create artificial scarcity. They amplify the first-day pop. They give insiders more shares to sell into the secondary lockup expirations.

Second, ignore the “oversubscribed” bragging. Back to Jonathan:

A massively oversubscribed deal that prices below where it should clear is a deal that’s been deliberately underpriced to produce a pop.

Third – and this is the one almost nobody does – search the S-1 for “Early Release Condition” or “performance-based release.”

Here’s Jonathan on what to look for:

If the lockup releases additional shares at a price 25% above IPO, and the company prices low enough to guarantee the trigger, you’re looking at the Figma structure.

This is part of your defensive playbook – but what about offense?

Jonathan recommends investors buy the IPO family, not the headline.

Every AI IPO in this pipeline has publicly traded proxies you can own today. The logic of owning the family works two ways…

These companies hold direct equity stakes that rise in value as the IPO prices higher, and when Wall Street starts assigning enormous valuations to a sector, the public peers get repriced too – analysts are forced to update their comparables overnight.

SpaceX has Alphabet Inc. (GOOGL), which holds a 6.11% stake – exposure that becomes suddenly visible once SpaceX starts trading publicly. Anthropic has Amazon.com Inc. (AMZN) and Nvidia Corp. (NVDA) as major investors. OpenAI has Microsoft Corp. (MSFT) as its cloud and equity partner.

No lockup risk. No allocation lottery. No premium built on a deliberately restricted float.

Jonathan has taken this a step further

His unusual trading activity scanner – which identifies concentrated institutional positioning before the crowd arrives – is now paired with veteran trader Marc Chaikin’s institutional Money Flow indicator.

When both indicators confirm the same name, that’s their Convergence Trigger. It’s a powerful way to find the most attractive stock opportunities swirling around massive market events like IPOs before the bell ever rings.

Last week, the two experts went live to walk through exactly how this Convergence Trigger works – and shared specific setups already flashing today.

Click here to watch the free replay.

Bottom line: Three trillion dollars in AI “Initial Public Offloadings” is on the way. Be smart about how you play it.

Now, all the money being made – whether from IPOs or the AI trade broadly – is widening the wealth gap in America. And that’s producing the exact policy response I predicted in January…

At the start of the year, as our analysts were unveiling their 2026 predictions for the market, I made one of my own

This year will bring a wave of new, controversial legislative proposals aimed at investment wealth – proposals that may not pass immediately, but will introduce a new layer of policy risk investors will have to price in.

Behind my prediction was our ever-widening K-shaped economy, where Americans with assets grow wealthier while those without watch inflation erode their purchasing power.

Data from the Federal Reserve shows that in April, the gap between these two groups set a record…

The top 1% of households now own 31.9% of all U.S. wealth. This is the highest share on record since the Fed began tracking it in 1989. Meanwhile, the bottom 50% holds a mere 2.5% of the nation’s wealth.

History shows that large and persistent economic splits don’t stay contained. Over time, they tend to produce policy responses. That was the basis for my prediction.

With that context, let’s jump to Senator Elizabeth Warren’s (D-Mass.) op-ed published in Time last Wednesday. These are select quotes:

• It’s time to tax AI and invest in people…  
• Taxing AI is one way we make sure the winnings from AI benefit all Americans…
• We need to level the playing field by raising taxes on corporations and capital gains…
• There is no denying that AI is already changing the labor market…

Now, we could analyze Warren’s op-ed from all sorts of angles. But let’s zero in on the last point about the labor market…

What’s the truth about AI jobs losses?

If you’re a longtime Digest reader, you know I’ve spent years flagging the risk of an AI-driven jobs apocalypse. The early data and commentary from AI experts pointing in that direction have been hard to ignore – and I’ve never been shy about sharing it.

But one thing I’ve always tried to be is honest, even when new evidence pushes back on old assumptions. And lately, that’s exactly what’s been happening.

So, let’s look at the actual data.

First, we’re three years into the age of AI, and yet the national unemployment rate still sits at 4.3%.

As you can see below, this is one of the lowest rates on record dating back to 1950.

Second, as I covered in last Wednesday’s Digest, Federal Reserve data on college graduate unemployment and underemployment show both metrics are running roughly in line with their 30-year averages.

For example, here’s the underemployment rate for recent graduates and college graduates dating back to 1990 as a reminder.

These statistics don’t support the crisis picture Warren’s framing implies, or recent headlines about  “graduation boos” – students booing commencement speakers who mentioned AI – even as the underlying employment data remained sturdy.

Third, let’s look at what the actual job-posting data show – starting with the report from Citadel Securities that I featured in last Friday’s issue of Investing Insider.

The short version: hiring in several AI-exposed industries isn’t collapsing – in some cases, it’s accelerating.

As one example, the chart below shows a dotted vertical line labeled “Inflection in Software Hiring” around May 2025 – right as AI capabilities were accelerating dramatically.

Software-engineer hiring has climbed since then, now up 18% from that inflection point. The most AI-exposed occupation in the economy is seeing some of the fastest hiring growth.

If AI were already displacing knowledge workers on a broad scale, this isn’t the kind of chart we’d expect to see.

Even where layoffs are real, the story is complicated

The tech sector has seen heavier layoffs in recent months. But there’s more to it than the headlines…

Do you remember the Swedish “buy now, pay later” fintech giant Klarna (KLAR)?

It slashed its workforce by 22% and bragged that its AI chatbots could do the work of 700 customer service agents and marketing staff.

Well, after facing a decline in service quality and customer trust, the company backtracked on the aggressive cuts and initiated a recruitment drive to bring human workers back into customer support roles.

Even Sam Altman and Dario Amodei, CEOs of OpenAI and Anthropic are walking back their previous doom-and-gloom forecasts for job cuts.

Here’s Fortune from last week:

Altman said he was “pretty wrong” about AI’s economic impact—a reversal from his June 2025 warnings that entry-level roles were at serious risk.

Amodei, who once claimed AI could eliminate 50% of white-collar jobs, now says automation may actually expand the work people do. 

Interesting timing as these companies gear up to go public…

Now, I’m not saying that displacement won’t eventually accelerate – but the current data simply aren’t there, and the experts are drastically changing their tune.

If you’re an Investing Insider subscriber, click here to log in and read the full analysis and piece from Citadel. You’ll come away with a better idea of what’s really happening – and how to position your portfolio.

If you’re not yet an Investing Insider subscriber, this is a service where I interview our analysts, break down research from major Wall Street firms, and translate it all into the risks and portfolio implications that don’t fit in the Digest. Click here to learn more.

Where does all this end up?

The data today show that the job-loss narrative is running well ahead of the actual job-loss numbers.

In other words, though it could change in the future, Elizabeth Warren’s assertion that “there is no denying that AI is already changing the labor market” is wrong – there’s plenty to deny it.

But when it comes to the consequences for your portfolio, she doesn’t need to be right – she just needs to be persuasive.

So, where does this leave us today?

Stay long – but eyes open to public sentiment and political framing.

Have a good evening,

Jeff Remsburg

The post The $3 Trillion IPO Trap appeared first on InvestorPlace.

There’s someone at the table you don’t know very well. A friend of a friend.

And in passing, you hear him say something that almost makes you spill your drink…

He says he’s been making gains of 100%, 200%, even 500% on trades in the stock market.

What’s more, he says some of these gains have come in a matter of months…

Others in weeks…

And some in just days.

At first, it sounds outlandish. Maybe even impossible.

You don’t want to cause an embarrassing scene, so you let it go. But in the back of your mind, you’re thinking: This guy has to be full of it.

And honestly, I wouldn’t blame you for being skeptical.

If some random person at dinner told me he was pulling triple-digit gains from the market in days or weeks, I’d probably raise an eyebrow too.

But what if he wasn’t exaggerating?

What if there really was a way to spot fast-moving trades and make triple-digit gains before most investors even know which way is up?

That’s where my friend and InvestorPlace colleague Jonathan Rose comes in.

Jonathan is a veteran trader who spent more than 16 years trading on the Chicago trading pits. That means he didn’t learn how markets move from a textbook – he learned it in the middle of the action – watching billions of dollars flow through the market in real time.

And over the past year, he’s used that experience to help his followers target some truly remarkable gains, like…

• 209% in only 13 days from Lyft…
• 959% in 31 days from Albemarle Corp…
• And 1,234% in only 12 days from MP Materials.

Now, I realize numbers like that can sound hard to believe. But that’s exactly why I wanted to sit down with Jonathan for this week’s Navellier Market Buzz.

Because he has a very specific way of finding these opportunities.

He follows what he calls Wall Street’s “hidden bets” – the unusual trading activity that can tip off where big money is moving before the headlines catch up.

And when he spots the right setup, he can use a short-term trading strategy to potentially boost the gains from a stock move by 500% or more.

That’s why I think you’ll want to hear what he has to say. And after you watch, I also encourage you to check out Jonathan’s latest presentation with Marc Chaikin.

Together, they’ll show you how Jonathan’s strategy combines with Marc’s Money Flow indicator to identify stocks where the big money may already be lining up.

You can watch the replay right here.

Click the image below to watch my chat with Jonathan now.

If you haven’t already, click here to subscribe to my YouTube channel. And if you’d like to learn more about Jonathan, check out his YouTube channel here.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they’re rated.

How to Find Better Trades in a Volatile Market

One of the biggest themes from my conversation with Jonathan is that the strategy involved with making gains like this doesn’t have to be as complicated as many people think.

In fact, Jonathan has repeatedly said that some of his most successful followers started with very little experience.

They’re not professional traders. They’re not glued to a screen all day. Instead, they’re following a proven process.

That process is the heart of the new presentation Jonathan recently hosted with veteran market analyst Marc Chaikin of Chaikin Analytics.

Together, they’ve developed a new “Convergence” signal that combines Jonathan’s “Unusual Options Activity” scanner with Marc’s “Money Flow” indicator to identify winning opportunities in today’s volatile market.

In the presentation, they’ll explain exactly how it works, why it may be useful in today’s volatile market and reveal five stocks currently meeting their criteria.

You can watch the replay and learn more here.

Sincerely,

Louis Navellier

Editor, Market 360

The post When the Market Panics, These Traders Get Rich – Here’s How… appeared first on InvestorPlace.

Today, Jonathan will explain where professional traders often look instead: the “family” of stocks surrounding the headline IPO itself. He also highlights three stocks already linked to the SpaceX thesis and explains why recognizing the story isn’t sufficient without institutional confirmation.

If you missed last week’s live event with Jonathan and Wall Street veteran Marc Chaikin, where they dive deeper into the signals that reveal a stock’s true value, I urge you to watch the replay here.

Without further ado, here’s Jonathan…

One of the biggest differences between retail investors and professional traders is the question they ask first.

Most investors will ask, “What stock should I buy?”

Professional traders ask, “What else moves if this story becomes important?”

That distinction matters enormously during major technological shifts.

And it’s exactly what I was thinking about last week while my livestream chat became obsessed with Elon Musk’s Neuralink project.

Not Tesla Inc. (TSLA). Not the SpaceX IPO. Not xAI chatbots.

Brain implants.

The chat was flying: “When’s the IPO?” “How do we invest?” “Is there a ticker yet?”

Honestly, I get it. The idea sounds like science fiction. Tiny devices connecting computers directly to the human brain. People controlling machines with thought alone.

How amazing would that be?

It’s the kind of story the media and Wall Street immediately become obsessed with.

But here’s the part that caught my attention.

At almost the exact same time Musk is pouring money into Neuralink, Sam Altman is backing another brain-computer startup. Two billionaires. Two of the most powerful people in technology are suddenly racing into the exact same sector.

When that happens, traders pay attention.

Not because we think we’re going to wake up tomorrow with a Neuralink IPO ticker. But when smart money starts flooding into a brand-new industry, the real opportunities often appear around the edges of the headline before the public even realizes there’s a trade developing.

Bruce Lee had a line that perfectly captures how traders should think about opportunities like this one:

It is like a finger pointing away to the moon. Don’t concentrate on the finger, or you will miss all that heavenly glory.

So instead of asking: “How do we invest in Neuralink?”

When we see money flooding into a new sector, we should be asking completely different questions:

• Who builds the chips?
• Who makes the microscopes?
• Who supplies the memory?
• Which public companies benefit if this entire sector suddenly gets repriced higher?

That’s the framework.

And honestly, it’s the exact same pattern of behavior we saw last week with the coming SpaceX IPO.

Too many investors never make it past what’s directly in front of them. They’re going to focus entirely on SpaceX itself. The date. The ticker. The valuation. The hype.

Meanwhile, the smart money is already starting to move into the “family” surrounding the story. That’s where the second-order trade often lives.

And that’s what I want to show you today.

In this piece, I’m going to explain how professional traders think about “family” trades during massive IPO cycles…

Show you three publicly traded stocks already connected to the SpaceX thesis…

And explain why the real edge comes from waiting for confirmation from the smart money before the crowd catches up.

The Family Trade

Floor traders learn very quickly that markets move in clusters. Nothing trades in isolation.

Everything has a family:

• If semiconductors move, suppliers move.
• If AI spending explodes, infrastructure moves.
• If uranium rallies, utilities and miners move.
• And if SpaceX eventually IPOs at the kind of valuation Wall Street expects, the companies surrounding that ecosystem are going to get repriced too.

That’s the game. And once you start seeing the market that way, you stop chasing headlines and start looking for relative value instead.

That’s exactly what’s happening around SpaceX right now.

Alphabet Inc. (GOOGL) is one of the most overlooked names tied to the thesis. Most investors still think of Alphabet as a search-and-cloud company. But Alphabet also owns a significant stake in SpaceX that suddenly becomes much more visible once SpaceX starts trading publicly. That’s the kind of hidden exposure Wall Street often ignores… until suddenly everybody notices it at once.

Rocket Lab USA Inc. (RKLB) is another interesting “family” trade because the moment Wall Street starts assigning enormous valuations to reusable rockets and orbital infrastructure, analysts are forced to rethink what the public peers should be worth too. The comparable set changes overnight.

Then there’s AST SpaceMobile Inc. (ASTS), which sits directly inside the satellite-connectivity story that SpaceX’s Starlink system helped create in the first place. If investors suddenly decide space-based communications deserves dramatically higher valuations after the SpaceX roadshow begins, names like ASTS immediately get pulled into the conversation.

Now here’s where even smart investors make a mistake. They find the family, buy the stocks, and hope.

That’s not a terrible idea, but that’s not how I trade. Because stories and ideas alone are not enough.

And honestly, this is one of the biggest lessons I learned after 28 years trading futures, bonds, and options professionally:

Sometimes the narrative is completely right… and the trade still fails because the big money never actually confirms the move.

The Confirmation Layer

That’s why I focus so heavily on unusual trading activity.

Big money leaves footprints.

When that big money starts aggressively building positions in names most retail investors barely know yet, that activity tends to show up before the headlines fully catch up. That’s the signal I’ve built my system around from the beginning.

But over the last year, I realized something important: Finding the signal was only half the job.

I’m very good at identifying unusual trading activity and volatility. I’m very good at finding where the smoke is building before the crowd sees it. But direction? Bullish or bearish?

I’ve said this openly to my members for years: Sometimes direction is a coin flip.

That’s exactly why partnering with Marc Chaikin made so much sense.

Marc spent decades building institutional money-flow tools used everywhere from Bloomberg terminals to professional research desks. My tools identify where unusual positioning is building in trading activity. Marc’s Money Flow tools confirm whether institutional money in the underlying stock is flowing the same direction.

When both signals line up, that’s what Marc and I have started calling the Convergence Trigger. It’s completely changed how I think about second-order trades like this.

Because now we’re not just asking: “Is this stock connected to the SpaceX story?”

We’re asking: “Is big money actually accumulating this name right now?”

Huge difference.

And right now, parts of the SpaceX family are already starting to show that confirmation layer — especially inside infrastructure, AI compute, satellite connectivity, and the quieter derivative plays most investors still are not paying attention to.

Once you understand how to think this way, you start seeing the market differently:

• What’s the second-order effect?
• Which names forgot to move?
• Where is institutional money quietly accumulating?
• Which setups are actually being confirmed?

That framework works almost everywhere.

Marc and I went live Thursday night to break down exactly how we’re using our Convergence Trigger to identify these kinds of setups right now — including several names connected to the SpaceX and AI infrastructure trades already flashing on our screens.

If you missed the live event, you can catch the full replay right here.

The creative trader wins,

Jonathan Rose

Founder, Masters in Trading

P.S. Jonathan Rose has a very different way of looking at the market than most analysts — and honestly, that’s probably why his work has been getting so much attention lately. Instead of chasing headlines, he focuses on where institutional money may already be quietly positioning before the crowd catches on. That’s exactly what he and Wall Street veteran Marc Chaikin discussed during their Convergence Summit event Thursday night. If you missed it live, you can catch the replay right here.

The post 3 Stocks That Could Benefit Before the SpaceX IPO Even Happens appeared first on InvestorPlace.

Editor’s Note: Cerebras just went public… and SpaceX, Anthropic, and OpenAI — representing over $3 trillion in combined valuation — are lined up behind it. A lot of investors are getting excited about this AI IPO boom, but veteran trader Jonathan Rose thinks that excitement is a trap.

I invited him to share his thoughts with us, using the collapse of Figma stock after its IPO as the blueprint. What’s especially intriguing is where the smart money actually goes when these deals price — and what that has to do with the live event he hosted with Marc Chaikin on Thursday night. If you missed it, it’s still free to watch the replay here.

Here’s Jonathan with more.

Few things create investor FOMO like a hot IPO.

It’s a company everybody recognizes and then the stock doubles before lunch.

Financial media cover it breathlessly and use phrases like, “the next great technology platform.”

Suddenly, it feels like everyone is getting rich except you.

But in reality, that’s usually the moment investors become the most vulnerable.

Let me tell you what happened with Figma Inc. (FIG).

Figma makes design software that creative and engineering teams use to build apps, websites, and products. You may not have heard of it, but I guarantee your design team has.

Adobe Inc. (ADBE) tried to buy them for $20 billion back in 2022, but European and U.K. regulators blocked the deal, and so Figma eventually went public on its own. 

There was a lot of the usual buzz around it at the time. It was a big story in the tech world. Exactly the kind of IPO that gets retail investors excited.

Here’s what actually happened on Day 1.

Figma priced at $33 and opened at $115. Everyone got super excited!

But what almost no one knew about was a clause buried deep in the lockup agreement that almost nobody read, stipulating that the insiders didn’t have to wait the standard six months to sell. 

A performance-based trigger was in place that said if the stock traded 25% above the IPO price for five consecutive days, the lockup would be released early.

The stock opened 158% above the threshold, and so the trigger fired on Day 1. By 36 days later, the people who understood the structure were selling at $80.

Eight months later, Figma was at $22 – down 81% from the peak and 33% lower than the IPO price itself. 

Yes, slowing revenue growth and AI competition hurt Figma’s business too — but that doesn’t explain why insiders were selling at $80 on Day 36 while retail was still buying. The structure was designed to let them out.

They robbed us. That’s the only way I can put it.

And now they’re setting up the exact same trade again, except this time the numbers are bigger by an order of magnitude.

The Same IPO Structure Is Coming Back — Bigger 

Cerebras Systems Inc. (CBRS) just went public at $185, opened at $350, and dropped 10% the next day. 

SpaceX is next, Anthropic is after that, and OpenAI is behind both. 

Together, those three offerings represent more than $3 trillion in combined valuation. Every one of them is virtually guaranteed to use a version of the same structural setup that took Figma from $115 to $22 in eight months.

These aren’t bad companies. Some of them are going to be great companies. That’s not the point. The structure is designed to get the early money out and leave the late money holding the bag. That’s it.

I’m talking about company insiders, the VCs that  helped bankroll their rise, and the big-money funds that got their allocation at the offering price.

If you don’t understand that structure, you’re going to be on the wrong side of the trade.

Here’s what I’m going to show you in this piece. 

First, exactly how the trap works — using Figma as the blueprint, because the details matter. 

Then, where the real money is when these deals print.

And finally, where to look right now, before the biggest IPO wave in history hits.

How the IPO Lockup Trap Works

On July 31, 2025, Figma priced at $33 despite institutional demand that would have cleared at $85-plus. Only 7% to 9% of shares were offered — well below the typical 10% to 15% float — which sent the stock through the roof. 

And then there was the piece almost nobody read.

Figma’s lockup agreement included a performance-based early release condition. If the stock traded 25% above IPO price for five consecutive days, 25% of locked shares would release after 36 days instead of the standard 180.

The stock opened 158% above the threshold. The early release triggered on the first day. Fast forward 36 days after the IPO, Figma employees who understood the lockup architecture were selling at $80. Executives filed 10b5-1 plans within days of the IPO — predetermined sales schedules that gave them legal cover to exit. The CEO authorized the sale of 3 million shares four days after the offering.

By February 2026, the stock was at $22.

That’s not a “failed” IPO. That’s the playbook. And right now, every AI IPO in the pipeline is being structured by the same banks, with the same incentives, using the same tools.

When you’re buying at the open, you are not making a smart investment. You are providing “exit liquidity” for people who got in a decade ago.

Don’t be a sucker.

Where to Find Opportunity Before the AI IPO Bell Rings

Here’s the discipline that works on every IPO, including for SpaceX, Anthropic, and the rest of the AI IPO pipeline.

First: Don’t buy at the open. The opening price on an IPO is the supply-demand imbalance from intentional underpricing. The pop is the gift to insiders. By the time you click “buy,” the gift has already been delivered.

Second (and this is the one most investors miss): Buy the “family,” not the headline. Every AI IPO in this pipeline has publicly traded proxies you can buy today. 

SpaceX has Alphabet Inc. (GOOG), which owns 6.11% of the company. Anthropic has Amazon.com Inc. (AMZN) and Nvidia Corp. (NVDA). OpenAI has Microsoft Corp. (MSFT). 

They all have supply chain plays you can buy today, the picks and shovels that every one of these companies needs to function.

These names are as easy to buy as a loaf of bread, and there’s no lockup risk, no allocation problem, and no premium built on a float that was way too small.

Third: Watch the lockup calendar. Once a company goes public, the most important dates aren’t earnings dates. They’re the lockup expirations. The biggest declines almost always happen around those windows. That’s when the insider selling hits and the stock finally trades at something closer to what it’s actually worth.

This is exactly the kind of setup my scanner and Marc Chaikin’s tools are designed to find together.

My signal tracks where large, concentrated, institutional bets are showing up — in the supply chain names, in the proxies, before the crowd arrives. Marc’s Money Flow indicator confirms whether the underlying institutional capital is flowing in the same direction. When both signals agree, that’s the Convergence Trigger.

Right now, with the biggest AI IPO wave in history weeks away, the supply chain is already moving, and the family is already trading. Our Convergence Trigger is already finding setups in the names nobody’s talking about — because everyone’s staring at the headlines.

That’s what Marc and I are going public with at our new Convergence Summit event — including five specific stocks where our Convergence Trigger is active right now.

Click here to check that out.

Cerebras was the dress rehearsal… but SpaceX is the main event. The institutions know what’s coming and have already lined up their allocations. They’ll be the sellers on Day 1.

The family and supply-chain stocks are already moving. The trade on the biggest IPO wave in history isn’t waiting for the bell.

The post The Cerebras IPO Just Showed Us Exactly What’s Coming With SpaceX appeared first on InvestorPlace.

I invited him to explain his thoughts, using the collapse of Figma stock after its IPO as the blueprint. He also shares where the smart money actually goes when these deals price, and what that has to do with the live event he hosted with Marc Chaikin on Thursday night. If you missed it, it’s still free to watch the replay here.

Here’s Jonathan…

Few things create investor FOMO like a hot IPO.

It’s a company everybody recognizes and then the stock doubles before lunch.

Financial media cover it breathlessly and use phrases like, “the next great technology platform.”

Suddenly, it feels like everyone is getting rich except you.

But in reality, that’s usually the moment investors become the most vulnerable.

Let me tell you what happened with Figma Inc. (FIG).

Figma makes design software that creative and engineering teams use to build apps, websites, and products. You may not have heard of it, but I guarantee your design team has.

Adobe Inc. (ADBE) tried to buy them for $20 billion back in 2022, but European and U.K. regulators blocked the deal, and so Figma eventually went public on its own.

There was a lot of the usual buzz around it at the time. It was a big story in the tech world. Exactly the kind of IPO that gets retail investors excited.

Here’s what actually happened on Day 1.

Figma priced at $33 and opened at $115. Everyone got super excited!

But what almost no one knew about was a clause buried deep in the lockup agreement that almost nobody read, stipulating that the insiders didn’t have to wait the standard six months to sell.

A performance-based trigger was in place that said if the stock traded 25% above the IPO price for five consecutive days, the lockup would be released early.

The stock opened 158% above the threshold, and so the trigger fired on Day 1. By 36 days later, the people who understood the structure were selling at $80.

Eight months later, Figma was at $22 – down 81% from the peak and 33% lower than the IPO price itself.

Yes, slowing revenue growth and AI competition hurt Figma’s business too — but that doesn’t explain why insiders were selling at $80 on Day 36 while retail was still buying. The structure was designed to let them out.

They robbed us. That’s the only way I can put it.

And now they’re setting up the exact same trade again, except this time the numbers are bigger by an order of magnitude.

Cerebras Systems Inc. (CBRS) just went public at $185, opened at $350, and dropped 10% the next day.

SpaceX is next, Anthropic is after that, and OpenAI is behind both.

Together, those three offerings represent more than $3 trillion in combined valuation. Every one of them is virtually guaranteed to use a version of the same structural setup that took Figma from $115 to $22 in eight months.

These aren’t bad companies. Some of them are going to be great companies. That’s not the point. The structure is designed to get the early money out and leave the late money holding the bag. That’s it.

I’m talking about company insiders, the VCs that  helped bankroll their rise, and the big-money funds that got their allocation at the offering price.

If you don’t understand that structure, you’re going to be on the wrong side of the trade.

Here’s what I’m going to show you in this piece.

First, exactly how the trap works — using Figma as the blueprint, because the details matter.

Then, where the real money is when these deals print.

And finally, where to look right now, before the biggest IPO wave in history hits.

How the Trap Works

On July 31, 2025, Figma priced at $33 despite institutional demand that would have cleared at $85-plus. Only 7% to 9% of shares were offered — well below the typical 10% to 15% float — which sent the stock through the roof.

And then there was the piece almost nobody read.

Figma’s lockup agreement included a performance-based early release condition. If the stock traded 25% above IPO price for five consecutive days, 25% of locked shares would release after 36 days instead of the standard 180.

The stock opened 158% above the threshold. The early release triggered on the first day. Fast forward 36 days after the IPO, Figma employees who understood the lockup architecture were selling at $80. Executives filed 10b5-1 plans within days of the IPO — predetermined sales schedules that gave them legal cover to exit. The CEO authorized the sale of 3 million shares four days after the offering.

By February 2026, the stock was at $22.

That’s not a “failed” IPO. That’s the playbook. And right now, every AI IPO in the pipeline is being structured by the same banks, with the same incentives, using the same tools.

When you’re buying at the open, you are not making a smart investment. You are providing “exit liquidity” for people who got in a decade ago.

Don’t be a sucker.

Where the Real Money Is

Here’s the discipline that works on every IPO, including for SpaceX, Anthropic, and the rest of the AI IPO pipeline.

First: Don’t buy at the open. The opening price on an IPO is the supply-demand imbalance from intentional underpricing. The pop is the gift to insiders. By the time you click “buy,” the gift has already been delivered.

Second (and this is the one most investors miss): Buy the “family,” not the headline. Every AI IPO in this pipeline has publicly traded proxies you can buy today.

SpaceX has Alphabet Inc. (GOOG), which owns 6.11% of the company. Anthropic has Amazon.com Inc. (AMZN) and Nvidia Corp. (NVDA). OpenAI has Microsoft Corp. (MSFT).

They all have supply chain plays you can buy today, the picks and shovels that every one of these companies needs to function.

These names are as easy to buy as a loaf of bread, and there’s no lockup risk, no allocation problem, and no premium built on a float that was way too small.

Third: Watch the lockup calendar. Once a company goes public, the most important dates aren’t earnings dates. They’re the lockup expirations. The biggest declines almost always happen around those windows. That’s when the insider selling hits and the stock finally trades at something closer to what it’s actually worth.

This is exactly the kind of setup my scanner and Marc Chaikin’s tools are designed to find together.

My signal tracks where large, concentrated, institutional bets are showing up — in the supply chain names, in the proxies, before the crowd arrives. Marc’s Money Flow indicator confirms whether the underlying institutional capital is flowing in the same direction. When both signals agree, that’s the Convergence Trigger.

Right now, with the biggest AI IPO wave in history weeks away, the supply chain is already moving, and the family is already trading. Our Convergence Trigger is already finding setups in the names nobody’s talking about — because everyone’s staring at the headlines.

That’s what Marc and I are going public with at our new Convergence Summit event — including five specific stocks where our Convergence Trigger is active right now.

Click here to check that out.

Cerebras was the dress rehearsal… but SpaceX is the main event. The institutions know what’s coming and have already lined up their allocations. They’ll be the sellers on Day 1.

The family and supply-chain stocks are already moving. The trade on the biggest IPO wave in history isn’t waiting for the bell.

The creative trader wins,

Jonathan Rose

Founder, Masters in Trading

P.S. One more thing worth knowing before SpaceX prices. Search the S-1 for “Early Release Condition” or “performance-based release.” If the lockup releases additional shares when the stock is 25% above IPO price — and the company prices low enough to guarantee the trigger — you’re looking at the Figma structure. That’s your signal to step back, not step in. Go here to watch my and Marc’s new free broadcast, and I’ll show you exactly where I’m looking instead.

The post SpaceX Is Going to IPO: Here’s the Case for Not Buying at the Open appeared first on InvestorPlace.

Last week here, we talked about how master trader Jonathan Rose and Wall Street veteran Marc Chaikin had combined their smart money indicators into a “Convergence Trigger” signal. 

They revealed their system’s top five picks in their Convergence Summit on Thursday night. I hope you tuned in. The pick I featured here in the Sunday Digest from that list – Ameresco Inc. (AMRC) – has already risen 10% since then, bringing its one-month return to 18%. In fact, the five companies Jonathan and Marc selected have now risen 38% since the start of May. 

Now, it’s tempting to think it’s too late to jump in. Jonathan and Marc’s five stocks are all a part of the AI Revolution, and many investors are rightly wondering how high things can keep going. After all, all “Big 3” dynamic RAM memory chip makers – Micron, Samsung, and SK Hynix – are now worth $1 trillion each.  

Could they possibly be worth $2 trillion? $5 trillion? Or more? 

Fortunately, I’m quite certain that at least one of their “Convergence Trigger” companies still has further upside. I’ll tell you why in this update. 

In the meantime, be sure to tune into a replay of Jonathan and Marc’s Convergence Summit if you haven’t seen it yet. In it, they explain how their system works, and how you can use it to make sure the next investment boom doesn’t pass you by. (And don’t wait long… our publisher will be removing the video later this week.) 

Now, here’s more on that “Convergence Trigger” stock that I believe still has some juice in it… 

The Sunny Outlier 

First Solar Inc. (FSLR) is a rather fantastic company. This Tempe, Arizona-based solar company doesn’t have just one moat around its business… but rather it has four. Let’s go through each. 

1. Product. First Solar is the only company in the world that can produce cadmium telluride (CdTe) photovoltaic cells at scale. Unlike crystalline silicon (c-Si) panels, CdTe versions are straightforward to build and highly resistant to heat and long-term degradation. That makes them superior in hot and humid environments like the U.S. South, India, and the Middle East. 

This moat is protected by numerous patents, $2 billion in cumulative research and development spending, and a proprietary manufacturing process that even General Electric (GE) couldn’t figure out. GE exited the CdTe business in 2013. 

2. Supply Chain. First Solar is also protected by a quirk of its technology. CdTe panels require no polysilicon, no silver paste, and no wafers. Instead, their panels are essentially glass, steel, and a thin layer of proprietary cadmium telluride compound.  

That’s particularly important because China controls roughly 80% of the global supply of c-Si panel components. Rivals like Canadian Solar Inc. (CSIQ) are low-margin businesses because they rely on Chinese suppliers that can dictate terms and prices. First Solar faces none of those challenges. 

In addition, First Solar is vertically integrated. It controls its own tellurium sourcing, module assembly, and even end-of-life-recycling to handle and reuse the cadmium in its panels. Each step is relatively difficult — for instance, telluride is geologically as rare as gold, and cadmium can be as dangerous as mercury. Assembling the whole chain under one roof makes this moat especially wide. 

3. Government Subsidies. The U.S. solar industry is currently protected by two pieces of legislation that the 2025 One Big Beautiful Bill confirmed: 

• Section 45X. This series of production-based tax credits overwhelmingly benefits First Solar because credits for cell production and assembly are stacked. In fact, the company generated so many of these credits that it sold $1.3 billion worth of them in 2025, making up a quarter of total revenues.  
• FEOC Restrictions. This consumer-based tax credit requires buyers avoid Foreign Entity of Concern (FEOC) panel makers to claim their own credits. First Solar clears this hurdle easily given its domestic CdTe supply chain. These rules last through 2027 for project-level credits and until 2032 for manufacturing credits. 

I expect both to get extended in some fashion. In April 2026, a group of Republican congressmen from Pennsylvania, New York, and Ohio proposed legislation to preserve commercial solar tax credits to protect firms like First Solar, which has a large presence in the region. Meanwhile, FEOC rules were strengthened under the current administration, and any trade war with China will likely trigger an expansion. Even though the White House has publicly criticized the solar industry, its actions have moved in the other direction. 

4. Financial Strength. I ordinarily don’t award a “moat” for financial strength, since anyone with a large enough pocketbook can step in. But I’ll make an exception for the solar industry because everyone else is in such terrible shape. Canadian Solar, JinkoSolar Holding Co. (JKS), and Sunrun Inc. (RUN) all have debt-to-equity ratios of over 250% and struggle to afford payments on interest. China’s LONGi Green Energy Technology Co. Ltd. has lost money since 2024 and will likely keep doing so until at least 2027. The c-Si panel industry is a cutthroat business. 

Meanwhile, First Solar has maintained a fortress balance sheet, thanks to its 30% profit margins from its differentiated product. The company has $2 billion of net cash on its books, almost no debt, and is expected to generate $1.8 billion of free cash flows next fiscal year, up from $1.2 billion in 2025. 

This financial strength has allowed First Solar to continue investing in research and development ($270 million this year) and spending on production capacity ($884 million). It outspends its rivals by almost 3-to-1 on R&D and could be the company to bring next-generation technologies like perovskites to market. (These calcium/titanium/oxygen crystals would be a major step forward if they can get scaled up.) 

Dawning Demand 

These moats suggest that First Solar still has room to run. Shares have risen just 11% this year, even as electricity demand from AI data centers has continued to rise. 

Consider the math. The latest Blackwell chips from Nvidia Corp. (NVDA) draw roughly four times the power of what the prior generation needed and produce far more heat. Multiply that across thousands of racks, and you start to understand why data center operators are scrambling for power-generation capacity for chips and cooling. 

So, where will that juice come from?  

Increasingly, data center operators are turning to the sun. The solar production curve roughly matches demand for data center cooling, solar farms are quick to build, and solar power pairs well with electricity from natural gas and batteries. The U.S. Energy Information Administration estimates that 51% of planned grid capacity additions in 2026 will be solar. 

First Solar also easily passes Jonathan and Marc’s smart money screens. Shares have recently flipped to “Very Bullish” in Marc’s system on strong smart money buying. As you can see from the graph below, his system has consistently found the best times to buy. 

Marc Chaikin’s First Solar Inc. (FSLR) Rating

I also believe there’s more room for First Solar to grow. Only 17% of installed panels in the U.S. are currently CdTe, and barely 2% of global capacity uses the technology. That gives the company a long runway for growth. In the most recent quarter, First Solar announced record sales in India, and said that its backlog now sits at 47.9 gigawatts, or more than 2.5 years of revenues. 

Rays of Caution 

Obviously, there are longer-term risks for a company like First Solar: 

Nevertheless, markets have more than priced these fears in. First Solar’s shares trade at just 11X forward earnings, or roughly a third of comparable companies in the AI power buildout. If regulations move the way I expect, shares have at least a 50% upside from here. 

The Swiss Cheese Model Part 2 

As I wrote here last week, markets have a lot of pressure building up beneath the surface. Many retail investors are now chasing returns of the hottest stocks, and analysts at Morningstar (and many others) are warning that companies like Micron Technology Inc. (MU) should “expect the wave to crash longer-term.” Morningstar analysts give Micron a fair value of $455, a 50% downside. 

Fortunately, Jonathan and Marc’s “Convergence Trigger” system helps investors avoid these pitfalls by forcing investment ideas through multiple screens. Even if smart money is giving bullish signals for Micron’s stock, options traders might have an entirely different outlook. 

And so, be sure to watch their Convergence Summit, where Jonathan and Marc will explain where they see the next pockets of opportunity, and how they’re navigating this “new normal” of markets that rise quickly and fall just as fast. 

Until next week, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post Missed Ameresco Last Week? This AI Power Stock Could Still Have 50% Upside appeared first on InvestorPlace.

What happens when two governments both reach for their checkbooks in the same week, and both bet on the factories, not the machines?

On May 21, the Department of Commerce signed letters of intent with nine quantum companies, totaling $2.013 billion in funding, taking equity stakes as it went. Commerce Secretary Howard Lutnick called it “a new era of American innovation.” Markets agreed… quantum stocks rose double-digits overnight, and some are now up ~50% since.

The very next morning, President Emmanuel Macron stood in a supercomputing center south of the city and committed another billion euros to France’s own quantum strategy. Dropping the diplomatic niceties, Macron boasted “we have the means to be the winners of this race.”

The French reply wasn’t just speedy… it’s effectively a weight scale, weighing the heft of how seriously the world now takes the American hand. Look over the past decade and you’ll see how governments treated quantum the way they’d treat any laboratory curiosity… with a grant here, a national lab there… This time, the global response frames quantum as territory worth defending.

If investors stopped reading there, they shouldn’t have…

Washington sent two messages this week: 

One of those messages will move stocks tomorrow. The other will make investors wealthy. 

The CHIPS Act Playbook Is Running Again — This Time In Quantum

Back in 2022, Congress passed the CHIPS and Science Act to ostensibly bring semiconductor manufacturing back to American soil. 

The government cited national security and supply chain resilience. Its unstated rationale? China is coming for advanced computing, and we’re not going to let them have it.

Quantum is now getting the same treatment. And the funding architecture is almost identical. The two largest checks — $1 billion to IBM (IBM) and $375 million to GlobalFoundries (GFS) — go not to quantum computer makers but to quantum foundries. 

The Headline Stocks Aren’t the Headline Trade

IBM is standing up a new subsidiary called Anderon to build America’s first dedicated quantum wafer fabrication facility, matching the government’s investment with another $1 billion of its own capital. Anderon is a superconducting-first bet — which means IBM is more exposed than GlobalFoundries to any future architecture shift. That’s a risk worth knowing. But IBM’s roadmap is currently the most mature in the industry, and the manufacturing backstop meaningfully de-risks the scaling timeline. 

GlobalFoundries is building a multi-modality foundry — a facility capable of manufacturing across five distinct quantum hardware approaches: superconducting circuits, trapped ions, photonics, topological qubits, and silicon spin. Each is a competing bet on how quantum computers will ultimately be built. Rather than picking a winner, GlobalFoundries is positioning to supply all of them — the quantum equivalent of a fab that makes chips regardless of which processor architecture dominates.

The remaining $638 million flows to seven other quantum computing companies — D-Wave (QBTS), Rigetti (RGTI), Quantinuum, Infleqtion (INFQ), Atom Computing, PsiQuantum, and Diraq — each receiving between $38- and $100 million to advance their proprietary hardware and error correction work.

It’s a venture portfolio with a lead check. IBM and GlobalFoundries get the anchor rounds. The seven computing firms are the seed and Series A bets. 

This is exactly the same playbook Washington ran on classical semiconductors — and investors who understood that Taiwan Semiconductor (TSM), ASML (ASML), and Lam Research (LRCX) were the real plays made far more money than those who bought PC makers.

The AI Infrastructure Playbook Already Told Us How This Ends

The parallel here should feel very familiar.

When AI started its current boom cycle, there were two ways to play it. You could buy the AI applications — the companies building large language models and AI-native software. Or you could buy the AI infrastructure — the companies building the GPUs, custom ASICs, networking fabric, and power infrastructure that AI runs on.

We know how that story turned out… 

Nvidia (NVDA) stock went from $300 to $1,200. Broadcom (AVGO) projects $100 billion-plus in AI revenue by 2027. Marvell (MRVL) is targeting $15 billion by FY2028. The infrastructure layer — the picks-and-shovels trade — has dramatically outperformed the application layer because it wins regardless of which AI model or product dominates.

The same dynamic is forming in the quantum space. We don’t yet know whether superconducting qubits, trapped ions, photonics, or neutral atoms will be the dominant architecture of the fault-tolerant quantum era. That’s an open question. But we do know that all require quantum-grade wafer fabrication, cryogenic components, specialized materials, and precision manufacturing at scales that don’t yet exist. The foundry layer wins regardless.

In AI, the GPU makers got rich before the AI applications did. In quantum, the foundry builders will get there before the quantum computer makers do.

What $2 Billion Actually Buys — and What It Doesn’t 

This government check doesn’t solve the fundamental physics of quantum computing. 

The core obstacle to truly fault-tolerant quantum machines is qubit coherence — the ability of a qubit to maintain its quantum state long enough to be useful. Qubits are extraordinarily sensitive to heat, vibration, and electromagnetic interference; the slightest disturbance causes errors. Today, you need hundreds of imperfect physical qubits working in concert to produce a single reliable logical qubit. That’s a fundamental physics constraint, not a capital problem. 

What this investment does buy is iteration velocity. Dedicated quantum foundries mean researchers can prototype, test, refine, and scale hardware designs faster. It’s an accelerant for R&D.

It also builds the talent pipeline and domestic supply chain that didn’t exist before. A purpose-built quantum foundry creates quantum-literate engineers, specialized materials suppliers, and institutional process knowledge — the ecosystem infrastructure that always precedes commercial breakthroughs. For example, DARPA’s early bets on networking and computing looked premature for years — then became the foundation of the modern internet. The investors who built around that ecosystem captured the value. The ones who waited for certainty missed it. 

This capital doesn’t dramatically change the timeline for utility-scale, fault-tolerant quantum systems. But it does change who owns the ecosystem when that window arrives — and increasingly, that answer is the United States.

The Quantum Computing Stocks Worth Owning Right Now

So what do you actually do with this information?

IBM is the most direct quantum infrastructure bet that trades as a liquid public stock. The Anderon foundry — $2 billion capitalized between government grant and IBM match — is a serious enterprise. IBM’s quantum roadmap is the most advanced in superconducting qubits, and it now has the manufacturing backstop to scale it. The quantum story isn’t why you buy IBM today, but it’s becoming a more credible option value embedded in the stock.

GlobalFoundries is the sleeper here. Its $375 million award funds a multi-modality quantum foundry — meaning it’s positioned to serve all architectural approaches rather than betting on one. GFS already has the semiconductor manufacturing expertise; it’s now being paid to apply it to quantum.

D-Wave and Rigetti get $100 million each, which is meaningful for companies of their size — and the government’s equity stake is a credibility signal that should improve their institutional investor access. Both remain speculative, pre-profitability plays. But they’re now speculative plays with a powerful customer and shareholder in Washington.

The Factories Win Before the Computers Do

The quantum infrastructure layer is where the durable wealth creation will come from, just as it has in AI. 

Pure-play quantum compute names are high-optionality bets on which technology wins. Foundry and manufacturing names are bets on the category winning — and that bet just got a billion-dollar government co-sign.

The $2 billion CHIPS Act investment — structured around foundry infrastructure rather than raw compute — mirrors the exact playbook that produced the AI infrastructure supercycle. And the lesson of the AI era is clear: when a transformative computing paradigm arrives, the factories win before the computers do. 

Washington just started building the quantum factories. The picks-and-shovels moment is here. 

That pattern doesn’t stop at quantum computing.

I’m watching it unfold right now in a market most investors aren’t paying attention to — something older than semiconductors, older than AI, older than the internet. And its infrastructure is being rebuilt from scratch for the first time in a generation.

Here’s what I’m watching — and why I think it may be the most important investment story of the decade.

The post You’re Probably Looking at the Wrong Quantum Computing Stocks appeared first on InvestorPlace.

No, I’m not talking about the New York Knicks reaching the NBA Finals for the first time in 27 years… or the recently finalized Premier League rankings for the 2025-2026 season.

I’m talking about a different kind of leaderboard altogether: the world’s largest stock markets.

This week, Taiwan beat out India to become the fifth-largest stock market in the world, trailing only the U.S., mainland China, Japan, and Hong Kong.

Bloomberg reported that the East Asian country’s market capitalization rose to $4.95 trillion as of Monday, surpassing India’s $4.92 trillion.

The driving force behind the surge?

Artificial intelligence.

More specifically, semiconductor giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), the key chip supplier powering everything from consumer electronics to AI data centers.

TSM has risen 28% since the start of the year and approximately 89% over the past 12 months. The company also now accounts for 42% of Taiwan’s benchmark stock index, the TAIEX.

The country’s market is essentially becoming a “one-stock index.”

That level of concentration is unusual for a major global market, and it highlights two key points: 1) AI demand is a major global force, and 2) the semiconductor industry is central to its growth.

This is a “symbolic macro moment,” where AI is no longer just a tech sector trend, but is reshaping national stock markets.

So, in today’s Smart Money, let’s review how TSM’s chip empire carried the Taiwan stock market to its new global ranking – and what that reveals about the broader AI investment boom.

Let’s jump in…

Why the Smallest Chips Are Making the Biggest Waves

The numbers speak for themselves.

Taiwan Semiconductor’s quarterly report last month showed a 58% increase in first-quarter profit, driven by AI chip demand. Its computing division accounted for most of the sales, making up 61% of revenue.

Additionally, the company’s 7-nanometer or smaller advanced chips accounted for 74% of total wafer revenue in the quarter, while shipments of advanced chips under 3-nanometers accounted for 25%.

Wafers – typically made of semiconductor silicon and serving as the foundation of integrated circuits – produced at smaller nanometer scales are more compact, increasing processing power and efficiency.

As TSM continues to produce more efficient chips for the AI Revolution, its revenue from this segment is expected to keep increasing.

Take it from the company’s guidance, which expects full-year 2026 revenue to be up more than 30% year-over-year (in U.S. dollars) and second-quarter revenue to reach $39 billion to $40.2 billion, a 10% sequential increase.

And it’s not just TSM driving momentum in Taiwan’s market. AI chip king Nvidia Corp. (NVDA) announced on Wednesday its plans to invest $150 billion annually in a new campus in Taiwan, which led the TAIX to rise 1.7% to a record close that same day.

So, semiconductors play a huge role not only in making AI literally possible, but also in making companies – and countries – profitable. Markets are being repriced around AI supply chain importance, and countries with exposure to chip manufacturing, like Taiwan, are getting a valuation boost.

But Taiwan’s surge also reveals a structural imbalance: If entire national markets can move based on one AI supplier, that means the AI boom is powerful… but highly concentrated in bottlenecks.

In that sense, the biggest winners so far are in the “infrastructure layer,” like semiconductor manufacturers. (We shouldn’t forget about data center operators and energy systems.)

So, investors aren’t just betting on AI growth, but on which companies can physically enable it.

And there’s a key accelerant in this trend, one that is still early enough to capitalize on…

Profiting From the Next Phase of AI

The rise of agentic AI systems.

As a quick refresh, agentic AI is the “next generation” of AI technologies that can make decisions by themselves and adapt to changes. Think of Anthropic’s AI assistants, including Claude Cowork and Code.

And it’s a form of AI we will be forced to adapt to.

According to Landbase, an agentic AI platform, the agentic AI sector is the fastest-growing enterprise technology segment, with a 43.84% compound annual growth rate from 2025 to 2034.

TSM, alongside companies like Nvidia, manufactures the advanced chips that make those systems possible. In that sense, agentic AI is not a direct product of these firms, but it is becoming one of the most powerful drivers of demand across the entire chip manufacturing pipeline.

AI has already reshaped global financial leadership in a matter of years. And the next phase of the technology will reshape it again.

So, the question now is which parts of the market are positioned for what comes next.

I answer this in my special “Agentic Reckoning” broadcast.

You can click here to learn more.

Regards,

Eric Fry

P.S. The AI boom is no longer just a story about AI.

Increasingly, it’s becoming a story about infrastructure, capital flows, and the handful of companies positioned at critical bottlenecks inside the AI economy.

In a brand-new broadcast, my colleague Jonathan Rose explains where institutional capital is rotating next… and why that shift could create the next wave of outsized opportunities for investors willing to follow the money early.

You can find that free presentation here.

The post The Chip That Lifted a Nation – and What It Means for Your Portfolio appeared first on InvestorPlace.

I saw my first cell phone, used by a real person, in 1987.

It belonged to an executive friend of my father’s. Calling it a “phone” almost feels generous by today’s standards. The thing looked more like military equipment than consumer technology.

It was a massive black brick attached to its own carrying case. It wasn’t the one pictured below, but it was similar.

Credit: MarkSwallow

At the time, it felt futuristic beyond belief.

Almost nobody had one. In those days, most of us still lived with landlines mounted on kitchen walls… or tangled cords stretched halfway across the house for “private” conversations.

So, the idea that someone could make a phone call from a car, or an airport, or the middle of nowhere felt like a miracle.

Eventually, as the free-market mechanism worked its magic, the price went down, the technology improved and cellular technology finally became affordable to ordinary people.

Soon, everybody had a mobile phone.

And eventually, one company rose above all the others.

Nokia.

Back then, Nokia didn’t just dominate the cellphone business — for many people, it *was* the cellphone business.

Its phones were reliable, indestructible, cutting-edge and everywhere.

Most consumers – and most investors – couldn’t imagine a world where Nokia wouldn’t remain king of mobile technology. Even as late as 2007, their phones were the industry standard and they seemed unstoppable.

But everything changed later that year when Apple unveiled the iPhone. You probably know the rest of that story…

• By November 2009, Apple had become the most profitable phone maker.
• By April 2011, Apple became the world’s largest phone maker by revenue.
• By July 2011, Apple had overtaken Nokia in smartphone units shipped.

The companies that dominated the first phase of the mobile phone revolution weren’t the ones that would dominate the next.

And according to legendary investor Louis Navellier, AI may now be approaching a very similar turning point.

Spotting the Change Early

Over the past four decades, Louis has built a reputation for spotting major technology trends early. Long before Nvidia became synonymous with AI Louis was recommending the stock to his followers.

That’s why it’s now about a 5,000% winner in his Growth Investor service.

Years earlier, he recognized the potential of companies like Apple (AAPL), Amazon (AMZN), and Google (GOOG) before they became household investment names. That’s why he is recognized by MarketWatch as the adviser who “recommended Google before anyone else.”

Almost three years ago, Louis was already positioning his subscribers to profit from the explosion of data center construction.

At that time, companies like Intel (INTC), Samsung, Taiwan Semiconductor (TSM), Micron Technology (MU), and Texas Instruments (TXN) had all just pledged to expand and upgrade their facilities in the U.S., creating strong demand for the services and solutions that EMCOR Group, Inc. (EME) provides.

EME is a leading provider of electrical and mechanical construction, energy and industrial infrastructure and building services through three businesses.

• EMCOR Construction Services specializes in mechanical and electrical construction, fire protection, and design-build solutions for hospitals, data centers, and commercial sites.
• EMCOR Buildings Services provides a range of comprehensive building services, including site maintenance, renovation and retrofits, energy services, HVAC and mechanical services, landscaping, construction, and energy efficiency upgrades.
• EMCOR Industrial Services delivers engineering, manufacturing, fabrication, and maintenance services for heavy industries like oil refineries, biotech ad semiconductor facilities.

When he recommended the stock, Louis highlighted that company management noted that it continues to experience “strong demand for semiconductor and data center construction projects,” which should add to its top and bottom lines going forward.

Since that pick, EME is up more than 280%.

Despite the stock’s growth, it is still below Louis’ buy price of $932. That means he believes it still has room to run.

The Next AI Shift Has Started

Now, he believes artificial intelligence may be approaching another major shift.

Not the end of the AI boom…

But potentially the beginning of an entirely new phase – one that could create a new generation of winners while leaving some of today’s AI leaders behind.

According to Louis, the next phase of AI may not simply involve better chatbots or faster image generators.

In his new presentation, he dives into what’s happening. It’s a story that involves massive government-backed computing infrastructure, next-generation AI systems and technology capable of dramatically expanding what artificial intelligence can actually do.

In fact, he believes this shift could become so significant that many of today’s dominant AI companies may eventually look like Nokia after the iPhone.

That’s why I strongly encourage you to watch his new presentation while it’s still available online.

You can access it here.

The pace of technological change is much faster than it was in 2007, when the seemingly unstoppable Nokia got crushed by Apple.

Getting in front of that next big change can make a big difference in your portfolio.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post Investors Who Ignore This AI Shift Could Be Left Behind appeared first on InvestorPlace.

Most investors will ask, “What stock should I buy?”

Professional traders ask, “What else moves if this story becomes important?”

That distinction matters enormously during major technological shifts.

And it’s exactly what I was thinking about earlier this week while my livestream chat became obsessed with Elon Musk’s Neuralink project.

Not Tesla Inc. (TSLA). Not the SpaceX IPO. Not xAI chatbots.

Brain implants.

The chat was flying: “When’s the IPO?” “How do we invest?” “Is there a ticker yet?”

Honestly, I get it. The idea sounds like science fiction. Tiny devices connecting computers directly to the human brain. People controlling machines with thought alone.

How amazing would that be?

It’s the kind of story the media and Wall Street immediately become obsessed with.

But here’s the part that caught my attention.

At almost the exact same time Musk is pouring money into Neuralink, Sam Altman is backing another brain-computer startup. Two billionaires. Two of the most powerful people in technology are suddenly racing into the exact same sector.

When that happens, traders pay attention.

Not because we think we’re going to wake up tomorrow with a Neuralink IPO ticker. But when smart money starts flooding into a brand-new industry, the real opportunities often appear around the edges of the headline before the public even realizes there’s a trade developing.

Bruce Lee had a line that perfectly captures how traders should think about opportunities like this one:

It is like a finger pointing away to the moon. Don’t concentrate on the finger, or you will miss all that heavenly glory.

So instead of asking: “How do we invest in Neuralink?”

When we see money flooding into a new sector, we should be asking completely different questions:

• Who builds the chips?
• Who makes the microscopes?
• Who supplies the memory?
• Which public companies benefit if this entire sector suddenly gets repriced higher?

That’s the framework.

And honestly, it’s the exact same pattern of behavior we saw earlier this week with the coming SpaceX IPO .

Too many investors never make it past what’s directly in front of them. They’re going to focus entirely on SpaceX itself. The date. The ticker. The valuation. The hype.

Meanwhile, the smart money is already starting to move into the “family” surrounding the story. That’s where the second-order trade often lives.

And that’s what I want to show you today.

In this piece, I’m going to explain how professional traders think about “family” trades during massive IPO cycles…

Show you three publicly traded stocks already connected to the SpaceX thesis…

And explain why the real edge comes from waiting for confirmation from the smart money before the crowd catches up.

The Family Trade

Floor traders learn very quickly that markets move in clusters. Nothing trades in isolation.

Everything has a family:

• If semiconductors move, suppliers move.
• If AI spending explodes, infrastructure moves.
• If uranium rallies, utilities and miners move.
• And if SpaceX eventually IPOs at the kind of valuation Wall Street expects, the companies surrounding that ecosystem are going to get repriced too.

That’s the game. And once you start seeing the market that way, you stop chasing headlines and start looking for relative value instead.

That’s exactly what’s happening around SpaceX right now.

Alphabet Inc. (GOOGL) is one of the most overlooked names tied to the thesis. Most investors still think of Alphabet as a search-and-cloud company. But Alphabet also owns a significant stake in SpaceX that suddenly becomes much more visible once SpaceX starts trading publicly. That’s the kind of hidden exposure Wall Street often ignores… until suddenly everybody notices it at once.

Rocket Lab USA Inc. (RKLB) is another interesting “family” trade because the moment Wall Street starts assigning enormous valuations to reusable rockets and orbital infrastructure, analysts are forced to rethink what the public peers should be worth too. The comparable set changes overnight.

Then there’s AST SpaceMobile Inc. (ASTS), which sits directly inside the satellite-connectivity story that SpaceX’s Starlink system helped create in the first place. If investors suddenly decide space-based communications deserves dramatically higher valuations after the SpaceX roadshow begins, names like ASTS immediately get pulled into the conversation.

Now here’s where even smart investors make a mistake. They find the family, buy the stocks, and hope.

That’s not a terrible idea, but that’s not how I trade. Because stories and ideas alone are not enough.

And honestly, this is one of the biggest lessons I learned after 28 years trading futures, bonds, and options professionally:

Sometimes the narrative is completely right… and the trade still fails because the big money never actually confirms the move.

The Confirmation Layer

That’s why I focus so heavily on unusual trading activity.

Big money leaves footprints.

When that big money starts aggressively building positions in names most retail investors barely know yet, that activity tends to show up before the headlines fully catch up. That’s the signal I’ve built my system around from the beginning.

But over the last year, I realized something important: Finding the signal was only half the job.

I’m very good at identifying unusual trading activity and volatility. I’m very good at finding where the smoke is building before the crowd sees it. But direction? Bullish or bearish?

I’ve said this openly to my members for years: Sometimes direction is a coin flip.

That’s exactly why partnering with Marc Chaikin made so much sense.

Marc spent decades building institutional money-flow tools used everywhere from Bloomberg terminals to professional research desks. My tools identify where unusual positioning is building in trading activity. Marc’s Money Flow tools confirm whether institutional money in the underlying stock is flowing the same direction.

When both signals line up, that’s what Marc and I have started calling the Convergence Trigger. It’s completely changed how I think about second-order trades like this.

Because now we’re not just asking: “Is this stock connected to the SpaceX story?”

We’re asking: “Is big money actually accumulating this name right now?”

Huge difference.

And right now, parts of the SpaceX family are already starting to show that confirmation layer — especially inside infrastructure, AI compute, satellite connectivity, and the quieter derivative plays most investors still are not paying attention to.

Once you understand how to think this way, you start seeing the market differently:

• What’s the second-order effect?
• Which names forgot to move?
• Where is institutional money quietly accumulating?
• Which setups are actually being confirmed?

That framework works almost everywhere.

Marc and I went live Thursday night to break down exactly how we’re using our Convergence Trigger to identify these kinds of setups right now — including several names connected to the SpaceX and AI infrastructure trades already flashing on our screens.

If you missed the live event, you can catch the full replay right here.

The creative trader wins,

Jonathan Rose

Founder, Masters in Trading

P.S. Jonathan Rose has a very different way of looking at the market than most analysts — and honestly, that’s probably why his work has been getting so much attention lately. Instead of chasing headlines, he focuses on where institutional money may already be quietly positioning before the crowd catches on. That’s exactly what he and Wall Street veteran Marc Chaikin discussed during their Convergence Summit event Thursday night. If you missed it live, you can catch the replay right here.

The post Forget the SpaceX IPO — Own These 3 Stocks Instead appeared first on InvestorPlace.

Left to my own devices, I’d rather talk about AI factories, memory shortages, order backlogs, earnings revisions and the companies quietly supplying the next great tech boom.

But over the past few days, my readers have kept asking me the same question:

“Louis, what do you think about the SpaceX IPO?”

And then, my daughter Crystal finally cornered me.

She wanted to talk about it on Navellier Market Buzz, our YouTube channel. So, I gave her my honest answer:

No, I’m not buying the SpaceX IPO.

Not because I dislike the company. Quite the opposite, actually.

SpaceX is a remarkable business. Starlink has changed the world. And Elon Musk has proven again and again that he can turn impossible ideas into real, profitable enterprises.

But IPOs are a different animal, folks.

And when Wall Street starts banging the drum on a deal this big, I think individual investors need to slow down and ask a very simple question:

Who is really getting rich here?

In today’s Market 360, I’m going to answer that question. I’ll tell you why I’m steering clear of the SpaceX IPO for now… why Wall Street’s excitement may have more to do with fees than fundamentals… and how investors can still profit from Elon Musk’s next great breakthrough without buying SpaceX at all.

Why I’m Not Chasing SpaceX

SpaceX may soon become the biggest IPO in stock market history. According to recent reports, the company could go public at a valuation of around $1.75 trillion and raise roughly $75 billion.

That’s enough to get every banker on Wall Street salivating.

And that’s the first thing investors need to remember: Wall Street makes money by taking companies public. The underwriters get paid. The lawyers get paid. The bankers get paid. The early backers get their liquidity event. And everybody involved has a strong incentive to make the story sound as exciting as possible.

Again, that does not mean SpaceX is a bad company. I think it’s phenomenal.

But a great company is not always a great stock at any price. And by the time a hot IPO reaches the public market, insiders, early backers and private investors have often already had the first bite of the apple.

That’s why I don’t chase IPOs.

So, when my daughter asked me about SpaceX, I told her the same thing I’ve told my subscribers for years: I cannot calculate risk on IPOs.

A stock must trade publicly before my Stock Grader system (subscription required) can properly analyze it. I need to see the financials. I need quarterly earnings. I need analyst revisions. I need institutional buying data. Most importantly, I need to run it through my eight-factor fundamental model.

Ideally, I want to see about a year’s worth of data.

Could SpaceX pop on day one? Sure. Could it go higher over time? Absolutely. I would never bet against Elon Musk. That has been a losing game for a lot of people.

But that does not mean I need to chase the IPO.

The typical pattern with hot IPOs is that they gap higher, then back and fill. There is often a better window later. If SpaceX comes public, trades for a while, pulls back and starts producing the kind of numbers my Stock Grader system likes, I’ll take a look.

Until then, I’m not investing. I’m guessing. And I don’t guess with my money.

The Better Way to Play the Boom

Now, does that mean investors should ignore the SpaceX IPO?

No. In fact, I think the SpaceX IPO could create a lot of opportunities.

But the real key is profiting from the excitement IPOs generate, not necessarily from the IPO itself.

During the California Gold Rush, the folks who made the most reliable fortunes weren’t always the miners digging in the dirt. It was often the suppliers – the people selling picks, shovels and jeans.

That’s the way I prefer to play big booms. Let everyone else chase the obvious name.  I want to own the companies supplying the boom.

That’s exactly how I look at SpaceX. While everyone else is asking, “How do I buy SpaceX shares?” I’m asking a different question: Who sells SpaceX the mission-critical materials, parts and infrastructure it needs to keep growing?

After SpaceX goes public, I think you’re going to see those space-related names really take off. And fortunately, we already hold a couple of interesting suppliers in our Growth Investor Buy List.

For example, I like Howmet Aerospace (HWM), which is an expert in metals, titanium and other advanced materials used in aerospace, defense and space. We added HWM to Growth Investor back in June 2024. We’re currently up by more than 230%. But I think we’re just getting started…

I also like Carpenter Technology (CRS), another company tied to titanium, specialty metals and high-performance materials. We loaded up on CRS in November 2024. As of this writing, we’re up 143%.

The point is, you don’t always need to buy the rocket company. Sometimes, you’re better off buying the companies that help build the rocket.

This is the same lesson investors should have learned from Tesla, Inc. (TSLA).

When Tesla took off, everyone wanted to own it. And yes, Tesla made a lot of people rich. But the electric vehicle boom was much bigger than Tesla.

It created massive demand for lithium, semiconductors, charging infrastructure, battery components and other key suppliers.

Take Albemarle Corporation (ALB) for example. It’s one of the world’s major lithium producers. And in order to have electric vehicle batteries, you need a lot of lithium.

When the EV boom really took off, ALB soared right along with it. From early 2020 to its late-2022 peak, the stock climbed more than 500% – the same performance as Tesla during that period.

Elon’s Bigger Opportunity

There’s another reason I’m not spending all my time focused on the SpaceX IPO. I believe Elon Musk’s next great breakthrough may be much bigger than rockets.

It’s happening in artificial intelligence.

We all know Elon has big plans for things like space, autonomous EVs, robotics…

But to make it all happen, he’s going to need the kind of AI infrastructure most companies can only dream of. We’re talking about enormous AI factories, massive GPU clusters, data centers, and everything else needed to push AI into its next stage.

And all of it will be on an unprecedented scale.

This is where I believe the real opportunity is.

Not Tesla. Not SpaceX. The companies supplying Elon’s next AI boom.

That’s where my system is finding some of the best opportunities in the market today. In fact, I recently put together a special presentation showing you three ways to play Elon’s next great breakthrough.

And I believe all three are better opportunities than chasing SpaceX on IPO day because they are already public. They already have financials. They already have earnings data. And most importantly, they already have strong ratings in my system.

Look, if SpaceX goes public and eventually earns its way into my system, I’ll take a look. But I’m not chasing it on day one.

I’d rather profit from the excitement the IPO creates… while focusing on the companies quietly supplying the next great tech boom.

Click here to watch my full presentation now – and learn how you can, too.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Carpenter Technology Corporation (CRS) and Howmet Aerospace, Inc. (HWM)

The post Don’t Buy the SpaceX IPO. Do This Instead… appeared first on InvestorPlace.