And here’s an interesting twist: Even before Huang’s stunning departure, legendary investor and longtime Nvidia bull Louis Navellier had decided to leave NVDA out of his brand-new, 25-stock portfolio.

Why?

Not because Louis had suddenly lost faith in Nvidia’s business. He still sees enormous earnings potential in the AI chip giant.

Rather, Louis believes something important has been changing beneath the market’s surface. Money has been rotating away from some of yesterday’s biggest winners and into other sectors, where he’s finding increasingly attractive opportunities.

In today’s Friday Digest takeover, Louis explains what Huang’s departure means for Nvidia shareholders, why he’s watching the company’s earnings next week so closely, and where his quantitative system is pointing him as we approach 2027.

He also introduces his new Prime Portfolio service, which he unveiled during his Fed Warning 2027 presentation on Thursday. You can watch the free replay right here, including Louis’ two stock recommendations: one to buy and one to avoid.

The Nvidia headlines are extraordinary. But Louis believes the bigger story for investors may be the changing market leadership that was already underway.

I’ll let him take it from here.

Have a good evening,

Jeff Remsburg

What a difference a week makes, folks.

Just a few days ago, Jensen Huang was the face of the AI Revolution. As CEO of Nvidia Corp. (NVDA), he was one of the most powerful figures in technology, with investors hanging on his every word.

Today, he’s out of a job.

His shocking resignation has sent shock waves through Wall Street, raising serious questions about Nvidia’s future – and what comes next for the AI boom.

But here’s something you may find interesting.

Just a short while ago, I wrapped up my special Fed Warning 2027 presentation.

We talked about the market’s narrowing list of winners, the rotation taking place on Wall Street, and where I see the biggest opportunities emerging as we head into 2027.

I also unveiled something I’ve been working on for quite some time: my brand-new investment service, Prime Portfolio.

In fact, last weekend, I personally selected the first 25 stocks for my new portfolio.

And Nvidia wasn’t one of them.

Now, don’t misunderstand me. Even after Huang’s resignation, I still believe Nvidia has tremendous earnings power, and I’ll be watching its upcoming earnings report closely.

But the market is rotating, and yesterday’s winners won’t necessarily lead tomorrow.

That’s precisely why I built Prime Portfolio. It goes well beyond stock picks, with tools to help you allocate your money, monitor your holdings, and know when to make a change.

Today, I’ll explain what Huang’s departure means for Nvidia, why the market’s rotation is so important, and how my new service is designed to help you stay on the right side of it.

What Happens to NVIDIA Now?

I’ll admit, I didn’t see Jensen Huang’s resignation coming.

On Monday, I expected the Nvidia Board of Directors and the U.S. government to eventually clear Huang of wrongdoing. As recently as Wednesday, I remained confident he would weather the storm.

Clearly, things changed in a hurry.

Reports of Huang’s relationship with a woman suspected of ties to Chinese intelligence have been raising questions about whether sensitive information had been compromised for a few days. Then on Wednesday night, news of a second extramarital affair emerged. By Thursday morning, Huang had resigned, and longtime Chief Financial Officer Colette Kress was named interim CEO.

There are still plenty of unanswered questions:

• Was sensitive information exposed?
• What happens to Nvidia’s relationship with China?
• And who can replace the visionary leader who built Nvidia into the dominant force in AI chips?

But here’s what I want you to remember. Nvidia’s earnings power didn’t disappear overnight.

Before all this drama, analysts were forecasting third-quarter sales growth of about 91% and earnings growth of 90%. Those are stunning numbers. And while the leadership shakeup creates uncertainty, Nvidia still has its technology, its customers, and enormous demand for the chips powering the AI Revolution.

The company is scheduled to report earnings on November 17. I’ll be paying especially close attention to management’s guidance and whether analysts begin cutting their estimates.

For now, I’m recommending that investors hang on to their Nvidia shares while we assess the situation.

The bottom line: I don’t make investment decisions based on shocking headlines alone. I follow the sales, earnings, and underlying strength of a business.

And right now, there’s another important development taking place on Wall Street that investors shouldn’t overlook.

The Market Was Already Changing

You see, folks, the market’s rotation didn’t begin with Jensen Huang’s resignation.

It’s been underway for some time.

Take IREN Ltd. (IREN), for example.

On November 5, the AI neocloud company reported strong top-line growth, with revenue jumping 66% to $228.3 million as AI cloud sales nearly tripled. However, it also posted a steep $263 million net loss – missing earnings estimates – while warning of rising costs and a delay to its $4 billion annual recurring revenue (ARR) target.

Meanwhile, in 2026, its Stock Grader rating has plunged from an A to an F.

That’s a dramatic reversal. And it’s a reminder that even the hottest stocks can fall out of favor when the underlying numbers change.

That’s why I follow the data rather than getting caught up in the hype.

Meanwhile, some of the best opportunities are emerging outside the familiar AI names – and in other sectors. Just look at how the major stock market sectors have performed over the past six months.

Six-Month Stock Market Sector Performance

Source: https://finviz.com/groups

Healthcare and Financial Sector stocks have led the way, while Technology and Communication Services have struggled. Even Energy has outperformed Technology and Communication Services over this period.

And that rotation is already reflected in my new Prime Portfolio.

In fact, a good portion of my first 25 picks are energy companies. I’ve also included three healthcare stocks.

These aren’t random choices. They’re the result of my quantitative system identifying companies with strong earnings prospects and other characteristics I look for in winning stocks.

That’s what rotation is all about: finding what’s working – and positioning yourself for what comes next.

And it’s the driving force behind the 25 stocks I just selected for Prime Portfolio.

Your Roadmap to 2027 Starts Here

Folks, I’ve spent more than 40 years studying the stock market. And if there’s one thing I’ve learned, it’s that the market never stands still.

I didn’t predict Jensen Huang’s departure. And I can’t tell you what the next shocking headline will be.

But I know the market will keep changing, money will keep sloshing around – and yesterday’s winners won’t always lead tomorrow.

That’s why I built Prime Portfolio for markets like this.

My goal is simple: Assemble the crème de la crème of stocks based on what my quantitative system is telling me. Then, as market conditions change, make the adjustments needed to stay focused on what’s working.

And now, for the first time, you can put this approach to work in your own portfolio…

As I mentioned earlier, I just unveiled Prime Portfolio during my special Fed Warning 2027 presentation.

During the event, I explain why the market’s list of winners is narrowing, how political gridlock could reshape Wall Street in 2027, and why this rotation into new sectors may be just getting started.

More importantly, I share how I’m identifying the companies that could emerge as the next big winners – even as some of today’s most popular stocks lose their momentum.

Click here to watch the Fed Warning 2027 replay and see what I mean.

If you tune into the replay, you’ll also discover how to get access to:

• My first 25 handpicked stocks: The companies I believe are best positioned to benefit from the opportunities ahead.
• My new monthly rotation model: An approach that tracks shifts in market leadership, helping me spot when money is moving out of yesterday’s winners and into new opportunities.
• My special Allocation Tool: Designed to help you determine how much to invest in each stock.
• Ongoing portfolio updates: I’ll monitor the holdings and alert you when it’s time to make a move.

And I believe there’s never been a better time to put it to work.

Click here to watch the Fed Warning 2027 replay now.

Sincerely,

Louis Navellier

P.S. If Jensen Huang’s sudden exit doesn’t convince you how quickly things can change on Wall Street, I don’t know what will. And Nvidia isn’t the only stock facing big questions. In his new Fed Warning 2027 presentation, Louis shows us where he sees the market heading, which stocks he likes best, and how he plans to stay ahead of the next big shift. He also gives away two free stock picks: one to buy and one to avoid. Watch it here.

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:
NVIDIA Corporation (NVDA)

The post Nvidia Didn’t Make Louis’ Top 25 – Even Before Jensen Huang Resigned appeared first on InvestorPlace.

We covered a lot of ground, including what the Federal Reserve may do next – and how it could impact investors, the warning signs I’m watching as we head into 2027 and, most importantly, where I believe the next big stock market winners could emerge.

I also shared a brand-new way to use my Stock Grader system to spot these opportunities. If you missed the event, you can watch the replay right here.

And that brings me to today’s Market 360. As I’ll explain below, some of the biggest winners of 2027 may already be flashing buy signals. The key is knowing what to look for.

********************

In 1940, Hitler’s armies were sweeping across Europe, and German bombers were pounding British cities.

Back in the United States, military leaders were already considering what would happen if we entered the war and concluded that victory would depend heavily on air power.

But that presented a significant problem.

America couldn’t build the airplanes it needed.

Not because we didn’t have enough engineers or factories. But because we lacked an adequate supply of a critical material.

Aluminum.

Without it, the engineers, factories, or workers didn’t matter.

And President Franklin D. Roosevelt made the shortage felt more acutely when, in 1940, he called for American factories to produce 50,000 military airplanes a year.

Credit: iStock/csfotoimages

Where would all the aluminum come from?

At the time, American smelters produced roughly 206,000 short tons of primary aluminum annually. The industry simply wasn’t equipped to meet the demands of a massive military buildup.

So, the country embarked on an extraordinary industrial expansion.

New smelters were built. Rolling mills sprang up. Production lines accelerated. The government committed enormous resources to expanding aluminum capacity.

By 1943, American aluminum production had reached approximately 900,000 short tons annually.

Production had more than quadrupled.

Now, here’s what that story has to tell us about today.

Aluminum wasn’t a new invention. It hadn’t suddenly become stronger, lighter, or more useful.

What changed was the demand.

An industry that had spent decades supplying a relatively predictable market suddenly found itself at the center of an unprecedented industrial expansion.

Economists call this a demand shock.

And as a growth investor, I pay very close attention when demand for an essential product begins accelerating faster than manufacturers can increase supply.

Because that imbalance can create the conditions for extraordinary earnings growth.

In fact, we witnessed a remarkably similar phenomenon in 2026.

Only this time, the driving force wasn’t a world war.

It was artificial intelligence.

How AI Boosted This AI Chip Leader

A great example is Micron Technology Inc. (MU). The company has manufactured memory chips for years. And for years, they felt the booms and busts of the notoriously cyclical memory-chip industry. In fact, as 2025 began, the stock was relatively flat.

But the AI megatrend changed all that.

The reality is AI systems and data centers need immediate access to data, and all that data must be stored on chips. This, in turn, creates increasing demand for the types of chips that MU manufactures. So, Micron Technology’s vast range of memory and storage solutions is a critical component of data centers.

That demand shock was reflected in my Stock Grader late last year. 

As you can see in the chart below, in May 2025, Micron held a D-rating. By November it had been upgraded to an A-rating. Then in January 2026, I recommended it to my subscribers. Since then, the stock has soared more than 180%.

Now, the stock’s strength isn’t surprising given the company’s superior fundamentals.

Case in point: During Micron’s fourth quarter in fiscal year 2026, earnings surged 1,078% year-over-year to $37.7 billion, or $32.87 per share, up from $3.2 billion, or $2.83 per share, in the same quarter a year ago. Adjusted earnings came in at $33.42 per share. Analysts were calling for earnings of $31.71 per share, so the company topped estimates by 5.4%.

Fourth-quarter revenue soared 379% year-over-year to $54.23 billion, compared to $11.32 billion last year. The consensus estimate called for revenue of $51.33 billion – a 5.6% revenue beat.

The fourth quarter ultimately capped off what was a record year for Micron Technology. The company reported full-year adjusted earnings of $86.76 billion, or $75.52 per share, and revenue of $133.198 billion. That represented 811% annual earnings growth and 256.3% annual revenue growth.

Looking forward, company management expects “an even stronger fiscal 2027.”

The bottom line: The demand shock is still alive and well.

But here’s what I want you to understand as we are about to enter 2027…

Micron isn’t the only company benefiting from this extraordinary surge in demand.

America’s Next Generation of Demand Shock Winners

Across the economy, select businesses find themselves in the same position America’s aluminum producers were in during World War II.

Demand for their products is accelerating. Supply is struggling to keep pace. And in some cases, earnings are growing far faster than Wall Street anticipated.

But the truth of the matter is that not every company will benefit equally.

That’s why I focus on the companies where growing demand is translating into stronger earnings and sales, positive earnings surprises, and persistent institutional buying pressure.

Those are the kinds of signals my Stock Grader system is designed to identify.

That’s important as we prepare for 2027. The $64,000 question isn’t which stocks delivered the biggest gains in 2026…

It’s which companies are positioning themselves to become the next big winners.

That’s exactly what I’ve been looking into as we prepare for 2027.

And yesterday, I unveiled my latest research in a special presentation called Fed Warning 2027.  In it, I explain…

• What the “bond vigilantes” are telling us about Uncle Sam’s spending problem
• What the Federal Reserve might do next – and how it impacts YOU
• What I see coming for the stock market in 2027
• The warning signs that could put your portfolio at risk
• And how I’m approaching the search for tomorrow’s market leaders.

I also revealed one stock I believe investors should consider buying right now – and another I believe they should avoid.

Most importantly, I shared a brand-new way you can use Stock Grader to identify what I believe could be the market’s next big winners.

Click here to watch the replay now.

Remember, America’s aluminum producers didn’t need to invent a revolutionary new metal to experience extraordinary growth.

They simply needed to be in the right place when demand exploded.

I believe we’re seeing similar opportunities emerge today.

And I want to help you recognize the signs before the next wave of potential winners becomes obvious to everyone else.

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:

Micron Technology Inc. (MU)

The post 2027’s Next Big Stock Winners Are Flashing Buy Signals Now appeared first on InvestorPlace.

If you push too hard for too long, you’ll break like a KitKat bar.

The body needs time to rebuild. So, sometimes, the smartest thing an athlete can do to get stronger is slow down.

Sound familiar? That is exactly what’s happening to the AI trade.

For the past few years, Big Tech has been running at full speed.

Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) have been pouring hundreds of billions of dollars into AI infrastructure, building data centers as fast as humanly possible, rewarding investors handsomely.

But now we’re seeing the consequences of moving too fast.

Wall Street is shaking in its boots over AI infrastructure spending. Meanwhile, Washington is making it harder to build new data centers, and projects are being delayed due to critical equipment shortages.

In a nutshell, the AI boom is running into some very real limits.

That is going to create more pain for AI stocks before things get better…

In fact, we studied six similar selloffs in semiconductor stocks dating back to 1995. In every single instance, stocks fell further after breaking a critical long-term price level. The median additional decline? 29%.

Of course, history doesn’t repeat itself perfectly. But it’s a warning I’m taking seriously.

Here’s the interesting part, though. I’m actually more bullish on AI’s long-term future today than I’ve ever been.

Because slowing down now could prevent something much worse later. It could give companies time to get their finances in order, ease supply shortages, and build a healthier foundation for the next leg of this boom.

That’s why I’m not abandoning AI. Far from it.

I’m preparing for what could become one of the best buying opportunities of this entire cycle.

In today’s Being Exponential With Luke Lango, my co-host Brook and I discuss why I think the bottom may still be months away, the specific market signals I’m watching, and my three-stage plan for knowing when it’s time to start buying aggressively again.

Remember, the goal isn’t to buy every dip. It’s to have enough cash left to buy the one that matters. Watch the full podcast below:

Could Stocks Fall Another 30%?

A big rally after a selloff feels good. But it doesn’t necessarily mean the trouble is over.

That’s why we went back through semiconductor history to answer a simple question: What happens when chip stocks go from a euphoric rally to breaking below a major long-term trend line?

We focused on the PHLX Semiconductor Index (SOX) and its 50-week moving average, which is essentially its average closing price over roughly the past year.

In a healthy market, a pullback toward that line can attract buyers. Investors see an opportunity, step in, and help prices stabilize.

Last week, that didn’t happen. Semiconductor stocks fell through it.

So, we looked for previous instances of the same broad setup: a huge rally that stretched chip stocks far above their long-term averages, followed by a sharp break below the 50-week average.

Our study identified six precedents. Every one brought additional losses:

That’s after the break below the 50-week average — on top of the losses that had already happened.

The median time to reach a bottom was 34 weeks, or roughly eight months. Applied to this selloff, that would put a potential bottom around July 2027.

Now, folks, six historical examples don’t tell us exactly what happens next. I’m not treating a 30% decline as inevitable or circling a date when we should buy everything.

But this is evidence we need to respect.

The recent rebound hasn’t yet repaired the damage described in our analysis. Major AI benchmarks remain below important trend lines and previous lows. Prices have bounced, but buyers still have to prove they can reclaim those levels and stay above them.

A market can rally sharply and still be in a downtrend.

So, what exactly could convince us to start buying again?

The Three Stages of an AI Market Recovery

We’ve gone defensive, but we’re not planning to stay in that posture forever.

I want to own great AI businesses for the next leg of this boom. I also want evidence that the market is finding its footing before we get aggressive.

Here’s how we’re breaking that process into three stages.

Stage One: The Initial Bounce

When stocks fall hard, they often bounce. Some investors buy what looks cheap. Others close bets against the market. Prices recover.

That alone doesn’t tell us whether a lasting recovery has begun.

It’s too early to dismiss every rebound as a temporary rally that will fail. It’s also too early to assume the bottom is behind us.

At this stage, our posture is to hold.

We don’t want to panic-sell after a plunge. We don’t want to chase the first rally, either. We want to watch what happens when stocks reach the levels they recently fell through.

Stage Two: The First Real Test

This is where the rebound starts to tell us something.

We’re watching whether the major AI benchmarks can reclaim their 200-day moving averages and important previous lows. Two reference points from our analysis are roughly $504 for the VanEck Semiconductor ETF (SMH) and $681 to $682 for the Invesco QQQ Trust (QQQ).

Getting above those levels is the first step. Holding above them is the next.

Think of it this way: A level where buyers previously stepped in can become a level where investors sell when they get another chance. We need to see buyers regain control.

If the rally stalls there and stocks turn lower, the case for another leg down strengthens. That would be a reason to use the rebound to reduce exposure.

If prices reclaim those levels and hold them on subsequent pullbacks, we can start getting more constructive and selectively buying again.

What matters is how the market behaves at those levels.

Stage Three: A Broader Recovery Takes Hold

Before we get aggressive, we want confirmation across the AI trade.

That means the major benchmarks trading above their 200-day moving averages and holding those lines when prices pull back.

For the semiconductor index, we’re also watching 11,684, its Oct. 28 high. A move above that level would break the pattern of progressively lower rally peaks and provide stronger evidence that the downtrend has ended.

We don’t need to buy at the exact bottom to participate in a meaningful recovery. We need enough evidence to justify putting more money to work.

For now, we’re watching the rebound approach its first important tests.

Let the market show us it can hold its ground. Then we can start moving back on offense.

Why a Slower AI Boom Could Be a Stronger One

Folks, I remain very bullish on the next two to five years for AI. But getting to that brighter future may require a difficult adjustment in how much companies spend, how quickly they build, and what investors expect them to earn.

To understand that adjustment, we’re watching five factors.

First, demand. This remains the strongest part of the story. AI coding tools, software that can complete tasks for users, and AI-powered machines all create reasons to use more computing power. I don’t see a demand collapse driving this selloff.

Second, returns on spending. Selling more AI services is one thing. Earning enough profit to justify the investment is another. Cloud businesses are growing quickly, but companies are still figuring out how to turn AI into better profits across search, advertising, logistics, and other operations. That makes this part of the picture less convincing.

Third, Washington and state governments. My expectation is that tighter rules and tougher approval processes will slow some data center projects. That doesn’t mean construction stops. It means spending that investors expected in 2027 could stretch into 2028, 2029, and beyond.

Fourth, Wall Street. When companies fund expansion with their own cash, their boards largely control the spending decisions. When they need to sell stock or borrow money, investors get a say, too. Falling share prices and more expensive borrowing make those decisions harder.

Fifth, supply shortages. A company can have customers waiting and money available, but it still can’t finish a data center without the necessary power, chips, and networking equipment. Missing components push back projects — and the spending attached to them.

That’s why strong demand alone isn’t enough to give us the all-clear.

Think back to the athlete pushing through every workout at full speed.

Taking time to recover may slow the immediate gains. But it can also make it possible to keep training for years.

I think AI could benefit from a similar reset.

A more measured construction pace would give power generation and equipment suppliers time to catch up. Spending that stays closer to what companies can afford from their own cash flow would reduce their dependence on willing lenders and rising stock prices. Addressing communities’ concerns could also reduce the risk of a harsher political backlash later.

I believe this shakeout could create an excellent opportunity. I also believe repeatedly buying on the way down can leave investors without enough cash when the evidence finally improves.

Our job is to preserve the ability to act.

I’m optimistic about where AI is headed, yet I’m staying patient about when to put more money to work.

Watch the full episode on YouTube for more!

The post A Slowdown May Be Exactly What the AI Boom Needs appeared first on InvestorPlace.

This morning, Nvidia Corp. (NVDA) announced that Jensen Huang is stepping down as CEO of the company he co-founded 33 years ago and built into a $4 trillion giant.

Chief Financial Officer Colette Kress will serve as interim CEO while the board searches for a permanent successor, and longtime director Harvey Jones becomes the company’s first-ever board chair.

NVDA tumbled as much as 14% shortly after the open and has swung sharply since. But as I write, it’s recovered some of those losses, down just 5%.

The unraveling took less than a week…

Huang apologized Sunday for being “unfaithful to my wife” in the wake of his alleged affair with Alice Huang (no relation). She’s an executive at Singapore-based Megaspeed, an Nvidia customer that U.S. intelligence officials reportedly believe is tied to Chinese intelligence services.

Late Wednesday, The New York Times reported a second affair, this one with Kimberly Powell, an Nvidia vice president who runs the company’s healthcare business.

Nvidia’s board hired the law firm Wachtell Lipton to investigate, and according to The Wall Street Journal, the Justice Department is now leading multiple investigations related to Alice Huang. Jensen Huang has denied compromising national security or company secrets.

The personal drama is only part of the story

Megaspeed was one of several companies using Nvidia chips to build AI data centers in Southeast Asia that were suspected of diverting those chips to China.

The Commerce Department has been investigating Megaspeed since late 2024. That puts a spotlight on Nvidia’s export-control compliance – and on Washington.

Huang had become one of the most influential voices on U.S. AI policy. President Donald Trump, who approved chip shipments to China over security objections, defended him just this week, calling him an “amazing guy” and an “honorable man.”

With Democrats poised to take control of Congress, that relationship is about to get a lot more scrutiny. Sen. Elizabeth Warren, set to lead the Senate Banking Committee, said Huang’s resignation “does not absolve him, other executives, or the company as a whole” of answering questions about export controls.

Then there’s the leadership question…

Huang has about 60 direct reports and has said he doesn’t believe in succession planning. Nvidia’s own proxy statement warns that failing to manage succession effectively could “hinder our strategic planning, execution, and long-term success.”

As an executive search CEO told CNBC, “He’s Mr. AI. He speaks for the industry.” He’s also tied financially to much of that industry, since Nvidia has become a supplier, investor, lender and partner to scores of AI companies.

Which brings us to the question for investors: what does this mean for the stock?

Luke Lango was already cautious on Nvidia before the official resignation

In Tuesday’s Innovation Investor Daily Notes – before Huang’s resignation was announced – our technology expert Luke moved Nvidia to a Hold.

Here was his reasoning:

The business hasn’t changed, but the facts around it have, and they keep getting worse.

He then pointed to what worried him most – Washington’s response and the risk to Nvidia’s China business:

That gives Washington every reason to tighten export rules and second-guess Nvidia’s China business…

Even if he keeps his job, the damage is done. Big customers like Meta, Amazon, Microsoft and Alphabet were already building their own chips, and now they have more reason to push Nvidia on price and depend on it less. 

The timeline ahead is worth noting.

Nvidia reports earnings Tuesday, Nov. 17 after the market close, and House lawmakers have requested a closed-door briefing with Huang for the following day, though it’s unclear whether that still stands now that he’s out.

But if that meeting holds, investors will be hearing about Nvidia’s quarter and the Huang fallout almost at once.

Luke’s approach: patience, not pessimism

Regular Digest readers know that Luke – normally one of our most enthusiastic voices on AI – has been tactically careful in recent weeks.

He’s still an AI bull. But his concern is that the midterm elections could slow data center rollouts, which would pressure the earnings of AI infrastructure names.

That’s why Luke built a game plan around levels, not a forecast. Yesterday’s rally was a test of it.

The three levels he had been watching were the VanEck Semiconductor ETF (SMH) reclaiming $504, the Philadelphia Semiconductor Index (SOX) reclaiming its 50-week moving average near 10,300 and the Invesco QQQ Trust (QQQ) holding its 200-day moving average near $681. As of yesterday, all three had been hit. And as I write on Thursday, they’re still holding (though SMH by a thread).

Here’s Luke from yesterday’s Daily Notes – and notice that he isn’t dismissing the rally:

We think this rally could be the “real deal.”

As you know, we moved mostly to the sidelines on the AI data center trade last week on the idea that the AI Boom was going through a difficult transition from “spend at all costs” to “stable spending.”

We maintain that caution today. We are not out of the woods yet…

In other words, Wednesday brought the AI trade to the doorstep of Stage 2 – a partial, selective re-entry. But he made a critical distinction:

Stage 2 isn’t about touching those levels. It’s about holding them…so Friday’s close is the first real test.

That distinction matters, because it makes any single day’s action almost beside the point. Whether AI stocks finish today higher, lower or somewhere in between, what counts is whether those levels hold, and Luke is looking at Friday’s close.

We’ll keep you updated as this situation – and Luke’s analysis – evolves.

Circling back to Nvidia, legendary investor Louis Navellier sees it differently

We could summarize his take as simply “hang in there.”

The legendary investor has been a huge NVDA bull for years, and he’s up nearly 4,000% on the stock in his Growth Investor portfolio – even with the recent selloff.

In a quick update this morning, he called the news “shocking,” but his focus was on what comes next:

Obviously, Jensen’s a spokesperson for AI. He’s worth billions to other companies… In the meantime, Elon wants him. So, it’s going to be interesting to see where he pops up.

In the meantime, NVIDIA has its earnings about to be announced. Sales are supposed to be up 91%. Earnings are supposed to be up 90%. The guidance is going to be key.

So, I would hang in there with the earnings. Let’s reassess the situation and look at the guidance. The stock is literally trading at nine times forecasted earnings for next year.

So, Louis isn’t telling you to ignore the scandal. He’s saying the business and its numbers will get the final word, and those arrive next Tuesday.

This is classic Louis…

While the headlines and the fear dominate the conversation, he keeps his eye on the one thing that ultimately moves a stock: earnings.

It’s the same message he delivered Wednesday as the market rebounded:

Now that earnings are coming out, the market’s clearly thinking.

Clearly, the order backlogs are astonishing, and there’s no reason not to be invested right now.

Of course, “earnings” and Louis’ optimism aren’t green lights to own anything – not every stock deserves your money. As Louis put it earlier this week, “the key is owning the right stocks.” And for Louis, the right stocks are the ones with the fundamental strength to deliver the kind of numbers Nvidia is expected to post.

At his live presentation earlier today, Louis showed exactly how he finds them with his Stock Grader. It rates more than 6,000 stocks from A to F on fundamentals like sales growth, earnings growth, and institutional buying pressure, which is how he separates companies with real earnings power from the rest.

This afternoon, Louis revealed a new way he’s putting Stock Grader to work, one designed to help you find opportunities and avoid potential losers without having to predict where the market goes next.

He also shared two free stock recommendations, one to buy and one to avoid. If you missed it, you can watch the free replay right here.

Now, being selective matters for another reason, too…

The Fed.

Rate hikes, inflation, and Friday’s PPI

For yet another reason why selectivity matters in today’s market, we can add a new item to the list…

The potential for a 50-basis-point rate hike next month.

As we covered earlier this week, Tuesday’s Consumer Price Index (CPI) report showed prices rising 0.4% in October, hotter than the 0.3% economists expected. Core prices, which exclude food and energy, rose 0.3% against 0.2% expected.

As to the effect on the Federal Reserve’s interest rate decision in December, let’s go back to Louis:

Some people are calling for 50 basis points, other people are calling for 25, but they will be raising rates because market rates went back up in the wake of [Tuesday’s] CPI.

Now, we’re going to have a Producer Price Index report on Friday. We’ll see what those details are.

But because the CPI has key components that go into the PCE, the Personal Consumption Expenditures Index, that the Fed relies on, we know they’re going to have to raise rates.

Some context on Louis’ comments…

On Monday, no one had been expecting a half-point move according to the CME Group’s FedWatch tool. But after Tuesday’s CPI report, those odds jumped to 11%. As I write on Thursday, they’ve eased slightly, but still clock in at nearly 9%.

Source: CME Group

And that brings us to tomorrow’s Producer Price Index (PPI) report. It tracks what businesses receive for their goods and services; essentially inflation at the wholesale level.

In the prior report, September’s PPI jumped 1.3%, its biggest monthly gain since March 2022. Energy drove most of that increase, with gasoline prices up 20.3%.

If tomorrow’s reading runs hot mostly because of energy, which can reverse quickly (oil dropped sharply after the election), that’s easier for the Fed to look past. But sticky inflation in services would be harder to dismiss.

Wrapping up

Between tomorrow’s PPI report and Nvidia’s earnings next Tuesday, the next week should tell us a lot about where this market goes from here.

The PPI will also feed into the Fed’s December decision, which we’ll be watching closely in the weeks ahead.

In the meantime, we’ll keep you updated as the NVDA/Huang drama evolves.

Have a good evening,

Jeff Remsburg

The post Nvidia After Huang: Sell or Hold? appeared first on InvestorPlace.

Just a few days ago, Jensen Huang was the face of the AI Revolution. As CEO of NVIDIA Corp. (NVDA), he was one of the most powerful figures in technology, with investors hanging on his every word.

Today, he’s out of a job.

His shocking resignation has sent shock waves through Wall Street, raising serious questions about NVIDIA’s future – and what comes next for the AI boom.

But here’s something you may find interesting.

Just a short while ago, I wrapped up my special Fed Warning 2027 presentation.

We talked about the market’s narrowing list of winners, the rotation taking place on Wall Street, and where I see the biggest opportunities emerging as we head into 2027.

I also unveiled something I’ve been working on for quite some time: my brand-new investment service, Prime Portfolio.

In fact, last weekend, I personally selected the first 25 stocks for my new portfolio.

And NVIDIA wasn’t one of them.

Now, don’t misunderstand me. Even after Huang’s resignation, I still believe NVIDIA’s has tremendous earnings power, and I’ll be watching its upcoming earnings report closely.

But the market is rotating, and yesterday’s winners won’t necessarily lead tomorrow.

That’s precisely why I built Prime Portfolio. It goes well beyond stock picks, with tools to help you allocate your money, monitor your holdings, and know when to make a change.

Today, I’ll explain what Huang’s departure means for NVIDIA, why the market’s rotation is so important, and how my new service is designed to help you stay on the right side of it.

What Happens to NVIDIA Now?

I’ll admit, I didn’t see Jensen Huang’s resignation coming.

On Monday, I expected the NVIDIA Board of Directors and the U.S. government to eventually clear Huang of wrongdoing. As recently as Wednesday, I remained confident he would weather the storm.

Clearly, things changed in a hurry.

Reports of Huang’s relationship with a woman suspected of ties to Chinese intelligence have been raising questions about whether sensitive information had been compromised for a few days. Then on Wednesday night, news of a second extramarital affair emerged. By Thursday morning, Huang had resigned, and longtime Chief Financial Officer Colette Kress was named interim CEO.

There are still plenty of unanswered questions:

• Was sensitive information exposed?
• What happens to NVIDIA’s relationship with China?
• And who can replace the visionary leader who built NVIDIA into the dominant force in AI chips?

But here’s what I want you to remember. NVIDIA’s earnings power didn’t disappear overnight.

Before all this drama, analysts were forecasting third-quarter sales growth of about 91% and earnings growth of 90%. Those are stunning numbers. And while the leadership shakeup creates uncertainty, NVIDIA still has its technology, its customers, and enormous demand for the chips powering the AI Revolution.

The company is scheduled to report earnings on November 17. I’ll be paying especially close attention to management’s guidance and whether analysts begin cutting their estimates.

For now, I’m recommending that investors hang on to their NVIDIA shares while we assess the situation.

The bottom line: I don’t make investment decisions based on shocking headlines alone. I follow the sales, earnings, and underlying strength of a business.

And right now, there’s another important development taking place on Wall Street that investors shouldn’t overlook.

The Market Was Already Changing

You see, folks, the market’s rotation didn’t begin with Jensen Huang’s resignation.

It’s been underway for some time.

Take IREN Ltd. (IREN), for example.

On November 5, the AI neocloud company reported strong top-line growth, with revenue jumping 66% to $228.3 million as AI cloud sales nearly tripled. However, it also posted a steep $263 million net loss – missing earnings estimates – while warning of rising costs and a delay to its $4 billion annual recurring revenue (ARR) target.

Meanwhile, in 2026, its Stock Grader rating has plunged from an A to an F.

That’s a dramatic reversal. And it’s a reminder that even the hottest stocks can fall out of favor when the underlying numbers change.

That’s why I follow the data rather than getting caught up in the hype.

Meanwhile, some of the best opportunities are emerging outside the familiar AI names – and in other sectors. Just look at how the major stock market sectors have performed over the past six months.

Six-Month Stock Market Sector Performance

Healthcare and Financial Sector stocks have led the way, while Technology and Communication Services have struggled. Even Energy has outperformed Technology and Communication Services over this period.

And that rotation is already reflected in my new Prime Portfolio.

In fact, a good portion of my first 25 picks are energy companies. I’ve also included three healthcare stocks.

These aren’t random choices. They’re the result of my quantitative system identifying companies with strong earnings prospects and other characteristics I look for in winning stocks.

That’s what rotation is all about: finding what’s working – and positioning yourself for what comes next.

And it’s the driving force behind the 25 stocks I just selected for Prime Portfolio.

Your Roadmap to 2027 Starts Here

Folks, I’ve spent more than 40 years studying the stock market. And if there’s one thing I’ve learned, it’s that the market never stands still.

I didn’t predict Jensen Huang’s departure. And I can’t tell you what the next shocking headline will be.

But I know the market will keep changing, money will keep sloshing around – and yesterday’s winners won’t always lead tomorrow.

That’s why I built Prime Portfolio for markets like this.

My goal is simple: Assemble the crème de la crème of stocks based on what my quantitative system is telling me. Then, as market conditions change, make the adjustments needed to stay focused on what’s working.

And now, for the first time, you can put this approach to work in your own portfolio…

As I mentioned earlier, I just unveiled Prime Portfolio during my special Fed Warning 2027 presentation.

During the event, I explain why the market’s list of winners is narrowing, how political gridlock could reshape Wall Street in 2027, and why this rotation into new sectors may be just getting started.

More importantly, I share how I’m identifying the companies that could emerge as the next big winners – even as some of today’s most popular stocks lose their momentum.

Click here to watch the Fed Warning 2027 replay and see what I mean.

If you tune into the replay, you’ll also discover how to get access to:

• My first 25 handpicked stocks: The companies I believe are best positioned to benefit from the opportunities ahead.
• My new monthly rotation model: An approach that tracks shifts in market leadership, helping me spot when money is moving out of yesterday’s winners and into new opportunities.
• My special Allocation Tool: Designed to help you determine how much to invest in each stock.
• Ongoing portfolio updates: I’ll monitor the holdings and alert you when it’s time to make a move.

And I believe there’s never been a better time to put it to work.

Click here to watch the Fed Warning 2027 replay 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:

NVIDIA Corporation (NVDA)

The post The NVIDIA Shock – And Why Investors Need a New Playbook appeared first on InvestorPlace.

Jonathan Rose isn’t waiting for the dust to settle. During his November 12 Masters in Trading: LIVE, Jonathan said: “I am buying Nvidia right now.” He said he bought shares that morning and was bullish at prevailing prices. Later in the session, he said he had increased his personal position by roughly 20% to 25%.

Our analysts aren’t all making the same call, and that’s useful. Jonathan is buying. Louis Navellier is holding and waiting for earnings. Luke Lango is watching how Nvidia’s competitive position evolves, while Eric Fry is asking whether investors will still pay the same premium for its growth. We’ll take a closer look at each of their views, but first, here’s how the scandal unfolded.

What Happened in the Nvidia Stock Scandal?

What started as a personal scandal quickly became a much bigger problem for Nvidia.

On November 8, Jensen Huang, Nvidia’s co-founder and longtime CEO, admitted he’d been unfaithful to his wife. According to The New York Times, the woman was Alice Huang (no relation), a Chinese citizen and executive at Singapore-based data center company Megaspeed, an Nvidia customer.

But the affair itself wasn’t the biggest concern.

U.S. intelligence officials reportedly suspected Alice Huang of gathering information for Beijing. Megaspeed had also faced scrutiny over whether advanced Nvidia chips were being diverted to China in violation of U.S. export restrictions.

That raised an uncomfortable question: Could sensitive information have fallen into the wrong hands?

Nvidia’s board launched an independent investigation, and Jensen publicly apologized to his family, employees and shareholders.

Then came another revelation.

On November 11, The New York Times reported a second alleged relationship, this time with Kimberly Powell, an Nvidia executive who reported to Jensen.

By November 12, Jensen had resigned, and longtime Chief Financial Officer Colette Kress had been named interim CEO.

To be clear, the allegations involving Chinese intelligence remain unproven publicly, and there’s no established finding that Jensen compromised confidential information.

But investors now face a very real question: Can Nvidia maintain its dominance in AI chips without the man who helped build it?

The answer depends on more than who occupies the CEO’s office. Nvidia’s earnings power, its competitive position and investor confidence will all help determine what comes next. And as the latest commentary from our analysts Jonathan, Louis, Luke and Eric shows, there are different ways to assess Nvidia’s prospects from here.

Jonathan Rose: Why He’s Buying Nvidia Stock

“Nvidia’s problem is not AI’s problem.”

Jonathan made that distinction in his November 12 Masters in Trading: LIVE. He called the leadership crisis “a Jensen problem,” and he sees the selloff as a buying opportunity.

Jonathan’s bullish case rests on the company’s existing business and the market’s reaction. Nvidia’s chips remain deeply embedded in customers’ computing systems, he argued, and changing suppliers takes years. He believes the stock has become inexpensive following the selloff and that investors may be discounting the company too heavily for the uncertainty around its former CEO.

His preferred way to express that view is important. Jonathan favors buying Nvidia shares rather than purchasing upside call options ahead of earnings. During the same session, he noted that Nvidia options were pricing in a roughly 12% move around the upcoming earnings report, a level he considered expensive given that the stock had exceeded that threshold only once in its previous 12 earnings reports.

Jonathan knows the next earnings report could change the conversation, and he expects earnings and guidance to drive the stock’s next move.

Want to see how Jonathan spots trading opportunities in stocks like Nvidia? Join him for Masters in Trading: LIVE, his free live trading and market analysis sessions, where he breaks down market moves and potential trades in real time. Sign up for free.

Louis Navellier: Nvidia’s Earnings Power Still Matters

Louis isn’t letting the headlines drive his investment decisions.

Before Jensen resigned, Louis discussed the unfolding scandal on Market Buzz and initially believed Nvidia’s board and the U.S. government would eventually clear Jensen of wrongdoing. His departure caught Louis by surprise, but it hasn’t shaken his confidence in Nvidia’s underlying business.

For Louis, the earnings story still matters more than the headlines. Before the scandal, analysts were forecasting about 91% sales growth and 90% earnings growth for Nvidia’s third quarter. Those were the expectations Louis cited when explaining why he believes the company’s earnings power remains intact.

Nvidia still has its technology, its customers and enormous demand for the chips powering the AI boom. But Louis wants to see how the leadership shakeup affects the company’s outlook.

He’s particularly interested in Nvidia’s November 17 earnings report, management’s guidance and whether Wall Street analysts begin lowering their estimates.

For now, Louis is holding his Nvidia shares, rather than buying more or selling in response to the scandal.

There’s another reason he’s being selective. Louis believes the stock market was already rotating away from some of its familiar technology leaders before Jensen’s resignation. He sees opportunities emerging in other sectors, including energy and healthcare, where his quantitative system is identifying companies with strong earnings prospects.

His approach comes down to a simple principle: Follow the sales and earnings, not the headlines.

Is Nvidia still one of the best stocks to own, or are stronger opportunities emerging elsewhere? Louis follows the earnings to identify stocks with the greatest potential. Get his free stock picks and daily market insights with the Market 360 e-letter. Sign up for free here.

Luke Lango: Nvidia Stock Faces a Longer-Term Competitive Risk

Luke expects AI demand to survive Jensen’s exit. His question is how much of that demand Nvidia will capture.

Luke has been making the case that the AI trade could broaden beyond Nvidia. He argues that Jensen’s departure may make it easier for major customers to consider other chip suppliers. He sees that as a competitive risk for Nvidia, even as overall AI spending keeps growing.

He sees potential openings for Advanced Micro Devices, Inc. (AMD) and custom AI chips, including those supported by Broadcom Inc. (AVGO). Nvidia can remain a major winner in a growing market while facing more competition on price and share. That’s the possibility Luke wants investors to watch.

None of that means customers can replace Nvidia overnight. Its installed technology and product roadmap still matter. Luke’s longer-term thesis needs evidence, particularly signs that large buyers are shifting spending to competing platforms.

Could Nvidia’s troubles create opportunities elsewhere in AI? Luke follows the companies and technologies that could benefit as the AI market evolves. Get his insights and free stock picks through his Hypergrowth Investing e-letter. Sign up for free.

Eric Fry: Nvidia Stock Could Suffer Even if Earnings Grow

In his November 11 issue of Smart Money, published before Jensen resigned, Eric looked at a risk that can be easy to miss when a company is growing quickly: the stock’s valuation.

Even if Nvidia keeps delivering strong sales and earnings, its shares could struggle if investors decide to pay a lower multiple for those profits. Eric sees governance questions, regulatory scrutiny and rising competition as possible reasons that confidence could shift.

Eric also noted that some competing chip stocks gained during part of Nvidia’s earlier decline. He cautioned that a few days of trading don’t prove Nvidia has lost customers. That would have to show up in orders, spending and earnings.

His point is that a great business and a great stock aren’t always the same thing at every price.

Is Nvidia’s stock still worth the price? Follow Eric’s perspective on market risks, emerging trends and potential investment opportunities with his free Smart Money e-letter. Sign up for free.

What Nvidia Stock Investors Should Watch on November 17

Nvidia has scheduled its third-quarter fiscal 2027 earnings call for November 17 at 5 p.m. ET. The company’s October 28 announcement says the results will cover the quarter ended October 25.

The report gives investors a near-term opportunity to test the analysts’ competing arguments. Revenue, profit margins and guidance will show whether customer demand remains strong. Management’s discussion of leadership continuity, customer relationships and capital commitments could help investors judge whether the disruption extends beyond the headlines. Any new information about the investigation could also affect confidence.

Jonathan has already made his move. Louis wants the earnings and guidance in hand. Luke will be looking for signs of shifting customer demand, while Eric is watching the valuation investors assign to Nvidia’s growth.

Four perspectives, one question: Can Nvidia keep delivering the growth investors expect while it finds its next leader? The answer will matter long after this week’s headlines fade.

Get Free Investing Research

As Nvidia’s next earnings report approaches, get a broader perspective on the AI market and the opportunities ahead with free insights from all four InvestorPlace experts.

Jonathan Rose | Masters in Trading: LIVE: For live market analysis, options-trading strategies and timely trading opportunities, sign up for free.

Louis Navellier | Market 360: For free stock picks, earnings-focused analysis and daily market commentary, subscribe to the free daily e-letter.

Luke Lango | Hypergrowth Investing: For insights into emerging technologies, AI trends and companies positioned for long-term growth, subscribe to the free e-letter.

Eric Fry | Smart Money: For research on market risks, major economic trends and investment opportunities, subscribe to the free e-letter.

Nvidia Stock Scandal: Frequently Asked Questions

Why did Jensen Huang leave Nvidia?

Jensen resigned on November 12, 2026, after reports of personal relationships and scrutiny involving potential national-security concerns. Nvidia’s board initiated an independent investigation. Allegations concerning espionage or compromised information have not been established as fact.

Is Nvidia stock a buy after Jensen Huang’s resignation?

The outlook depends on an investor’s time horizon. Jonathan Rose sees an opportunity to buy Nvidia shares, while Louis Navellier is holding his position and focusing on earnings. Luke Lango and Eric Fry are watching how competition and investor valuations could shape the stock’s longer-term performance.

When is Nvidia’s next earnings report?

Nvidia has scheduled its third-quarter fiscal 2027 earnings conference call for Tuesday, November 17, 2026, at 5 p.m. ET, according to its October 28 investor-relations announcement.

Louis Navellier and Jonathan Rose hereby disclose that as of the date of this article, they, directly or indirectly, own the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the article set forth above:
NVIDIA Corporation (NVDA)

The post Nvidia Stock Scandal: 4 Experts Weigh In on NVDA’s Future appeared first on InvestorPlace.

Is the AI chip giant still a buy? What happens to the AI boom without one of its most influential leaders?

My colleague Louis Navellier has some thoughts. But he also sees a much bigger shift taking place on Wall Street – one he explored during his recent Roadmap to 2027 presentation.

Today, Louis is here to explain whether he’s still holding Nvidia, where Wall Street’s money is moving, and why yesterday’s market leaders may not be tomorrow’s winners. He’ll also talk more about his Roadmap to 2027 and how to prepare for what comes next.

Here’s Louis…

What a difference a week makes, folks.

Just a few days ago, Jensen Huang was the face of the AI Revolution. As CEO of Nvidia Corp. (NVDA), he was one of the most powerful figures in technology, with investors hanging on his every word.

Today, he’s out of a job.

His shocking resignation has sent shock waves through Wall Street, raising serious questions about Nvidia’s future – and what comes next for the AI boom.

But here’s something you may find interesting.

Just a short while ago, I wrapped up my special Fed Warning 2027 presentation.

We talked about the market’s narrowing list of winners, the rotation taking place on Wall Street, and where I see the biggest opportunities emerging as we head into 2027.

I also unveiled something I’ve been working on for quite some time: my brand-new investment service, Prime Portfolio.

In fact, last weekend, I personally selected the first 25 stocks for my new portfolio.

And Nvidia wasn’t one of them.

Now, don’t misunderstand me. Even after Huang’s resignation, I still believe Nvidia has tremendous earnings power, and I’ll be watching its upcoming earnings report closely.

But the market is rotating, and yesterday’s winners won’t necessarily lead tomorrow.

That’s precisely why I built Prime Portfolio. It goes well beyond stock picks, with tools to help you allocate your money, monitor your holdings, and know when to make a change.

Today, I’ll explain what Huang’s departure means for Nvidia, why the market’s rotation is so important, and how my new service is designed to help you stay on the right side of it.

What Happens to NVIDIA Now?

I’ll admit, I didn’t see Jensen Huang’s resignation coming.

On Monday, I expected the Nvidia Board of Directors and the U.S. government to eventually clear Huang of wrongdoing. As recently as Wednesday, I remained confident he would weather the storm.

Clearly, things changed in a hurry.

Reports of Huang’s relationship with a woman suspected of ties to Chinese intelligence have been raising questions about whether sensitive information had been compromised for a few days. Then on Wednesday night, news of a second extramarital affair emerged. By Thursday morning, Huang had resigned, and longtime Chief Financial Officer Colette Kress was named interim CEO.

There are still plenty of unanswered questions:

• Was sensitive information exposed?
• What happens to Nvidia’s relationship with China?
• And who can replace the visionary leader who built Nvidia into the dominant force in AI chips?

But here’s what I want you to remember. Nvidia’s earnings power didn’t disappear overnight.

Before all this drama, analysts were forecasting third-quarter sales growth of about 91% and earnings growth of 90%. Those are stunning numbers. And while the leadership shakeup creates uncertainty, Nvidia still has its technology, its customers, and enormous demand for the chips powering the AI Revolution.

The company is scheduled to report earnings on November 17. I’ll be paying especially close attention to management’s guidance and whether analysts begin cutting their estimates.

For now, I’m recommending that investors hang on to their Nvidia shares while we assess the situation.

The bottom line: I don’t make investment decisions based on shocking headlines alone. I follow the sales, earnings, and underlying strength of a business.

And right now, there’s another important development taking place on Wall Street that investors shouldn’t overlook.

The Market Was Already Changing

You see, folks, the market’s rotation didn’t begin with Jensen Huang’s resignation.

It’s been underway for some time.

Take IREN Ltd. (IREN), for example.

On November 5, the AI neocloud company reported strong top-line growth, with revenue jumping 66% to $228.3 million as AI cloud sales nearly tripled. However, it also posted a steep $263 million net loss – missing earnings estimates – while warning of rising costs and a delay to its $4 billion annual recurring revenue (ARR) target.

Meanwhile, in 2026, its Stock Grader rating has plunged from an A to an F.

That’s a dramatic reversal. And it’s a reminder that even the hottest stocks can fall out of favor when the underlying numbers change.

That’s why I follow the data rather than getting caught up in the hype.

Meanwhile, some of the best opportunities are emerging outside the familiar AI names – and in other sectors. Just look at how the major stock market sectors have performed over the past six months.

Six-Month Stock Market Sector Performance

Source: https://finviz.com/groups

Healthcare and Financial Sector stocks have led the way, while Technology and Communication Services have struggled. Even Energy has outperformed Technology and Communication Services over this period.

And that rotation is already reflected in my new Prime Portfolio.

In fact, a good portion of my first 25 picks are energy companies. I’ve also included three healthcare stocks.

These aren’t random choices. They’re the result of my quantitative system identifying companies with strong earnings prospects and other characteristics I look for in winning stocks.

That’s what rotation is all about: finding what’s working – and positioning yourself for what comes next.

And it’s the driving force behind the 25 stocks I just selected for Prime Portfolio.

Your Roadmap to 2027 Starts Here

Folks, I’ve spent more than 40 years studying the stock market. And if there’s one thing I’ve learned, it’s that the market never stands still.

I didn’t predict Jensen Huang’s departure. And I can’t tell you what the next shocking headline will be.

But I know the market will keep changing, money will keep sloshing around – and yesterday’s winners won’t always lead tomorrow.

That’s why I built Prime Portfolio for markets like this.

My goal is simple: Assemble the crème de la crème of stocks based on what my quantitative system is telling me. Then, as market conditions change, make the adjustments needed to stay focused on what’s working.

And now, for the first time, you can put this approach to work in your own portfolio…

As I mentioned earlier, I just unveiled Prime Portfolio during my special Fed Warning 2027 presentation.

During the event, I explain why the market’s list of winners is narrowing, how political gridlock could reshape Wall Street in 2027, and why this rotation into new sectors may be just getting started.

More importantly, I share how I’m identifying the companies that could emerge as the next big winners – even as some of today’s most popular stocks lose their momentum.

Click here to watch the Fed Warning 2027 replay and see what I mean.

If you tune into the replay, you’ll also discover how to get access to:

• My first 25 handpicked stocks: The companies I believe are best positioned to benefit from the opportunities ahead.
• My new monthly rotation model: An approach that tracks shifts in market leadership, helping me spot when money is moving out of yesterday’s winners and into new opportunities.
• My special Allocation Tool: Designed to help you determine how much to invest in each stock.
• Ongoing portfolio updates: I’ll monitor the holdings and alert you when it’s time to make a move.

And I believe there’s never been a better time to put it to work.

Click here to watch the Fed Warning 2027 replay now.

Sincerely,

Louis Navellier

P.S. If Jensen Huang’s sudden exit doesn’t convince you how quickly things can change on Wall Street, I don’t know what will. And Nvidia isn’t the only stock facing big questions. In his new Fed Warning 2027 presentation, Louis shows us where he sees the market heading, which stocks he likes best, and how he plans to stay ahead of the next big shift. He also gives away two free stock picks: one to buy and one to avoid. Watch it here.

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:
NVIDIA Corporation (NVDA)

The post Nvidia Without Jensen Huang: What Investors Should Do Now appeared first on InvestorPlace.

The Federal Reserve’s benchmark rate sits near 3.9%, and after Tuesday’s hot inflation report, it’s almost certainly headed higher in December. Year after year, banks collect the gap between those two rates on trillions of dollars of deposits. 

Why? Because moving your money is a chore, so most people never do.

Bankers call these “sticky deposits” – aka deposit inertia. It may be the most valuable asset in American finance, but not one that appears on any balance sheet.

Over the past six weeks, three separate headlines suggest the institutions that depend on that asset are getting nervous.

I bring this up in a week when nearly all of Wall Street’s attention has been on AI stocks, and understandably so. Nov. 5 was the S&P 500‘s worst day since the 2025 tariff selloff. And Nov. 10’s inflation data erased the previous day’s rebound. We believe the worries about AI spending are legitimate, and patience is the right posture on the core data-center trade until the market shows us a bottom.

But being patient on one trade leaves plenty of room to study another. And one of the most interesting stories in the market right now is unfolding in one of the dullest places imaginable: your checking account.

Project Faro: Wall Street’s $270 Million Stablecoin Bet

This week, Bloomberg reported that a group of major banks has pledged roughly $270 million to fund a joint venture code-named “Project Faro.” Goldman Sachs (GS), Citigroup (C), Santander (SAN), and Deutsche Bank (DB) are among those involved, part of a 21-financial-institution consortium that surfaced earlier this year. The plan is to launch a U.S. dollar stablecoin in the first half of 2027, with a euro version to follow.

A stablecoin is a digital dollar that can move instantly, around the clock, without sitting in anyone’s checking account. For a bank, that’s a product designed to make deposits easier to leave.

Banks would only build such a thing if they believed someone else was going to build it first. And someone already has. Open USD (OUSD), a rival stablecoin founded by Coinbase (COIN), Mastercard (MA), Shopify (SHOP), Stripe, and Visa (V), went live this fall. Its network now includes more than 200 partners. Stablecoin-linked spending hit a record $1.17 billion in September. 

Faro is a defensive move. The banks are trying to own the thing that threatens them.

AI Agents Could Make Bank Deposits Far Less Sticky

This month, Britain’s five largest banks – HSBC (HSBC), Barclays (BCS), Lloyds (LYG), NatWest (NWG), and Nationwide – are blocking or restricting AI agents from acting inside customer accounts. 

This comes after JPMorgan (JPM), Citi (C), Charles Schwab (SCHW), and Wells Fargo (WFC) all limited third-party agents that log in with a customer’s credentials.

Their stated reasons are reasonable ones. Nobody has settled who is liable when an agent makes a mistake with your money, and regulators are still writing the rules.

Still, there’s a second reason, and McKinsey put a number on it. The firm estimates that £500 billion to £700 billion of U.K. savings could migrate from deposits into investments over the next decade. Agentic AI could accelerate that shift by making it much easier to compare rates and move idle cash automatically. 

In its survey of roughly 46,000 retail banking customers, 72% of people who already use AI said they would let an agent handle at least one financial task for them.

Think about it: an AI agent never gets bored. It never forgets, and it has no dread of bureaucracy. Tell it once to keep your idle cash wherever it earns the most, and the chore that has protected bank margins for a century simply disappears.

X Money Is Competing for Deposits With Up to 6% APY

The third headline is the only one that didn’t come from a bank.

This summer, Elon Musk’s X began rolling out X Money: an account inside the X app, held at a partner bank, with a Visa debit card attached. It pays a base rate of 4% – more than 10 times the national average – and up to 6% for subscribers and customers who set up direct deposit.

On Oct. 1, New York’s financial regulator ordered X to stop paying interest to customers in the state, citing a missing state license.

This issue is a licensing matter that X says it’s working to resolve. Skeptics have asked how any account can pay 6% when the Fed’s own rate is well below that, and it’s a fair question; the likeliest answer is that X is subsidizing the rate to win customers. Starting Dec. 1, the 6% will apply only to the first $150,000 of a balance. And Massachusetts Sen. Elizabeth Warren has raised questions about the product’s deposit-insurance claims.

Those are real caveats – and also the kind of scrutiny aimed at something incumbents take seriously.

Because look at what X has done in the past 10 weeks. It moved all U.S. creator payouts onto X Money. It dropped the requirement that users pay for a subscription to open an account. And Musk announced that users will soon be able to send a dollar to anyone by holding down the “Like” button. 

Each step pushes real money onto a platform that hundreds of millions of people already open every day.

Stablecoins, AI Agents and X Money Target the Same Bank Advantage

Together, these headlines describe a single threat arriving from three directions.

Stablecoins give money the ability to move instantly, at any hour. AI agents supply something willing to do the moving for you. And a high-yield account inside an app with enormous reach gives that money plenty of places to go.

Any one of those would be a nuisance for a bank. All three combined take aim at the inertia that makes cheap deposits possible.

We’ve seen a version of this before. In the late 1970s, regulations capped what banks could pay on savings at around 5% while market rates soared into the double digits. Money-market funds – a product almost nobody had heard of – grew from a few billion dollars in 1977 to more than $200 billion by 1982. The money left because staying put became too expensive.

That history especially matters right now because the Fed is hiking again. Every increase widens the gap between what cash can earn and what the average bank pays. Savers are being handed a bigger reason to move at the same moment they’re being handed easier ways to do it.

What This Banking Shift Means for Investors

A few observations here.

First, the toll roads look well positioned, whichever side wins. Visa and Mastercard both posted strong third quarters, and both sit beneath the new entrants as well as the old ones. X Money’s card runs on Visa’s network. The card networks also have a seat at the stablecoin table.

Second, distribution is the scarce resource. Building a payments product is easy. Getting a hundred million people to open it every day is hard, and the companies that already have that audience have an upper hand.

Third, the exposure runs the other way for any institution whose earnings lean on deposits that pay next to nothing.

Of course, none of this happens overnight. Banks are powerful, well-capitalized, and adapting; Faro is proof of that. Regulators are active. Promotional yields can be cut. These are themes to study.

Still, a payments platform doesn’t need a gigawatt of power, a zoning board’s blessing, or a bond offering to grow. In a season when the cost of capital is the market’s central worry, that’s a meaningful advantage.

The Bottom Line: Deposit Inertia Is Getting Harder to Defend

For most of this year, the biggest stories in technology have been about building things: chips, data centers, power plants, rockets. 

This one is about moving something that already exists, which is every dollar currently sitting still.

Musk has been circling this idea for a very long time. In 1999, he poured the proceeds of his first company into an online bank called X.com, with the ambition of putting a person’s entire financial life at a single web address. He was pushed out of the company that became PayPal (PYPL) before he could finish the job. Twenty-seven years later, he owns a platform with the audience he lacked back then, and he has said that if it’s done right, X could become “half of the global financial system.”

What I’m confident of is narrower: a project like this can’t be built alone. It needs payment networks, banking partners, and technology suppliers, and those companies are where investors can actually participate.

I’ve been researching which ones matter most. I walk through the full story, and how I’d position for it, in my presentation on X Money.

The banks have told us what they’re afraid of. It’s worth it to understand why.

The post Goldman, Citi and the $270 Million Fight Over Your Bank Deposit appeared first on InvestorPlace.

The most important read yet on how neoclouds are handling tighter capital markets…

That’s how our AI expert Luke Lango, editor of Innovation Investor, framed last night’s earnings from CoreWeave Corp. (CRWV) ahead of the report.

For any readers less familiar, neoclouds are newer cloud companies that rent out AI computing power, and CoreWeave is the best-known of them. Neoclouds have been at the forefront of concerns about the AI buildout because many have borrowed heavily to build their data centers.

Why does one company’s report carry this much weight? Because neoclouds are where the AI buildout meets the bill, and how easily they can fund themselves tells us whether the spending can keep growing at this pace.

So, what happened?

By nearly every measure, CoreWeave delivered. Third-quarter revenue jumped 168% to $3.66 billion, topping the $3.56 billion analysts expected. Backlog, the contracted revenue still to come, swelled to $132.5 billion. And CoreWeave raised its full-year revenue forecast to $13 billion to $13.3 billion, well above the roughly $12.9 billion Wall Street had predicted.

Here’s CEO Michael Intrator:

This was a breakout quarter for CoreWeave, with revenue increasing by more than $1 billion sequentially and adjusted operating margins reaching double digits a quarter ahead of plan.

Investors, who had sent the stock down about 40% over the past month, noticed. As I write on Wednesday, CRWV is up 20%. Here’s a one-month chart showing the spike.

In navigating the recent drawdown in the AI trade, Luke told readers he was watching three things, starting with “whether credit spreads start to narrow alongside stocks” and “whether the neoclouds sound like they can keep raising money.”

The second is easier to answer than the first. We don’t yet have a clean read on credit spreads, but management’s message on funding was clear: it won’t tap the unsecured debt market at current rates. It will lean instead on financing backed by customer contracts and about $9 billion in customer prepayments and deposits, plus another delayed-draw term loan (a facility it can draw on in stages) expected in the coming weeks.

CoreWeave anticipates an investment-grade rating, with early talks pointing to a yield of 7% to 7.5%, roughly half of where its junk bonds trade. In other words, debt backed by customer contracts is far cheaper than the unsecured kind.

Still, not everyone is convinced. One analyst told Bloomberg Television that CoreWeave’s “interest expense is far higher than adjusted operating income,” calling it “a structurally challenged business.”

So, we’re not giving CoreWeave an “all clear,” but the financing worry has eased, at least for now.

For Luke’s third test, CoreWeave’s report just put it in play. So, let’s turn to the levels he’s watching.

The start of a real rebound or a dead-cat bounce?

Monday delivered the best day for AI stocks since August. The Nasdaq rose more than 2% and the Philadelphia Semiconductor Index (SOX) jumped more than 6% as Middle East tensions cooled and AI suppliers posted strong earnings.

However, Luke – normally one of our most enthusiastic voices on AI – wasn’t celebrating. Here he is from Monday’s Innovation Investor update:

As AI bulls with lots of AI stocks in our portfolios, we very much appreciate this rally. We welcome it. We’re happy about it.

But we also don’t think it means all that much. In our view, today is a classic oversold bounce that tells us absolutely nothing about what comes next for the AI trade, with technical and fundamental signals remaining mixed.

His reasoning is that the bounce didn’t repair any meaningful technical damage. The major AI benchmarks still sat below their 200-day moving averages (the average closing price over the past 200 trading days) as well as their July and October lows. And as of Monday, the forces behind the selloff hadn’t been fixed.

Luke says the AI selloff has been about three things: Washington, Wall Street, and supply chains forcing a slowdown in capital spending, or capex.

On Washington, the worry is scrutiny: Nvidia Corp. (NVDA) CEO Jensen Huang’s scandal, which includes a board investigation and a closed-door House briefing, is likely to prompt a closer look at AI spending. And last week’s election added another wrinkle, with voters backing data center restrictions in 40 of 41 ballot measures, according to Ballotpedia.

On Wall Street, the worry has been the cost of financing the buildout. Amazon.com Inc. (AMZN) saw its five-year credit default swap spread, the market’s price for insuring against default, climb to about 97 basis points from the low 70s a month ago, and Alphabet Inc. (GOOGL) and Oracle Corp. (ORCL) both saw theirs widen Monday.

And in the supply chain, companies including IREN Ltd. (IREN) and Applied Optoelectronics Inc. (AAOI) have said projects are getting delayed by shortages.

So, how did CoreWeave’s earnings impact these three overhangs, and what’s the result?

Last night gave us new information on all three of these overhangs, though not equally.

On Washington, CEO Michael Intrator said:

We do not anticipate any impact from the seismic regulatory shift that’s occurred.

On Wall Street, we just noted that CoreWeave said it won’t tap the unsecured debt market at current rates and expects a new investment-grade-rated loan at a yield of 7% to 7.5%, roughly half of where its junk bonds trade.

And on supply, CoreWeave says it’s still on track to have 1.85 gigawatts of active power, meaning capacity available to customers, by the end of the year. That matters because backlog only becomes revenue once data centers are powered on.

Overall, while not eliminating all the fear related to the AI trade, what we learned last night is certainly helping – and it’s impacting the key technical levels that Luke has been watching to determine his action plan.

Here’s a quick overview of Luke’s action plan:

Sell the bounce: If the VanEck Semiconductor ETF (SMH) is rejected at $504, or the SOX is rejected at its 50-week moving average (about 10,300 this week), Luke will trim some of the AI names he’s already downgraded to “Hold” because they’re most exposed to a data center slowdown.

Start buying back: If the SMH reclaims $504, the Invesco QQQ Trust (QQQ) (which tracks the Nasdaq 100) holds above its 200-day moving average near $681 and the SOX regains its 50-week average, Luke starts adding selectively.

Buy aggressively: A move above 11,684 on the SOX is his signal to get more aggressive.

As I write, SMH sits at $508, SOX clocks in at 10,610, and QQQ sits at 691. That puts all three above the “start buying back” levels that Luke has been watching. Now, we may not end the day here, but this is a good sign. We’ll bring you updated commentary and analysis from Luke as soon as it hits our desk.

Now, Luke’s levels are one way to navigate the uncertainty of not knowing what comes next. But legendary investor Louis Navellier, editor of Growth Investor, has another…

Louis’ dividing line

Over the last few days, as fear has gripped the market, Louis hasn’t moved to the sidelines like so many investors – but that doesn’t mean he’s been buying everything. As he put it in his Monday market update, “the key is owning the right stocks.”

Index performance can hide a lot, and the day after the election was a perfect example…

The Dow surged more than 1,500 points, or 3%, its best day since April 2025. Yet beneath that headline, the SOX index fell 3.3%, hitting a six-month low. A day later, the Nasdaq 100 plunged 6.4%, its worst day since March 2020.

Now, in the short term, fear can weigh on even the strongest stocks. But over the long term, the question that matters for your wealth is whether you own companies with real fundamental strength. That’s what Louis’ Stock Grader was built to measure, grading more than 6,000 stocks from A to F.

And Louis has developed a new way to put Stock Grader to work, one designed to help you find opportunities and avoid potential losers without having to predict where the market goes next.

He’s walking through it in a free presentation tomorrow, Thursday, Nov. 12, at 2 p.m. Eastern. And when you register here, you’ll get immediate access to test-drive Stock Grader yourself. You can enter the tickers you own or are considering and see exactly how Louis’ system sizes them up.

Finally, when you join tomorrow, Louis will share two free stock recommendations – one to buy, one to avoid.

Want some more free stock recommendations?

In August, we launched The Investor Place, a brand-new investing podcast featuring all our analysts. Each episode brings you fresh market insights, investing ideas, and candid conversations with some of the sharpest minds in the business.

Yesterday’s episode was a must-listen. It looks ahead to 2027 with Louis, Eric Fry (editor of Fry’s Investment Report), and Jonathan Rose (editor of Advanced Notice) each naming one sector they expect to do well next year, along with two stocks to play it. Louis also previews his free presentation tomorrow (here’s that registration link again).

And to catch all the new episodes of The Investor Place, you’ll find them – as well as the entire back-catalog – on InvestorPlace’s YouTube channel.

Wrapping up

Circling back to the AI trade and what comes next, we won’t wait long for the next data point…

Nebius Group (NBIS), another neocloud, reports tomorrow before the open, and its results will show whether CoreWeave’s story is unique or common across the group.

Then comes the big one. Nvidia reports after the close next Tuesday, Nov. 17. Beyond needing to report strong numbers and guidance, this time, the company also needs to give straight answers on the board’s investigation of CEO Jensen Huang.

But for today, the AI trade is celebrating a big win with CoreWeave. After a rough stretch for tech stocks, let’s enjoy it.

Have a good evening,

Jeff Remsburg

(Disclosure: I own SMH, AMZN, GOOGL)

The post CoreWeave Beats – Time to Dive Back Into AI Stocks? appeared first on InvestorPlace.

A suspected Chinese spy… a secretive network accused of moving billions in diverted technology… a top CEO embroiled in a personal and national security scandal.

It sounds like the plot of an HBO espionage thriller.

But this isn’t Hollywood. It’s Nvidia Corp.’s (NVDA) reality.

Nvidia CEO Jensen Huang is facing scrutiny over his reported relationship with Alice Huang, a Chinese businesswoman suspected of having ties to Chinese intelligence. According to reports, she helped build a network of companies that moved at least $7.5 billion in Nvidia chips into China, allegedly bypassing U.S. export restrictions.

The FBI is investigating whether Huang was unknowingly targeted by Chinese intelligence, while Nvidia’s board has launched its own investigation. Congress isn’t far behind.

While the drama makes for juicy headlines, as investors, our concern isn’t the salacious details. It’s what they could mean for Nvidia’s future.

Lawmakers were already debating tighter restrictions on advanced chip sales to China; the allegations could give them another reason to push for stronger oversight. They also raise leadership and governance concerns.

But bigger than all that may be how the scandal impacts investor confidence.

Until the past few days, Wall Street and Main Street investors alike were counting on the AI chip king to keep leading the AI market for years to come. If that confidence fades, the stock could fall even while the business keeps growing.

So, in today’s Smart Money, I’ll look beyond the headlines to explain why Nvidia’s biggest vulnerability may be its growth story – and where to look for opportunities as the AI story evolves.

The Chips Are Down for Nvidia

Nvidia lost roughly $430 billion in market value over two trading sessions, with shares falling about 4% Monday – after it announced an independent investigation into Huang – and another 6.5% Tuesday.

Nvidia is recovering some of its losses today, thanks to strong earnings from data center operator CoreWeave Inc. (CRWV), but the rebound doesn’t mean the controversy is behind it.

This matters because Nvidia’s stock price depends on more than this quarter’s earnings. It depends on what the market believes the company can earn years from now.

And Wall Street may stop giving its AI darling the benefit of the doubt.

For years, Nvidia has enjoyed a lofty valuation because investors believed it would remain the undisputed leader of the AI boom. But now they’re weighing new questions:

Will Washington impose even tougher restrictions?

Can Huang remain an effective leader?

Could competitors gain ground while Nvidia deals with the fallout?

If investors become less confident in those answers, they may be willing to pay less for every dollar of Nvidia’s future earnings. In other words, the company could keep growing its business and still see its stock struggle.

And Nvidia’s recent selloff may be the first sign that investors are beginning to question its growth story.

While Nvidia shares have been falling, several other major chipmakers have been moving higher. Over the same two-day period, Advanced Micro Devices Inc. (AMD) gained 14.7%, Broadcom Inc. (AVGO) rose 13%, Marvell Technology Inc. (MRVL) climbed 9.3%, and Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) added 5.6%.

That suggests the market is starting to separate Nvidia’s “made for HBO” problems from the broader opportunity in AI chips. Investors aren’t losing faith in AI demand, but they may be looking for ways to benefit from it without taking on Nvidia’s leadership and political risks.

Still, a few days of stock movements don’t prove Nvidia is losing customers or falling behind competitors. To know whether that’s happening, we’d need to see it in the company’s sales, market share, or customer spending.

But Nvidia doesn’t have to lose its technological lead overnight to lose Wall Street’s confidence. It just needs to give investors enough reason to question how much growth it has left. And when a stock is priced for years of future success, even a little doubt can go a long way.

The AI Boom Beyond Nvidia

Here’s the good news: The AI boom doesn’t depend on Nvidia alone. Even if the company faces new restrictions, leadership changes, or tougher competition, the AI buildout will continue to need chips, power, networking, and cooling.

That’s why it’s important to look beyond the companies making AI chips and toward the businesses supplying some of the other tools and infrastructure that make the AI boom possible.

There are several ways to play this trend:

• Electrical components makers connect energy projects to the power grid.
• Energy storage providers help utilities manage electricity supply and demand.
• Wind and solar companies generate more renewable energy.
• Traditional energy producers supply natural gas to power plants.
• Industrial materials companies provide metals used in data centers.

These types of companies can benefit from AI’s growth without having to compete in the chip market… and they have the potential to prosper even if Nvidia encounters obstacles.

That’s the kind of opportunity I look for in Fry’s Investment Report: businesses positioned to benefit from major market shifts without depending on a single company to come out on top.

Click here to learn more.

Because the real story here isn’t just a scandal. It’s how questions about Nvidia’s leadership and reputation could shake Wall Street’s confidence in its future.

Nvidia may remain a major force in AI. But even the biggest companies can see their growth stories unravel when investors start to doubt what’s ahead.

To prepare for what comes next, join me in Fry’s Investment Report today.

Regards,

Eric Fry

The post The Nvidia Spy Scandal Is Creating New AI Winners and Losers appeared first on InvestorPlace.

In the latest episode of The Investor Place, host Crystal Navellier puts that question to three InvestorPlace experts: Louis Navellier, Eric Fry and Jonathan Rose. Each must draft a sector they believe will outperform in 2027 and identify investments poised to benefit. The catch? Once a sector is claimed, it’s off the table for everyone else.

Their selections reveal three distinct strategies. Eric sees opportunity in beaten-down solar investments and medical technology. Jonathan is betting on AI’s expansion into real-world applications, while Louis believes the massive infrastructure buildout powering AI still has plenty of room to run.

6 Investment Picks for 2027: The Full List

The six selections include five individual stocks and one exchange-traded fund. They are not a ranked list or a prediction of guaranteed gains.

Each expert has a different reason for his selections. Watch their discussion, including where they disagree about the AI trade:

New episodes of The Investor Place post on YouTube. Subscribe to the InvestorPlace channel so you don’t miss the next one.

Eric Fry’s 2027 Picks: Solar Energy and Medical Technology

Eric starts with a sector many investors have already written off: solar. He argues that the industry’s weak sentiment could reverse if the U.S. policy environment becomes friendlier to renewable energy, adding to what he sees as a stronger global growth story.

Invesco Solar ETF (TAN)

Rather than try to identify one solar company that will lead a recovery, Eric favors the Invesco Solar ETF (TAN). The fund holds a basket of solar-related businesses, allowing investors to express a sector-wide view without relying on a single stock. Its investment strategy is described on Invesco’s fund page.

His thesis depends on a sector rebound, which is far from certain. Policy changes, competition and the economics of solar installations remain important risks.

Zimmer Biomet Holdings Stock (ZBH)

Eric’s second selection is Zimmer Biomet Holdings, Inc. (ZBH), a medical technology company whose products include orthopedic implants and robotic-assisted surgical systems. He sees the use of advanced technology in knee and hip procedures as a promising investment opportunity.

The company’s Nov. 4, 2026, earnings release reported third-quarter sales of $2.063 billion, up 3.1% year over year, and an increase to its full-year revenue-growth guidance. Those results support the case for examining the business, but they do not establish that the stock will outperform in 2027.

Interested in how Eric identifies opportunities beyond the market’s most crowded trades? Sign up for Eric Fry’s free Smart Money e-letter.

Jonathan Rose’s 2027 Picks: The Eyes of AI

Jonathan argues that 2027 could be the year AI moves beyond software and into machines that must perceive their surroundings. Robots, drones, autonomous vehicles and satellites all need imaging, sensors or related electronics to interact with the physical world.

Teledyne Technologies Stock (TDY)

Jonathan’s first pick is Teledyne Technologies Incorporated (TDY), which supplies imaging and sensing technologies used across industrial, aerospace and defense applications.

Teledyne’s Oct. 21, 2026, results showed record quarterly sales and a 20.6% year-over-year increase in non-GAAP diluted earnings per share. The company also raised its full-year earnings outlook. Jonathan views this operating strength as a reason to consider the business as physical AI adoption expands.

onsemi Stock (ON)

His second selection is ON Semiconductor Corporation (ON), commonly known as onsemi. Its sensing and power technologies serve automotive, industrial and AI data center applications.

According to onsemi’s Nov. 2, 2026, earnings announcement, third-quarter revenue increased 11% year over year to $1.722 billion. The company also reported that AI data center revenue grew 175% year over year, from a smaller base. Jonathan sees potential in the combination of sensing applications and growing power requirements.

Eric is more cautious about the broader AI infrastructure trade, saying its risk-reward balance has become less attractive to him. That disagreement is one of the episode’s most useful takeaways: a compelling technology trend does not automatically make every related stock a good investment at every price.

Want to see how Jonathan spots potential trade setups? Watch his free Masters in Trading Live sessions, streaming at 11 a.m. ET each morning the market is open.

Louis Navellier’s 2027 Picks: Powering the AI Data Center Boom

Louis remains focused on earnings growth and order backlogs. His argument is that near-term market anxiety about AI spending should not obscure equipment orders already in the pipeline. For him, electricity is the essential first step: a data center cannot run without power.

Bloom Energy Stock (BE)

Louis names Bloom Energy Corporation (BE), which provides fuel-cell-based electricity generation systems, as one way to invest in rising demand for reliable power.

In its Oct. 22, 2026, earnings release, Bloom reported third-quarter revenue of approximately $1.236 billion, up 138.1% year over year, and raised its full-year revenue outlook. Louis believes the need to supply power for new computing facilities could help sustain demand, although execution and valuation risks remain.

GE Vernova Stock (GEV)

His other choice is GE Vernova Inc. (GEV), whose power generation and electrification businesses help supply and support electricity infrastructure.

GE Vernova reported a $197 billion backlog in its Oct. 28, 2026, third-quarter update, alongside $12.6 billion in quarterly revenue. The company raised its 2026 guidance. For Louis, that backlog is evidence of demand that extends beyond the latest market headlines. It is a companywide backlog, not a data-center-only figure.

Louis also argues that strong companies can become attractive when share prices fall despite improving earnings. His focus is on identifying businesses with the financial results to justify a rebound, rather than buying every stock that has sold off.

For more of Louis Navellier’s earnings-driven stock analysis, sign up for his free Market 360 daily e-letter.

What Could Surprise Investors in 2027?

Beyond their six selections, the experts debate whether the post-election selloff in technology stocks will create an opportunity or expose further weakness. Eric is wary of crowded AI-related trades, while Jonathan believes some of the beaten-down technology names could recover as uncertainty fades. Louis expects earnings and existing order commitments to matter more than the latest political narrative.

They also discuss interest rates, tariffs and energy-sector cyclicality. These are competing outlooks, not settled forecasts. The practical question for investors is whether a company’s earnings, valuation and exposure to a durable trend justify the risks.

Get More Investing Ideas From All Three Experts

The 2027 draft shows why investors can look at the same market and reach very different conclusions. For continued coverage of the themes discussed in this episode, explore each expert’s free content:

Eric Fry: Follow his research on overlooked sectors, emerging technologies and long-term investment trends. Get Eric’s free Smart Money e-letter.

Jonathan Rose: Learn more about his market analysis and the trading signals he watches. Join Jonathan’s free Masters in Trading Live sessions.

Louis Navellier: Follow his earnings-focused approach to identifying strong stocks. Subscribe to the free Market 360 daily e-letter.

And to catch every episode of The Investor Place, subscribe to InvestorPlace on YouTube.

2027 Stock Picks: Frequently Asked Questions

What are the best stocks to watch for 2027?

In this episode, the experts select Zimmer Biomet (ZBH), Teledyne Technologies (TDY), onsemi (ON), Bloom Energy (BE) and GE Vernova (GEV), plus the Invesco Solar ETF (TAN). These are their individual opinions, not a consensus ranking.

Which sectors could perform well in 2027?

Eric Fry favors solar and medical technology, Jonathan Rose sees opportunity in AI-enabled sensing and vision, and Louis Navellier focuses on power infrastructure supporting data centers. Each sector carries distinct business, valuation and policy risks.

Is an ETF safer than buying an individual stock?

An ETF generally spreads exposure across multiple holdings, which can reduce company-specific risk. A sector ETF such as TAN still faces concentrated industry risks and can experience significant losses.

Educational disclaimer: This article is for informational and educational purposes only and is not personalized investment advice. Securities and funds can lose value. Opinions and forecasts are those of the speakers and may change. Investors should evaluate their own financial circumstances and risk tolerance before investing.

The post Best Stocks for 2027: 3 Experts Name Their Top Picks appeared first on InvestorPlace.

This Week’s Key Takeaways

• All 19 stocks that moved up to a Total Grade of A carry an A in Quantitative Grade. Their Fundamental Grades are more mixed, with 7 at B and 12 at C.
• MetLife and Allstate both carry an A in Quantitative Grade. The gap shows up in Fundamental Grade, a B for MetLife and a C for Allstate, and in Total Grade, an A for MetLife and a B for Allstate.
• Energy and pipeline stocks make up 12 of the 32 names downgraded from Very Strong to Strong, including ONEOK, Inc. (OKE) and Energy Transfer LP (ET). Semiconductor stocks account for 7 of the 43 names downgraded from Strong to Neutral, among them Intel Corporation (INTC), KLA Corporation (KLAC) and ON Semiconductor Corporation (ON).

About My Stock Grader

I started building Stock Grader as a finance student in the late 1970s, and I’ve spent nearly 50 years refining it. Today, it analyzes more than 6,000 stocks and grades each one from A to F using two measures:

• Fundamental Grade: eight factors, including sales growth, earnings growth, operating margin growth and earnings surprises
• Quantitative Grade: institutional buying pressure, or how much money big investors are putting into a stock

The two combine into a Total Grade: A (Very Strong), B (Strong), C (Neutral), D (Weak) or F (Very Weak).

MetLife (MET) Moves Up From Strong to Very Strong

MetLife moved up from a B to an A, the top grade on Stock Grader’s scale. Its Total Grade of A pairs an A in Quantitative Grade with a B in Fundamental Grade. My Stock Grader places the company in the Multi-Line Insurance industry.

MetLife’s fundamentals are strongest on margin growth, earnings growth and cash flow. Its weak spots are earnings momentum and earnings surprises.

• Very Strong: Operating Margin Growth, Earnings Growth, Free Cash Flow
• Strong: Sales Growth, Analyst Earnings Revisions, Return on Equity
• Weak: Earnings Momentum, Earnings Surprises

Allstate (ALL) Slips From Very Strong to Strong

Allstate moved down from an A to a B. Its Total Grade of B pairs an A in Quantitative Grade with a C in Fundamental Grade, and My Stock Grader places it in the same Multi-Line Insurance industry as MetLife.

Allstate’s strengths sit in different places: earnings surprises, analyst revisions and return on equity. Its growth factors are where it falls short.

• Very Strong: Earnings Surprises, Analyst Earnings Revisions, Return on Equity
• Strong: Free Cash Flow
• Weak: Sales Growth, Operating Margin Growth, Earnings Growth
• Very Weak: Earnings Momentum

The biggest gap between the two is growth: MetLife scores Very Strong on Operating Margin Growth and Earnings Growth, where Allstate scores Weak.

Amazon (AMZN) Climbs From Weak to Neutral

Amazon moved up from a D to a C, which puts it in the Neutral category. The Total Grade of C matches a C in both Quantitative Grade and Fundamental Grade, and My Stock Grader files the company under Internet Retail.

Return on Equity is the bright spot in Amazon’s fundamentals. Most of its growth and earnings factors still score Weak.

• Very Strong: Return on Equity
• Strong: Analyst Earnings Revisions
• Neutral: Sales Growth
• Weak: Operating Margin Growth, Earnings Growth, Earnings Surprises, Free Cash Flow
• Very Weak: Earnings Momentum

A Neutral rating sits in the middle of the A to F scale, so the upgrade moves Amazon off the weak end without placing it among the highest-rated stocks.

Source: Stock Grader. Ratings as of November 11, 2026.

Grade Your Own Stocks for Free

Sign up for my free Market 360 e-letter and run any 3 stocks through My Stock Grader at no charge.

Get 3 Free Stock Grades

Here is every stock whose rating changed in the update, grouped by the move.

Upgraded: Strong to Very Strong (B → A)

Downgraded: Very Strong to Strong (A → B)

Upgraded: Neutral to Strong (C → B)

Downgraded: Strong to Neutral (B → C)

Don’t see your stock here? These tables only list grades that changed this week. Run any 3 stocks through My Stock Grader for free and see where each one lands on my A-to-F scale. Get your 3 free grades here.

Upgraded: Weak to Neutral (D → C)

Downgraded: Neutral to Weak (C → D)

Upgraded: Very Weak to Weak (F → D)

Downgraded: Weak to Very Weak (D → F)

Frequently Asked Questions

What Is Louis Navellier’s Stock Grader?

Stock Grader is a proprietary stock screening tool created by Louis Navellier. It gives each stock a letter grade from A to F, along with a separate Quantitative Grade, which focuses on institutional buying pressure, and a Fundamental Grade, which draws on eight company factors.

How Do I Get 3 Free Stock Grader Searches?

Sign up for Louis Navellier’s free Market 360 e-letter with your email address, and you can run any 3 stocks through Stock Grader at no charge. Signing up also opts you into daily communication from InvestorPlace, including marketing and the Market 360 and InvestorPlace Digest daily e-letters. You can unsubscribe at any time.

What Do Stock Grader’s A to F Grades Mean?

An A means Very Strong, a B means Strong, a C means Neutral, a D means Weak and an F means Very Weak. A stock moves between these categories when its Total Grade changes.

Before You Buy Your Next Stock, Grade It

MetLife and Allstate share an industry and an A in Quantitative Grade, yet their fundamentals tell very different stories. That kind of detail is what My Stock Grader is built to surface. Sign up for my free Market 360 e-letter to get my daily take on the market, and run any 3 stocks through My Stock Grader at no charge. Sign up for FREE here.

The post Stock Grader Upgrades & Downgrades: MetLife, Allstate, Amazon appeared first on InvestorPlace.

Three healthcare stocks have made my watchlist: Prothena Corporation (PRTA), Rapport Therapeutics, Inc. (RAPP) and Azenta, Inc. (AZTA). Prothena and Rapport have reported insider purchases. Azenta is a different story: the company has been buying back its own stock. I want to know who is buying, whether the business has the financial strength to weather setbacks, and what could move the stock next. None of these three is an immediate trade recommendation.

Why Insider Buying Alone Is Not Enough

Boston Scientific Corporation (BSX) is a useful caution from my November 10 discussion. Its CEO put about $9 million of his own money into the stock through 10 open-market purchases. Then on October 28, the company cut its full-year sales growth outlook to about 4.25% from 5.5% and said fourth-quarter sales would fall. The stock dropped as much as 12%. Even a substantial executive purchase can’t protect shareholders from a guidance cut. So I treat insider buying as a reason to investigate. It doesn’t tell me a stock will rise. Before I consider a setup, I want a meaningful buyer, enough cash to survive and a catalyst with a timetable. I also want to know what would change my mind.

Prothena Stock (PRTA): Insider Interest and Alzheimer’s Trial Data

Prothena is a biotechnology company developing treatments for neurological diseases. An SEC Form 4 confirms that William P. Scully, identified as a 10% owner, purchased 27,000 shares on September 2, 2026, at a weighted-average price of $9.4718 per share. That is a documented shareholder purchase, distinct from Prothena’s corporate repurchase program.

The balance sheet is part of the appeal. Prothena reported $272.2 million in cash, cash equivalents and restricted cash and no debt as of September 30, 2026. It also reported buying back $26.6 million of shares during the first nine months of the year under a program of up to $100 million scheduled to expire December 31, 2026. Those figures come from its November 5 earnings release.

The catalyst: Bristol Myers Squibb’s Phase 2 study in early Alzheimer’s disease, with data expected in the first half of 2027, according to Prothena’s November 5 release.

My take: Prothena is on my watchlist because of a potentially significant clinical event. The science could disappoint, and cash on the balance sheet is no guarantee of a floor under the share price. I also want to see whether buying support continues and what happens when the current repurchase authorization expires.

Rapport Therapeutics Stock (RAPP): Director Buying and Epilepsy Data

Rapport Therapeutics develops treatments for neurological and psychiatric conditions. SEC Form 4 filings show that five directors and the chief financial officer bought roughly $1.66 million of shares in October 2026, at prices around $26.10 to $27.35. That figure does not include a separate large director purchase tied to an October financing.

Rapport reported $395.0 million in cash, cash equivalents and short-term investments as of September 30, 2026. Following October securities offerings and a November at-the-market sale, it estimated $815.4 million on November 3, including the proceeds of those transactions. The company said the financing should extend its operating runway through the end of 2029.

The catalyst: Rapport expects data from its open-label long-term safety study in focal-onset seizures in the fourth quarter of 2026. The company also has a planned FDA interaction concerning its bipolar mania program in the first quarter of 2027, according to its November update.

My take: I like seeing insiders commit their own money, particularly when there’s enough capital to fund development. Rapport’s October offering was priced at $21 a share, and insiders were still buying around $26. But clinical-stage biotechnology carries real trial and dilution risk. I’m watching the data and any change in insider behavior. I am not recommending an options trade here.

Want to see how I evaluate a setup before trading it?

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Azenta Stock (AZTA): Share Buybacks and a Potential Growth Turnaround

Azenta supplies sample-storage and genomics services to the life-sciences industry. It is my favorite of the three.

In its August 4 fiscal third-quarter report, Azenta disclosed repurchasing 2.3 million shares for $50.0 million under its 2025 repurchase program. It also reported $529 million in cash and marketable securities and no debt on its June 30 balance sheet.

The catalyst: Azenta’s fiscal 2027 outlook. I want to see whether organic revenue growth can improve from the flat-to-1% range discussed in its fiscal 2026 guidance. A buyback is more interesting to me if the underlying business also starts to improve.

My take: This is a potential self-help story. Cash and repurchases caught my attention. But I still want evidence of a business improvement before putting on a trade. When I discussed Azenta in my November 10 session, its fiscal fourth-quarter report was still hours away, and the fiscal 2027 outlook in that report was my test of whether the turnaround is real.

Editor’s note: After the market closed on November 10, Azenta guided fiscal 2027 organic revenue growth of 3% to 5%, compared with 2% organic growth in fiscal 2026, on revenue of about $648 million to $660 million. The company said it repurchased 4.4 million shares for $118.2 million in fiscal 2026 and ended September with $506 million in cash, cash equivalents, restricted cash and marketable securities. Jonathan’s comments above were made before the report.

Watch My Full Healthcare Stock Analysis

Want to hear me walk through these names in real time? Here’s my November 10 Masters in Trading: Live session, recorded before Azenta’s fiscal fourth-quarter report, where I explain why Azenta is my favorite of the three.

What Would Make These Healthcare Stocks Worth Trading?

I’m not treating any of these names as a buy just because insiders or the companies themselves bought shares. My decision would depend on whether the catalyst develops as expected, whether the company has enough cash to absorb setbacks and whether the stock offers a trade with manageable downside.

With Prothena and Rapport, disappointing clinical data or a reversal in buying behavior would change the picture. With Azenta, a weak growth outlook could outweigh the appeal of repurchases. The biggest risk I see is rates. The S&P 500 had its worst week since April 2025 in the five trading days ending November 6. Healthcare stocks aren’t immune to higher rates, and if rate pressure continues into 2027, riskier names like these get harder to own.

My bottom line: buying activity tells me where to look, and a dated catalyst gives me something concrete to evaluate. None of that replaces an exit plan.

Follow the Setups I Am Watching

I’ve spent decades trading and studying how markets react to catalysts, earnings and changing expectations. In my free Masters in Trading coverage, I explain the setups I’m watching and the risks that could make me change my mind. If you want to learn how I approach a trade before putting money at risk, join me.

Sign up for FREE here.

Insider Buying: Frequently Asked Questions

Does insider buying mean a stock will rise?

No. Insider purchases may indicate confidence, but executives can be early or wrong. Boston Scientific is a reminder to evaluate earnings, guidance and downside risk alongside insider transactions.

Are stock buybacks the same as insider buying?

No. Insider buying typically refers to purchases by company insiders using their own funds. A buyback uses corporate funds to repurchase shares. Azenta belongs in the second category based on the evidence discussed here.

Which three healthcare stocks is Jonathan Rose watching?

Prothena (PRTA), Rapport Therapeutics (RAPP) and Azenta (AZTA). In his November 10 session, Rose identified Azenta as his favorite of the three, but did not recommend an immediate trade in any of them.

Finding Healthcare Stocks Worth Watching Is Just the Beginning

Insider purchases, corporate buybacks and upcoming clinical trials can all point to potential opportunities. But as we’ve seen, none guarantees a winning trade.

That’s why I look beyond the headlines to evaluate the catalysts, risks and market conditions that could influence a stock’s next move.

In my free Masters in Trading: Live sessions, I break down opportunities like these, explain what I’m watching and share how I approach potential trades.

Sign up for FREE here.

This article is for educational purposes only and is not investment advice.

The post Insider Buying Signals: 3 Healthcare Stocks to Watch appeared first on InvestorPlace.

While Profumo was a powerful man with access to sensitive military information, the model, Christine Keeler, knew another man with an interest in those secrets.

His name was Yevgeny Ivanov, a Soviet naval attaché and intelligence officer.

When Profumo and Keeler’s brief affair became public, the connection to Ivanov turned a private affair into a Cold War security scandal.

By the end, Harold Macmillan’s government and the public trust were badly shaken.

More than six decades later, another affair has raised questions about a powerful man’s exposure to foreign intelligence… this time at the center of the AI economy.

Nvidia (NVDA) CEO Jensen Huang sent his employees an apology Sunday acknowledging being unfaithful to his wife.

“I was unfaithful to my wife,” he wrote, acknowledging the damage to his family and pledging to cooperate with an independent investigation into national security concerns raised in news reports.

Nvidia said its board had no reason to believe company secrets or national security had been compromised. But for investors accustomed to watching the leather jacket take the stage with another AI breakthrough, it was a jarring development.

But the questions now extend beyond Huang’s personal conduct to Nvidia’s leadership, its China business, and its relationship with Washington.

That’s why I’m not putting any more capital to work in Nvidia right now.

Just last week, Nvidia was one of the stalwarts to lean into. Yes, its business remains strong, but the uncertainty surrounding that business has increased, and we want answers before recommending investors buy more.

Some commentators see consequences reaching far beyond Huang. Such as The American Prospect, which published an article titled “The Honeypot That Might End the AI Boom,” arguing that Nvidia’s central role in supplying chips and financing AI companies could send shockwaves throughout the industry.

I understand that concern. If Nvidia suffered serious operational or financial damage, the fallout could spread.

But I think investors should consider another possibility… That this controversy could ultimately help broaden the AI trade.

That may sound counterintuitive. Nvidia has become so closely associated with the AI boom that a problem for its CEO can feel like a problem for the entire industry.

But ask yourself…

Does this controversy make companies less interested in AI coding tools? Does it eliminate demand for AI agents? Does it reduce the computing power needed to train and run advanced models?

I don’t see why it would.

What it could change is where customers choose to spend their money.

And if demand stays strong while Nvidia’s grip on that spending loosens, competing chipmakers could gain an opening.

To be clear, that possibility isn’t an all-clear signal to buy AI stocks. Financing pressures, supply shortages, and the capex slowdown still matter. We’re waiting for the fundamentals and the charts to justify getting more aggressive.

But we can be cautious about Nvidia today while recognizing that a less concentrated AI market could create more winners over time.

Here’s how that shift could unfold…

The Spending Could Spread Beyond Nvidia

My base case is that the financial impact on Nvidia remains manageable and Huang continues leading the company. That said, I have no idea what the investigation could uncover.

Under that scenario, the controversy could give major customers another reason to accelerate efforts to diversify their chip supply.

Perhaps Microsoft (MSFT) moves faster on its own chips.

Perhaps Meta (META) directs more business toward Advanced Micro Devices (AMD).

Perhaps Amazon (AMZN) expands Trainium deployments, or Alphabet (GOOG, GOOGL) leans further into its own processors.

These are, of course, theoretical outcomes. But they illustrate the opportunity that AI spending can shift between suppliers without disappearing.

That shift could also reach beyond the main processor.

For instance, Nvidia supplies a broad collection of technologies that work together. When customers choose different chip platforms, they may create additional opportunities for outside networking, connectivity, and optical suppliers.

So let’s explore three chip companies that could benefit from this broader distribution of demand.

Advanced Micro Devices: An Alternative for AI Buyers

First, we have Advanced Micro Devices (AMD), which offers the most straightforward version of this thesis.

Its Instinct accelerators compete for the computing work required to train and run AI models, supported by AMD’s ROCm software platform. AMD also offers networking and server technologies for large AI systems. If a major customer wants to direct more of its AI budget toward another supplier, AMD gives it an alternative.

That is why I specifically raised the possibility of Meta going further toward AMD. The opportunity would come from winning a larger portion of spending that customers already intend to undertake.

AMD wouldn’t need the entire industry to abandon Nvidia. Rather, a customer allocating more of its next deployment to AMD could be meaningful.

Of course, reputational concerns alone won’t determine a multibillion-dollar purchasing decision. AMD still has to deliver the performance, software support, reliability, and economics customers need.

The controversy could increase customers’ willingness to consider alternatives. AMD would then have to convert that interest into orders.

Broadcom: Helping Customers Build Their Own Chips

Broadcom (AVGO) offers a different route to the same outcome.

Some large AI customers want more control over the chips powering their operations. They can pursue processors designed around their particular workloads, with help from a semiconductor partner.

Broadcom already participates in that shift. Its expanded partnership with Meta covers custom AI chips and the networking technology supporting their deployment.

That helps explain why a cloud company’s decision to build more of its own chips can still create an opportunity for public-market investors. “Our own chip” does not necessarily mean every part is designed and delivered internally.

Specialist partners can play substantial roles.

My thesis is that added concern about dependence on Nvidia could strengthen the incentive to invest in those alternatives. Broadcom could benefit if customers accelerate existing programs or commit more spending to future generations of custom chips.

These are lengthy development decisions, so I wouldn’t expect a weekend controversy to produce an immediate wave of revenue.

But over the coming quarters and years, faster diversification could matter.

Marvell Technology: Supplying the Chips and Connections

Marvell Technology (MRVL) is another company I mentioned because its opportunity extends across custom processors and the connections that allow AI systems to function.

Marvell helps cloud and data center customers develop custom chips. Its capabilities also include the technology that moves data between processors, memory, and other parts of an AI system.

That second piece deserves attention.

An AI data center needs thousands of components to work together. Choosing a different processor can create opportunities for other suppliers throughout the surrounding system.

This is the broader effect I was describing on the podcast. If more demand flows toward alternative platforms, companies supplying the supporting technology could participate, too.

For Marvell, that could mean opportunities in both custom computing and connectivity.

The important word is could. Customers still need to select its technology, complete development, and move into production. Where diversification creates a potential opening, execution determines how much business Marvell captures.

Stay Patient and Look Beyond Nvidia

There is an important limit to this argument.

If the controversy seriously damages Nvidia’s operations or its ability to finance AI projects, the consequences could spread throughout the industry. And even if the fallout stays contained, financing costs, Washington, and supply shortages still threaten to slow the buildout.

That’s why we’re staying patient. Forget about buying Nvidia for now — wait for spending expectations and the charts to give us a stronger foundation before getting aggressive.

But patience on AI infrastructure doesn’t mean putting all our research on hold.

The opportunity we’ve discussed today comes from following where spending could go next. AMD, Broadcom, and Marvell could benefit as customers diversify their chip purchases. Elsewhere in technology, a different shift could create opportunities in the companies that help money move.

That’s the focus of my research into Elon Musk’s ambitions for payments and financial services.

His vision reaches into something people do every day: sending money, making purchases, and managing their finances. Bringing those activities together would require technology and financial infrastructure… and could create business for the companies helping make it possible.

For you, the question is which publicly traded businesses could benefit if that vision gains traction.

I’ve been studying those potential beneficiaries and the roles they could play. It’s a separate investment thesis from the AI data center buildout, and one worth understanding while we wait for that trade to stabilize.

Watch my briefing to discover the companies I’m watching behind Musk’s financial ambitions, and why they could matter to your next investment decision.

The post How Jensen Huang’s Honeypot Scandal Could Broaden the AI Trade appeared first on InvestorPlace.

Yesterday, we called this morning’s Consumer Price Index (CPI) report “the next shoe to drop.” That shoe is here…and it’s hot.

Consumer prices rose 0.4% in October from September, topping the 0.3% economists expected. Core CPI, which strips out volatile food and energy prices, rose 0.3% against a 0.2% forecast. That’s the third straight month core inflation has come in above estimates.

Zoom out and the picture isn’t any better. Over the past three months, prices have climbed at a 5.7% annualized pace, according to The Wall Street Journal. That’s nearly three times the Fed’s 2% target.

With the Federal Reserve meeting in early December, this is the last inflation reading it will see before its next move. So, today’s hotter-than-expected number hands the Fed’s hawks fresh ammunition. And combined with Friday’s blowout jobs report, the question is no longer whether the Fed hikes next month, but by how much.

The CME Group’s FedWatch tool shows traders have fully priced in a December hike, with rising odds that it’s a larger half-point move. Those odds jumped to nearly 11% this morning from 0% yesterday.

And what about paychecks?

As we noted in yesterday’s Digest, there’s a second number that matters a great deal to households: paychecks.

On Friday, we learned that average hourly earnings rose 0.4% in October. Today, the BLS told us how much of that raise survived higher prices. The answer: not much.

After adjusting for inflation, average hourly earnings were essentially flat in October, after falling 0.5% in September. And over the 12 months through September, inflation-adjusted hourly pay fell 0.7%. In other words, paychecks have stopped losing ground for now, but they haven’t started catching up.

We’ll come back to what that means for the American consumer shortly. But first, whatever the Fed decides next month, the bigger story for investors may be playing out in the bond market.

What 1994 can teach us about 2027

As I write, the 10-year Treasury yield has climbed to 5.0%.

That matters because the 10-year sets the cost of money across the economy, from mortgages to corporate loans. It also sets the bar that stocks must clear. The more investors can earn from a “risk-free” Treasury, the less they’re willing to pay for stocks.

Now, combine that with what look like more rate hikes in the pipeline, and stocks appear to face a real headwind. Perhaps, but that’s not the full story.

In yesterday’s Digest, we pointed out that in 1995, with Republicans newly in control of Congress and battling President Bill Clinton, the S&P 500 gained 34%.

What we didn’t mention is the year that came before it…

In February 1994, the Fed began raising rates for the first time in five years. A year later, it had doubled the fed funds rate from 3% to 6%. Bond investors were caught flat-footed. The 10-year Treasury yield climbed from about 5.6% in January to more than 8% by November, and global bond markets lost roughly $1.5 trillion in value in what Fortune called a “bond market massacre.”

Stocks didn’t crash, but they didn’t go anywhere either…

S&P 500 earnings grew about 20% in 1994, yet the index finished the year roughly flat. When a Treasury bond pays 8%, investors simply won’t pay as much for each dollar of corporate earnings.

Now, fast-forward to today

Today’s setup looks similar: a Fed that’s hiking, a 10-year yield near its highest level since 2007, and booming corporate earnings.

But look at what’s happened to valuations…

The S&P 500 started the year trading at 22 times forward earnings. Today, it’s around 18, below both its five-year and 10-year averages. Earnings estimates have climbed nearly 34% this year, while the index has gained less than 10%. That’s certainly not the sideways market of 1994, but it’s subdued market performance relative to the underlying earnings strength.

Now, remember how the 1994 story ended – the earnings growth didn’t disappear. And once the bond market topped and the Fed stopped hiking, investors found themselves looking at a market that had spent a year getting cheaper while profits climbed.

Sound like a buying opportunity? That’s putting it mildly.

As I just noted, stocks didn’t just recover in 1995; they surged 34% as Wall Street made up for lost time.

I’m not predicting that’s what 2027 will bring, and it’s not a perfect match. By most measures, stocks were cheaper in 1994 than they are today. Still, earnings are compounding while valuations compress, and eventually, markets tend to close that gap.

If the market does catch up to its earnings, though, it’s unlikely to lift every stock equally

The biggest gains should go to companies whose earnings can withstand higher rates and prices. Others could get left behind.

As legendary investor Louis Navellier, editor of Growth Investor, recently put it:

The Federal Reserve’s next moves could have a major impact on the stock market. With interest rates and market leadership shifting, investors need to be especially careful about where they put their money.

Louis’ tool for that job is his Stock Grader system, which grades more than 6,000 stocks on eight fundamental factors, including sales growth, earnings growth and operating margins, along with the institutional buying pressure behind each stock.

Looking ahead to next year, Louis expects the gap between the winners and losers to widen:

And as we head into 2027, I think the difference between the winners and losers could become even more pronounced.

This is the focus of Louis’ free presentation this Thursday, Nov. 12, at 2 p.m. Eastern.

He’ll explain why he believes the bond market is sending an important warning heading into 2027 and how higher rates could expose weaknesses in some popular stocks.

He’ll also reveal a new way he’s putting Stock Grader to work, one designed to help investors find opportunities and avoid potential losers without needing to predict where the broader market goes next.

Louis will dive deeper into all this on Thursday, along with which opportunities his Stock Grader is flagging today. Plus, he’ll share two free stock recommendations: one to buy and one to avoid.

You can reserve your free spot right here.

The cockroach consumer, part two

Yesterday, our senior analyst Brian Hunt, editor of Money & Megatrends, told us that in the event of global thermonuclear war, two things will survive: cockroaches and the American consumer.

Today’s real wage figure doesn’t make his case any easier. Paychecks merely kept pace with prices last month after falling behind in September. But as Brian showed us yesterday, that hasn’t stopped Americans from spending.

Our global macro expert Eric Fry and his lead analyst Tom Yeung are in Brian’s camp. In last week’s Fry’s Investment Report update, Tom called the U.S. consumer “one of the most powerful investment themes of the past century.”

Here’s Tom:

The strength of the U.S. consumer has long defied expectations.

Similar fears resurfaced during the stock market corrections of the 1970s, the late 1980s, and early 2000s. American consumers shrugged off these concerns.

Consumption only dipped slightly during the two oil shocks (less than 1% in real terms) and actually went up during the mild 2001 recession.

The current data backs him up…

Consumer spending grew at a 3.8% annualized rate in the third quarter, beating forecasts. Retail sales rose a solid 0.8% in September, according to the Commerce Department.

Meanwhile, Visa (V) reports that U.S. card payment volume rose 10% year-over-year in the first three weeks of October. And the National Retail Federation expects holiday sales to climb 4.2% to $1.013 trillion, which would be the first holiday season to top $1 trillion.

So, how is Eric playing it?

One way is Deckers Outdoor Corp. (DECK), the company behind Hoka running shoes and UGG boots. Back to Tom:

Deckers Outdoor Corp. (DECK) is one of the cheapest names in retail. Shares trade at just 10X forward earnings – their lowest since 2015.

That discount comes from two worries: whether Deckers’ brands can keep winning, and how long the U.S. consumer can keep spending. Eric and Tom believe both fears are overblown.

On the first, Hoka has been taking market share thanks to a series of missteps by Nike. Tom lays them out:

1. Hires a Bain & Co. consultant to raise profits.
2. He cuts out middleman retailers to focus on higher-margin direct sales.
3. Hoka (and On) take shelf space.
4. Nike realizes its mistake, but it’s too late.
5. New Nike CEO adopts a new strategy: “Just Undo It?”

It turns out that Step 5 is particularly difficult. Casual runners have become used to wearing oversized, ultrapadded running shoes from Hoka, and Nike has struggled to woo customers back.

Meanwhile, UGG has found a new generation of fans among millennial and Gen Z shoppers, helped along by celebrities like Charli XCX and Gigi Hadid.

Now, beyond the indefatigable U.S. consumer, there’s one last reason to consider DECK…

Why Eric calls Deckers an “AI survivor”

Regular Digest readers know that Eric has been one of our more cautious voices on the AI trade this year.

Back in July, he told readers to “Panic in Advance” ahead of a potential AI shakeout, and he’s been steering them toward opportunities that don’t depend on the AI buildout – oil, healthcare and the American consumer among them.

Deckers fits that bill. As Tom puts it, it’s “a quintessential AI survivor stock.” And here’s how Eric described it back in May:

It has no AI factory. No GPU cluster. No agentic inference.

Instead, it has two of the most culturally resonant footwear brands on Earth, a best-in-class profitability profile, and a stock price that is still recovering from a growth scare that has largely passed.

So, if you’re looking to diversify out of some of your more speculative AI plays today, even while you ride your core AI holdings, give DECK a look. Eric thinks it’s a good buy below $115.

Coming full circle…

Today’s CPI report tells us what prices did last month. But Louis and Eric would agree on the bigger takeaway: In a market where rates are rising and prices are still climbing, what you own matters more than simply being invested.

For Louis, that means companies with surging earnings and healthy margins. For Eric, it means beloved brands like Hoka and UGG that don’t need the AI buildout to win.

Have a good evening,

Jeff Remsburg

The post Today’s Hot CPI Report and the Market Driver It Can’t Kill appeared first on InvestorPlace.

The company behind the Claude artificial intelligence platform has been growing at an incredible pace. Its revenue surged more than 1,114% from a year ago.

That’s phenomenal growth.

Anthropic’s arrival on Wall Street could give the entire AI sector another shot in the arm.

Remember, I’ve been telling you for months that the AI boom isn’t slowing down. The order backlogs are enormous. The companies supplying chips, servers, storage, and cooling equipment to the hyperscalers are reporting spectacular earnings.

But there’s something I want to make very clear: I’m not recommending that you rush out and buy Anthropic stock when it begins trading.

I’ve been investing for 47 years, and I’ve learned that there’s a big difference between an exciting company and a stock that deserves a place in your portfolio.

So, let me give you three reasons why I’m not chasing Anthropic’s IPO… and where investors should be putting their money instead.

Reason No. 1: IPOs Can Be Awfully Expensive

Anthropic got started in 2021. Just five years later, it’s preparing for what could be one of the largest initial public offerings in history at an estimated $1.4 trillion.

Its net revenue retention rate is approximately 900%. In plain English, customers that were already using Anthropic’s services a year ago are now spending roughly nine times as much.

But here’s the problem.

Everybody knows Anthropic is growing rapidly. Wall Street knows it. Institutional investors know it.

So, how much are they willing to pay?

As I write this, Anthropic hasn’t announced its final offering price. And even when it does, there’s no guarantee that ordinary investors will be able to buy shares at that price.

If demand is overwhelming, the stock could open substantially higher.

We’ve seen this movie before.

When SpaceX Technologies Corp. (SPCX) went public in June, its shares surged roughly 40% in the first two trading days.

Then the stock tumbled from those early highs. Investors who chased the excitement paid the price.

The same thing could happen with Anthropic.

There’s also an unusual provision in Anthropic’s offering that could allow certain insiders to sell shares immediately, rather than waiting through the traditional lockup period. That creates another potential source of selling pressure.

I’m not predicting that Anthropic will collapse after its IPO. It could certainly go higher.

But I don’t like guessing about what a stock will do when everybody is chasing it.

I prefer to let the excitement settle down.

Reason No. 2: I Want to See the Earnings

I am obsessed with fundamentals.

I want strong sales growth. I want even stronger earnings growth. I want positive earnings surprises. And I especially want to see analysts revising their earnings estimates higher.

Anthropic certainly has the sales growth.

And its operating results are improving dramatically. During the first nine months of 2026, its operating loss narrowed to approximately $1.3 billion, compared with $5.2 billion during the same period last year.

That’s very encouraging, but the company still has a lot to prove.

Anthropic has disclosed nearly $900 billion in future spending commitments, primarily associated with computing power and infrastructure. That’s an enormous amount of money.

But there’s a difference between spending money and making money. So, I want to see how Anthropic converts its extraordinary revenue growth into sustainable earnings.

That’s why I generally wait at least a year before considering a newly public company.

My Stock Grader system evaluates thousands of publicly traded stocks using a combination of fundamental and quantitative factors.

The fundamental side looks at sales growth, earnings growth, operating margins, earnings surprises and analyst revisions. The quantitative side helps me identify stocks attracting buying pressure relative to their volatility.

And the results speak for themselves.

Every single year since 2020, Stock Grader has issued a Buy or Strong Buy rating for at least 23 of the 25 top-performing stocks in the market.

That’s what happens when you focus on the numbers instead of Wall Street’s latest excitement.

Of course, those numbers have to exist before I can evaluate them.

I need a meaningful trading history and several quarters of public financial results to evaluate those things properly.

With Anthropic, we’re just getting started.

So, I’ll watch its earnings reports. I’ll watch its margins. I’ll watch whether analysts become more or less optimistic. And eventually, if the numbers justify it, Anthropic might earn a place on my buy list.

But I’m not going to abandon a system that’s served me well for nearly five decades just because Wall Street has a shiny new stock to sell.

Reason No. 3: There Are Already Better Opportunities

While everybody is talking about Anthropic, some of the companies already making money from the AI boom have been getting knocked around.

And frankly, I think it’s ridiculous.

Look at Micron Technology Inc. (MU).

The company is benefiting from extraordinary demand for memory chips used in AI systems. Yet its shares recently traded at less than four times forecasted 2027 earnings.

Or look at Super Micro Computer Inc. (SMCI).

Its latest quarterly sales surged nearly 300%, while earnings increased more than 570%. Yet the stock was trading at only roughly five times forecasted earnings.

Folks, I’ve rarely seen an environment where companies are growing this quickly while trading at such low earnings multiples.

But markets react. They don’t think.

Sometimes investors sell excellent companies because they’re worried about interest rates, politics, or whatever the latest Wall Street narrative happens to be.

I look at the earnings. Are sales still growing? Are operating margins holding up? Are analysts cutting their estimates, or are they raising them?

If the fundamentals remain strong, I’m inclined to hold on.

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

So, why would I chase Anthropic at an unknown valuation when I can already identify companies with proven earnings, established trading histories and attractive prices?

And it’s not just AI.

We’re also finding extraordinary earnings opportunities in energy, refining, shipping, and other industries.

I want to own the best stocks I can find, wherever they happen to be.

The Stocks to Buy and Avoid for 2027

Finding a good stock is only the first decision. You also have to decide whether it’s better than the stocks you already own.

I might like a company. I might think its business is phenomenal. But if I already own another company with stronger earnings growth, better analyst revisions, and less volatility, why would I replace it?

And the opposite is just as important. If a stock’s fundamentals deteriorate, I don’t want to hang on to it simply because it used to be a winner.

That’s why I’m constantly evaluating thousands of stocks, looking for opportunities to replace good companies with even better ones.

And as we head into 2027, I think the difference between the winners and losers could become even more pronounced.

Some companies are delivering spectacular earnings growth, expanding their profit margins, and attracting institutional buying. Others are struggling, and I expect some of them to struggle a whole lot more.

That’s why I’ve put together a special presentation to show you where I believe the biggest opportunities and dangers lie as we head into 2027. We’re doing it at 2 p.m. Eastern this coming Thursday, November 12 (reserve your spot here).

And I’m going to give you two specific stock recommendations, absolutely free.

First, I’ll reveal an A+ stock that I believe could be among the market’s top performers in 2027 and explain why I think it’s an exceptional opportunity to buy now.

And I’ll also show you one stock I believe you should sell or avoid immediately. It could become one of the market’s worst performers in 2027.

Click here to reserve your seat for my special free presentation, where you’ll get both free stock recommendations.

Now, I hope Anthropic has a spectacular IPO. I hope its business continues growing, and I hope its success helps lift the entire AI sector.

But I’m not going to chase it.

Wall Street will always have another exciting story to sell you. My job isn’t to buy every story.

It’s to find the fundamentally superior stocks, avoid the fundamentally inferior ones, and let earnings do the heavy lifting.

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:

Micron Technology Inc. (MU) and Super Micro Computer Inc. (SMCI)

The post Three Things to Consider Before Buying the Anthropic IPO appeared first on InvestorPlace.

So when my friend and colleague Louis Navellier sent over today’s essay – on why you sometimes have to sell a good stock to buy a better one – I knew I had to share it. Louis has spent nearly 50 years building a quantitative system that grades more than 6,000 stocks on their fundamentals and institutional buying pressure, and it’s been pointing him toward some surprising places lately. The story of how that system came to be starts, believe it or not, with a failed college assignment.

Louis is hosting a free presentation this Thursday, Nov. 12, at 2 p.m. Eastern, where he’ll break down what the Fed’s next moves could mean for your money in 2027 – and give away two free stock recommendations, one to buy and one to avoid. Registering also gets you immediate access to test-drive his Stock Grader system on any ticker you want. Reserve your spot here.

Enjoy!

In the early 1990s, the San Francisco 49ers faced a problem most NFL teams would have loved.

They had two future Hall of Fame quarterbacks on their roster. 

Joe Montana, who had led the team to four Super Bowl victories, and Steve Young, a rising star who was ready to take over.

Eventually, the 49ers handed the offense to Young. And in January 1995, he led San Francisco to another Super Bowl victory.

Now, there’s a valuable investing lesson in that story.

You see, I’ve always believed that managing a stock portfolio is a lot like managing a championship football team. You want the best players on the field. And sometimes, that means replacing a proven winner with someone who has even greater potential going forward.

Well, the same thing happens on Wall Street.

Yesterday’s Winner Isn’t Always Tomorrow’s Best Choice

A stock that delivered tremendous gains over the past few years might still have room to run. But if its sales and earnings are slowing, while another company’s business is taking off, you’d better pay attention.

After all, the goal is to build a portfolio that can keep winning, even as market leadership changes.

That’s why I’ve spent nearly 50 years developing and refining a stock-picking system designed to help me find Wall Street’s strongest opportunities.

And believe it or not, it all started with a college assignment that I technically failed.

So, in today’s Market 360, I’ll explain how that discovery changed my approach to investing, why my system is particularly valuable in today’s changing market.

I’ll also tell you about a special presentation I’m hosting on Thursday, November 12, at 2 p.m. Eastern, where I’ll reveal what I believe the Fed’s next moves could mean for your investments in 2027 – and how I’m preparing to take advantage of the opportunities ahead. (Reserve your spot for this free event here.)

How a Failed Assignment Became a Stock-Picking Strategy

It all started when I was studying finance at Cal State Hayward in the late 1970s.

One of my professors assigned me to build a stock selection model that would mirror the performance of the S&P 500. Thanks to that professor, I had access to Wells Fargo’s mainframe computers. Remember, this was back when computers took up entire rooms.

After countless hours studying market data and building my model, I finally ran the numbers.

And to my surprise, my model didn’t just match the S&P 500 – it beat it!

Now, here’s why that discovery ended up changing my life.

Princeton economist Burton Malkiel had famously argued that a blindfolded monkey throwing darts at a newspaper’s stock listings could pick investments just as well as the professionals on Wall Street.

But my model was telling me something very different.

A relatively small group of stocks was responsible for much of my portfolio’s outperformance. Better yet, these companies had something in common.

Their sales and earnings were growing. Their operating margins were expanding. And they consistently delivered positive earnings surprises.

In fact, I eventually identified eight fundamental factors that helped me pinpoint companies with the potential to outperform the broader market.

Fundamentals Were Only Half the Equation

But I also learned that strong fundamentals were only part of the equation. Even a great company can be a disappointing investment if the big institutional investors aren’t buying its shares.

That’s why I added a second measure to my research: institutional buying pressure.

Together, those two measures became the foundation of my proprietary Stock Grader system.

Today, Stock Grader analyzes more than 6,000 stocks, assigning each a grade from A to F based on its Fundamental and Quantitative Grades.

And here’s the beauty of this system, folks. It doesn’t care about old market trends or yesterday’s headlines. It follows the fundamentals and institutional buying pressure, wherever they lead.

That’s especially valuable when market leadership starts to change.

Market Rotation Can Change Which Stocks Lead

If you’ve followed my recommendations over the years, you’ve probably noticed that the stocks I favor today look different from the ones I recommended a year or two ago.

Back then, we owned a lot of gold mining stocks as prices were hitting record high after record high. AI stocks were prominent in our portfolios, too, of course.

That’s no accident. That’s Stock Grader doing exactly what it’s designed to do.

The Market’s Winners Are Already Changing

But lately, my system has been pointing me toward some compelling opportunities in energy and shipping. That’s because the war with Iran has disrupted global energy markets, creating new challenges for some companies and opportunities for others.

And by following the fundamentals, I’ve been able to recommend several stocks that have delivered impressive gains. For example:

• International Seaways, Inc. (INSW), an oil tanker operator I recommended on March 6, has climbed 54%.
• Okeanis Eco Tankers Corp. (ECO), another tanker company I recommended on June 22, has gained 61%.
• HF Sinclair Corporation (DINO), an oil refiner I recommended on June 23, has surged 50%.

Those are remarkable gains, especially considering the uncertainty surrounding the energy markets.

And they illustrate an important point: While investors are focused on the latest headlines, my system is searching for companies with the strongest numbers.

Now, don’t get me wrong. I’m still very bullish on artificial intelligence. In fact, some of my favorite stocks remain tied to the massive buildout of AI infrastructure.

But I’m not going to ignore opportunities in other industries simply because they aren’t grabbing the headlines. When the numbers point me toward stronger opportunities, I’m prepared to act.

Sometimes, that means selling a good stock to buy a better one.

How to Build a Portfolio When Leadership Keeps Changing

And that brings me back to the San Francisco 49ers.

A championship coach knows that the lineup that won last year’s Super Bowl might need to change to win the next one.

The same is true of investing. I want to let my winners run as long as their fundamentals remain strong. But I also want to be ready when new opportunities emerge.

I believe that approach will be more important than ever as we head into 2027.

You see, the Federal Reserve’s next moves could have a major impact on the stock market. With interest rates and market leadership shifting, investors need to be especially careful about where they put their money.

That’s why I’m preparing to unveil an entirely new way of putting my stock-picking research to work.

On Thursday, November 12, at 2 p.m. Eastern, I’m going to reveal what I’ve been working on during a special presentation.

Click here to reserve your spot now.

During this event, I’ll explain what I expect from the Fed in the months ahead and what its next moves could mean for your investments in 2027.

I’ll also share a Wall Street indicator with a remarkable historical track record of predicting the market’s next moves, and explain why I believe investors need to prepare now rather than wait until next year.

Most importantly, I’ll reveal a brand-new way I’m putting Stock Grader to work to identify what I believe could be the market’s next big winners.

Plus, you’ll receive two free stock recommendations:

• One stock I believe could be among 2027’s biggest winners.
• One popular stock I believe investors should avoid.

I’ll give you the names and ticker symbols of both stocks absolutely free.

Register for my November 12 presentation right here.

The post Finding 2027’s Best Stocks May Require Letting Go of 2026’s Winners appeared first on InvestorPlace.

Last week’s post-election selloff in AI stocks was one for the history books.

On Thursday alone, the Nasdaq 100 plunged 6.4%, its worst day since March 2020, as Wall Street concluded that a Democratic Congress spelled trouble for the AI buildout.

But Friday brought a sharp rebound, and as I write on Monday morning, the buying has picked up steam. The Nasdaq 100 is 3% higher with chip stocks leading the way.

The notable holdout is Nvidia Corp. (NVDA), down about 4% after its board announced an independent investigation into CEO Jensen Huang’s relationship with an alleged Chinese spy. The board said it has no reason to believe national security or Nvidia secrets were compromised.

So, just two trading days after one of the worst tech routs in years, much of the AI trade is clawing its way back. It begs a question…

Was Thursday’s selloff justified?

Wall Street reacts. It doesn’t think

Last week, midterm voters didn’t just hand Democrats control of Congress – they also took aim at data centers.

According to Ballotpedia, majorities voted to restrict data center development in at least 46 of the roughly 50 ballot initiatives on the subject this year. Wall Street read that as the beginning of the end for the AI buildout.

Legendary investor Louis Navellier, editor of Growth Investor, thinks the market got it wrong – badly wrong. Here’s Louis from his podcast on Friday:

Okay, folks, obviously we’re having a big rebound in the tech stocks, and that’s very welcome because yesterday’s sell-off was ridiculous.

The semiconductor index was down over 12%, and it was brutal. I mean, it was machine selling, totally irrational.

As one example where, perhaps, the baby was thrown out along with the bathwater, consider Texas…

Democratic Governor-elect Gina Hinojosa campaigned on pausing new data center approvals and ending the state’s data center sales tax break, which now costs Texas at least $1.3 billion a year.

But on Friday, reports surfaced that she’d said already-permitted projects will be allowed to finish construction. According to Louis, that covers the data centers coming online in 2027 and well into 2028.

And Texas isn’t an outlier. Louis also points out that the data center industry is hardly a stranger to Democratic leadership:

Data centers are in huge Democratic states like Virginia and Pennsylvania. So those Democratic governors never mess with the data centers. And the new ones aren’t going to really mess with them either.

The reason comes down to money. Loudoun County, Virginia, says it has “the highest concentration of data centers anywhere in the world.” In fiscal 2026, those data centers generated $1.2 billion in property tax revenue, or 39% of the county’s entire budget.

Here’s Louis from a Flash Alert he sent subscribers on Thursday, while stocks were still falling:

So, what the politicians will do is they will assure everybody their electric rates aren’t going up because of the data centers. They will accept the property tax revenue and the jobs that data centers create, and that’s that.

Then there’s Washington…

Democrats take control of both chambers in January, but President Trump still holds the veto, and overriding a veto requires a two-thirds majority in both the House and Senate. That makes a sweeping federal crackdown on data centers unlikely.

Louis puts it simply:

We have gridlock. That’s what the stock market likes.

History agrees. In 1995, with Republicans newly in control of Congress and battling President Bill Clinton, the internet buildout kept going, and the S&P 500 gained 34%.

Here’s Louis’ bottom line:

But there is a narrative out there still being spread that the AI boom is going to slow, and that’s not true. There are no analyst cuts, none.

But not every AI stock will “bounce like a tennis ball”

Let’s be clear – this is not a greenlight to cannonball back into any AI stock…or even continue holding all your previous AI positions without a fresh analysis.

You see, there’s a second test coming for the AI trade, and it has nothing to do with ballot initiatives: the cost of money.

Friday’s strong jobs report (more on that below) pushed the odds of a rate hike at the Fed’s December meeting to 82%, according to the CME Group’s FedWatch tool. If the Fed hikes and Treasury yields keep climbing, borrowing gets more expensive across the AI buildout.

The biggest spenders, the hyperscalers, are funding most of their buildout from free cash flow, so they can absorb higher rates. But further down the AI supply chain, some companies lean far more heavily on borrowed money, and for them, rising yields are a real headwind.

This is one of the issues Louis will tackle in a new presentation he’s holding this Thursday, Nov. 12, at 2 p.m. Eastern.

He believes the bond market is sending an important warning heading into 2027, and that higher rates could expose weaknesses in some popular stocks. That’s a big reason he thinks owning the right stocks will matter far more next year than simply being invested.

A market recovery – even an AI recovery – won’t push all stocks higher again. It’s important to be selective going forward. Back to Louis’ Friday podcast:

Bad stocks bounce like rocks, but good stocks bounce like fresh tennis balls…

Wall Street reacts. It doesn’t think. Crowds are dumb. We’re smart. So, in the end, fundamentally superior stocks will prevail…

So, how do you invest in those “fresh tennis balls”?

That’s what Louis’ Stock Grader system was built for. And Louis has developed a new way to put it to work, one designed to help investors spot opportunities and avoid potential losers without needing to predict where the broader market will go next.

He’ll walk through it this coming Thursday and reveal two free stock recommendations: one to buy and one to avoid. And when you register to join Louis for the event, you’ll get immediate access to test-drive the Stock Grader yourself by entering any ticker and seeing how Louis’ system grades it.

You can reserve your free spot right here.

A blowout jobs report

As promised, let’s circle back to Friday’s jobs report.

The Bureau of Labor Statistics (BLS) reported that the U.S. economy added 165,000 jobs in October, nearly triple the 59,000 economists expected. The unemployment rate slipped to 4.1%, and the August and September figures were both revised higher.

The quality of the report was just as encouraging as the headline number. Professional and business services led with 70,000 new jobs, followed by healthcare, transportation, and manufacturing. That’s a meaningful shift from last year, when job growth was anemic and came almost entirely from healthcare.

There was one soft spot…

The average duration of unemployment jumped to 27.1 weeks, the highest since September 2021. So, while people with jobs are largely keeping them, those who lose one are having a harder time finding the next.

The more important number for most households is pay. Average hourly earnings rose 3.1% over the past year. That’s an improvement, but it still trails September’s 3.7% inflation rate. In other words, the typical paycheck isn’t keeping up with the cost of living.

Tomorrow’s Consumer Price Index (CPI) report for October is the next shoe to drop. Alongside it, the BLS will publish its inflation-adjusted wage figures, which will tell us whether paychecks are finally catching up.

The numbers will also shape the Federal Reserve’s next move – and as we noted above, that could matter a great deal for the AI trade.

We’ll report back.

Grumpy consumers are still shopping

That gap between paychecks and prices goes a long way toward explaining the national mood. After all, a raise doesn’t feel like much of a raise when the cost of groceries and gas is rising even faster.

And if you’re wondering just how sour that mood is, Friday’s University of Michigan consumer sentiment survey shows just how sour things remain.

The preliminary November reading rose to 51, up from 48 in October and above the 47.5 economists expected. But that’s not far above May’s reading of 44.8, the lowest on record in data going back to the 1950s.

Here’s the survey’s director, Joanne Hsu, from The Wall Street Journal:

Consumers’ comments revealed growing anxiety over a possible AI bubble.

AI worries, however, were dwarfed by cost of living concerns, which continue to be at the forefront of consumers’ minds across the population.

That lines up with last week’s election, which was a referendum on affordability as much as anything. A CNN exit poll found that 90% of voters called the cost of living a crucial or major factor in their vote.

Put that together and it sounds like the American consumer is finally running out of road.

Don’t count on it

Our senior analyst Brian Hunt, editor of Money & Megatrends, has heard this story before. Here’s Brian from his Oct. 30 issue:

I’ve been investing and reading financial research for 28 years. During all that time, I’ve heard many famous pessimists forecast the death of the American consumer. Well, not even the dot-com crash or the 2008 financial crisis could knock it out.

This is why I say that in the event of global thermonuclear war, two things will survive. Cockroaches and the American consumer.

Brian’s evidence isn’t surveys. It’s stock prices.

In late October, Harley-Davidson Inc. (HOG), Cracker Barrel Old Country Store Inc. (CBRL) and Wayfair Inc. (W) all hit new one-year highs. Since then, Marriott International Inc. (MAR) and Hilton Worldwide Holdings Inc. (HLT) have both hit all-time highs.

And here’s a quiz for you…

On the day after the election, what was the best-performing sector in the S&P 500?

Ready?

Consumer discretionary – the companies selling what people want rather than need – up more than 4%

Back to Brian:

Market prices are not always perfect, but much of the time, they know a hell of a lot more than any economist or investment guru.

So, consumers are unhappy with prices, and they’re eager to tell any pollster who asks. But as soon as they’re done, they’re zooming off to a big Cracker Barrel lunch on that new Harley they just bought.

Coming full circle, whether it’s voters griping about prices or Wall Street panicking over data centers, the headlines have been gloomy. But consumers keep opening their wallets, and as today’s rally shows, investors are opening theirs again too.

We’ll keep tracking it.

Have a good evening,

Jeff Remsburg

The post Why the AI Selloff Got It Wrong appeared first on InvestorPlace.

After last week’s brutal selloff, stocks came roaring back today.

The rally was broad-based, with all 11 sectors of the S&P 500 moving higher. Even better, the buying wasn’t limited to a handful of big technology stocks.

That’s an encouraging sign after the market turmoil we’ve experienced since the midterm elections.

Of course, investors still have plenty to worry about. There are questions about whether newly elected Democratic governors could slow the AI data center boom. And NVIDIA Corporation (NVDA) CEO Jensen Huang has found himself at the center of a new controversy involving an affair with someone allegedly connected to Chinese intelligence.

Look, I know the headlines have been unsettling, folks. But the underlying fundamentals are telling a much more encouraging story.

Corporate earnings remain strong. About 88% of S&P 500 companies have now reported, and 84% have beaten analysts’ earnings estimates. FactSet says third-quarter earnings are currently running 31.4% above last year, while revenues are up 14.3%.

Demand for AI infrastructure continues to grow. And some of the economic pressures that have weighed on stocks are beginning to ease. In fact, in today’s Navellier Market Buzz, I gave five reasons I believe this bull market has plenty of life left.

And I’m not alone in that assessment. Joining me is Adam Johnson, a former Bloomberg host and founder of Bullseye Brief, to discuss why we’re still bullish despite the recent volatility.

Plus, Adam shares some opportunities he’s finding beyond the familiar Big Tech names.

Click the image below to watch today’s Market Buzz.

Finding the Next Big Winners of 2027

As Adam and I discussed, there are plenty of reasons to be bullish about the market heading into 2027.

But the key is owning the right stocks.

That’s why I’ve been working on something special – a new way to put my decades of stock-picking research to work in the market ahead.

And I’m ready to share it with you on Thursday, November 12, at 2 p.m. Eastern.

That’s when I’m hosting a special free presentation where I’ll explain what I expect from the Fed, what it could mean for stocks in 2027 and how I’m preparing to take advantage of the opportunities ahead.

Click here to reserve your spot now.

I’ll also share a Wall Street indicator with a remarkable historical track record of signaling the market’s next moves.

Plus, I’ll reveal a brand-new way I’m using Stock Grader to find what I believe could be the market’s next big winners.

And I’ll give you two specific stock recommendations, absolutely free. One is an A+ stock I believe could be among 2027’s strongest performers. The other is a popular stock I believe you should sell or avoid.

You’ll get the names and ticker symbols of both.

Click here to register now – and you’ll also be able to test-drive Stock Grader for free before the event.

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:
NVIDIA Corporation (NVDA)

The post 5 Reasons I’m Still Bullish After the Midterm Selloff 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.

Sincerely,

Louis Navellier

Editor, Market 360

The post MetLife Upgraded, Allstate Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

I invited Louis to share his thoughts on the offering. He’s also hosting a special free presentation Thursday, November 12, at 2 p.m. Eastern, where he’ll reveal one stock to buy and another to avoid heading into 2027. You can reserve your spot here.

But first, here’s Louis…

Folks, I have to tell you, I’m looking forward to the Anthropic IPO.

The company behind the Claude artificial intelligence platform has been growing at an incredible pace. Its revenue surged more than 1,200% in the first nine months of 2026.

That’s phenomenal growth.

Anthropic’s arrival on Wall Street could give the entire AI sector another shot in the arm.

Remember, I’ve been telling you for months that the AI boom isn’t slowing down. The order backlogs are enormous. The companies supplying chips, servers, storage, and cooling equipment to the hyperscalers are reporting spectacular earnings.

But there’s something I want to make very clear: I’m not recommending that you rush out and buy Anthropic stock when it begins trading.

I’ve been investing for 47 years, and I’ve learned that there’s a big difference between an exciting company and a stock that deserves a place in your portfolio.

So, let me give you three reasons why I’m not chasing Anthropic’s IPO… and where investors should be putting their money instead.

Reason No. 1: IPOs Can Be Awfully Expensive

Anthropic got started in 2021. Just five years later, it’s preparing for what could be one of the largest initial public offerings in history.

Its net revenue retention rate is approximately 900%. In plain English, customers that were already using Anthropic’s services a year ago are now spending roughly nine times as much.

But here’s the problem.

Everybody knows Anthropic is growing rapidly. Wall Street knows it. Institutional investors know it.

So, how much are they willing to pay?

As I write this, Anthropic hasn’t announced its final offering price. And even when it does, there’s no guarantee that ordinary investors will be able to buy shares at that price.

If demand is overwhelming, the stock could open substantially higher.

We’ve seen this movie before.

When SpaceX Technologies Corp. (SPCX) went public in June, its shares surged roughly 40% in the first two trading days.

Then the stock tumbled from those early highs. Investors who chased the excitement paid the price.

The same thing could happen with Anthropic.

There’s also an unusual provision in Anthropic’s offering that could allow certain insiders to sell shares immediately, rather than waiting through the traditional lockup period. That creates another potential source of selling pressure.

I’m not predicting that Anthropic will collapse after its IPO. It could certainly go higher.

But I don’t like guessing about what a stock will do when everybody is chasing it.

I prefer to let the excitement settle down.

Reason No. 2: I Want to See the Earnings

I am obsessed with fundamentals.

I want strong sales growth. I want even stronger earnings growth. I want positive earnings surprises. And I especially want to see analysts revising their earnings estimates higher.

Anthropic certainly has the sales growth.

And its operating results are improving dramatically. During the first nine months of 2026, its operating loss narrowed to approximately $1.3 billion, compared with $5.2 billion during the same period last year.

That’s very encouraging, but the company still has a lot to prove.

Anthropic has disclosed nearly $900 billion in future spending commitments, primarily associated with computing power and infrastructure. That’s an enormous amount of money.

But there’s a difference between spending money and making money. So, I want to see how Anthropic converts its extraordinary revenue growth into sustainable earnings.

That’s why I generally wait at least a year before considering a newly public company.

My Stock Grader system evaluates thousands of publicly traded stocks using a combination of fundamental and quantitative factors.

The fundamental side looks at sales growth, earnings growth, operating margins, earnings surprises and analyst revisions. The quantitative side helps me identify stocks attracting buying pressure relative to their volatility.

And the results speak for themselves.

Every single year since 2020, Stock Grader has issued a Buy or Strong Buy rating for at least 23 of the 25 top-performing stocks in the market.

That’s what happens when you focus on the numbers instead of Wall Street’s latest excitement.

Of course, those numbers have to exist before I can evaluate them.

I need a meaningful trading history and several quarters of public financial results to evaluate those things properly.

With Anthropic, we’re just getting started.

So, I’ll watch its earnings reports. I’ll watch its margins. I’ll watch whether analysts become more or less optimistic. And eventually, if the numbers justify it, Anthropic might earn a place on my buy list.

But I’m not going to abandon a system that’s served me well for nearly five decades just because Wall Street has a shiny new stock to sell.

Reason No. 3: There Are Already Better Opportunities

While everybody is talking about Anthropic, some of the companies already making money from the AI boom have been getting knocked around.

And frankly, I think it’s ridiculous.

Look at Micron Technology Inc. (MU).

The company is benefiting from extraordinary demand for memory chips used in AI systems. Yet its shares recently traded at less than four times forecasted 2027 earnings.

Or look at Super Micro Computer Inc. (SMCI).

Its latest quarterly sales surged nearly 300%, while earnings increased more than 570%. Yet the stock was trading at only roughly five times forecasted earnings.

Folks, I’ve rarely seen an environment where companies are growing this quickly while trading at such low earnings multiples.

But markets react. They don’t think.

Sometimes investors sell excellent companies because they’re worried about interest rates, politics, or whatever the latest Wall Street narrative happens to be.

I look at the earnings. Are sales still growing? Are operating margins holding up? Are analysts cutting their estimates, or are they raising them?

If the fundamentals remain strong, I’m inclined to hold on.

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

So, why would I chase Anthropic at an unknown valuation when I can already identify companies with proven earnings, established trading histories and attractive prices?

And it’s not just AI.

We’re also finding extraordinary earnings opportunities in energy, refining, shipping, and other industries.

I want to own the best stocks I can find, wherever they happen to be.

The Stocks to Buy and Avoid for 2027

Finding a good stock is only the first decision. You also have to decide whether it’s better than the stocks you already own.

I might like a company. I might think its business is phenomenal. But if I already own another company with stronger earnings growth, better analyst revisions, and less volatility, why would I replace it?

And the opposite is just as important. If a stock’s fundamentals deteriorate, I don’t want to hang on to it simply because it used to be a winner.

That’s why I’m constantly evaluating thousands of stocks, looking for opportunities to replace good companies with even better ones.

And as we head into 2027, I think the difference between the winners and losers could become even more pronounced.

Some companies are delivering spectacular earnings growth, expanding their profit margins, and attracting institutional buying. Others are struggling, and I expect some of them to struggle a whole lot more.

That’s why I’ve put together a special presentation to show you where I believe the biggest opportunities and dangers lie as we head into 2027. We’re doing it at 2 p.m. Eastern this coming Thursday, November 12 (reserve your spot here).

And I’m going to give you two specific stock recommendations, absolutely free.

First, I’ll reveal an A+ stock that I believe could be among the market’s top performers in 2027 and explain why I think it’s an exceptional opportunity to buy now.

And I’ll also show you one stock I believe you should sell or avoid immediately. It could become one of the market’s worst performers in 2027.

Click here to reserve your seat for my special free presentation, where you’ll get both free stock recommendations.

Now, I hope Anthropic has a spectacular IPO. I hope its business continues growing, and I hope its success helps lift the entire AI sector.

But I’m not going to chase it.

Wall Street will always have another exciting story to sell you. My job isn’t to buy every story.

It’s to find the fundamentally superior stocks, avoid the fundamentally inferior ones, and let earnings do the heavy lifting.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. Louis has been at this a long time, and one thing I’ve always appreciated about him is that he doesn’t get distracted by Wall Street’s latest obsession. He follows the earnings, the numbers, and his own research. And right now, he’s seeing some remarkable opportunities — along with some stocks he’d steer clear of. At his free presentation Thursday, November 12, at 2 p.m. Eastern, he’ll reveal one stock to buy and one to avoid for 2027. Reserve your seat here.

The post Anthropic’s IPO Could Lift These AI Stocks appeared first on InvestorPlace.

But my colleague Louis Navellier sees reasons for optimism on Wall Street.

Of course, not every stock will be a winner. Louis believes it will become increasingly important to know which companies to own as we head into 2027.

In today’s guest essay, he’ll take a look at the market ahead and how investors can prepare. He’ll also tell you about a special free event on November 12, where he’ll reveal one stock to buy, another to avoid, and a new way to put his Stock Grader system to work. You can sign up for that event here.

Back in 2000, American wrestler Rulon Gardner faced one of the most feared athletes in Olympic history.

His opponent was Aleksandr Karelin, a Russian heavyweight who had won three Olympic gold medals and hadn’t lost an international match in 13 years.

Gardner was a dairy farmer’s son from Wyoming.

Not surprisingly, he was a massive underdog. But he wasn’t going down without a fight.

For much of the match, the two heavyweights were locked in a clinch, neither able to gain an advantage.

Finally, Karelin broke his grip.

That single mistake cost him the match. Gardner won 1-0, pulling off one of the greatest upsets in Olympic history.

Folks, that’s a pretty good picture of what we’re about to see in Washington.

With the midterm elections now behind us, Democrats have taken control of Congress, setting up a showdown with President Trump.

Both parties will be fighting for control. Both will be determined to get their way. But with power divided, neither side will be able to push through its agenda without the other getting in the way.

In other words, we are headed for a period of political gridlock.

And you know what? I think that’s great news for Wall Street.

You see, divided government has historically created some interesting opportunities for investors. And with November already one of the strongest months of the year for stocks, I believe we could be setting up for a powerful rally that carries into 2027.

But there’s a catch.

Even if the broader market takes off, that doesn’t mean every stock will come along for the ride.

So, let’s look at why the post-midterm period has historically been so favorable for investors, what’s fueling my optimism right now… and how you can position yourself to take advantage of the opportunities I see ahead.

I’ll also share details about a special event I’m hosting, where I’ll reveal a new way to put my strongest stock recommendations to work for you as we head into 2027.

Why Gridlock Could Be Good for Stocks

If you think political gridlock is bad news for investors, consider what happened in 1994.

That November, Republicans swept into power in Congress, taking control of both the House and Senate for the first time in 40 years.

President Bill Clinton suddenly found himself facing an emboldened Republican opposition led by Newt Gingrich. Political pundits were bracing for bitter partisan fights and an uncertain future for President Clinton’s economic agenda.

And Wall Street had plenty of worries of its own.

In fact, on November 7, 1994, just one day before the election, the Los Angeles Times published an article with an ominous headline:

“One Last Gasp for the Bull Market?”

The article raised the possibility that stocks could enjoy one final rally before slipping into a bear market.

Well, that certainly didn’t happen.

In 1995, the S&P 500 surged more than 34%. And that was just the beginning of a powerful technology-led bull market.

The internet was just beginning to transform the economy, and Netscape’s blockbuster 1995 IPO helped launch the dot-com boom. And all that innovation continued despite the political battles in Washington.

I believe we’re going to see a similar boom – thanks to artificial intelligence.

AI is transforming the economy much like the internet did three decades ago. Companies are pouring hundreds of billions into data centers, computer chips, and power infrastructure.

Now, I realize some investors are worried that Democrats could throw up roadblocks to the AI boom, particularly when it comes to building new data centers.

And I wouldn’t be surprised if we see some reforms as politicians look to protect consumers from higher electricity bills. That could slow construction in some areas or shift new projects to other states.

But, folks, this train has already left the station. The demand for AI computing power is enormous, and companies have years of orders in their backlogs. Plus, data centers bring jobs and tax revenue to the communities where they’re built. That’s a powerful incentive for lawmakers on both sides of the aisle to keep these projects moving.

There may be a few bumps along the way, but I don’t see political gridlock derailing the AI boom.

Why the Stars Are Aligning for a Year-End Rally

Of course, there are other reasons to be optimistic – specifically seasonality and earnings.

Since 1942, the S&P 500 has risen between November of a midterm election year and the following June 21 out of 21 times, with an average gain of about 16%.

We’re also entering what has historically been the strongest six-month stretch of the year for stocks.

According to the Stock Trader’s Almanac, since 1945, the S&P 500 has gained an average of about 7% between November and April, compared with about 2% between May and October.

Now, history doesn’t guarantee that we’ll see the same results this time around. We still have challenges to navigate, including inflation and interest rates.

But when favorable seasonal trends line up with stunning corporate earnings like we’re seeing right now, that’s when I really start to get excited.

According to the latest data from FactSet, the S&P 500 is on track for 30.2% earnings growth in the third quarter, with 82% of companies reporting so far topping analysts’ earnings estimates.

Even better, all 11 sectors are reporting year-over-year earnings growth, led by energy, technology and materials.

And the outlook remains strong.

Analysts are forecasting another 28.4% jump in S&P 500 earnings in the fourth quarter. In fact, they’ve been raising their estimates when they would normally be cutting them.

Folks, that’s the kind of earnings momentum I love to see.

Of course, that doesn’t mean every stock is going to be a winner. As we’ve seen in the days following the election, Wall Street is still sorting out which companies deserve investors’ money.

And that’s where being selective becomes so important.

How to Position Yourself for a Big 2027

I know the market has been confusing since the election. Some stocks with weaker fundamentals have enjoyed a nice bounce, while others with spectacular earnings have been hit by profit-taking.

Simply put, we’re in the middle of another market rotation. Much of the initial post-election rally was driven by short covering, while some of the strongest AI stocks were left behind.

But I’ve seen this movie before. Back in July, some of my best AI stocks got hammered during the first two weeks of the month. Then they came roaring back, and we ended up finishing July in positive territory.

Wall Street has a habit of reacting first and thinking later. Eventually, though, earnings and fundamentals tend to win out.

Of course, different sectors can take turns leading the market. For example, while AI stocks have been hit by profit-taking, energy stocks have benefited from tight diesel supplies and strong refining margins.

The key is to recognize what’s working and be ready to adjust when leadership changes.

As I like to say, bad stocks bounce like rocks, but good stocks bounce like fresh tennis balls. And as we head into 2027, I think knowing the difference will be more important than ever.

You see, the market has become increasingly narrow. The days when you could buy almost any AI stock and watch it soar are fading. Investors are becoming more selective, and with a new Congress potentially adding more uncertainty to the AI buildout, the list of winners could get even smaller.

But, folks, that’s exactly the kind of market where my Stock Grader system shines.

I’ve spent nearly five decades studying what separates the strongest stocks from the rest. And when Wall Street starts picking winners and losers more carefully, I believe that research becomes even more valuable.

That’s why I’ve been working on something special to help investors navigate the market ahead.

I’m preparing to reveal where I believe the next big opportunities will emerge, which stocks are best positioned to benefit, and how I’m adapting my strategy as market leadership changes.

And on Thursday, November 12, at 2 p.m. Eastern, I’m hosting a special online event to show you exactly how it works.

During the presentation, I’ll reveal two special stock recommendations: one I believe you should consider buying and another I think you should avoid.

If you register for my special event you’ll gain access to exclusive content I’ve prepared for the event. (Click here to reserve your spot now.)

You’ll also get a chance to test-drive my proprietary Stock Grader system.

Normally, this kind of access is reserved for my paid subscribers. But for this event, you’ll be able to enter stock symbols yourself and see how my system grades them.

You can reserve your free spot for Thursday, November 12, at 2 p.m. Eastern by clicking here.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. Louis believes the stage is set for a 2027 where stock selection becomes increasingly important. That’s why he’s developed a new way to use his proprietary Stock Grader system to help investors identify promising opportunities and avoid potential losers. At his free November 12 presentation, he’ll reveal one stock to buy and another to avoid. Register here to reserve your spot and get immediate access to test-drive Stock Grader yourself.

The post Why the Factors Are Aligning for a Big Market Rally appeared first on InvestorPlace.

There’s a scene in Young Frankenstein, where the title character asks how things could get any worse.

“Could be raining,” Igor answers.

Suddenly, a thunderclap roars, and a heavy downpour soaks the two.

This drenching feeling has dominated markets for the past five months. After hitting their all-time highs in June, many AI stocks have dropped, and then kept going down. The iShares Semiconductor ETF (SOXX) is now down 30% from its peak, while China’s AI-heavy STAR50 Index has slumped 40%.

It’s why I wrote back in July – after the forced liquidation of the highly leveraged Situational Awareness hedge fund – that it was still too early to buy the memory-chip dip. Though companies like Micron Technology Inc. (MU) and SK Hynix Inc. (SKHY) had lost a quarter of their value or more, I believed things could still get worse. And they did.

That begs the question: When is it time to jump back in?

InvestorPlace Senior Analyst Louis Navellier has spent the past four decades answering that. By using a quantitative approach that combines fundamental performance with “smart money” flows, Louis has created his Stock Grader system that can identify not just what stocks to buy… but when.

And now, Louis has developed a new way to put Stock Grader to work, helping investors distinguish promising opportunities from stocks that could still have further to fall. He’ll explain his approach during a free presentation at 2 p.m. Eastern on Thursday, November 12. He’ll also reveal two specific recommendations: one stock to consider buying for 2027 and another to avoid. (You can reserve your spot for that free event here.)

His ratings are now flagging several key chipmaker names. And I’d like to share them with you today to showcase the kinds of insights his system can uncover.

The Chipmaking Toll Booth

KLA Corp. (KLAC) is the closest thing the semiconductor industry has to a toll booth.

The Silicon Valley firm dominates a niche called “process control,” the machines and software used to inspect semiconductors. This helps chipmakers find and correct manufacturing mistakes, and KLA “owns” roughly 50% of the market.

The process is essential. Advanced chips are extremely difficult to make, and errors in a wafer can cause entire chips to fail early… or not work at all. A microscopic manufacturing defect is often enough to turn a $50,000 AI GPU into an expensive paperweight.

It’s why KLA earns some of the highest margins in the chipmaking industry. Operating margins are above 45% — higher than what Apple (AAPL) generates – because chipmakers are willing to pay for the best inspection machines to save costs down the line.

Now, Louis’ model has long known that KLA is a high-quality business. It awards strong fundamental grades thanks to the firm’s high sales growth, wide margins, and upward analyst revisions.

KLA is also benefiting from the insatiable demand for leading-edge AI chips, which adds more production steps. A vertically stacked 3D chip might need inspection every time a new layer is added. It’s why KLA’s fiscal 2028 earnings estimates have been revised consistently higher since 2024: Chipmakers are expanding high-end production, causing growth at KLA to accelerate.

However, KLA’s stock is an entirely different story. Since peaking at over $300 in June, shares have tumbled 50% as investors have soured on chipmakers. If chip demand is about to fall off a cliff, does it matter how good KLA’s machines are? Louis’ quantitative “follow the money” score turned bearish as well, recommending investors head for the exits.

The story has finally changed. Roughly a week ago, Louis’ model flipped KLA back to a “Buy” based on unusual buying patterns in the semiconductor industry. KLA’s latest results and a December guidance imply more than 40% growth, suggesting that demand is gaining momentum, and that slowdown fears may be overdone.

My own analysis finds that the drawdown has now gone too far. Now trading around $150, KLAC shares should be worth north of $200, and could possibly rise back to $300 in a bull case.

I should also note that KLA has historically bounced hard after reaching oversold levels. In fact, its latest steep drops (prior to this one) in October 2022, November 2024, and April 2025 came with a +40.7% rise over the following quarter.

And so, Louis’ quant signals and old-fashioned valuation are pointing in the same direction. KLA is a buy in my view, not just because smart money is jumping back in, but also because the market is pricing a toll booth like a cyclical bet.

Collateral Damage

Marvell Technology Inc. (MRVL) is one of the top makers of custom chips in the AI industry. It co-designs its “XPU” chips with customers. And because each chip is built with a set task in mind, they are exceptionally fast.

Think of it like building a drag racer. If you know the track in advance, you can build a car that does nothing else besides winning on that course.

One of Marvell’s first major AI customers was Amazon.com Inc. (AMZN), where it helped design the Trainium2 AI accelerator. It has also helped Alphabet Inc. (GOOG), Microsoft Corp. (MSFT), and other major data center firms build custom chips.

Now, four things have happened to Marvel (MRVL) in the recent past:

That last part is particularly notable, because Marvell now scores a top “A” grade in Louis’ quantitative score. In other words, Louis’ system suggests much of the recent selling has been technical, rather than a statement on the business.

Here’s why.

When Marvell agreed to pay $115 billion in stock for Lumentum, hedge funds immediately pounced on the chance to make money. They used a popular strategy known as “merger arbitrage,” where they would buy one share of Lumentum and sell 4.5 shares of Marvell short. If the merger comes together, they will receive 4.5 shares of Marvell for each Lumentum share they own, allowing them to close their position and pocket a roughly $80 spread. It’s a generally profitable bet because almost 90% of merger deals go through, according to asset management firm Verdad.

That’s likely why Marvell lost a third of its value in three trading sessions. A 5% to 10% selloff might have been warranted from a major dilutive merger that could add 50% more shares. But the magnitude of the drawdown suggests there were other reasons too.

There are early signs the selling might be easing. Shares have traded roughly flat since the most recent leg down on Wednesday, and the stock is now priced at just 23 times next year’s earnings – making them cheaper than Broadcom Inc. (AVGO) and Nvidia Corp. (NVDA) on that basis, despite growing faster than both.

And so, Marvell is surfacing as a compelling bet in Louis’ system. The stock has faced a significant technical selloff by hedge funds, and that drawdown is now ending.

Ground Floor, Going Up

Earlier on, I mentioned that stacked 3D chips are becoming increasingly popular among AI chipmakers.

It’s for good reason.

Think of a dense office skyscraper. Stacking floors on top of each other packs far more people into the same space while cutting travel time. No one needs to walk across town for a meeting. They just take the elevator two floors up.

Stacked chips work the same way. Memory chips that once sprawled out across a single plane can now rise hundreds of layers high. Some makers are even talking about thousand-layer chips by 2030.

For AI chips that move enormous amounts of data back and forth, cutting that distance is everything.

So, who’s building these skyscrapers?

That’s the job of Lam Research Corp. (LRCX). The 46-year-old firm builds machines that do two jobs. The first is “deposition,” which lays down each ultrathin layer of a 3D chip. It’s much like pouring concrete for each floor of a building. The second is “etching,” which carves channels through those layers, like drilling elevator shafts through a finished tower. As more layers get added to 3D chips, Lam’s machines must make more passes. And so, chipmakers need more of them.

That’s showing up in the numbers. Last quarter, Lam Research’s revenues rose 54% to $8.2 billion, and the company posted a 40% operating margin – the highest in its history. Wall Street has raised its earnings estimates for four straight quarters, and Louis’ model awards the company a solid “B” grade for its excellent growth, profitability, and institutional buying.

So, you might expect the stock to be soaring. But instead, LRCX shares are down 47% from their June peak. In fact, shares fell 12% on October 22, after Lam reported results that beat estimates.

The culprit here is supply. Lam is now growing so fast that it’s straining to keep up with orders. Many fourth-quarter deliveries are getting pushed into next year, and the company’s chief financial officer conceded that their forecasts “would have been a bit higher if not for some near-term supply chain constraints.” The company also generates a third of its sales from China, which is always one Executive Order away from an export ban.

Yet, the market priced it like a bust. Lam now trades at roughly 19 times next fiscal year’s earnings, the cheapest of the four big chip-equipment makers. The company is also in great financial shape. It has no net debt, generates over $6 billion in annual free cash flow, and is riding one of the most powerful trends of AI chipmaking technologies.

Furthermore, LRCX has a long history of bouncing after hitting oversold levels, as measured by the Relative Strength Index (RSI). Since going public in 1984, it has recovered 63% of the time, with a 10% gain in the following quarter.

And so, Louis’ system and I both expect Lam’s shares to recover. It plays an essential role in AI chipmaking, and Wall Street is pricing the firm as if the building boom were over.

Could Be Raining

Now, KLA, Marvell, and Lam Research are three interesting opportunities. But that doesn’t mean they’re right for every investor, or that their recent troubles are necessarily behind them.

And that’s an important distinction. Lam earns a “B” because risks remain, including the possibility of another U.S.-China trade war. Marvell earns an “A,” but it’s still drying off from a hedge-fund selloff. Even when the fundamentals look promising, investors need to pay attention to what the market is telling them.

That’s why I’d like you to reserve your seat for Louis’ upcoming presentation. At 2 p.m. Eastern on Thursday, November 12, he’ll explain a new way to use Stock Grader to identify promising stocks and recognize potential trouble before it gets worse. It’s an approach designed for a market where even strong companies can get caught in a downpour.

Louis will also reveal two free stock recommendations: one he believes investors should consider buying for 2027, and another he thinks they should avoid.

And there’s a bonus just for registering: You’ll get immediate access to test-drive Stock Grader yourself. Enter the symbols of stocks you own or are considering buying and see how Louis’ system grades them. You don’t have to wait until November 12 to try it.

You can reserve your free seat and start using Stock Grader here.

I’ll see you back here next Sunday.

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 3 Stocks to Buy for an AI Chip Recovery appeared first on InvestorPlace.

Tom Yeung here with today’s Smart Money.

In 1967, then-governor of California, Ronald Reagan made a joke about his early days in office. It went like this:  

One day when things looked pretty dark up there… one of the staff said to me well cheer up, things could be worse. 

And so, I cheered up. And sure enough they got worse. 

Almost sixty years later, the AI Revolution is having its own “it could be worse” problem. 

Since peaking in July, the AI trade has broken down. Major AI indices like the Global X Robotics & Artificial Intelligence ETF (BOTZ) and iShares Semiconductor ETF (SOXX) have fallen more than 20% from their highs. Even blue-chip names like Intel Corp. (INTC) and SanDisk Corp. (SNDK) have dropped 50% or more. 

It’s been a disaster for latecomers to the AI Revolution. 

So, where does that leave investors to put their money? 

Oil offers one way out. Energy prices are still almost 60% higher than they were at the start of the year. And healthcare is another bright spot. This segment is historically noncyclical, because diseases and skiing accidents don’t care how the economy is doing. 

But there’s one area we don’t talk about as often.

So, in today’s Smart Money, I’d like visit one of the most powerful investment themes of the past century: The Great American Consumer. 

Then, I’ll reveal a way to put the American consumer to work in your portfolio.

America’s Spending Machine Keeps Running

The strength of the U.S. consumer has long defied expectations. In 1945, many economists feared that the end of World War II would send America into another depression. But years of rationing had left households with large savings and a long shopping list. A baby boom and postwar spending followed. 

Similar fears resurfaced during the stock market corrections of the 1970s, the late 1980s, and early 2000s. American consumers shrugged off these concerns. Consumption only dipped slightly during the two oil shocks (less than 1% in real terms) and actually went up during the mild 2001 recession.  

Then, during COVID-19, Americans surprised forecasters once more by continuing to spend online from home. As shown in the graph below, inflation-adjusted consumer spending has proved one of the most enduring trends of the American economy. 

Much of that strength comes from America’s productive economy, which supports well-paying jobs and gives households the means to consume. Their spending encourages businesses to hire and invest, creating a self-reinforcing cycle that has set America apart from other developed economies. 

There’s also a cultural factor. Some historians point to the late 1940s as the beginning of the Consumer’s Republic – a set of ideals to dramatize the superiority of capitalism over communism.

In plainer English: We like to keep up with the Joneses. 

Finally, there’s personal wealth – something helped along by America’s relatively high homeownership rate and participation in the stock market. That creates what economists call the “wealth effect.” When asset values go up, households feel richer and spend more, even if their paychecks haven’t changed. 

These factors have allowed the consumption engine to keep humming along. For example, in the third quarter, U.S. consumer spending grew at a 3.8% annualized rate, beating analyst forecasts of 3.5%. And we expect October’s figures to show spending holding up; Visa Inc. (V) reported that U.S. card payments volume rose 10% from a year earlier during the first three weeks of October, an encouraging sign heading into the holiday season. 

To play this trend, Eric has several consumer picks. Let’s take a look at one below…

This Old-School Brand Deserves a Second Look

A shoemaker that has been in continuous operation since 1774 should, by rights, be the last stock anyone associates with modern investing themes. And yet Birkenstock Holding plc (BIRK) may be one of the clearest examples of a durable, old-economy business thriving in an AI-obsessed market.

The company’s competitive moat is not a patent or a software platform. It is 250 years of accumulated craft, a manufacturing process that remains more than 95% European, and a brand identity so strong that the same cork-soled sandal has survived the transition from “hippie” icon to luxury fashion statement without losing a step.

CEO Oliver Reichert’s description of Birkenstock’s addressable market is not an overstatement: “Every human being that walks on two feet.” The most recent quarter validated that ambition. Fiscal third-quarter revenue grew 15% in constant currency (13% as reported), despite geopolitical uncertainty and pressure on consumers. The company also raised its full-year revenue growth guidance to 15% in constant currency.

I should also note that Birkenstocks have become popular among Gen Z thanks to viral video moments (they were featured in the Barbie movie) and favor among stars like Charli XCX and Gigi Hadid. Imagine if Marilyn Monroe endorsed a shoe brand!

But strong results have not always translated into a higher stock price. After its second-quarter results, shares fell more than 14% as investors reacted to the company’s outlook and other concerns.

Meanwhile, the underlying business keeps compounding. In the third quarter, revenue in the Asia-Pacific region grew 23% in constant currency, while direct-to-consumer revenue climbed 16%. The company added 13 stores during the quarter, bringing its total to 124 company-owned retail locations.

To prepare for additional demand growth, Birkenstock continues investing in production capacity. Its fiscal 2026 capital expenditure outlook is €110 million to €130 million, funding manufacturing expansion and retail operations.

The “Boston Clog,” which is celebrating its 50th birthday this year, remains one of the hottest products in global footwear. Closed-toe styles continue gaining ground, accounting for 38% of revenue, up from 33% a year earlier. That shift is extending Birkenstock’s reach into all-weather, year-round occasions.

Birkenstock’s latest results show that investors don’t need to chase the latest AI stock to find a growing business. A 250-year-old footwear brand is still finding new customers, expanding internationally and investing to meet demand.

And that’s the kind of opportunity worth watching.

Birkenstock is just one example of the opportunities investors can find beyond the AI frenzy. At Fry’s Investment Report, Eric looks beyond the market’s hottest trends to find businesses with the staying power to thrive through whatever comes next.

Click here to learn more.

Until next time, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace 

P.S. Louis Navellier has spent nearly five decades studying what separates the stock market’s biggest winners from the rest. Now he’s putting that experience to work in a new way. He’s personally selected 25 of his highest-conviction stock recommendations for a new model portfolio, which he’ll review and update every month. And he believes this approach could be especially important as Wall Street heads into 2027. Louis will explain why — and introduce his new service — during a special presentation on November 12. Reserve your spot here.

The post The Unlikely Stock That Could “Cushion” an AI Selloff appeared first on InvestorPlace.

It’s often called “the most dangerous phrase in business.”

We’ve always done it this way.

It’s considered dangerous because too many organizations, even very successful ones, can grow complacent. Once a team achieves success, they can’t imagine doing anything differently.

It’s easy to understand why this happens. Changing means taking risks.

In 2007, Netflix (NFLX) had built a thriving operation around a simple idea: Instead of asking customers to drive to a brick-and-mortar store, they could deliver DVDs directly to mailboxes.

Americans loved it.

Netflix had more than 6 million subscribers. Its familiar red envelopes were arriving in mailboxes across the country. And the company was steadily taking customers away from traditional brick-and-mortar video rental stores.

But Netflix’s leadership could see that the world was changing.

In 2007, the company introduced a new service that allowed subscribers to watch movies and television shows over the internet.

Today, that’s commonplace. But remember what the world looked like in 2007.

Apple had only just introduced the first iPhone. The iPad was still three years away. There was no 5G. Broadband was becoming more common, but millions of Americans were still relying on internet connections that were so slow, you could achieve a half dozen household chores before a movie was ready to watch.

Moving toward streaming meant investing in a technology that wasn’t quite ready for prime time – and potentially undermining the business operations that had made Netflix successful.

It was an enormous gamble. But Netflix saw something its competitors didn’t appreciate.

The biggest threat to past success isn’t always the competition, but the temptation to keep doing what made you successful in the first place.

And that lesson is just as important for investors today.

The Same Old Portfolio?

How many of the stocks in your portfolio are there because they were great investments five or 10 years ago?

If you were building your portfolio from scratch today, would you buy those same stocks again?

Those are two very different questions.

Because just like the business world, the stock market never stands still.

Interest rates change. Consumer preferences change. New technologies emerge. And the market leaders one day can find themselves struggling to keep up the next day.

That doesn’t mean you should abandon a successful strategy.

It means you need to recognize when the investments themselves should change.

After all, there’s a big difference between buy and hold… and buy and forget.

That’s where Louis Navellier’s Stock Grader has served him so well.

Louis’ system is engineered to find fundamentally superior stocks with significant buying pressure. When those things start to improve, its grade improves.

Below is a screenshot from Louis’ Stock Grader for Micron Technology (MU) over the last two years. It’s easy to see that the system gives it an overall A grade today.

Underneath the stock price chart, you can see the grade history, with an A at the top (in blue) and an F at the bottom (in dark red).

You can see Micron wasn’t always an A. In May 2025, the stock was a solid D.

You can also see that as the grade improved, the stock’s performance did too. By the summer of 2025, MU had a C-grade, and by November 2025, it moved from a B to an A. As the stock grade climbed, the stock’s price did too!

Louis recommended the stock to his Growth Investor subscribers on Jan. 30, 2026. The stock skyrocketed over the summer, up close to 180%. Since then, the stock has suffered the same sell-off as the rest of the AI trade. Even so, the stock is still up more than 70%.

Buying good stocks is easy but knowing when to change your strategy is more difficult. Louis uses his Stock Grader tool to help him determine when the timing is right.

A Dangerous Market for Complacent Investors

Right now, the danger of standing still may be greater than many investors realize.

You see, the stock market has suffered a brutal sell-off in recent weeks, with some of the biggest losses hitting the very AI stocks that had been leading the market higher.

And while the rebound that’s taking place as I write on Friday is welcome, it doesn’t erase the damage.

In fact, according to Louis’ research, more than half of S&P 500 stocks have declined by 20% or more from their highs.

Think about that.

While investors focus on new market highs, many individual stocks have already experienced their own bear markets.

And that’s not the only danger.

Interest rates remain a concern. The bond market is sending warning signals. And the companies that led the last great rally may not be the ones best positioned to lead in 2027.

That’s a dangerous situation for investors who assume their existing portfolios will continue delivering the same results.

But here’s the good news.

A changing market doesn’t just create new risks. It creates new opportunities.

And few people understand how to identify those opportunities better than Louis.

For decades, Louis has used his proprietary Stock Grader system to evaluate thousands of publicly traded companies, searching for those with the strongest combination of earnings growth, financial fundamentals, and buying pressure.

His goal isn’t to find stocks that were once great investments.

It’s to identify the companies with the strongest potential to outperform over the coming period, just like he did with Micron.

And now, Louis is preparing to take that approach in an entirely new direction.

A New Solution for a Changing Market

On Thursday, November 12, at 2 p.m. ET, Louis will unveil a brand-new investment strategy designed to address the challenges and opportunities he sees emerging in 2027.

It’s built around a simple but powerful idea:

What if your portfolio could evolve as the market changes?

Rather than relying on yesterday’s winners, Louis has developed a way to focus on the companies that earn the highest marks from his stock-selection system – and reassess those opportunities as conditions evolve.

And during this special presentation, he’ll explain why he believes the old rules of investing may leave some investors dangerously exposed.

He’ll also reveal:

• Why the next phase of the market could look very different from the last.
• The warning signs he’s watching as we head into 2027.
• How his new approach is designed to help investors adapt rather than fall behind.
• And one stock he believes investors should consider buying now – along with another he thinks they should avoid.

Click here to reserve your free spot for Louis Navellier’s November 12 presentation.

Everyone wants to avoid making the wrong decision.

But it’s just as dangerous to assume the right decision you made years ago is still the right one today.

Remember to sign up to attend the free presentation at 2 p.m. Eastern time on November 12 to get all the info.

In 2007, Netflix was willing to change to stay ahead of the competition. Make sure your portfolio shows the same flexibility to stay ahead of the market.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post Your 2026 Winners Could Be Your 2027 Losers appeared first on InvestorPlace.

They had two future Hall of Fame quarterbacks on their roster.

Joe Montana, who had led the team to four Super Bowl victories, and Steve Young, a rising star who was ready to take over.

Eventually, the 49ers handed the offense to Young. And in January 1995, he led San Francisco to another Super Bowl victory.

Now, there’s a valuable investing lesson in that story.

You see, I’ve always believed that managing a stock portfolio is a lot like managing a championship football team. You want the best players on the field. And sometimes, that means replacing a proven winner with someone who has even greater potential going forward.

Well, the same thing happens on Wall Street.

A stock that delivered tremendous gains over the past few years might still have room to run. But if its sales and earnings are slowing, while another company’s business is taking off, you’d better pay attention.

After all, the goal is to build a portfolio that can keep winning, even as market leadership changes.

That’s why I’ve spent nearly 50 years developing and refining a stock-picking system designed to help me find Wall Street’s strongest opportunities.

And believe it or not, it all started with a college assignment that I technically failed.

So, in today’s Market 360, I’ll explain how that discovery changed my approach to investing and why my system is particularly valuable in today’s changing market.

I’ll also tell you about a special presentation I’m hosting on Thursday, November 12, at 2 p.m. Eastern, where I’ll reveal what I believe the Fed’s next moves could mean for your investments in 2027 – and how I’m preparing to take advantage of the opportunities ahead. (Reserve your spot for this free event here.)

The Secret Was in the Stocks

It all started when I was studying finance at Cal State Hayward in the late 1970s.

One of my professors assigned me to build a stock selection model that would mirror the performance of the S&P 500. Thanks to that professor, I had access to Wells Fargo’s mainframe computers. Remember, this was back when computers took up entire rooms.

After countless hours studying market data and building my model, I finally ran the numbers.

And to my surprise, my model didn’t just match the S&P 500 – it beat it!

Now, here’s why that discovery ended up changing my life.

Princeton economist Burton Malkiel had famously argued that a blindfolded monkey throwing darts at a newspaper’s stock listings could pick investments just as well as the professionals on Wall Street.

But my model was telling me something very different.

A relatively small group of stocks was responsible for much of my portfolio’s outperformance. Better yet, these companies had something in common.

Their sales and earnings were growing. Their operating margins were expanding. And they consistently delivered positive earnings surprises.

In fact, I eventually identified eight fundamental factors that helped me pinpoint companies with the potential to outperform the broader market.

But I also learned that strong fundamentals were only part of the equation. Even a great company can be a disappointing investment if the big institutional investors aren’t buying its shares.

That’s why I added a second measure to my research: institutional buying pressure.

Together, those two measures became the foundation of my proprietary Stock Grader system.

Today, Stock Grader analyzes more than 6,000 stocks, assigning each a grade from A to F based on its Fundamental and Quantitative Grades.

And here’s the beauty of this system, folks. It doesn’t care about old market trends or yesterday’s headlines. It follows the fundamentals and institutional buying pressure, wherever they lead.

That’s especially valuable when market leadership starts to change.

Knowing When to Change the Lineup

If you’ve followed my recommendations over the years, you’ve probably noticed that the stocks I favor today look different from the ones I recommended a year or two ago.

Back then, we owned a lot of gold mining stocks as prices were hitting record high after record high. AI stocks were prominent in our portfolios, too, of course.

That’s no accident. That’s Stock Grader doing exactly what it’s designed to do.

But lately, my system has been pointing me toward some compelling opportunities in energy and shipping. That’s because the war with Iran has disrupted global energy markets, creating new challenges for some companies and opportunities for others.

And by following the fundamentals, I’ve been able to recommend several stocks that have delivered impressive gains. For example:

• International Seaways, Inc. (INSW), an oil tanker operator I recommended on March 6, has climbed 54%.
• Okeanis Eco Tankers Corp. (ECO), another tanker company I recommended on June 22, has gained 61%.
• HF Sinclair Corporation (DINO), an oil refiner I recommended on June 23, has surged 50%.

Those are remarkable gains, especially considering the uncertainty surrounding the energy markets.

And they illustrate an important point: While investors are focused on the latest headlines, my system is searching for companies with the strongest numbers.

Now, don’t get me wrong. I’m still very bullish on artificial intelligence. In fact, some of my favorite stocks remain tied to the massive buildout of AI infrastructure.

But I’m not going to ignore opportunities in other industries simply because they aren’t grabbing the headlines. When the numbers point me toward stronger opportunities, I’m prepared to act.

Sometimes, that means selling a good stock to buy a better one.

Building a Championship Portfolio

And that brings me back to the San Francisco 49ers.

A championship coach knows that the lineup that won last year’s Super Bowl might need to change to win the next one.

The same is true of investing. I want to let my winners run as long as their fundamentals remain strong. But I also want to be ready when new opportunities emerge.

I believe that approach will be more important than ever as we head into 2027.

You see, the Federal Reserve’s next moves could have a major impact on the stock market. With interest rates and market leadership shifting, investors need to be especially careful about where they put their money.

That’s why I’m preparing to unveil an entirely new way of putting my stock-picking research to work.

On Thursday, November 12, at 2 p.m. Eastern, I’m going to reveal what I’ve been working on during a special presentation.

Click here to reserve your spot now.

During this event, I’ll explain what I expect from the Fed in the months ahead and what its next moves could mean for your investments in 2027.

I’ll also share a Wall Street indicator with a remarkable historical track record of predicting the market’s next moves, and explain why I believe investors need to prepare now rather than wait until next year.

Most importantly, I’ll reveal a brand-new way I’m putting Stock Grader to work to identify what I believe could be the market’s next big winners.

Plus, you’ll receive two free stock recommendations:

• One stock I believe could be among 2027’s biggest winners.
• One popular stock I believe investors should avoid.

I’ll give you the names and ticker symbols of both stocks absolutely free.

Click here now to register for my November 12 presentation 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:

HF Sinclair Corporation (DINO), International Seaways, Inc. (INSW) and Okeanis Eco Tankers Corp. (ECO)

The post The Secret to Building a Championship Portfolio appeared first on InvestorPlace.

Of course, not every stock will be a winner. And Louis believes knowing which companies to own will become increasingly important heading into 2027.

In today’s guest essay, he’ll take a look at the market ahead and how investors can prepare. He’ll also tell you about a special free event on November 12, where he’ll reveal one stock to buy, another to avoid, and a new way to put his Stock Grader system to work. You can sign up for that event here.

Back in 2000, American wrestler Rulon Gardner faced one of the most feared athletes in Olympic history.

His opponent was Aleksandr Karelin, a Russian heavyweight who had won three Olympic gold medals and hadn’t lost an international match in 13 years.

Gardner was a dairy farmer’s son from Wyoming. 

Not surprisingly, he was a massive underdog. But he wasn’t going down without a fight.

For much of the match, the two heavyweights were locked in a clinch, neither able to gain an advantage.

Finally, Karelin broke his grip.

That single mistake cost him the match. Gardner won 1-0, pulling off one of the greatest upsets in Olympic history.

Folks, that’s a pretty good picture of what we’re about to see in Washington.

What the Midterm Elections Changed for Investors 

With the midterm elections now behind us, Democrats have taken control of Congress, setting up a showdown with President Trump.

Both parties will be fighting for control. Both will be determined to get their way. But with power divided, neither side will be able to push through its agenda without the other getting in the way.

In other words, we are headed for a period of political gridlock.

And you know what? I think that’s great news for Wall Street.

You see, a divided government has historically created some interesting opportunities for investors. And with November already one of the strongest months of the year for stocks, I believe we could be setting up for a powerful rally that carries into 2027.

But there’s a catch.

Even if the broader market takes off, that doesn’t mean every stock will come along for the ride.

So, let’s look at why the post-midterm period has historically been so favorable for investors, what’s fueling my optimism right now… and how you can position yourself to take advantage of the opportunities I see ahead. 

I’ll also share details about a special event I’m hosting, where I’ll reveal a new way to put my strongest stock recommendations to work for you as we head into 2027.

What History Says About Stocks After Midterm Elections

If you think political gridlock is bad news for investors, consider what happened in 1994.

That November, Republicans swept into power in Congress, taking control of both the House and Senate for the first time in 40 years.

President Bill Clinton suddenly found himself facing an emboldened Republican opposition led by Newt Gingrich. Political pundits were bracing for bitter partisan fights and an uncertain future for President Clinton’s economic agenda.

And Wall Street had plenty of worries of its own.

In fact, on November 7, 1994, just one day before the election, the Los Angeles Times published an article with an ominous headline:

“One Last Gasp for the Bull Market?”

The article raised the possibility that stocks could enjoy one final rally before slipping into a bear market.

Well, that certainly didn’t happen.

In 1995, the S&P 500 surged more than 34%. And that was just the beginning of a powerful technology-led bull market.

The internet was just beginning to transform the economy, and Netscape’s blockbuster 1995 IPO helped launch the dot-com boom. And all that innovation continued despite the political battles in Washington.

I believe we’re going to see a similar boom – thanks to artificial intelligence.

AI is transforming the economy much like the internet did three decades ago. Companies are pouring hundreds of billions into data centers, computer chips, and power infrastructure.

Now, I realize some investors are worried that Democrats could throw up roadblocks to the AI boom, particularly when it comes to building new data centers.

And I wouldn’t be surprised if we see some reforms as politicians look to protect consumers from higher electricity bills. That could slow construction in some areas or shift new projects to other states.

But, folks, this train has already left the station. The demand for AI computing power is enormous, and companies have years of orders in their backlogs. Plus, data centers bring jobs and tax revenue to the communities where they’re built. That’s a powerful incentive for lawmakers on both sides of the aisle to keep these projects moving.

There may be a few bumps along the way, but I don’t see political gridlock derailing the AI boom.

Strong Earnings Add Another Tailwind to the Post-Midterm Setup

Of course, there are other reasons to be optimistic – specifically seasonality and earnings.

Since 1942, the S&P 500 has risen between November of a midterm election year and the following June 21 out of 21 times, with an average gain of about 16%.

We’re also entering what has historically been the strongest six-month stretch of the year for stocks.

According to the Stock Trader’s Almanac, since 1945, the S&P 500 has gained an average of about 7% between November and April, compared with about 2% between May and October.

Now, history doesn’t guarantee that we’ll see the same results this time around. We still have challenges to navigate, including inflation and interest rates.

But when favorable seasonal trends line up with stunning corporate earnings like we’re seeing right now, that’s when I really start to get excited.

According to the latest data from FactSet, the S&P 500 is on track for 30.2% earnings growth in the third quarter, with 82% of companies reporting so far topping analysts’ earnings estimates.

Even better, all 11 sectors are reporting year-over-year earnings growth, led by energy, technology and materials.

And the outlook remains strong.

Analysts are forecasting another 28.4% jump in S&P 500 earnings in the fourth quarter. In fact, they’ve been raising their estimates when they would normally be cutting them.

Folks, that’s the kind of earnings momentum I love to see.

Of course, that doesn’t mean every stock is going to be a winner. As we’ve seen in the days following the election, Wall Street is still sorting out which companies deserve investors’ money.

And that’s where being selective becomes so important.

Why 2027 Could Become a Stock-Picker’s Market

I know the market has been confusing since the election. Some stocks with weaker fundamentals have enjoyed a nice bounce, while others with spectacular earnings have been hit by profit-taking.

Simply put, we’re in the middle of another market rotation. Much of the initial post-election rally was driven by short covering, while some of the strongest AI stocks were left behind.

But I’ve seen this movie before. Back in July, some of my best AI stocks got hammered during the first two weeks of the month. Then they came roaring back, and we ended up finishing July in positive territory.

Wall Street has a habit of reacting first and thinking later. Eventually, though, earnings and fundamentals tend to win out. 

Of course, different sectors can take turns leading the market. For example, while AI stocks have been hit by profit-taking, energy stocks have benefited from tight diesel supplies and strong refining margins.

The key is to recognize what’s working and be ready to adjust when leadership changes.

The Bigger Challenge in 2027 Will Be Separating Winners From Losers

As I like to say, bad stocks bounce like rocks, but good stocks bounce like fresh tennis balls. And as we head into 2027, I think knowing the difference will be more important than ever.

You see, the market has become increasingly narrow. The days when you could buy almost any AI stock and watch it soar are fading. Investors are becoming more selective, and with a new Congress potentially adding more uncertainty to the AI buildout, the list of winners could get even smaller.

But, folks, that’s exactly the kind of market where my Stock Grader system shines.

I’ve spent nearly five decades studying what separates the strongest stocks from the rest. And when Wall Street starts picking winners and losers more carefully, I believe that research becomes even more valuable.

That’s why I’ve been working on something special to help investors navigate the market ahead.

I’m preparing to reveal where I believe the next big opportunities will emerge, which stocks are best positioned to benefit, and how I’m adapting my strategy as market leadership changes.

And on Thursday, November 12, at 2 p.m. Eastern, I’m hosting a special online event to show you exactly how it works.

During the presentation, I’ll reveal two special stock recommendations: one I believe you should consider buying and another I think you should avoid.

If you register for my special event you’ll gain access to exclusive content I’ve prepared for the event. (Click here to reserve your spot now.) 

You’ll also get a chance to test-drive my proprietary Stock Grader system.

Normally, this kind of access is reserved for my paid subscribers. But for this event, you’ll be able to enter stock symbols yourself and see how my system grades them. 

You can reserve your free spot for Thursday, November 12, at 2 p.m. Eastern by clicking here.

The post A Historically Strong Post-Midterm Market Could Make 2027 a Stock-Picker’s Year appeared first on InvestorPlace.

Legendary investor Louis Navellier thinks investors should be very careful.

In today’s Friday Digest takeover, Louis explains why he’s excited about the upcoming IPO of the company behind Claude – yet has no intention of chasing its shares when trading begins.

It’s not that Louis doubts Anthropic’s potential. But after nearly five decades of investing, he’s learned that a great business and a great investment aren’t necessarily the same thing.

Today, he walks through three reasons for his caution, and he explains why the recent selling pressure across AI stocks may have created more attractive opportunities in established companies already delivering impressive profits.

Louis will expand on that thinking during a special free presentation on Thursday, November 12, at 2 p.m. Eastern, where he’ll reveal two specific recommendations for 2027: one stock he believes investors should buy and another he thinks they should avoid. You can reserve your free spot right here.

Wall Street loves an exciting new story. Louis would rather follow the earnings.

I’ll let him take it from here.

Have a good evening,

Jeff Remsburg

Folks, I have to tell you, I’m looking forward to the Anthropic IPO.

The company behind the Claude artificial intelligence platform has been growing at an incredible pace. Its revenue surged more than 1,200% in the first nine months of 2026.

That’s phenomenal growth.

Anthropic’s arrival on Wall Street could give the entire AI sector another shot in the arm.

Remember, I’ve been telling you for months that the AI boom isn’t slowing down. The order backlogs are enormous. The companies supplying chips, servers, storage, and cooling equipment to the hyperscalers are reporting spectacular earnings.

But there’s something I want to make very clear: I’m not recommending that you rush out and buy Anthropic stock when it begins trading.

I’ve been investing for 47 years, and I’ve learned that there’s a big difference between an exciting company and a stock that deserves a place in your portfolio.

So, let me give you three reasons why I’m not chasing Anthropic’s IPO… and where investors should be putting their money instead.

Reason No. 1: IPOs Can Be Awfully Expensive

Anthropic got started in 2021. Just five years later, it’s preparing for what could be one of the largest initial public offerings in history.

Its net revenue retention rate is approximately 900%. In plain English, customers that were already using Anthropic’s services a year ago are now spending roughly nine times as much.

But here’s the problem.

Everybody knows Anthropic is growing rapidly. Wall Street knows it. Institutional investors know it.

So, how much are they willing to pay?

As I write this, Anthropic hasn’t announced its final offering price. And even when it does, there’s no guarantee that ordinary investors will be able to buy shares at that price.

If demand is overwhelming, the stock could open substantially higher.

We’ve seen this movie before.

When SpaceX Technologies Corp. (SPCX) went public in June, its shares surged roughly 40% in the first two trading days.

Then the stock tumbled from those early highs. Investors who chased the excitement paid the price.

The same thing could happen with Anthropic.

There’s also an unusual provision in Anthropic’s offering that could allow certain insiders to sell shares immediately, rather than waiting through the traditional lockup period. That creates another potential source of selling pressure.

I’m not predicting that Anthropic will collapse after its IPO. It could certainly go higher.

But I don’t like guessing about what a stock will do when everybody is chasing it.

I prefer to let the excitement settle down.

Reason No. 2: I Want to See the Earnings

I am obsessed with fundamentals.

I want strong sales growth. I want even stronger earnings growth. I want positive earnings surprises. And I especially want to see analysts revising their earnings estimates higher.

Anthropic certainly has the sales growth.

And its operating results are improving dramatically. During the first nine months of 2026, its operating loss narrowed to approximately $1.3 billion, compared with $5.2 billion during the same period last year.

That’s very encouraging, but the company still has a lot to prove.

Anthropic has disclosed nearly $900 billion in future spending commitments, primarily associated with computing power and infrastructure. That’s an enormous amount of money.

But there’s a difference between spending money and making money. So, I want to see how Anthropic converts its extraordinary revenue growth into sustainable earnings.

That’s why I generally wait at least a year before considering a newly public company.

My Stock Grader system evaluates thousands of publicly traded stocks using a combination of fundamental and quantitative factors.

The fundamental side looks at sales growth, earnings growth, operating margins, earnings surprises and analyst revisions. The quantitative side helps me identify stocks attracting buying pressure relative to their volatility.

And the results speak for themselves.

Every single year since 2020, Stock Grader has issued a Buy or Strong Buy rating for at least 23 of the 25 top-performing stocks in the market.

That’s what happens when you focus on the numbers instead of Wall Street’s latest excitement.

Of course, those numbers have to exist before I can evaluate them.

I need a meaningful trading history and several quarters of public financial results to evaluate those things properly.

With Anthropic, we’re just getting started.

So, I’ll watch its earnings reports. I’ll watch its margins. I’ll watch whether analysts become more or less optimistic. And eventually, if the numbers justify it, Anthropic might earn a place on my buy list.

But I’m not going to abandon a system that’s served me well for nearly five decades just because Wall Street has a shiny new stock to sell.

Reason No. 3: There Are Already Better Opportunities

While everybody is talking about Anthropic, some of the companies already making money from the AI boom have been getting knocked around.

And frankly, I think it’s ridiculous.

Look at Micron Technology Inc. (MU).

The company is benefiting from extraordinary demand for memory chips used in AI systems. Yet its shares recently traded at less than four times forecasted 2027 earnings.

Or look at Super Micro Computer Inc. (SMCI).

Its latest quarterly sales surged nearly 300%, while earnings increased more than 570%. Yet the stock was trading at only roughly five times forecasted earnings.

Folks, I’ve rarely seen an environment where companies are growing this quickly while trading at such low earnings multiples.

But markets react. They don’t think.

Sometimes investors sell excellent companies because they’re worried about interest rates, politics, or whatever the latest Wall Street narrative happens to be.

I look at the earnings. Are sales still growing? Are operating margins holding up? Are analysts cutting their estimates, or are they raising them?

If the fundamentals remain strong, I’m inclined to hold on.

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

So, why would I chase Anthropic at an unknown valuation when I can already identify companies with proven earnings, established trading histories and attractive prices?

And it’s not just AI.

We’re also finding extraordinary earnings opportunities in energy, refining, shipping, and other industries.

I want to own the best stocks I can find, wherever they happen to be.

The Stocks to Buy and Avoid for 2027

Finding a good stock is only the first decision. You also have to decide whether it’s better than the stocks you already own.

I might like a company. I might think its business is phenomenal. But if I already own another company with stronger earnings growth, better analyst revisions, and less volatility, why would I replace it?

And the opposite is just as important. If a stock’s fundamentals deteriorate, I don’t want to hang on to it simply because it used to be a winner.

That’s why I’m constantly evaluating thousands of stocks, looking for opportunities to replace good companies with even better ones.

And as we head into 2027, I think the difference between the winners and losers could become even more pronounced.

Some companies are delivering spectacular earnings growth, expanding their profit margins, and attracting institutional buying. Others are struggling, and I expect some of them to struggle a whole lot more.

That’s why I’ve put together a special presentation to show you where I believe the biggest opportunities and dangers lie as we head into 2027. We’re doing it at 2 p.m. Eastern this coming Thursday, November 12 (reserve your spot here).

And I’m going to give you two specific stock recommendations, absolutely free.

First, I’ll reveal an A+ stock that I believe could be among the market’s top performers in 2027 and explain why I think it’s an exceptional opportunity to buy now.

And I’ll also show you one stock I believe you should sell or avoid immediately. It could become one of the market’s worst performers in 2027.

Click here to reserve your seat for my special free presentation, where you’ll get both free stock recommendations.

Now, I hope Anthropic has a spectacular IPO. I hope its business continues growing, and I hope its success helps lift the entire AI sector.

But I’m not going to chase it.

Wall Street will always have another exciting story to sell you. My job isn’t to buy every story.

It’s to find the fundamentally superior stocks, avoid the fundamentally inferior ones, and let earnings do the heavy lifting.

Sincerely,

Louis Navellier

Senior Investment Analyst, InvestorPlace

P.S. Louis has been at this a long time, and one thing I’ve always appreciated about him is that he doesn’t get distracted by Wall Street’s latest obsession. He follows the earnings, the numbers, and his own research. And right now, he’s seeing some remarkable opportunities — along with some stocks he’d steer clear of. At his free presentation Thursday, November 12, at 2 p.m. Eastern, he’ll reveal one stock to buy and one to avoid for 2027. Reserve your seat here.

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:

Micron Technology Inc. (MU) and Super Micro Computer Inc. (SMCI)

The post Anthropic’s IPO Is Coming. Where Are the Best Opportunities? appeared first on InvestorPlace.

His opponent was Aleksandr Karelin, a Russian heavyweight who had won three Olympic gold medals and hadn’t lost an international match in 13 years.

Gardner was a dairy farmer’s son from Wyoming.

Not surprisingly, he was a massive underdog. But he wasn’t going down without a fight.

For much of the match, the two heavyweights were locked in a clinch, neither able to gain an advantage.

Finally, Karelin broke his grip.

That single mistake cost him the match. Gardner won 1-0, pulling off one of the greatest upsets in Olympic history.

Folks, that’s a pretty good picture of what we’re about to see in Washington.

With the midterm elections now behind us, Democrats have taken control of Congress, setting up a showdown with President Trump.

Both parties will be fighting for control. Both will be determined to get their way. But with power divided, neither side will be able to push through its agenda without the other getting in the way.

In other words, we are headed for a period of political gridlock.

And you know what? I think that’s great news for Wall Street.

You see, divided government has historically created some interesting opportunities for investors. And with November already one of the strongest months of the year for stocks, I believe we could be setting up for a powerful rally that carries into 2027.

But there’s a catch.

Even if the broader market takes off, that doesn’t mean every stock will come along for the ride.

So, let’s look at why the post-midterm period has historically been so favorable for investors, what’s fueling my optimism right now… and how you can position yourself to take advantage of the opportunities I see ahead.

I’ll also share details about a special event I’m hosting, where I’ll reveal a new way to put my strongest stock recommendations to work for you as we head into 2027.

Why Gridlock Could Be Good for Stocks

If you think political gridlock is bad news for investors, consider what happened in 1994.

That November, Republicans swept into power in Congress, taking control of both the House and Senate for the first time in 40 years.

President Bill Clinton suddenly found himself facing an emboldened Republican opposition led by Newt Gingrich. Political pundits were bracing for bitter partisan fights and an uncertain future for President Clinton’s economic agenda.

And Wall Street had plenty of worries of its own.

In fact, on November 7, 1994, just one day before the election, the Los Angeles Times published an article with an ominous headline:

“One Last Gasp for the Bull Market?”

The article raised the possibility that stocks could enjoy one final rally before slipping into a bear market.

Well, that certainly didn’t happen.

In 1995, the S&P 500 surged more than 34%. And that was just the beginning of a powerful technology-led bull market.

The internet was just beginning to transform the economy, and Netscape’s blockbuster 1995 IPO helped launch the dot-com boom. And all that innovation continued despite the political battles in Washington.

I believe we’re going to see a similar boom – thanks to artificial intelligence.

AI is transforming the economy much like the internet did three decades ago. Companies are pouring hundreds of billions into data centers, computer chips, and power infrastructure.

Now, I realize some investors are worried that Democrats could throw up roadblocks to the AI boom, particularly when it comes to building new data centers.

And I wouldn’t be surprised if we see some reforms as politicians look to protect consumers from higher electricity bills. That could slow construction in some areas or shift new projects to other states.

But, folks, this train has already left the station. The demand for AI computing power is enormous, and companies have years of orders in their backlogs. Plus, data centers bring jobs and tax revenue to the communities where they’re built. That’s a powerful incentive for lawmakers on both sides of the aisle to keep these projects moving.

There may be a few bumps along the way, but I don’t see political gridlock derailing the AI boom.

Why the Stars Are Aligning for a Year-End Rally

Of course, there are other reasons to be optimistic – specifically seasonality and earnings.

Since 1942, the S&P 500 has risen between November of a midterm election year and the following June 21 out of 21 times, with an average gain of about 16%.

We’re also entering what has historically been the strongest six-month stretch of the year for stocks.

According to the Stock Trader’s Almanac, since 1945, the S&P 500 has gained an average of about 7% between November and April, compared with about 2% between May and October.

Now, history doesn’t guarantee that we’ll see the same results this time around. We still have challenges to navigate, including inflation and interest rates.

But when favorable seasonal trends line up with stunning corporate earnings like we’re seeing right now, that’s when I really start to get excited.

According to the latest data from FactSet, the S&P 500 is on track for 30.2% earnings growth in the third quarter, with 82% of companies reporting so far topping analysts’ earnings estimates.

Even better, all 11 sectors are reporting year-over-year earnings growth, led by energy, technology and materials.

And the outlook remains strong.

Analysts are forecasting another 28.4% jump in S&P 500 earnings in the fourth quarter. In fact, they’ve been raising their estimates when they would normally be cutting them.

Folks, that’s the kind of earnings momentum I love to see.

Of course, that doesn’t mean every stock is going to be a winner. As we’ve seen in the days following the election, Wall Street is still sorting out which companies deserve investors’ money.

And that’s where being selective becomes so important.

How to Position Yourself for a Big 2027

I know the market has been confusing since the election. Some stocks with weaker fundamentals have enjoyed a nice bounce, while others with spectacular earnings have been hit by profit-taking.

Simply put, we’re in the middle of another market rotation. Much of the initial post-election rally was driven by short covering, while some of the strongest AI stocks were left behind.

But I’ve seen this movie before. Back in July, some of my best AI stocks got hammered during the first two weeks of the month. Then they came roaring back, and we ended up finishing July in positive territory.

Wall Street has a habit of reacting first and thinking later. Eventually, though, earnings and fundamentals tend to win out.

Of course, different sectors can take turns leading the market. For example, while AI stocks have been hit by profit-taking, energy stocks have benefited from tight diesel supplies and strong refining margins.

The key is to recognize what’s working and be ready to adjust when leadership changes.

As I like to say, bad stocks bounce like rocks, but good stocks bounce like fresh tennis balls. And as we head into 2027, I think knowing the difference will be more important than ever.

You see, the market has become increasingly narrow. The days when you could buy almost any AI stock and watch it soar are fading. Investors are becoming more selective, and with a new Congress potentially adding more uncertainty to the AI buildout, the list of winners could get even smaller.

But, folks, that’s exactly the kind of market where my Stock Grader system shines.

I’ve spent nearly five decades studying what separates the strongest stocks from the rest. And when Wall Street starts picking winners and losers more carefully, I believe that research becomes even more valuable.

That’s why I’ve been working on something special to help investors navigate the market ahead.

I’m preparing to reveal where I believe the next big opportunities will emerge, which stocks are best positioned to benefit, and how I’m adapting my strategy as market leadership changes.

And on Thursday, November 12, at 2 p.m. Eastern, I’m hosting a special online event to show you exactly how it works.

During the presentation, I’ll reveal two special stock recommendations: one I believe you should consider buying and another I think you should avoid.

If you register for my special event you’ll gain access to exclusive content I’ve prepared for the event. (Click here to reserve your spot now.)

You’ll also get a chance to test-drive my proprietary Stock Grader system.

Normally, this kind of access is reserved for my paid subscribers. But for this event, you’ll be able to enter stock symbols yourself and see how my system grades them.

You can reserve your free spot for Thursday, November 12, at 2 p.m. Eastern by clicking here.

Sincerely,

Louis Navellier

Editor, Market 360

The post The Election Is Over. Now Comes the Race for 2027’s Biggest Winners appeared first on InvestorPlace.

As I write on Thursday morning, the AI unwind that started quietly yesterday has turned into a full-blown rout.

All three major indexes are down sharply, with the Nasdaq leading the way lower, off more than 5%.

Yesterday, much of the damage was hidden beneath a rising market. The broad indexes climbed as Wall Street cheered the end of election uncertainty, but the companies building America’s AI data centers were getting crushed.

For example, Comfort Systems USA, Inc. (FIX) fell 15%, while Modine Manufacturing Co. (MOD) and Sterling Infrastructure, Inc. (STRL) each plunged 21%. Meanwhile, the Philadelphia Semiconductor Index (SOX) dropped to a six-month low.

Today, there’s no hiding it. Those same builders are bleeding again, but this time, the selling has spilled into the broader market.

The catalyst, of course, is Tuesday’s election. For months, we’ve flagged legislative risk as the most likely threat to the AI trade – we just expected it to show up in 2028, not here in 2026.

But is that characterization fair? Is the AI trade now over?

Let’s turn to the analyst who’s been at the forefront of it since ChatGPT launched in November 2022: our technology expert Luke Lango, editor of Innovation Investor.

His bottom line is that the AI trade isn’t ending; it’s just changed dramatically.

The closer to the job site, the worse the day

Democrats didn’t just win both chambers of Congress. They also flipped governorships in Texas, Georgia and Ohio, three states that, by Luke’s rough count, hold nearly half of the planned U.S. data-center pipeline. All three incoming governors have promised some form of data center regulation.

Luke’s conclusion is that the buildout slows from here. In his base case, new U.S. data center capacity comes in about 3% to 5% below plan in 2027 and about 15% below plan in 2028.

But slower doesn’t mean stalled. Even in that base case, U.S. capacity still grows about 45% in 2028, and most of the delayed capacity simply shifts into 2029 rather than disappearing.

What’s most useful for your portfolio is how yesterday’s selling broke down by layer of the AI stack. Now, we’ll need to update this after today’s dust settles, but this will give you an idea of where the pain is concentrated.

As you can see, the damage maps almost perfectly onto distance from the construction site.

The hyperscalers were the only layer in the green, up 5.2% on what Luke calls the “capex cover” trade, the bet that Washington just gave Big Tech an excuse to rein in its massive spending.

That cushion didn’t last. Today’s Nasdaq 100 slide shows the selling has now caught up with the megacaps, too.

Chips (down 2.9%) and chip equipment (down 3.5%) held up best within the supply chain because they can ship to whichever site is ready, anywhere in the world. Meanwhile, the contractors who pour the concrete fell 14.5%. That pain is back this morning, only worse.

Here’s Luke on why he thought the selling had gone too far – and that was before this morning’s bloodbath:

Compare that with our estimates of the 2028 earnings hit: about 6%–12% for contractors and only 2%–4% for chipmakers.

In both cases, the market has already moved to price in more than our base case, which is why we think the selling is overdone, especially for the layers furthest from the job site.

If your AI holdings lean toward builders, power, and cooling, that’s likely where you felt the most pain yesterday – and again today – and where a portfolio review makes the most sense.

Why a slower buildout may be a better one

Now, Luke is very clear about a critical point – demand hasn’t changed.

Capacity is sold out, cloud growth is surging, and the big four hyperscalers are still expected to spend more than $1 trillion next year. So, with demand still strong, Luke sees a silver lining to the political brakes that the market may be missing:

A slower build-out may be a longer one.

The biggest fear hanging over this trade has been overbuilding into a 2028 peak; a political speed limit makes that outcome less likely and keeps capacity tight for longer.

Luke adds that a more measured pace could also ease shortages and reduce pressure on these companies to borrow heavily, helping the expansion last longer. As he puts it, “a more measured buildout is a more sustainable buildout.”

So, Luke’s AI bull thesis is “bent, not broken.” Still, the SOX semiconductor index broke below the key support level Luke had flagged, so he’s tightening up per his game plan. That means trimming buildout exposure, concentrating on his highest-conviction names, and upgrading away from companies that depend on outside funding.

Luke is releasing a detailed roadmap of these action steps, including which AI positions he’s trimming and where he’s doubling down. If you’re an Innovation Investor subscriber, click here to log in and see Luke’s full game plan. If you’d like to learn more about joining Luke in Innovation Investor to access this roadmap and Luke’s official portfolio, click here.

Louis Navellier: “Hang in there, everybody”

Luke isn’t the only one who thinks the selling has gotten ahead of the fundamentals.

Legendary investor Louis Navellier, editor of Growth Investor, released a Special Market Podcast this morning addressing the rout, and his message to subscribers is even more direct: don’t panic.

He quickly zeroed in on the primary fear in today’s market – that the incoming Democratic governors will choke off AI data center construction. He notes that data centers go where energy is cheap and fiber-optic lines are plentiful, and states have every financial reason to keep them:

The narrative that AI is going to slow down because Democrats got elected is a false narrative…

So, the data center boom is not going to slow down…

What the politicians will do is they will assure everybody their electric rates aren’t going up because of the data centers. They will accept the property tax revenue and the jobs that data centers create, and that’s that.

Most important for Louis, the fundamentals haven’t budged. He notes that there have been no meaningful analyst earnings cuts among the AI companies he follows, and that some of the hardest-hit names now trade at remarkably low valuations.

For example, Super Micro Computer, Inc. (SMCI) trades at barely five times forecasted 2027 earnings.

Here’s Louis’ overall take:

The bottom line is the U.S. is the AI leader, and all the AI-related stocks will firm up.

Good stocks bounce. Bad stocks bounce like rocks, but good stocks bounce like fresh tennis balls…

It’s time to back up the truck on these kinds of stocks, but you have to be patient and you have to let the earnings do their thing.

If you’re a Growth Investor subscriber, click here to listen to Louis’ full Special Market Podcast. And if you’d like to learn more about joining Louis in Growth Investor, click here.

From what got hurt to what soared yesterday: solar

Now, not everything got hit on Wednesday.

While the election results kneecapped the AI infrastructure trade, solar stocks soared – and as I’ll show you in a moment, two of our analysts were already in position.

First, as for the rally’s logic, it’s straightforward…

President Donald Trump’s 2025 tax law cut key incentives for most new solar projects that begin operating after 2027. With Democrats now controlling Congress, investors are betting that political pressure on renewables will ease and that some of those incentives could eventually be restored.

We can see this in the Invesco Solar ETF (TAN). It jumped nearly 6% yesterday – a big move for an ETF that holds dozens of stocks. But individual solar plays climbed even higher. For example, Nextpower Inc. (NXT) closed nearly 12% higher.

To be clear, that rally was built on expectations, not legislation. The new Congress isn’t seated until January, and President Trump can veto any attempt to restore the credits. But many of these stocks were so beaten down that it didn’t take much to send them higher.

That’s exactly the setup our global macro expert Eric Fry was targeting when he recommended long-dated call options on TAN in his Leverage service on Tuesday.

Here’s Eric:

The renewable energy sector does not need an overwhelmingly favorable political tailwind in the U.S. in order to thrive; it merely needs a less hostile one…

The TAN portfolio, for example, is trading for just five times estimated gross earnings (EBITDA) – or 30% below its 10-year average valuation.

For additional perspective, the S&P 500 is trading for nearly 12 times estimated EBITDA. Therefore, at TAN’s currently depressed valuation, merely less-bad news could give the stock a boost.

Now, solar is giving some of that back today. As I write, TAN is down about 4% in the broader selloff, but yesterday’s surge is likely a preview of what could be in store for the sector over the coming months.

Another solar trade…with nearly all the risk removed

Our options expert Jonathan Rose, editor of Advanced Notice, also jumped on TAN on Tuesday after spotting enormous unusual options activity in solar.

Traders had piled into more than 12,500 contracts of one TAN call option, against fewer than 500 contracts already open. That’s more than 25 times the existing open interest, and as Jonathan put it, “Where there’s smoke, there’s often fire.”

Then, with TAN surging more than 8% on Wednesday morning, Jonathan used the strength to take his subscribers’ original capital off the table while keeping their upside intact:

That means we can let the trend work in our favor without worrying about losing our original investment. We may sacrifice some upside in exchange for eliminating our risk, but that’s a trade-off I’m more than happy to make.

One day in, it’s close to a free trade – and today’s pullback shows why that matters. Because Jonathan’s subscribers are already playing with house money, a down day like today stings far less. It’s a great illustration of how a trading veteran handles risk.

Two different roads to the same trade

What I find most interesting about this solar trade is how Eric and Jonathan arrived at it.

They look at the market in very different ways. Eric is a big-picture macro investor who builds his case from valuations, policy shifts and long-term trends. Jonathan is a trading veteran who follows the money, watching for unusual options activity that suggests big players are positioning ahead of a move.

Different toolkits, different time frames – yet both landed on solar on the very same day.

Our Editor-in-Chief and co-Digest writer Luis Hernandez just sat down with both to dig into exactly that. In the interview below, Eric walks through his specific case for the solar trade, while Jonathan explains how he reads unusual options activity and what it’s telling him right now. Along the way, they compare how their approaches differ, and why they came to the same conclusion.

With solar pulling back today, it’s a timely conversation. Click here to watch the full interview, or click on the thumbnail below.

Coming full circle

Days like today are why having an investment plan is so important.

Luke is trimming around the edges while keeping his core AI thesis intact. Louis is urging patience with fundamentally superior stocks that he believes will bounce “like fresh tennis balls.” And on the solar side, Jonathan already took his risk off the table before today’s pullback. They’re three different approaches, but none of them involve panic-selling into a rout.

The election has handed Wall Street a new set of rules for the AI trade, and it will take some time for the market to sort out who wins and who loses under them. We’ll keep you updated as our experts weigh in.

Have a good evening,

Jeff Remsburg

The post AI Crashes. What To Do Now appeared first on InvestorPlace.

On a frozen lake, the ice can be two feet thick in one spot… and barely an inch thick a few yards away. That’s why experts warn that you should never judge a lake by its surface.

From the shoreline, it may look like one solid sheet, but “white ice” – the cloudy layer that forms when snow melts and refreezes – is only about half as strong as clear ice, even though it can look every bit as sturdy.

Veteran fishermen have another rule worth mentioning here. Good ice tends to creak and groan before it gives way. “Rotten” ice breaks without warning.

Today’s stock market looks a lot like that frozen lake.

And Wednesday’s post-election rally makes the comparison even more important. The market appeared to be celebrating the election results, with investors betting on a divided government. But a rising market doesn’t necessarily mean the underlying ice has gotten any thicker.

From a distance, everything appears solid. The major indices are hovering near record highs. But step off the shore, and you’ll find the ice is thick in only a few places… and dangerously thin almost everywhere else.

So, in today’s Smart Money, I’ll explain why I believe investors are currently standing on thin ice. Then, I’ll share five tactics that can help you keep your footing.

Let’s get into it…

A Very Bizarre Situation

The market right now is an extremely narrow one.

An unusually large number of stocks are hitting new lows – and very few are reaching new highs. Both readings are approaching historical extremes.

While this isn’t necessarily a dangerous situation, it’s not typically healthy to have that kind of divergence between lows and highs.

A big reason for this divergence is oil. Prices have spent months well above $80 a barrel and recently topped $100. Rising energy prices flow through entire supply chains and also affect interest rates by pushing them higher. That’s bad for most companies.

Larger companies, such as Nvidia Corp. (NVDA), Meta Platforms Inc. (META), and Amazon.com Inc. (AMZN), are strong enough to withstand that headwind. But mid- and small-cap stocks, which tend to have more debt, have been declining since August.

The averages are managing to hang on because the big companies are holding up. But the longer this imbalance persists, the worse it becomes. At some point, even the big companies can’t withstand the pressure.

Meanwhile, the AI trade that’s carrying those big companies has developed some cracks of its own.

AI spending is proceeding at a ferocious pace – close to a trillion dollars per year in new investment in AI data centers and associated infrastructure. At the same time, the price of compute is falling pretty precipitously. That’s not a good combination. You want to see the prospects for return on investment improve, not deteriorate. That’s made the market jittery, reactive, and volatile.

And now that the midterm results are in, the market responded with a rally. But I wouldn’t mistake that reaction for an all-clear signal.

Politics may influence the headlines, but the bigger forces driving stocks remain the AI trade, interest rates, and geopolitics – particularly the war in Iran and its impact on oil prices. Those are the forces I expect to have a much greater influence on stock prices in the months ahead.

In other words, the ice is groaning. That’s not a reason to panic. But it is a reason to watch every step.

Don’t Stay on Shore – Stay Self-Determined

Now, a tricky market is not an impossible one. Thin ice doesn’t mean you have to stay off the lake entirely. It means you need to move deliberately, test the ground in front of you, and refuse to follow the crowd onto the weakest patches.

I call this approach “self-determination.” A self-determined investor honestly evaluates both risk and reward, and then sets a long-term course toward wealth creation. In practical terms, it comes down to five tactics…

1. Own Businesses, Not “Tickers.” In a market this narrow, you can’t just throw a dart at a sector and expect it to work. Self-determined investors insist on buying businesses with formidable competitive moats – special situations that have the potential to do well regardless of what the overall market does.

2. Respect Both Promise and Peril. AI is transformative, but it also has a split personality. The bulls will say that falling compute prices will simply unleash more demand. That could well happen, but it’s likely not going to be a smooth road to that point. The intelligent course is neither blind enthusiasm nor blanket rejection.

3. Think in Years, Not Days. Consider Brazil. When Luiz Inácio Lula da Silva unexpectedly won the presidential runoff, Brazilian stocks sold off about 20%. But Lula is a known quantity. During his first two terms, the Brazilian stock market rose 1,200% in U.S. dollar terms. Brazilian stocks are dirt cheap, so I generally believe this is a buying opportunity. The same patience applies to energy stocks – they are usually one-, two- or three-year holdings – not short-term hedges.

4. Diversify Without Diluting. Diversifying your portfolio the right way means balancing high-growth innovators with stalwarts in sectors like energy, infrastructure, and healthcare. Over the last four months, indices of pharmaceutical and medical technology stocks are up about 20% to 30%. Over the same period, the Magnificent Seven stocks, on average, are up only a little.

5. Refuse the Seduction of Fads. The AI mega-caps are grabbing all the headlines. I don’t expect those big names to be disasters, but I do expect them to do very little, given how high expectations already are. Every AI stock should be dissected. There is opportunity across all four AI categories I’ve identified – Builders, Enablers, Appliers, and Survivors. Spread your investments around all four rather than piling into the same handful of crowded names.

Where to Find Solid Ground

The investors who make it safely and successfully across a frozen lake aren’t the fearless ones. They’re the prepared ones – the ones who know where the ice is thick.

That’s exactly the approach I take in my flagship research service, Fry’s Investment Report.

Rather than chasing the day’s hottest AI headline, I look for the big-picture trends that drive huge, multiyear moves in entire sectors of the market. Our portfolio is built to play the AI trade intelligently while also positioning my subscribers for long-term opportunities in healthcare and energy, where we’ve held large allocations for the past two years.

In a market where the ice is so thin, knowing where to step matters more than ever.

Click here to learn more about Fry’s Investment Report.

Regards,

Eric Fry

P.S. Since World War II, the S&P 500 has risen from November through June after all 21 midterm elections. Will this time be different? In the newest episode of the InvestorPlace podcast, I join Louis Navellier, Luke Lango, and Jonathan Rose to debate a post-midterm rally, AI spending, and the Anthropic IPO. Watch it here.

The post The Post-Election Rally Is Cracking – Make These 5 Moves Now appeared first on InvestorPlace.

On the evening of May 25, 1943, millions of Americans were glued to their radio sets for a special CBS program.

It begins with a “new study in terror,” as a woman attempts to call her husband only for the telephone to glitch and patch in two strangers arranging a murder.

She decides to call for help, but the line is busy no matter who she dials out to. Each failed attempt leaves her with more questions, until she begins to understand that the men were discussing her.

That was the premise of Sorry, Wrong Number, the radio drama starring Agnes Moorehead.

It may come from a different age, but its suspense is familiar: hearing only part of a conversation and trying to work out what happens next.

That’s the problem investors face every earnings season…

We hear what management says. We examine the numbers. Then we make judgments about a future we can’t possibly know completely.

Right now, those judgments have pulled AI stock prices and business results in very different directions.

Could the stocks you’re holding be time bombs?

In our 100th episode of Being Exponential, recorded on Election Day before the results were known, I examine that gap.

Technology stocks were trading at roughly 20 times expected earnings, while analysts projected about 35% annual earnings growth over the longer term.

Those estimates depend heavily on continued spending by the largest technology companies. If those budgets shrink, suppliers will have less growth than Wall Street expects.

The opportunity depends on whether that fear has pushed prices below what the businesses can realistically deliver.

Since then, the election results have added information we need to incorporate. I now expect slower data-center construction and lower earnings estimates across parts of the supply chain. My preference is for chips and related components that can follow investment to other locations, with greater caution toward businesses tied to individual building projects.

The demand story remains compelling. The delivery schedule has become more complicated.

Watch our 100th episode below for the evidence behind my AI outlook, the risks that could change it, and the stocks I’m watching for a recovery:

Continued Spending Can Still Arrive More Slowly

Before the results, my focus was on whether the largest technology companies would voluntarily retreat from their AI investments.

We now have another issue to consider: They may want to build faster than local rules, permits, and power availability allow.

That can delay spending and supplier revenue even when customers remain committed to their projects. It also means some earnings estimates will need to come down.

I expect a slower data-center buildout over the next 12 to 24 months. The companies closest to construction face the greatest pressure: contractors, power providers, and suppliers of electrical and cooling equipment.

Chip and component suppliers have more options. If one location cannot accept equipment, another facility may be ready. That flexibility supports my preference for chips, networking, memory, and optics.

But these businesses can still feel the slowdown. They are simply better positioned to follow spending as its destination changes.

This is why I’m recommending reducing exposure to the most construction-dependent businesses while concentrating on the essential components that growing computing demand still requires.

Look Beyond the Processors

More computing power creates additional demands throughout an AI system.

Processors need to exchange information quickly. They need memory to handle their work and storage to retain data. A bottleneck in any of those areas can limit what the whole system accomplishes.

That is why my attention extends to Marvell Technology (MRVL), Lumentum (LITE), and Astera Labs (ALAB), along with memory and storage companies such as Micron Technology (MU), SanDisk (SNDK), Western Digital (WDC), and Seagate Technology (STX).

In the episode, I identified these as potential beneficiaries if continued AI investment helps restore confidence in future earnings.

Their appeal after the election also reflects where they sit in the buildout. Their products can serve computing demand across different locations, giving them more flexibility than a business dependent on a particular construction site.

But falling prices do not automatically make the whole group a bargain. Customer concentration, competition, financing needs, and the timing of orders differ from company to company.

And a stock that looks inexpensive against an old earnings forecast can become less attractive when that forecast falls.

Nebius Offers More Upside (and More Ways to Disappoint)

My most aggressive rebound idea in the Election Day discussion was Nebius Group (NBIS).

Nebius rents computing capacity to customers building and running AI applications. That makes its growth highly sensitive to continued investment in AI.

If demand remains strong, the company delivers its planned capacity, and investors regain confidence in its earnings outlook, the shares could respond strongly.

That is why I described Nebius as my highest-upside idea for 2027. I also made clear that it was not my preferred choice for balancing potential gains against risk.

The post-election construction outlook makes that distinction even more important.

Nebius needs facilities, electricity, financing, and equipment working together before it can deliver computing services. Customer demand is necessary, but it does not resolve every obstacle between a signed contract and revenue.

A chip supplier may redirect a shipment. A cloud operator cannot relocate an entire contracted deployment as easily.

For Nebius, I want evidence that funding remains available on workable terms and that capacity arrives when promised. Yet, it belongs in the discussion as a higher-risk opportunity whose potential depends on successful execution. It should not be treated as interchangeable with the larger chip suppliers.

The Bottom Line on the AI Trade

The next phase of the AI trade will require more than confidence in the technology.

We need to know which businesses can keep serving demand, which depend on projects staying on schedule, and which have already fallen enough to reflect a more difficult outlook.

That is also why opportunities in application delivery and cybersecurity deserve separate consideration. Businesses still need reliable, secure digital services, but those investment cases should stand on their own customer demand and financial results.

My conviction in AI remains strong. My approach to owning it is becoming more selective.

To help you take that next step, we’ve put together a new free report: 5 Stocks for the Next Wave of Growth.

Watch our 100th episode of Being Exponential With Luke Lango here to download that report.

The post Why I’m Buying the AI Selloff: My Top Picks for 2027 appeared first on InvestorPlace.

As I write on Wednesday morning, the results are in, and they weren’t close.

Democrats dominated yesterday, winning control of both the House and the Senate. They also flipped governorships in several Republican-held states, including Ohio and Texas, where Gina Hinojosa unseated three-term Gov. Greg Abbott.

In Monday’s Digest, we said Tuesday would be a referendum of sorts on the AI buildout. Well, voters delivered a clear verdict…

Let’s start with Ohio, which is home to 21 of the 41 local data-center measures on ballots nationwide. According to Fortune, at least 14 of the 18 Ohio communities voting on the issue passed bans or other restrictions. In Trenton, a ban aimed at keeping out an 18-building Amazon Web Services campus passed 80% to 20%. And in Wilmington, about 80% of voters rejected rezoning for a data-center project across four separate referendums.

Meanwhile, in Ohio’s Senate race, Sherrod Brown ousted Sen. Jon Husted, after running ads calling Husted the “face of data centers.”

Wall Street’s reaction this morning has two sides. As I write, all three major indexes – the Nasdaq included – are up more than 1%. Markets generally like a divided Washington, since it lowers the odds of sweeping policy changes.

But if your portfolio is loaded with AI data center stocks, you’re having a different experience this morning as the stocks most tied to the data-center buildout are getting hit hard.

For example, Constellation Energy Corp. (CEG) is off more than 9% as I write. And Vistra Corp. (VST) is 15% lower. And Comfort Systems USA, Inc. (FIX) is down more than 17%.

So, is the AI data-center trade dead?

No, but it’s not the same trade that it was yesterday.  

A Democratic Congress can hold hearings and stall the permitting reforms the industry wants, but it can’t pass new restrictions over a presidential veto, which President Donald Trump would be almost certain to use.

The more powerful brakes are at the local and state levels, which is exactly where voters acted. In both Texas and Ohio, the governor appoints the utility regulators who decide what data centers pay for power. And Texas is one of the largest data-center markets in the country.

So, the likely outcome isn’t a halt, it’s a buildout that moves slower, costs more, and increasingly must pay its own way – including supplying more of its own power instead of leaning on the public grid.

Before the election, the global equity research shop Bernstein estimated that 55% of the data-center pipeline faced political risk. But the firm also argued that “economic incentives may ultimately outweigh political opposition.”

We’ll see…

Voters may have just made the pipeline trade stronger

If voters and regulators are going to make data centers pay their own way, more of them will need to bring their own power. And much of that power will come from natural gas.

Solar is today’s headline winner, and renewables will get their share, but gas-fired power is the fastest way to deliver electricity around the clock at the scale AI needs, and the companies that move that gas are already lining up the business.

Yesterday, Energy Transfer LP (ET) committed to building a $1.6 billion natural gas pipeline that will run 215 miles from eastern Louisiana across Mississippi, with room to carry up to 1.2 billion cubic feet of gas per day.

Bloomberg put the news in context:

Energy Transfer and other pipeline operators are rushing to put gas conduits into service as consumption of the fuel soars, driven by liquefied natural gas export terminals along the Gulf Coast and new power plants serving AI data centers.

Energy Transfer’s own management was even more direct on yesterday’s earnings call. CEO Tom Long said the company has now signed a 10-year deal to supply “an A-rated hyperscaler,” one of the Big Tech giants building AI infrastructure.

In all, he said, Energy Transfer has signed more than 9.5 million MMBtu (millions of British thermal units) per day of agreements with customers that include “hyperscalers, data centers, and power plants.” That’s roughly eight times the capacity of the pipeline it just approved.

Co-CEO Mackie McCrea put it bluntly:

The demand for our products and what we do, especially natural gas, is going to continue to grow exponentially.

Brian Hunt saw this coming

If you’ve been reading our senior analyst Brian Hunt, editor of Money & Megatrends, none of this is news. Brian has been highlighting this theme repeatedly for nearly two years. Here he is from last Friday’s issue:

In early 2024, I began to see the oil and gas pipeline industry as the best way to generate substantial passive income from the AI boom.

The logic is simple. AI data centers need enormous amounts of electricity, and natural gas is the preferred fuel for the power plants that supply it. But as Brian points out, that only matters if the gas can get where it’s going:

…all the natural gas in the world isn’t worth much if you can’t transport it to customers.

This is where America’s vast natural gas transportation, processing, and storage industry comes in… If we get an AI-driven boom in natural gas consumption, we get a boom in natural gas transportation by default.

So far, the market agrees. Blue chip pipeline operator Enterprise Products (EPD) has returned 14% this year. Fellow blue-chip operator Energy Transfer has climbed 25%.

These individual stock performances have driven the Alerian MLP ETF (AMLP) to a 16% year-to-date gain. Even with AMLP’s big run and shares being near all-time highs, it still yields around 7.8%.

I’ll note that these pipelines offer a way for investors nervous about an AI crash to still participate in AI. Back to Brian on this note:

The typical pipeline operator is not your conventional “high-risk, high-reward” AI play. Instead, it’s a boring, predictable business that generates steady cash flows and shareholder distributions.

But the AI megatrend is giving natural gas a boost that will last for years. Plus, the Iran War and its constriction of Middle Eastern energy flows have made U.S. natural gas exports increasingly more valuable to customers in Europe and Asia.

For more of Brian’s free analysis, he writes Money & Megatrends every day the market is open, highlighting these kinds of opportunities before they become front-page news. His issues are loaded with actionable advice and specific tickers.

You can sign up right here.

Is this 1998 or 2000 for the AI trade?

Now, let’s shift from pipelines back to AI more broadly.

Monday brought another round of AI selling, and by the close, the Nasdaq-100 was in correction territory, more than 10% below its October 6 record high. Yesterday, the script flipped. Chip stocks led a rebound while the Dow struggled. The Nasdaq-100 added 1% as it tried to claw its way out of that correction.

But today, even as the broader market rallies on the election results, the semiconductor index is sliding hard.

So, which is it? Is the AI trade breaking down, or getting ready to bounce?

Here’s our technology expert Luke Lango from Monday’s Innovation Investor Daily Notes with the significance of where the AI trade sits today:

…the whole AI trade is at a major make-or-break point. Nearly every major AI stock, index, and benchmark has fallen to major technical support.

Holding and bouncing here would mean this is late 1998 all over again, right after tech stocks fell 20%-plus and before they soared nearly 300% over the next 18 months.

Breaking down would mean this is potentially late 2000 all over again, right after tech stocks fell 20%-plus and before they crashed another 70%-plus over the next two years.

Luke’s Monday take was that the weight of the fundamental and technical evidence says that we’ve been experiencing a growth scare in a still-alive AI bull market, very similar to late 1998. So, he sees the AI trade roaring back over the next 12 to 24 months. But he doesn’t dismiss the risk that he’s wrong, and that AI has a far bigger slide in front of it.

The levels Luke is watching

Being bullish isn’t the same as being blind, so Luke has mapped out exactly what he’ll do as conditions change.

His focus is the Philadelphia Semiconductor Index (SOX) and its 200-day moving average. That’s the index’s average closing price over roughly the past 10 months, and traders treat it as a dividing line between a healthy uptrend and a broken one.

Luke’s team studied all 26 times since 1995 that the SOX ran more than 10% above that line and then pulled back to it.

Here’s Luke with the results, and what it means for positioning:

Our historical study suggests a modest break below the SOX’s 200-day average often reverses.

We’re holding near 10,800, would begin trimming weaker names below 10,447, and turn more defensive around 10,300.

A close above 11,684 would confirm the rebound and support more aggressive buying.

The key defensive number is roughly 10,300, about 5% below the 200-day. In Luke’s study, the SOX broke below its 200-day moving average but held above it in seven episodes. It was higher 12 months later in six of them, with an average gain of 20%, the best outcome in the study.

But breaks below the 5% line were a coin flip. Seven bounced, averaging 14%. The other six became bear markets, averaging losses of 28%.

He also flags a warning worth respecting:

…the SOX ran 76% above its 200-day this year, second only to 2000, and every past rally that stretched 40%-plus above it and then broke down ended in a crash.

As I write here on Wednesday, the SOX has fallen to 10,203. That’s about 5.5% below its 200-day average, and below the 10,300 line Luke identified as the one that matters most. In his words, that’s the level “where a shakeout turns into a breakdown and we finish tightening.”

To be clear, one day doesn’t confirm a breakdown. Luke’s plan is built around where the SOX settles, not where it trades at a given moment, and his study shows that even breaks below this line bounced about half the time. But this is the scenario where Luke has said he’ll turn defensive, so if the SOX can’t reclaim 10,300 quickly, expect him to be tightening up.

Here’s the full roadmap. Above 11,684, Luke turns more aggressive. Near 10,800, he’s holding. Below 10,447, he starts trimming weaker names. And at 10,300, he turns defensive.

Coming full circle, what’s the takeaway from yesterday’s elections?

The AI buildout isn’t over, but it just got slower, pricier, and more political. That’s bad news for some of yesterday’s AI winners, potentially good news for the pipelines fueling AI, and it puts Luke’s 10,300 line for SOX front and center in the days ahead.

Have a good evening,

Jeff Remsburg

The post What the Democrats’ Sweep Means for the AI Trade appeared first on InvestorPlace.

My colleague Luke Lango sees a disconnect between market trends and the defense industry, and has identified companies that could benefit as America replenishes its arsenal and prepares for next-generation warfare.

Today, Luke takes over to explain why an established defense contractor deserves a closer look — and how it fits into a much larger investment opportunity.

You can learn more about Luke’s broader thesis in his Rearming America presentation.

“Arming.”

Army Chief Warrant Officer 2 Nate Shea had maneuvered his drone behind a fixed-wing target aircraft. Seconds later, he detonated the Claymore mine his drone was carrying.

Watching on a screen, First Lieutenant Francesco La Torre looked up in time to see the target plummet.

The Army’s first drone-on-drone strike had just taken place during a live-fire demonstration at Fort Rucker, Alabama.

This August 2025 training had taken weeks to prepare.

Paratroopers practiced for hours each day. Pilots trained in changing weather to intercept an aircraft that could appear anywhere.

La Torre described the potential plainly: “With the right kit,” paratroopers could use “a low-cost system with preexisting munitions” to protect their units.

Those four words, with the right kit, begin to reveal the investment opportunity here.

Equipping more units requires hardware, reliable components, and manufacturers capable of delivering at scale. Adding AI and automation creates further opportunities for the companies developing the next generation of military systems.

That’s why I’m watching defense stocks closely. And right now, I think Wall Street is overlooking something important.

Defense stocks have been hit hard in recent months. Peace-talk headlines, uncertainty over Washington’s budget, and higher interest rates have weighed on the sector. Yet the military’s underlying needs haven’t gone away.

Missiles that have been fired still need replacing. And nobody is going back to fighting wars without drones.

Today, I’ll explain why America’s military buildup could create opportunities for years to come, why the recent selloff may be giving investors a second chance, and share one established defense stock I believe is worth a closer look.

From One Successful Strike to an Entire Military

Right now, America faces three overlapping defense demands: replenish weapons already deployed, prepare for warfare increasingly shaped by drones and AI, and expand the industrial capacity needed to do both.

Consider the first problem. The war with Iran has consumed substantial quantities of missiles and interceptors. Advanced military equipment requires specialized components, manufacturing capacity, and trained workers. Some systems take years to produce.

Meanwhile, the White House has proposed a $1.5 trillion defense budget for 2027. That’s not money Congress has approved yet, but it shows how seriously Washington is taking the need to rebuild and modernize America’s military.

One defense contractor deserves a closer look here…

Defending the Skies

The basic appeal of a missile manufacturer is pretty straightforward: Militaries use weapons, and then order replacements. Defending against an aerial attack, however, involves much more than firing an interceptor.

First, a system has to detect the incoming object. Then it must track it, identify the threat, and fire a weapon capable of stopping it.

This is where RTX Corp. (RTX), whose Raytheon division has been building military equipment for more than a century, comes in.

RTX’s products include Patriot air and missile defense equipment, GEM-T interceptors, and the Lower Tier Air and Missile Defense Sensor, or LTAMDS. That last one is a radar designed to strengthen the military’s ability to detect and track threats.

For RTX, the potential extends across replenishment, upgrades, and additional systems.

And the orders are already coming in.

In the second quarter of 2026 alone, Raytheon booked a $3.7 billion contract for Patriot interceptors for Ukraine, another $988 million for Poland, and $827 million for new Army missile-defense radars.

By September 30, Raytheon’s defense order backlog had reached $130 billion, up from $75 billion at the end of 2025. That’s equipment customers have ordered but the company hasn’t yet delivered — a substantial pipeline of future work.

And that brings us back to the changing economics of warfare.

Why Cheaper Drones Can Create Demand for Better Defenses

Imagine an attacker launching dozens of inexpensive drones at a military base. Defenders can’t simply ignore them. Even a cheap drone can cause enormous damage if it reaches an aircraft, ammunition depot, or other valuable target.

But using a costly interceptor against every incoming drone quickly becomes an expensive proposition. And an adversary that can manufacture drones faster than you can replace your interceptors has another advantage.

That is one reason I’m interested in layered defenses: systems that combine detection and tracking with multiple ways to defeat an incoming target.

RTX’s counter-drone products, including its Coyote interceptors and Ku-band Radio Frequency System radar, give it exposure to this requirement as well.

In other words, the drone revolution isn’t just good news for drone makers. It’s creating new business for the companies that defend against them.

Of course, there’s more to RTX than missile defense. The company’s Collins Aerospace and Pratt & Whitney divisions give it substantial exposure to commercial aviation as well as military customers.

That’s worth remembering. RTX isn’t a pure defense stock. Commercial aviation, engine costs, and manufacturing problems can affect its results, too. And a $130 billion backlog doesn’t guarantee every contract will be profitable.

But the opportunity I’m seeing goes well beyond RTX.

The Other Side of the Defense Trade

Established contractors such as RTX have something newer defense companies often lack: decades of experience delivering complex military systems, existing customer relationships, and large multiyear contracts.

That can provide a measure of stability. But it doesn’t necessarily offer the fastest growth.

Consider what happens when the Pentagon moves from experimenting with drones to purchasing them by the thousands. The companies developing drones that can operate on their own, software that helps commanders make faster decisions, and other emerging technologies could see demand grow much faster than the overall defense budget.

That’s why I favor owning both types of companies: established contractors that can profit from rebuilding America’s arsenal, and smaller technology firms that could grow much faster as the military adopts new weapons.

But those newer stocks also carry greater risks. They’re especially vulnerable when interest rates rise or investors become less willing to pay high prices for future growth. That’s part of what we’ve seen in the recent selloff.

A falling share price doesn’t automatically mean the business is deteriorating. But neither does it guarantee a bargain.

That’s why I’ve been looking beyond the familiar defense contractors to find companies that could benefit from the next wave of military spending. Some make weapons, others develop new technology, and still others supply the materials that make those weapons possible.

That’s the larger opportunity I’ve been researching in my Rearming America presentation.

I explain why I believe the United States is entering a historic military buildup, how government spending and private investment could accelerate it, and which five companies I’ve identified across three major areas: replenishing the arsenal, developing the next generation of weapons, and rebuilding America’s industrial capacity.

I also discuss two additional opportunities involving the future of naval shipbuilding and military AI.

You can see my complete strategy here, including more info about the companies I believe are best positioned for the years ahead.

The soldiers at Fort Rucker needed the right kit to bring down a drone. Equipping an entire military for the next generation of warfare will take a great deal more.

And that’s where I believe the real investment story begins.

Sincerely,

Luke Lango

Senior Investment Analyst, InvestorPlace

P.S. Luke believes one of the market’s next big investment opportunities could come from America’s effort to rebuild and modernize its military. Missiles need replacing. Drones and AI are changing warfare. And billions of dollars in new business could flow to the companies supplying the equipment. Luke has identified five stocks he believes could be major winners, along with two additional opportunities. See his free Rearming America presentation here to learn which companies he’s watching and why he believes the opportunity is just beginning.

The post The Four Words That Reveal a Much Bigger Defense Opportunity appeared first on InvestorPlace.

BlueChip represents a new line of computers being developed with Qualcomm (QCOM). The first model, planned for 2027, is a rugged military laptop with a carrying handle resembling a rifle strap.

When The Verge asked Luckey how much of the laptop would be American-made at launch, Luckey began working through the obstacles.

There’s the chip factories, memory production, display manufacturing, and components, much of which will not be made in the U.S. at launch but instead come from close allies.

It’s one thing to build a computer. It’s another thing entirely to rebuild the supply chain around it.

Anduril believes its launch model’s U.S.-origin components will represent roughly 65% of the prototype’s component procurement cost.

Its engineers are designing the enclosure for American machining, adapting battery and power-management systems to available U.S. technology, and developing a process to incorporate American-made display glass. Circuit board assembly is planned for its Arsenal-1 facility in Ohio.

A fully domestic supply chain is still a long ways off, though. But we can catch a glimpse into what rebuilding the manufacturing looks like, with engineers solving problems one component, process, and supplier at a time.

For investors, I think that’s the important part of this story.

America’s effort to strengthen its defenses will require years of spending on the physical capacity to produce what the military needs.

Yet, one company is already operating at the center of that effort…

The First Opportunity Is Already Here

You can’t defend an airfield with only an interceptor…

You need to be able to detect the incoming threat, track its movement, and coordinate a response. The missile is one part of a larger system that has to function under pressure.

This is where RTX (RTX) comes in.

RTX’s Raytheon business supplies Patriot systems and GEM-T interceptors, along with the Lower Tier Air and Missile Defense Sensor, or LTAMDS.

In plain English, LTAMDS is a radar designed to help air defenses detect and track advanced threats.

Its opportunity extends across the equipment needed to make air defense work, including radars, interceptors, and the systems connecting detection to a response.

That creates several potential sources of business as customers expand their defenses.

An existing customer may need more missiles. Another may need additional systems to protect more locations. Others may need upgraded sensors, maintenance, or support.

The initial sale can open the door to years of additional work.

We can already see RTX investing to meet that demand.

In June, the company announced a $100 million expansion at its Portsmouth, Rhode Island, facility to increase LTAMDS testing capacity and production of Patriot GEM-T subcomponents.

That followed a separate $53 million expansion of its radar production facility in Andover, Massachusetts.

Notice what those investments address.

Testing capacity. Radar manufacturing. Missile components.

These are the practical steps that allow a defense company to deliver more finished equipment.

They also bring us back to BlueChip.

A laptop manufacturer needs dependable access to batteries, displays, and processors. An air-defense manufacturer needs dependable access to specialized electronics, missile components, and testing facilities.

In both cases, the finished product depends on the development and manufacturing keeping pace.

For shareholders, expanding that capacity creates an opportunity — provided the company can complete the work on time and earn attractive returns on the investment.

The Orders Are Substantial

RTX’s latest results show the scale of the demand.

Third-quarter 2026 sales reached approximately $25 billion, up 11% from a year earlier. Its backlog totaled $340 billion, including $164 billion in defense orders and $176 billion in commercial orders.

Management also raised its full-year free-cash-flow outlook to $9 billion to $9.2 billion.

That backlog provides substantial work to execute. The higher cash-flow outlook is encouraging because fulfilling orders requires investment before shareholders see the full benefit.

Still, backlog is future work. Its value depends on delivery schedules, contract economics, and execution.

I want to see rising production translate into cash after RTX pays for the people, equipment, and facilities needed to support it.

There is another distinction investors should understand: RTX is a diversified aerospace and defense company.

Alongside Raytheon, it owns Collins Aerospace and Pratt & Whitney. Commercial aviation therefore plays a major role in its results.

That can provide another source of growth and cash generation. But keep in mind, it also means engine problems, customer compensation, or other operational setbacks can offset progress in defense.

Where the Opportunity Leads

A working prototype is a start, but producing thousands of dependable machines requires an entire industrial network behind it.

That’s the lesson of Anduril’s laptop ambitions — and a central part of my thesis on America’s rearmament.

When the military needs more interceptors, it needs suppliers with trained workers, specialized machinery, qualified components, and equipment its personnel already know how to use.

Established manufacturers like RTX have that foundation. As orders grow, their challenge is to expand production and turn that demand into cash.

But restocking the arsenal is only the first phase of the opportunity I’m following.

The second involves drones, AI, and autonomous systems that could change how militaries operate… and what it costs to defend against an attack.

The third reaches deeper into the industrial base: securing the materials and manufacturing capabilities needed to produce those technologies at scale.

Each phase creates a different investment opportunity. RTX gives us exposure to one important part of that larger picture.

In my Rearming America presentation, I walk through all three phases and explain how they guide my search for the companies positioned to benefit. I also examine two related opportunities: rebuilding American naval power and supplying the intelligence behind increasingly autonomous military systems.

If today’s look at RTX has you wondering where else this spending could flow, that’s your next step.

Watch my Rearming America presentation to see the three investment opportunities I’m tracking — and the companies behind them.

The post America’s Military Rebuild Starts With a Manufacturing Problem appeared first on InvestorPlace.

As I write on Tuesday, Americans are heading to the polls, and Wall Street will be watching the results closely tonight.

As we covered in yesterday’s Digest, the outcome could tell us a lot about the AI trade. Data centers are on the ballot in more than 40 local measures, giving us a read on how fast public sentiment is turning against the AI buildout.

But there’s another major overhang that comes back into focus now that Election Day is here – and it could matter even more for the market…

Iran.

For weeks, President Donald Trump has been weighing whether to resume major military operations once the midterms are behind him.

Here’s The Wall Street Journal from yesterday:

America’s Gulf allies are steeling themselves for a heavy U.S. bombardment of Iran that they expect to trigger a vicious cycle of retaliation against their own economic and civilian infrastructure as early as this week.

The signs of preparation are hard to miss…

Qatar and the United Arab Emirates have been running security drills, including at airports. Schools in Saudi Arabia’s capital are online this week. And last Thursday, Adm. Brad Cooper, the top U.S. commander in the Middle East, briefed the president on military options in person at the White House – a rare visit.

Over the weekend, the president kept his options open. Here’s Trump at a rally in Iowa on Sunday:

The only reason why I’m not finished with Iran is I want to be nice. I want to try and save all those lives if I can…

But at some point we’re going to have to give them the hammer.

Yesterday, the signals shifted toward a deal

Axios reported that Trump told Israeli Prime Minister Benjamin Netanyahu – who had urged him to resume strikes right after the midterms – that he wants to give diplomacy more time.

Later, Trump told reporters that Tehran wants “to make a deal and that could happen.” Asked whether he’d consider striking Iran after the midterms, he answered “no.”

Vice President JD Vance struck a similar tone on CNN:

The president and I both feel really good about the prospect of potentially coming to a negotiated settlement.

Qatar’s foreign ministry says its delegation is in Tehran working toward an agreement. One plan on the table would have the U.S. loosen its naval blockade if Iran halts attacks on shipping in the Strait of Hormuz.

But the fighting hasn’t stopped…

U.S. officials told the WSJ that the U.S. struck Iran’s Qeshm Island yesterday, describing it as a defensive response to Iranian attacks on U.S. assets. It was the latest in a string of “limited strikes” in recent weeks, kept deliberately low-profile to avoid signaling a major escalation.

Meanwhile, at least four commercial ships have been attacked in and around the Gulf since the start of the month, according to the U.K. Maritime Trade Operations Centre.

So, what are the two paths from here?

If a deal comes together, the fear premium baked into oil could deflate quickly.

We got a preview yesterday. Oil sold off more than 7% as Washington and Tehran both signaled openness to a settlement.

According to Goldman Sachs, as reported by Euronews, a geopolitical risk premium of about $27 a barrel “now explains most of October’s crude price rally.”

But if major strikes resume, few expect Iran to take it with no retaliation. Here’s Behnam Ben Taleblu of the Foundation for Defense of Democracies, speaking to the Journal:

There is no world in which a short and sharp strike by the U.S. will be absorbed by Iran. An intense infrastructure-based targeting campaign by Washington is likely to beget one by Tehran against U.S. partners.

That would put Gulf energy infrastructure and Hormuz shipping squarely in the crosshairs. Goldman has already raised its year-end Brent forecast to $105 from $90, citing escalation risk after the midterms.

So, while today’s elections will give investors clues about the AI trade, the days that follow could bring an even bigger source of uncertainty with market-rattling potential.

Oil’s paradox, revisited

As I write on Tuesday, Brent trades around $103.50 per barrel, and WTI is just below $96, extending yesterday’s sell-off.

Regular Digest readers will recall the paradox we highlighted in our Monday Oct. 26 Digest: more oil is leaving the Persian Gulf now than before the war began, yet prices keep climbing.

The WSJ noted again yesterday that the global surge in energy prices has continued “even with more oil shipments passing through the Strait of Hormuz.”

These elevated prices reflect the cost and danger of moving that oil as attacks on tankers push war-risk insurance and freight to near-record levels. Here’s the WSJ from last month:

War-risk insurance has climbed to as much as 10% of a vessel’s value from less than 3%, according to Windward’s Wiese Bockmann.

“In April, the problem was a shortage of crude. In October, it is the cost of moving it,” said Natasha Kaneva, head of the global commodities strategy team at JPMorgan.

That backdrop has powered two of legendary investor Louis Navellier’s favorite energy plays, which we profiled last week.

Okeanis Eco Tankers Corp. (ECO), a supertanker operator which Louis holds in his Accelerated Profits portfolio, is up 79% since he recommended it in late June.

Meanwhile, HF Sinclair Corp. (DINO), a pure-play refiner that Louis holds in Growth Investor, just posted a blowout quarter.

Last Wednesday, it reported adjusted earnings of $11.75 per share, crushing the roughly $7.80 expected by Wall Street. Its refining margin jumped 183% from a year earlier, which the company credited in part to “elevated crack spreads” – the gap between what refiners pay for crude and what they get for fuels like diesel.

The official return for DINO in Growth Investor is 73% since its late-June recommendation. I’ll note that Louis says DINO is a “buy” up to $127.

But what happens to these stocks and the broader oil trade if peace breaks out?

If a deal reopens Hormuz and drains the risk premium from oil, tanker rates and refining margins could cool, and these stocks could pull back.

ECO is especially tied to Gulf disruptions and tight tanker supply. In mid-October, it fell about 11% in a week, partly on reports that Washington might ease sanctions on “shadow fleet” tankers.

DINO, however, has a second tailwind unrelated to Iran: Russia.

Ukraine has been hammering Russian refineries, knocking out what Kyiv estimates is more than 45% of Russia’s refining capacity. After pausing for almost two weeks under pressure from President Trump, Ukraine resumed its campaign on Friday, launching attacks on three major Russian refineries in three days, according to the WSJ.

This has major implications for energy market prices. As Louis noted in a recent Growth Investor Flash Alert:

You just can’t bomb the Russian refineries. You can’t attack the Saudi Arabian refineries and expect that diesel prices are going to drop. There is a supply chain problem.

Plus, even a peace deal wouldn’t refill the world’s drained oil inventories overnight. That’s a big reason Louis has pointed toward a $90 price floor under crude.

Bottom line: ECO and DINO have been big winners for Louis’ subscribers, and that doesn’t change. But if you’re considering buying today, recognize that the next few days could move them sharply in either direction.

By the way, Louis has gone far deeper into where he sees the energy opportunity heading from here, and he’s put his research into a free presentation. You can check it out right here.

America’s depleted missile stockpile

Oil isn’t the only thing the next move in Iran will put under pressure.

Whether the president strikes or negotiates, the U.S. faces a problem that won’t disappear with a ceasefire: we’ve burned through a huge share of our missile defenses.

According to estimates from the Center for Strategic and International Studies (CSIS), the U.S. has fired up to two-thirds of its prewar Patriot interceptors since the Iran war began in February, taking the stockpile from about 2,330 to fewer than 1,000. THAAD, the system built to knock out ballistic missiles at high altitude, has used up to 48% of its interceptors.

And these aren’t items you can restock off the shelf. As CSIS senior adviser Mark Cancian told Military Times, “It takes several years to produce a missile.”

The shortage is already forcing hard choices. Buried in another WSJ article from yesterday was this line:

Ukraine has run out of air defenses, with the U.S. restricting supplies of Patriot interceptors amid a global shortage caused by the war on Iran.

A new round of fighting with Iran would only draw the stockpile down further. The WSJ reports the U.S. military has been restocking munitions in the region and sending another Patriot antimissile system to Israel.

Now, Washington is responding…

Since July, the Pentagon has signed multiyear missile contracts worth more than $100 billion combined at their full contract values, for Patriot interceptors, SM-6 missiles and AMRAAM air-to-air missiles. Lockheed Martin expects to triple its advanced Patriot production capacity by the end of 2030.

But “by 2030” tells you how deep the hole is. And much of that money still needs Congress to appropriate it – one more reason tonight’s results matter for defense, as we covered yesterday.

Now, turning to the investment implications, who gets paid to refill those shelves – and to build what comes next?

Why Luke Lango sees this as only the beginning

The “who gets paid?” question sits at the center of new research from our technology expert Luke Lango, editor of Early Stage Investor.

Luke believes America is entering its biggest military buildup since World War II, and he sees it unfolding in three phases. Restocking depleted stockpiles like the ones above is just the first. The second is mastering the future of warfare – drones, autonomous systems, and AI-powered defense. The third is rebuilding the industrial base on which those weapons depend, from critical materials to domestic factories.

He also believes Washington won’t be doing it alone…

In July, Sen. Dave McCormick’s Defense and Innovation Summit at the Army War College in Carlisle, Pa., drew nearly $10 billion in investment commitments from defense contractors, shipbuilders, and lenders, including JPMorganChase (JPM). Luke calls this growing public-private effort the “Pennsylvania Plan.”

Luke’s research looks well beyond the defense giants everyone already knows. He has identified five companies across all three phases that he believes are positioned to benefit – including a critical-materials producer with Pentagon backing. You can watch his free presentation here.

Wrapping up

Tonight’s vote count is only the start. In the days ahead, we’ll learn whether the Iran conflict heads toward a deal or a major escalation – and either way, oil prices, inflation and America’s arsenal will feel the effects.

We’ll keep you updated.

Have a good evening,

Jeff Remsburg

The post Election Day Is Here, but Wall Street’s Bigger Test Comes Next appeared first on InvestorPlace.

My colleague Luke Lango believes that’s one opportunity investors may be overlooking amid the recent selloff in defense stocks. Below, he explains why America’s push to replenish its arsenal and upgrade its defenses has him watching one established contractor in particular.

This isn’t just a one-off opportunity. In fact, Luke believes we’re about to see the biggest defense-spending supercycle in U.S. history.

And in his latest presentation, Rearming America, Luke explains that while the same legacy names will benefit, a small group of innovative defense stocks is set to go up by as much as 10X or more over the months ahead.

Take it away, Luke...

************************************

“Arming.”

Army Chief Warrant Officer 2 Nate Shea had maneuvered his drone behind a fixed-wing target aircraft. Seconds later, he detonated the Claymore mine his drone was carrying.

Watching on a screen, First Lieutenant Francesco La Torre looked up in time to see the target plummet.

The Army’s first drone-on-drone strike had just taken place during a live-fire demonstration at Fort Rucker, Alabama.

This August 2025 training had taken weeks to prepare.

Paratroopers practiced for hours each day. Pilots trained in changing weather to intercept an aircraft that could appear anywhere.

La Torre described the potential plainly: “With the right kit,” paratroopers could use “a low-cost system with preexisting munitions” to protect their units.

Those four words, with the right kit, begin to reveal the investment opportunity here.

Equipping more units requires hardware, reliable components, and manufacturers capable of delivering at scale. Adding AI and automation creates further opportunities for the companies developing the next generation of military systems.

That’s why I’m watching defense stocks closely. And right now, I think Wall Street is overlooking something important.

Defense stocks have been hit hard in recent months. Peace-talk headlines, uncertainty over Washington’s budget, and higher interest rates have weighed on the sector. Yet the military’s underlying needs haven’t gone away.

Missiles that have been fired still need replacing. And nobody is going back to fighting wars without drones.

Today, I’ll explain why America’s military buildup could create opportunities for years to come, why the recent selloff may be giving investors a second chance, and share one established defense stock I believe is worth a closer look.

From One Successful Strike to an Entire Military

Right now, America faces three overlapping defense demands: replenish weapons already deployed, prepare for warfare increasingly shaped by drones and AI, and expand the industrial capacity needed to do both.

Consider the first problem. The war with Iran has consumed substantial quantities of missiles and interceptors. Advanced military equipment requires specialized components, manufacturing capacity, and trained workers. Some systems take years to produce.

Meanwhile, the White House has proposed a $1.5 trillion defense budget for 2027. That’s not money Congress has approved yet, but it shows how seriously Washington is taking the need to rebuild and modernize America’s military.

One defense contractor deserves a closer look here…

Defending the Skies

The basic appeal of a missile manufacturer is pretty straightforward: Militaries use weapons, and then order replacements. Defending against an aerial attack, however, involves much more than firing an interceptor.

First, a system has to detect the incoming object. Then it must track it, identify the threat, and fire a weapon capable of stopping it.

This is where RTX Corp. (RTX), whose Raytheon division has been building military equipment for more than a century, comes in.

RTX’s products include Patriot air and missile defense equipment, GEM-T interceptors, and the Lower Tier Air and Missile Defense Sensor, or LTAMDS. That last one is a radar designed to strengthen the military’s ability to detect and track threats.

For RTX, the potential extends across replenishment, upgrades, and additional systems.

And the orders are already coming in.

In the second quarter of 2026 alone, Raytheon booked a $3.7 billion contract for Patriot interceptors for Ukraine, another $988 million for Poland, and $827 million for new Army missile-defense radars.

By September 30, Raytheon’s defense order backlog had reached $130 billion, up from $75 billion at the end of 2025. That’s equipment customers have ordered but the company hasn’t yet delivered — a substantial pipeline of future work.

And that brings us back to the changing economics of warfare.

Why Cheaper Drones Can Create Demand for Better Defenses

Imagine an attacker launching dozens of inexpensive drones at a military base. Defenders can’t simply ignore them. Even a cheap drone can cause enormous damage if it reaches an aircraft, ammunition depot, or other valuable target.

But using a costly interceptor against every incoming drone quickly becomes an expensive proposition. And an adversary that can manufacture drones faster than you can replace your interceptors has another advantage.

That is one reason I’m interested in layered defenses: systems that combine detection and tracking with multiple ways to defeat an incoming target.

RTX’s counter-drone products, including its Coyote interceptors and Ku-band Radio Frequency System radar, give it exposure to this requirement as well.

In other words, the drone revolution isn’t just good news for drone makers. It’s creating new business for the companies that defend against them.

Of course, there’s more to RTX than missile defense. The company’s Collins Aerospace and Pratt & Whitney divisions give it substantial exposure to commercial aviation as well as military customers.

That’s worth remembering. RTX isn’t a pure defense stock. Commercial aviation, engine costs, and manufacturing problems can affect its results, too. And a $130 billion backlog doesn’t guarantee every contract will be profitable.

But the opportunity I’m seeing goes well beyond RTX.

The Other Side of the Defense Trade

Established contractors such as RTX have something newer defense companies often lack: decades of experience delivering complex military systems, existing customer relationships, and large multiyear contracts.

That can provide a measure of stability. But it doesn’t necessarily offer the fastest growth.

Consider what happens when the Pentagon moves from experimenting with drones to purchasing them by the thousands. The companies developing drones that can operate on their own, software that helps commanders make faster decisions, and other emerging technologies could see demand grow much faster than the overall defense budget.

That’s why I favor owning both types of companies: established contractors that can profit from rebuilding America’s arsenal, and smaller technology firms that could grow much faster as the military adopts new weapons.

But those newer stocks also carry greater risks. They’re especially vulnerable when interest rates rise or investors become less willing to pay high prices for future growth. That’s part of what we’ve seen in the recent selloff.

A falling share price doesn’t automatically mean the business is deteriorating. But neither does it guarantee a bargain.

That’s why I’ve been looking beyond the familiar defense contractors to find companies that could benefit from the next wave of military spending. Some make weapons, others develop new technology, and still others supply the materials that make those weapons possible.

That’s the larger opportunity I’ve been researching in my Rearming America presentation.

I explain why I believe the United States is entering a historic military buildup, how government spending and private investment could accelerate it, and which five companies I’ve identified across three major areas: replenishing the arsenal, developing the next generation of weapons, and rebuilding America’s industrial capacity.

I also discuss two additional opportunities involving the future of naval shipbuilding and military AI.

You can see my complete strategy here, including more info about the companies I believe are best positioned for the years ahead.

The soldiers at Fort Rucker needed the right kit to bring down a drone. Equipping an entire military for the next generation of warfare will take a great deal more. And that’s where I believe the real investment story begins.

Sincerely,

Luke Lango

Senior Investment Analyst, InvestorPlace

P.S. Luke believes one of the market’s next big investment opportunities could come from America’s effort to rebuild and modernize its military. Missiles need replacing. Drones and AI are changing warfare. And billions of dollars in new business could flow to the companies supplying the equipment. Luke has identified five stocks he believes could be major winners, along with two additional opportunities. See his free Rearming America presentation here to learn which companies he’s watching and why he believes the opportunity is just beginning.

The post As America’s Arsenal Runs Low, Here’s One Stock to Watch appeared first on InvestorPlace.

The situation in Afghanistan was deteriorating, and McChrystal’s broader campaign proposal required roughly 40,000 more troops.

“The costs were staggering,” he recalls in A Promised Land. “At least $1 billion for every thousand additional troops deployed.”

By Obama’s reading, the proposal could mean waiting five or six years just to bring troop levels back down to where they already stood.

And even that spending offered no guarantee of success.

Keeping Afghanistan secure required dependable Afghan forces. Those forces needed a functioning government behind them. Building that government demanded more time, more resources, and a solution to the corruption undermining the mission.

Meanwhile, every week or so, an assistant placed a folder of condolence letters on Obama’s desk. He closed the door and read the names aloud before signing.

Then he returned to the Situation Room to wrestle with whether to commit more soldiers’ lives to the war in the name of showing “resolve.”

“What does that mean exactly?” he recalls asking. “That we keep doubling down on bad decisions we’ve already made?”

Later, while talking with an aide, he recalled the nursery rhyme “There Was an Old Lady Who Swallowed a Fly.”

An old lady swallows a fly. To catch it, she swallows a spider. Then a bird to catch the spider. Then a cat, a dog, and so on.

“She ends up swallowing a horse,” Obama said.

“And she’s dead, of course,” the aide replied.

This mission, Obama wrote, had to account for “the need to make sure the country wasn’t bled dry in the process.”

That concern raises one of the most consequential questions of any military campaign: How does America secure itself at a sustainable cost?

Today, part of the answer lies in the factories, shipyards, and supply chains behind American military power.

Once an interceptor is fired, replacing it requires specialized components, materials, skilled workers, and a production line capable of delivering an accurate, reliable weapon. When those factories slow down, each engagement leaves us with fewer weapons.

And when an adversary can keep sending inexpensive drones, relying on costly interceptors can make defending against an attack much more expensive than launching it.

America needs enough proven weapons to protect its forces today, more affordable ways to defeat tomorrow’s threats, and the industrial capacity to do both.

This is why I paid special attention to the gathering at the U.S. Army War College in Carlisle, Pennsylvania…

America’s Rearmament Push Starts With the Industrial Base

On July 14 and 15, government and military officials met with defense executives, technology companies, investors, and suppliers at the Pennsylvania Defense and Innovation Summit.

The gathering connected the people buying military equipment with the people designing it, financing it, and building it. Sen. Dave McCormick’s office reported more than $10 billion in investment announcements spanning shipbuilding, munitions, AI, robotics, and other industries.

But the significance was the connection between those efforts.

When you build a promising new weapon, it needs a capable manufacturer behind it. Then, behind the manufacturer, you need reliable suppliers. Those suppliers need equipment, trained workers, and financing before they can expand.

A larger military budget only goes so far if that chain is broken.

The Pennsylvania Plan Connects Weapons, Technology, and Manufacturing

In my Rearming America research, I call this broader build-out the “Pennsylvania Plan.”

I see three connected phases: restocking the missile arsenal, preparing for warfare shaped by drones and AI, and rebuilding the industrial base… including the critical-material supply chains.

See the three phases of my Pennsylvania Plan, and the companies I’m watching in each.

For investors, that creates specific businesses to study.

Which companies can deliver the weapons customers need now? Which can make repeated attacks less expensive to defeat? And which supply the materials and components that everyone else needs to increase production?

I believe companies that solve those problems could become major beneficiaries of America’s military build-out.

But the first phase begins with an immediate need…

Commanders can’t defend their bases with promising prototypes. They need proven systems, trained crews, and replacement interceptors ready when needed.

That is why my Rearming America thesis begins with restocking the arsenal… and it’s why I’m sharing one defense stock to buy with you today.

You probably know this company. It’s behind the F-35 fighter jet, after all. But its interceptor business deserves attention, too, along with the production capacity needed to replenish those weapons.

For investors, the opportunity depends on whether this company can secure the parts, expand production, and turn demand into deliveries and cash flow.

Below, we’ll examine its production ramp, the commitments behind it, and the execution risks that will help determine how much shareholders benefit.

Lockheed Martin’s $58.6 Billion PAC-3 Production Ramp

Lockheed Martin (LMT) is familiar to most investors as the company behind the F-35, but I’m more interested in it for the interceptors and precision weapons that military planners need in greater quantities.

One particularly important product is the PAC-3 Missile Segment Enhancement interceptor, used in the Patriot air and missile defense system.

In January 2026, Lockheed announced a framework agreement targeting an increase in annual PAC-3 MSE capacity from approximately 600 to 2,000. In July, it announced a seven-year contract modification that brought the total multiyear contract value to $58.62 billion, though final contract terms remained to be settled.

By the third quarter of 2026, Lockheed reported $20.7 billion in quarterly sales, up 11% from a year earlier, and $3 billion in free cash flow. Its backlog reached $292 billion, including $52.5 billion associated with the multiyear PAC-3 MSE award.

That gives us some visibility into its future work. In its quarterly filing, Lockheed estimated that approximately 23% of its backlog would convert to revenue over the next 12 months and about 40% over the next 24 months.

Discover how Lockheed fits into the bigger Rearming America opportunity.

That extended delivery schedule is one reason I see Lockheed as a candidate for a defense supercycle portfolio. Lockheed has an established manufacturing base, products customers already use, and a growing body of work to execute. If it expands output efficiently, the resulting cash generation can support reinvestment and shareholder returns.

The challenge is execution. 

More orders can create more pressure on suppliers, labor, and working capital. Fixed-price contracts can become less profitable if costs rise faster than expected. Other large programs can also weigh on consolidated results even when missile demand remains strong.

I would judge progress by deliveries, margins, and cash conversion together. A larger backlog that becomes profitable production is what creates durable shareholder value.

LMT is the established industrial anchor in this group. Its appeal rests on the scale and duration of the work ahead, rather than an assumption that a mature defense contractor must deliver startup-like returns.

Explore the companies beyond Lockheed in my full Rearming America briefing.

The Missile Ramp Is Only the First Phase of Rearmament

Let’s go back to that nursery rhyme Obama thought of, and how every attempted solution created the need for something bigger.

Remember that, to catch the fly, the old lady required a spider. Then the spider required a bird. And the commitments kept growing into absurdity.

His concern was what came after the next decision, and whether America could sustain everything that followed.

That is the question I return to when I study today’s military build-out. Buying another interceptor meets an immediate need. Over time, America also needs more affordable ways to defeat repeated attacks, reliable sources of critical materials, and factories capable of keeping pace.

Those practical needs help explain why the Pennsylvania gathering brought together military officials, manufacturers, technology companies, and investors. Meeting America’s commitments requires work across that entire chain.

Lockheed Martin is a great place to begin looking. My full Rearming America briefing follows the opportunity further: from replenishing missile inventories to drones and autonomous systems, and the materials needed to build them.

I’ll show you how those pieces connect and which companies I’m watching as the build-out takes shape, so you can identify the businesses worth researching beyond the familiar defense names.

Obama’s story asks us to consider what the next commitment will require. And that same question can help investors see where demand may go next.

Watch my Rearming America briefing to see the companies positioned to help meet that demand… and build your watchlist for what comes next.

The post The Lockheed Martin Business I’d Watch More Closely Than the F-35 appeared first on InvestorPlace.

Friday put an exclamation point on a brutal month for the AI trade.

By the closing bell, the Nasdaq had fallen 2.9% on the day while the S&P 500 had lost 1.8% and the Dow had dropped 1%. Chip stocks took the brunt of it, with the Philadelphia Semiconductor Index (SOX) sinking more than 7%.

For October, the Nasdaq fell roughly 5.2% – its worst month since March 2025 – while the SOX did far worse, dropping more than 15%.

Two earnings reports did most of Friday’s damage…

Intel Corp. (INTC) was the biggest casualty, plunging nearly 29% – its steepest one-day drop on record – after forecasting fourth-quarter revenue of $15 billion to $16 billion, well short of the roughly $17 billion Wall Street expected. CEO Lip-Bu Tan said customers were “signaling a PC slowdown” tied to memory prices and availability.

Amazon.com Inc. (AMZN) fell too, though its story is more nuanced. Its cloud business, AWS, grew 39% to $46 billion, which is hardly a sign of weak AI demand. But Amazon spent $77.3 billion on capital expenditures in the quarter, more than double the $35 billion it spent a year earlier. Over the past 12 months, that spending has pushed Amazon’s free cash flow more than $42 billion into the red – a record.

That number gets at what’s really spooking investors…

Friday’s losses piled onto an already brutal stretch. Alphabet Inc. (GOOGL) shed nearly $500 billion in market value after its earnings report earlier in the week, one of the largest single-day wipeouts in stock market history.

Alphabet and Meta Platforms Inc. (META) now sit more than 20% below their highs, which puts both in bear-market territory.

The fear isn’t that AI is failing. It’s that the bill is coming due. JPMorgan estimates that the tech giants will spend roughly $900 billion on AI this year, and investors are increasingly asking when – or whether – that spending will produce a return worth the price.

So, how should AI investors read this?

Is this the beginning of the end for the AI trade, or a gift for patient investors?

Our technology expert Luke Lango, editor of Early Stage Investor, spent the past few days digging through the hyperscalers’ earnings line by line – and while he doesn’t dismiss the bear case, that’s not where he ends.

Here he is from Friday’s Daily Notes:

We get why that story is spooking people. Parts of it are even true…

[But] the AI trade isn’t broken. It’s between paychecks. The spending is front-loaded, the payoff is back-loaded, and the gap between the two is about to start closing, sooner than most people think.

The key question is whether all that spending earns a return. Luke ran the rough math on each new dollar of AI spending, measured against a cost of capital of roughly 9% to 10%. Microsoft Corp. (MSFT) is earning about 19%, Alphabet about 12%, Amazon about 9% to 10%, and Meta about 8%.

In other words, it’s an uneven story. Back to Luke:

Companies that sell compute are expanding margins, while companies that use it internally are lagging for now.

And the companies selling compute have customers lined up. Microsoft, Amazon, and Google are sitting on roughly $1.8 trillion of contracted cloud backlog between them. AWS growth accelerated for a sixth straight quarter, to its fastest pace in about five years. That isn’t the hyperscalers spending money. It’s customers signing up to pay them.

Luke is also upfront about where the real risk lies:

The bigger uncertainty is 2028, when slower hyperscaler spending growth leaves suppliers more dependent on buyers exposed to tighter financing.

As for Amazon, Luke thinks Wall Street is reading too much into one quarter. Part of the weakness was simple timing.

For example, moving Prime Day into the second quarter knocked about 850 basis points off third-quarter ad growth, and management expects ads to bounce back to high-teens growth as soon as this quarter. And for all the worry about Amazon’s borrowing, it covers its interest costs about 16 times over.

To be clear, Luke isn’t calling a bottom, but his big-picture takeaway is clear:

The market is grading a decade-long build-out on one noisy quarter at peak spending, and that’s short-sighted. Our game plan: for long-term investors, this is a dip to buy with confidence.

The headlines say the AI boom is running out of money. The numbers say it’s about to start making a lot more of it.

Interestingly, the very first item on Luke’s catalyst calendar for the next three months is tomorrow’s midterm elections. That’s where the AI trade faces a different kind of test – one that won’t be decided on Wall Street.

Data centers are on Tuesday’s ballot

That’s not a figure of speech.

According to Ballotpedia, voters in 10 states will weigh in on at least 41 local data-center measures tomorrow. Ohio alone accounts for more than half of them – 21 measures across 18 communities – with proposals ranging from outright bans to caps on how much power a facility can draw.

We’ve already gotten a preview of how these votes can go. Earlier this year, about 88% of voters in Monterey Park, California, backed a policy prohibiting data centers. In Augusta Township, Michigan, roughly 90% voted against a rezoning that would have made room for one.

The issue has also worked its way into some of the biggest races on the map…

In Ohio’s U.S. Senate race, Democrat Sherrod Brown has run ads calling Republican Sen. Jon Husted the “face of data centers,” a reference to tax breaks Husted backed as lieutenant governor. Data centers have also become a talking point in the Texas and Pennsylvania governors’ races. In Pennsylvania, Gov. Josh Shapiro has already tightened the rules for approving new projects.

And this isn’t a one-party story. A Washington Post analysis of candidates’ posts found that politicians in both parties have turned significantly more negative on data centers since 2024 – with Republicans souring even more than Democrats.

The driver is the electric bill. A 2026 Reuters/Ipsos survey, cited by the Brookings Institution, found that 77% of Americans worry data centers will raise their electricity rates. Nearly two-thirds said building data centers at a rapid pace isn’t a good thing.

To be clear, a zoning vote in a small Ohio town won’t decide whether Amazon builds its next campus. But taken together, tomorrow’s results will give us the first nationwide read on how quickly public sentiment is turning against the AI buildout.

That matters more today than it would have a few months ago. As we just saw with Amazon, Big Tech is already spending far more than its operations bring in to build this infrastructure. If local resistance means slower permits, pricier power, and fewer available sites, the payback period on that spending stretches even further. And that’s exactly the question Wall Street is wrestling with right now.

The other spending boom on tomorrow’s ballot

AI isn’t the only corner of the market with a lot riding on tomorrow.

The election will also decide which party controls Congress come January. And that has major implications for a spending package that hasn’t gotten much attention from investors.

Earlier this year, the Pentagon sent Congress a $1.5 trillion budget request for fiscal 2027. Most of it would go through the normal appropriations process. But $350 billion – about 23% of the total – was earmarked for a separate budget reconciliation package.

Reconciliation lets the majority party pass spending with a simple majority, sidestepping the Senate filibuster. The catch is that it depends on party-line votes. According to Air & Space Forces Magazine, if Democrats win control of either the House or the Senate, that path effectively closes.

So, what’s in the package?

Two items stand out…

The first is the Golden Dome, the administration’s proposed missile-defense shield. The second is $53.6 billion for an office most Americans have never heard of: the Defense Autonomous Warfare Group, or DAWG – the Pentagon’s new drone-warfare unit.

That drone figure is staggering. DAWG received about $226 million in fiscal 2026. Including a small slice of base-budget funding, its fiscal 2027 request totals $54.6 billion, roughly 240 times larger.

Why is the Pentagon going all-in on drones?

I wrote about this last spring in our Investing Insider newsletter, and one comparison has stuck with me ever since.

Iran mass-produces a drone called the Shahed, which it fires in swarms. Each one costs roughly $20,000 to build.

The Patriot interceptor the U.S. fires to shoot one Shahed down costs approximately $3 million to $4 million.

The math here just isn’t sustainable. It’s like using a Ferrari to destroy a used Honda Civic – except the Civics keep coming, a thousand at a time.

The economics of warfare have flipped. Cheap, autonomous, mass-produced systems are overwhelming expensive ones, and the Pentagon is racing to catch up.

It’s also racing to restock…

Since July, the Pentagon has signed multiyear contracts worth more than $100 billion combined at their full values to replace missile stockpiles drained by conflict in the Middle East. But industry executives say Congress still hasn’t appropriated the money, which limits how fast contractors can invest in new capacity.

What happens if the package stalls?

It wouldn’t reverse the shift. But it could change the speed – and who ends up paying for it.

Defense analysts have long viewed the post-election “lame duck” session as the likeliest window to pass the package. Tomorrow’s results will tell us whether that window is a starting point or a last chance. And even if reconciliation fails, Pentagon leadership has signaled it may cut expensive legacy programs to fund low-cost autonomous weapons anyway.

And this brings us back to Luke…

He believes America is entering its biggest military buildup since World War II. And he argues that government spending is only part of the story.

He points to a recent gathering organized by Sen. Dave McCormick of Pennsylvania that brought together Wall Street heavyweights, defense leaders, government officials, and emerging technology companies. Luke calls the public-private effort coming out of it the “Pennsylvania Plan” – and he believes it could accelerate the rebuilding of America’s arsenal regardless of how any single budget fight plays out.

Luke has just wrapped up a research project on this rearmament boom – including the five companies he believes are best positioned to profit across its three phases. He’s put everything together in a new video presentation, which you can watch right here, free of charge.

Wrapping up

Tomorrow isn’t just a political event – it’s a market event.

For AI, it’s a referendum on how much patience voters have for the buildout. For defense, it could decide how quickly hundreds of billions of dollars start flowing – and Luke’s new presentation explains where he believes that money is headed.

We’ll report back.

Have a good evening,

Jeff Remsburg

(Disclosure: I own GOOGL, AMZN, MSFT)

The post The AI Selloff Meets Election Day appeared first on InvestorPlace.

Interest rates remain elevated, inflation remains sticky – and the AI skeptics are having a field day, warning that Big Tech’s spending spree has the entire artificial intelligence (AI) boom headed for trouble.

Some are even predicting a major stock market crash.

Folks, if you want to wait for every worry to melt away, you could be waiting for a long time.

There’s an old Wall Street saying that market climbs a “wall of worry.” And that’s exactly what I think is happening right now.

But the simple fact is we’re in one of the strongest earnings environments I’ve seen in my career. AI spending continues to surge, order backlogs are growing and analysts keep raising their earnings estimates for many of my favorite stocks.

That’s why I’m not losing sleep over the midterm elections or the latest predictions of a market crash.

But that doesn’t mean I’m ignoring the risks, though. So, in today’s Market Buzz, I discuss the three warning signs that actually matter, according to my eight-factor fundamental model.

I also answer recent questions subscribers have about gold mining stocks, interest rates,  how to approach the rest of the year – and more.

Click the image below to watch today’s Market Buzz.

An Energy Opportunity That Could Outlast Election Day

As I mentioned in today’s video, people worry, we profit.

The reality is some of our best opportunities right now are outside the AI sector.

Our oil refiners and tanker stocks have been delivering stunning earnings results. And I believe we’re still in the early stages of a much bigger shift in American energy.

And it’s all because of a piece of legislation President Trump signed last year that requires oil and gas lease sales in the Gulf through 2040.

That gives companies a federal leasing schedule around which to plan years of potential development.

It also means billions of dollars are flowing into new pipelines, export terminals and other infrastructure to supply energy to customers around the world.

When you combine that with rising global demand for American energy, I believe we’re looking at an extraordinary opportunity over the next 15 years.

I call it America’s $31.5 Trillion IPO.

I recently released my latest research about what I’m seeing in the Gulf and how you can invest: four critical pipeline companies, two smaller Gulf exploration companies and an unusual income opportunity you’re unlikely to hear about anywhere else.

Click here to watch my free interview get the details now.

Sincerely,

Louis Navellier

Editor, Market 360

The post 3 Warning Signs That Matter More Than the Midterm Elections appeared first on InvestorPlace.

Tomorrow, 36 states will elect governors, 46 states will vote on legislative seats, and thousands of local offices will be up for grabs.

The forecasts call for the Democrats to take control of the House, and I believe the market has already priced this in.

A change in Senate control, however, could catch the market off guard.

If Democrats gain control of both chambers, stocks could sell off in the near term as investors react to the unexpected shift.

We saw how quickly political surprises can rattle markets from Brazil last week, when Brazilian President Luiz Inácio Lula da Silva won re-election against expected-winner Flávio Bolsonaro. Brazil’s benchmark stock index plunged 13.9% the following day, its biggest one-day drop since March 2020.

Brazil is a reminder that markets can get caught leaning too heavily in one political direction. And U.S. investors may be similarly positioned for a particular midterm outcome. If the election delivers a surprise, the market could take a hit as investors scramble to unwind their bets.

Now, I was surprised by the Brazilian results, and I could easily be surprised by the U.S. results. But there is a difference: Brazil’s market reaction was tied not just to an unexpected election result, but specific concerns about government spending and mounting debt. A Democratic takeover of Congress doesn’t automatically create the same concerns for the U.S. economy.

If there is a Democratic sweep, though, we may see a near-term sell-off because that’s the typical reaction in U.S. politics. That said, over at least the last two years of the Trump administration – and even farther back – politics has not been a major driver of stock market trends or even short-term moves.

In this market environment, AI and broader economic forces matter more.

What has had a greater longer-term impact on the market has been the AI trade, AI investment spending, and AI developments. We’ve also seen dramatic revenue growth from companies like Anthropic and OpenAI, as well as the high-profile IPO of Space Exploration Technologies Corp. (SPCX).

This week, several major technology companies will report earnings – and that could drive the broader market direction more than the midterm results. Investors will be watching Apple Inc. (AAPL) for services growth and progress on its AI strategy… Advanced Micro Devices (AMD) for AI chip demand and data-center growth… and Palantir Technologies Inc. (PLTR) for evidence that demand for AI software is driving commercial growth.

The latest jobs report will also be released on Friday, and it will be particularly important to investors following the Federal Reserve’s decision to leave rates unchanged at its last Federal Open Market Committee (FOMC) meeting. Economists expect approximately 65,000 new jobs, following September’s disappointing gain of 29,000. A weaker report could raise concerns about the economy’s health, while stronger employment could give the Fed more reason to keep interest rates higher for longer.

And, of course, the war involving Iran remains an important variable. Disruptions to shipping through the Strait of Hormuz have pushed oil prices higher, adding to inflationary pressures and raising costs for businesses that depend on fuel and transportation.

I expect these real-world trends to be much more influential over stock prices than politics.

So, even if the midterms trigger a temporary pullback, the forces that will ultimately determine where stocks go are much bigger than the political makeup of Congress.

The bottom line is two-fold: Don’t make portfolio decisions based on predictions about the U.S. midterms. And don’t mistake political volatility for a change in the market’s fundamentals.

Instead, prepare for a potential short-term sell-off without losing sight of the forces actually driving the market. That means keeping your focus on the bigger investment trends.

We explored several of those trends in Smart Money this past week. Let’s revisit those stories below and look at where they may be creating opportunities…

Smart Money Roundup

October 28, 2026

What to Buy When AI Computing Gets Cheaper

Cheaper AI could spell trouble for today’s biggest AI stocks. Tom Yeung explains why the falling cost of AI computing could threaten today’s biggest AI investments – and what history’s $9 calculator can teach us about finding winners in the AI trade.

October 29, 2026

Why I Sold This Copper Stock for a 430% Gain

A company can be well-run and benefit from AI’s powerful trend, but that doesn’t make it a good buy. That brings us to a surprising case study: a company whose stock has soared this year, thanks in part to the AI boom.

In this article we examine this company and explore why strong growth doesn’t always make a stock worth buying. Then, I share where I see better opportunities instead.

October 31, 2026

Before Celebrating the Mag 7, Remember Yesterday’s Tech Giants

While demand for AI is clearly real, there remains an important question: Which companies will remain standing once excitement – and investment – fades? History shows that building a world-changing technology doesn’t guarantee lasting success for the businesses behind it. We look at the Mag 7 companies latest quarterly earnings and what they reveal about investing in AI today.

November 1, 2026

What Your Next Takeout Order Could Teach You About AI Investing

A late food delivery is an everyday frustration. For my InvestorPlace colleague Luke Lango, DoorDash’s new drone delivery system points to a much larger investment opportunity. He explains what faster deliveries, better batteries, and American factories have in common… and how that connects to the larger investment shift he explores in his latest briefing.

Look Beyond the Midterm Noise

Washington may set the mood on Tuesday, but Wall Street has plenty of other things to worry about. And that’s where I’m keeping my attention: on the companies, technologies, and economic forces reshaping the market – not the political headlines.

Remember, if the midterms do spook the market, don’t automatically head for the exits. In fact, a pullback can create opportunities for those willing to look beyond the headlines.

Look for solid businesses swept up in the selling, especially overlooked companies growing sales, expanding profits, and trading at prices that don’t reflect their potential.

More specifically, I recommend shifting some attention away from the companies spending billions to build AI infrastructure and toward the companies putting that infrastructure to work.

These companies – which I call AI Appliers – have the potential to use cheaper, more powerful technology to cut costs and grow profits.

Click here to learn more.

Regards,

Eric Fry

The post A Political Surprise Could Hit Stocks – Here’s Where to Look Instead appeared first on InvestorPlace.

Army Chief Warrant Officer 2 Nate Shea had maneuvered his drone behind a fixed-wing target aircraft. Seconds later, he detonated the Claymore mine his drone was carrying.

Watching on a screen, 1st Lt. Francesco La Torre looked up in time to see the target plummet.

The Army’s first drone-on-drone strike had just taken place during a live-fire demonstration at Fort Rucker, Alabama.

This had taken weeks to prepare.

Paratroopers practiced for hours each day. Pilots trained in changing weather to intercept an aircraft that could appear anywhere.

La Torre described the potential plainly: “With the right kit,” paratroopers could use “a low-cost system with preexisting munitions” to protect their units.

Those four words, with the right kit, carry the investment story.

Equipping more units requires hardware, training, reliable components, and manufacturers capable of delivering at scale. Adding AI and autonomy creates further opportunities for the companies developing the next generation of military systems.

That’s why I’m watching defense stocks closely, even as investors worry about politics, interest rates, and the direction of the next peace-talk headline.

This week, I joined The InvestorPlace podcast with Jonathan Rose to explain why I believe the military’s need to replenish weapons and develop new capabilities could support years of demand.

My approach pairs established contractors like Lockheed Martin (LMT) and Northrop Grumman (NOC) with companies pursuing growth in drones and space, including Rocket Lab (RKLB), and Planet Labs (PL).

But an attractive business outlook doesn’t automatically signal that a stock has finished falling.

Jonathan and I discuss that distinction, including the buying activity he wants to see before gaining confidence in a recovery.

Watch our conversation below to see which defense companies we’re watching, plus what could turn military demand into the next stock-market opportunity:

From One Successful Strike to an Entire Military

Right now, America faces three overlapping demands: replenish weapons already consumed, prepare for warfare increasingly shaped by drones and AI, and expand the industrial capacity needed to do both.

Each creates work for a different part of the defense industry. Taken together, they could support lasting demand.

While a successful drone demonstration can establish what is possible, equipping an army requires a much larger commitment.

I’m looking for companies that can turn those requirements into market-ready products… and orders they can fulfill profitably.

One established company deserves a closer look here…

Defending the Skies

The basic appeal of a missile manufacturer is pretty straightforward: Militaries use weapons, then order replacements. Defending against an aerial attack, however, involves much more than firing an interceptor.

First, a system has to detect the incoming object. Then it must track it, help determine the threat, and support a decision about how to respond. The interceptor has to reach its target. Afterward, crews must be able to defend against the next attack.

This is where RTX (RTX) and its Raytheon business comes in, as it supplies several pieces of that process.

Its products include Patriot air and missile defense equipment, GEM-T interceptors, and the Lower Tier Air and Missile Defense Sensor, or LTAMDS — a radar designed to strengthen the military’s ability to detect and track threats.

That breadth is what’s important here.

“Patriot” describes a defense system with multiple components and suppliers. Investors need to understand which company supplies which equipment, because spending on an interceptor, a radar upgrade, or additional launch equipment can create different revenue opportunities.

For RTX, the potential extends across replenishment, upgrades, and additional systems.

An existing customer may need replacement interceptors. Another may seek better radar coverage. A third may want to expand the number of locations it can protect.

Those decisions can generate years of work involving manufacturing, integration, maintenance, and support.

Why Cheaper Drones Can Create Demand for Better Defenses

The Fort Rucker demonstration also points to a critical economic problem for military planners… Namely, the worth of an expensive interceptor when it protects soldiers or critical infrastructure.

Comparing its price with the attacking drone’s price alone misses the value of what is being defended. But that math is complicated by persistent adversaries who can keep throwing inexpensive aircraft at their problems.

Defenders need enough weapons to withstand repeated attacks. They also need a range of responses suited to different threats.

That is one reason I’m interested in layered defenses: systems that combine detection and tracking with multiple ways to defeat an incoming target.

Raytheon’s counter-drone products, including its Coyote interceptors and Ku-band Radio Frequency System radar, give RTX exposure to this requirement as well.

It also reinforces a central part of my thesis: New technology can create additional demand for established defense suppliers, particularly when those suppliers already have products, customer relationships, and manufacturing experience relevant to the problem.

Yet military demand is only the beginning of the investment case.

The company still needs to obtain components, hire and train workers, manage its suppliers, and deliver on terms that leave a profit.

That is why I would evaluate RTX through several connected measures: orders, deliveries, margins, and cash flow.

But RTX also has businesses beyond Raytheon. Collins Aerospace and Pratt & Whitney give it substantial exposure to commercial aviation as well as military customers.

That diversification broadens its opportunities, but it also means defense demand alone cannot explain the stock. Engine-program costs, airline activity, manufacturing performance, and other aerospace developments can influence companywide results.

The Bottom Line on RTX Stock

As I explained in my conversation with Jonathan Rose, I see room for both established contractors and emerging defense technology companies.

The established businesses bring manufacturing experience, longstanding programs, and customers already using their equipment. Smaller drone, autonomy, and space companies may offer faster growth, alongside greater volatility and execution risk.

RTX belongs on the established side of that approach.

Its appeal is the opportunity to supply equipment militaries need to replenish, improve, and expand… and to support that equipment over time.

The Fort Rucker team showed what skilled soldiers and engineers could accomplish with the right tools. Making capabilities like that widely available requires a much larger network of manufacturers, technology developers, and suppliers.

I believe the companies meeting those needs could become some of the next major stock-market winners.

In my Rearming America briefing, I follow that demand from missile replenishment to drones and autonomous systems, and into the materials and production capacity behind them. Watch it now to see the other companies I’m researching and how they fit into the build-out.

The post Why I’m Watching This Missile Defense Giant as America Rearms for Drone Warfare appeared first on InvestorPlace.

Luke, Senior Investment Analyst at InvestorPlace, has been following AI’s move into machines that carry goods, operate equipment, and work alongside people. He believes the companies supplying those machines could offer investors opportunities well beyond the familiar AI names.

Below, he explains what faster deliveries, better batteries, and American factories have in common… and how that connects to the larger investment shift he explores in his latest briefing.

Take it away, Luke…

It’s 8 a.m. on a Monday, and you just ordered a hot coffee through DoorDash Inc. (DASH) to start your day. Only, the estimated arrival time keeps getting pushed later and later.

Your driver is stuck at a light. Then they hit traffic at another turn. Just when you think they’re heading to you, they make another stop first. By the time the cup finally reaches your door, that first satisfying sip has become a lukewarm disappointment.

When you used DoorDash, you paid a premium for convenience. Now you’re putting your coffee in the microwave.

The same frustration builds with every order of cold fries or late dinner that leaves your guests’ collective stomachs grumbling. Once an order leaves the kitchen, every extra minute can make it a little less worth waiting for.

But DoorDash is working on a way to shorten that wait.

How? By bypassing traffic and human decision-making entirely.

On Sept. 30, the company unveiled DoorDash Air, a new drone delivery system, with pilots planned in Northern California and restaurant partners including Chipotle Mexican Grill Inc. (CMG) and Popeyes.

DoorDash says initial tests produced deliveries from the restaurant to the customer’s door in under five minutes on average. Those results cover a limited sample of order sizes and distances, and delivery times aren’t guaranteed.

Still, you can understand the appeal. Your dinner could fly over the traffic that would otherwise hold it up.

For investors, though, the most revealing part of the announcement was where DoorDash began building the system.

Before Dinner Can Take Flight

Of course, there are some logistics that need to be sorted out first.

Who loads the drone? Does the bag fit on it? What happens to the drinks?

Without changing a thing, you might save five minutes in the air but add ten minutes of work inside the restaurant.

Delivery Drone Carrying Package Over Urban Buildings. Source: Envato

DoorDash says it designed its loading options to fit existing restaurant operations. And that’s where this becomes an investment story.

A working delivery network needs manufacturers to build loading equipment, suppliers to provide sensors, and batteries that can carry an aircraft and its cargo through repeated trips.

As more machines go to work, those practical requirements can create demand for businesses far beyond the familiar AI names.

Someone has to make the loading equipment, supply the sensors, and provide the power. That’s why I’m watching the companies that can help turn a promising demonstration into equipment customers could use every day.

An AI system that can guide a drone or direct a robot opens similar possibilities. Turning those possibilities into thousands of working machines takes motors, sensors, specialized materials, and factories capable of producing them reliably.

That creates a challenge when choosing stocks: Which companies can turn growing demand into actual deliveries?

AI Is Getting a Body

I call what DoorDash is doing “physical AI”: machines that use artificial intelligence to act in the world around us.

That includes warehouse robots, vehicles that drive themselves, and drones that can navigate without someone steering every movement. Humanoid robots could eventually take on a wider range of jobs in spaces designed for people.

These machines have something in common. They have to work around real obstacles, with real consequences when something goes wrong.

A warehouse robot needs to move goods without damaging them or injuring someone. A delivery aircraft needs to reach the right address and get its cargo down safely. Being clever is only useful if the machine can also do its job dependably.

And there are already businesses earning money from this shift.

Consider Symbotic Inc. (SYM), which supplies robotic systems used to move and organize goods in warehouses. In its third quarter of fiscal 2026, it reported $721 million in revenue, up 22% from a year earlier, and $55 million in net income.

That gives investors actual sales and profits to examine. It’s one company worth researching if you’re interested in physical AI.

This is the kind of evidence I want to see: people paying for machines that do useful work. But there’s another requirement these machines can’t escape.

Power.

A Smarter Robot Still Needs a Better Battery

A machine that moves freely through a warehouse or flies across town can’t drag a power cord behind it.

It has to carry its energy. And adding more battery adds weight that the machine must ferry along with everything else.

That creates a difficult trade-off. A bigger battery might allow longer trips, but it can also leave it with less carrying capacity. Charging takes time, too, and batteries wear down with repeated use.

Think about a delivery operator choosing between another flight and a return trip to recharge. Or a business paying for a robot that spends too much of the workday plugged into a wall.

Battery performance affects how much useful work the customer gets for the money. That’s why I see advanced batteries as much more than an electric-car story.

Solid-state batteries (SSBs) are one promising approach. They replace the liquid inside conventional batteries with a solid material. Depending on the design, that could allow more stored energy in a smaller or lighter package and reduce some fire risks.

Researchers at Oak Ridge National Laboratory are testing whether these battery advances can hold up outside small laboratory experiments. Their work specifically includes potential uses in drones and robotics.

There’s still work to do, though. A battery has to survive repeated use and be manufactured consistently at a price customers can afford. Solid-state designs also need careful safety testing; Sandia researchers are studying how they can fail and overheat.

But the opportunity is easy to understand. Help a machine work longer without making it heavier, and you could make that machine useful to more customers.

Someone Has to Build Enough of Them

Better batteries are one part of the job. Producing them in dependable quantities is another.

On July 14, Re:Build Manufacturing announced a line of U.S.-assembled battery packs for commercial and defense drones. It connected the launch to a broader expansion of drone manufacturing at its Pennsylvania facility, which was revitalized as part of an $81 million investment.

These are lithium-ion products. Customers need equipment they can use today while researchers work on what comes next.

And this is where the story becomes much bigger than dinner.

The ability to produce reliable machines in large numbers matters enormously to national defense. A promising design offers limited protection if the equipment takes too long to arrive or its parts are difficult to replace.

America needs manufacturers that can deliver, along with suppliers that can keep those manufacturers working.

As AI moves into drones and other physical systems, the stakes rise. A failure can mean more than a late delivery. Protecting people and essential services requires equipment that works when it’s needed… and enough of it to do the job.

Follow the Money to What America Needs to Build

DoorDash needs more than an aircraft to get dinner to your door. It needs equipment, power, and a system that works reliably from the kitchen to the doorstep.

America faces the same challenge on a much larger scale: turning advanced technology into machines it can build, deploy, and depend on.

For investors, the question is concrete: Which companies supply the parts, materials, and production capacity that make those plans possible?

That’s the opportunity I’ve been researching.

At July’s Pennsylvania Defense and Innovation Summit, government, finance, technology, and military leaders gathered at the U.S. Army War College. Sen. Dave McCormick’s office reported more than $10 billion in new investment commitments spanning shipbuilding, advanced manufacturing, AI, and robotics.

The announcements included a new drone battery production line, expanded manufacturing facilities, and equipment to increase output. These projects still have to deliver, but they show investors where to start looking.

Consider what happens when a customer moves from testing a handful of drones to ordering thousands.

The manufacturer needs more batteries, motors, and specialized components. It needs dependable sources of raw materials. And it needs suppliers that can increase production without sacrificing quality.

A supplier that solves that problem can become essential to its customer’s expansion.

That’s why I’m following the buildout all the way down to the businesses that make it possible.

My latest briefing takes you inside the investment thesis behind America’s push to rebuild its industrial capacity.

I explain the companies I’m watching, what makes their capabilities valuable, and the developments that could bring them to investors’ attention.

You’ll come away with a clearer way to evaluate this opportunity… and specific businesses to put on your research list.

Watch the briefing now to discover the companies I’m watching as America funds and builds its next generation of machines.

Sincerely,
Luke Lango
Senior Investment Analyst, InvestorPlace

The post What Your Next Takeout Order Could Teach You About AI Investing appeared first on InvestorPlace.

In 2024, the second-best-performing stock in the S&P 500 wasn’t a chipmaker or an artificial intelligence firm.

It was Vistra Corp. (VST), a Texas power producer that most people had never heard of. Shares rose over 250% in 2024, beating even Nvidia Corp. (NVDA). Only Palantir Technologies Inc. (PLTR) did better, though it did not join the S&P 500 until late September that year.

Vistra never built an AI model. Nor did it have anything directly to do with the AI Revolution.

But it did produce the one thing AI needed: electricity.

In fact, electrical power has become one of the tightest bottlenecks of the AI Revolution. Roughly 40% of data centers planned for 2026 have been pushed into next year from the lack of grid hookups, according to Goldman Sachs. And many states are even considering “bring your own power” policies for new projects because electricity is in such short supply.

It’s a pattern we’ve written about before:

When a new technology arrives, everyone piles into the obvious winner, leaving the real gems behind for perceptive investors to buy.

It’s happening again right now. Investors are thinking about how AI can move into new applications like drones and other unmanned aerial vehicles (UAVs). Far fewer are asking about the things you need to shoot them down.

In a new presentation, senior InvestorPlace analyst Luke Lango names the companies he thinks get paid as the Pentagon restocks for the next stage of AI. He’s calling this The Pennsylvania Plan.

Luke’s given me the go-ahead to reveal one of these stocks to you today. And I’ve picked the biggest, most conservative name on his list on purpose. If the potential is this large for such a major firm, it’s worth seeing what Luke expects from his six smaller picks. You can watch his presentation here.

Booked Solid Through 2029

Last week, defense contractor Lockheed Martin Corp. (LMT) reported something I’ve never seen from a company of its size.

It wasn’t revenue, which rose 11% to $20.7 billion. Nor was it earnings, which beat estimates by 6%.

Instead, it was the number “4.”

That was the company’s “book-to-bill ratio,” the figure you get when you divide the number of new orders by sales. Lockheed had booked $83 billion of new orders, four times the $20.7 billion it sold.

Think of a restaurant that serves 100 customers on a Saturday night… and then receives reservations for 400 more before closing time. If you’re an investor, you’d want a piece of that restaurant, especially if those bookings were backed by reputable customers like the U.S. Department of War.

In fact, Lockheed’s order book is now so large that it would take almost four years to go through at the current pace. And we’re not even counting the reservations that will happen down the road yet.

That’s why Luke likes Lockheed: It is rearming America for AI-enabled combat. AI might be making drones cheaper and smarter… but Lockheed is the one building the missiles, interceptors, and planes that the U.S. military will need to counter these technologies.

Saved by One Vote

Let’s take a quick look at how Lockheed got here in the first place.

In August 1971, the U.S. Senate voted on whether The Lockheed Aircraft Corp. should continue to exist.

The aircraft manufacturer was weeks from bankruptcy. Its L-1011 TriStar airliner was behind schedule. Its engine supplier, Rolls-Royce, had collapsed into receivership. And cost overruns on the C-5 Galaxy transport were draining whatever cash Lockheed had left. The company needed a $250 million loan guarantee, and a funding bill had barely cleared the House by three votes.

The Senate passed it 49 to 48.

That move kickstarted a virtuous funding cycle where cash from one military aircraft could pay for the development of the next generation, and so on. Lockheed would bring us the F-117 Nighthawk, the world’s first operational stealth attack aircraft, the F-22 Raptor, the C-130J “Super Hercules” and the X-35 Joint Strike Fighter. It would also use the cash to buy out other defense contractors, expanding its reach.

Today, Lockheed is the world’s largest arms producer by revenue. And its virtuous funding cycle is now driven by three profit engines:

1. Aeronautics. This is Lockheed’s cash-flow machine. In 2001, the company was awarded the largest defense program ever after beating Boeing Co. (BA) for the F-35 fighter jet contract. Production is expected to continue through 2060, while maintenance and spare parts should keep the program going until at least 2070. Lockheed also produces other aircraft, such as the C-130 Hercules and the F-16 Fighting Falcon. This segment also houses much of its classified work and maintenance contracts for the F-22 Raptor fleet.

2. Missiles and Fire Control. This represents Lockheed’s growth prospects. The segment is growing at around 20% per year, and is being led by appetite for PAC-3 interceptors – the weapons used to stop ballistic missiles. The company is aiming to deliver 2,000 of these annually by 2030, up from 620 last year. In addition, Lockheed produces other well-known missile systems, including THAAD, GMLRS, JAGM, and Javelin. These, too, are seeing unprecedented purchases from conflicts in the Middle East and in Ukraine.

3. Rotary and Space. Rotary mostly involves helicopters, where Lockheed has an enormous installed base under its Sikorsky name. Space involves Trident ballistic missiles, hypersonic missiles, and missile defense systems. Both businesses offer wide moats and dependable profits, because switching costs are so high. Once a navy flies Seahawks, it buys Sikorsky parts and upgrades for decades. This segment could become a major growth area if Congress keeps funding the “Golden Dome” missile defense system.

Together, these three businesses create a stable source of cash flow that can fund tomorrow’s growth.

Refilling America’s Stockpiles

The rise of cheap drones in the Middle East and Russia’s war in Ukraine has cut into American stockpiles of missiles and interceptors. The Center for Strategic and International Studies (CSIS), for instance, estimates the U.S. has used two-thirds of its Patriot inventory and has fewer than 1,000 of these interceptors left.

Many have focused on upcoming counterdrone technologies to fill the gap. In fact, we’ve talked here about the importance of Ondas Inc. (ONDS), a company using interceptor drones to take down other UAVs. After all, firing a multimillion-dollar missile at a drone that costs less than a used car is a losing trade. And the Pentagon knows it.

But such AI-powered technologies are not yet reliable enough in the battlefield to protect crucial equipment, such as aircraft carriers and U.S. bases. Also, nothing cheap stops a ballistic missile. And so, interceptors have become what electricity was like to AI: the consumable that the new technology forces everyone else to buy more of.

That’s where Lockheed comes in. Over the past year, the company has won contracts such as:

• A seven-year deal for PAC-3 interceptors worth up to $58.6 billion.
• A separate seven-year agreement for THAAD missile-defense interceptors.
• A 10-year framework for at least 850 F-35 fighters.
• A $1.2 billion order for Precision Strike Missiles

Over the next several years, Lockheed should likely see even greater demand as America and its allies move from refilling reserves to building larger stockpiles.

In addition, for most of the past 30 years, defense contractors signed deals that left them holding the bag if costs rose. Lockheed itself took two major charges in the past two years for that reason. These new multiyear agreements now include annual inflation “escalators” that kick in if costs go up. With stockpiles this low, the Pentagon has less room to drive a hard bargain.

So, much like Vistra, Lockheed is becoming a growth stock again – and it’s thanks to an AI technology the company never had to build itself.

An Even Faster-Growing Business

With Lockheed, we have a defense contractor trading near five-year average multiples that is doing much better than at any time in the past five years.

By my reckoning, shares are worth $700 in the base case, and possibly $825 in the bull case. Aggressive investors might consider buying into the rally, while conservative ones wait for a sub-$600 entry price.

However, Lockheed is only one of seven picks Luke is eyeing. And several of these have far higher upside, given their smaller starting size.

Luke explains this all in his latest presentation, which you can watch here. He will also reveal several other picks that are part of what he’s calling The Pennsylvania Plan, and explains why his most aggressive projections call for potential gains of up to 2,600% over the next 12 to 24 months.

Vistra highlighted how the biggest winners of a new technology are often the suppliers in the background, not the ones that make headlines. Lockheed is the one I can name now. Luke’s presentation has the rest. 

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 The No. 2 Stock of 2024 Wasn’t an AI Company – and the Pattern Is Repeating appeared first on InvestorPlace.

Editor’s note: “AI Has Entered the Chain of Command” was previously published in July 2026 with the title, “The Bearish AI Headline That’s Actually the Most Bullish Signal of the Year.” It has since been updated to include the most relevant information available.

Count the number of times the Pentagon has created a brand-new command in the past 40 years. You can do it on one hand. 

Special Operations Command was born in 1987, after a failed hostage rescue in the Iranian desert exposed that America’s elite units couldn’t operate together. Northern Command arrived in 2002, after 9/11. Cyber Command followed a 2008 worm that crawled into the military’s classified networks from a thumb drive. Space Force stood up in 2019, once rivals began treating orbit as a battlefield.

Each new command marked the moment the military admitted its old structure couldn’t handle a new reality.

On Sept. 30, it added another.

Secretary of War Pete Hegseth announced plans for a four-star Autonomous Warfare Command – “Autowarcom,” in Pentagon shorthand – charged with scaling drones, robotics, and AI across the entire joint force, with what he called “service-like authorities.” The doctrine behind it is a “high-low mix”: a handful of exquisite, expensive weapons alongside swarms of cheap, expendable ones.

The next day, the Army ordered up its own Futures and Autonomous Systems Command, along with a dedicated acquisition executive for autonomy.

Then, the Army selected Amazon Web Services and World Wide Technology for Project Griffin, a pilot designed to use autonomous AI to defend military networks at machine speed.

Three moves in less than a month.

Instead of simply experimenting with AI, the U.S. military is starting to organize around it.

There is a short list of technologies governments decide they cannot afford to lose:

Nuclear power. Semiconductors. Satellites. GPS. The internet.

AI just joined them.

And once the military begins building around a technology, the infrastructure behind it – and the companies that supply it – become much harder to ignore.

AI Is Now a National-Security Asset

For years, Washington mostly treated frontier AI as a commercial technology.

Powerful? Absolutely. Worth watching and regulating? Sure – but still something built by technology companies and sold to customers.

This summer, that began to change.

The government briefly forced Anthropic to restrict access to Claude Fable 5 and Mythos 5 on national-security grounds. The Commerce Department lifted those controls a few weeks later, and access was restored July 1.

Though the restriction was short-lived, Washington had shown that it was willing to treat an AI model like a strategic asset.

Now the Pentagon is going further, creating commands, acquisition offices, technical jobs, and working military programs around AI and autonomy. These systems have already seen combat, too: back in March, Hegseth confirmed that AI-enabled autonomous systems were being used in the campaign against Iran.

The question is no longer whether the military will build around these technologies. It’s how quickly it can.

Sovereign AI Is Becoming a Full-Stack Infrastructure Buildout

In 1942, when the U.S. government decided that atomic weapons were a national-security imperative, it built an industrial pipeline to ensure it succeeded – from uranium mining to enrichment to delivery systems – at a scale and speed that had never been attempted in peacetime.

We are watching the early stages of something structurally analogous.

The difference is that the ‘Manhattan Project’ of sovereign AI requires not one centralized government program but an entire ecosystem: domestic semiconductor fabs, secure data center campuses, high-bandwidth networking, stable power grids, and model development labs operating under strict security protocols.

The proof is in the usage logs.

This spring, the Pentagon signed agreements with eight major AI companies to bring advanced models onto classified networks. Within five months of launch, its GenAI.mil platform passed 1.3 million users, with military personnel running hundreds of thousands of agents.

The Army’s plans go further.

By 2028, it wants autonomous systems working across combat vehicles, resupply, reconnaissance, breaching, fires, and teams of crewed and uncrewed machines.

That sounds like a technology the military expects to use every day.

And the United States isn’t building alone.

The Sovereign AI Race Is Already Global

Japan became the first international partner in the U.S.’ Genesis Mission, committing $500 million alongside a matching $500 million from the U.S. Department of Energy – a combined $1 billion over five years to advance AI science, next-generation computing, and autonomous laboratory systems through joint teams spanning 12 DOE National Laboratories and 12 leading Japanese research institutions. 

Saudi Arabia’s Project Transcendence is deploying $100 billion toward AI infrastructure, model development, and data centers. 

The UAE has launched G42 as its sovereign AI vehicle, with Abu Dhabi committing billions to domestic compute capacity. 

And China has been quietly building sovereign AI infrastructure for years – ChangXin Memory Technologies scaling domestic HBM production, Huawei developing its own GPU stack, and state-directed capital flowing into data center construction at a pace that rivals the hyperscalers. 

Every one of those commitments reinforces the others. Sovereign AI is now a race – and races don’t have off switches. 

Why Military AI Spending Gets Harder to Cut

Once a technology is classified as critical to national security, the political cost of underfunding it becomes unacceptably high. That means capital will flow regardless of economic cycles, earnings misses, or Fed policy. 

But what has to be built before this strategy can work?

The answer runs through the entire AI infrastructure stack.

• Secure compute: Foreign-access restrictions mean domestic, sovereign, security-hardened data centers become a requirement, not a preference. Hyperscaler buildout just got a policy tailwind.
• Chips and memory: If frontier models are strategic assets, the chips that run them are, too. Domestic semiconductor production, Nvidia (NVDA) allocations, high-bandwidth memory supply – all become matters of national priority. Networking and optics: AI infrastructure communicates, constantly, at scales that dwarf anything the internet was originally designed to handle. All of it runs across physical fiber, switches, and optical transceivers. 
• Power and cooling: Sovereign AI clusters run continuously, consume extraordinary amounts of power, and generate heat that requires industrial-scale cooling systems. That demand grows with every new model generation.
• Cybersecurity: If AI models are now in the same category as military hardware, then the security perimeter around them will be built to military-grade standards. 
• Autonomy and robotics: Someone has to build the drones, robotic vehicles, and unmanned systems. Someone else has to provide the edge processors, sensors, batteries, motors, and secure communications inside them. As the military moves from small pilots to full fleets, that supplier base becomes part of the trade. 

Together, these trades form a single investment thesis: own the infrastructure layer of a technology that governments have decided they cannot afford to lose. 

How the Sovereign AI Race Expands the Infrastructure Trade

No country wants to discover that a rival controls the better models, the larger computing base, or the autonomous systems that could decide a future conflict.

So, one government builds. The others respond.

More data centers go up. More chips get ordered. More power is secured. More autonomous systems move from testing into production.

The race itself creates the demand.

Core AI infrastructure names – like NVDA, AVGO, ANET, and VRT – are precisely the companies that benefit most when AI infrastructure becomes a sovereign imperative rather than an enterprise discretionary.

We are watching closely for:

• New government AI infrastructure contracts and sovereign AI fund announcements
• Allied-nation buildout cadence
• Accelerated domestic fab investment, particularly anything related to secure, export-controlled advanced packaging and HBM production
• Security hardware specs for AI data centers – when DoD and allied governments start publishing requirements for secure AI infrastructure, those spec sheets will be a roadmap for which companies win.

The Bottom Line

AI entering the chain of command raises a larger question:

Can America build enough of the physical equipment to keep up?

Remember the Pentagon’s own blueprint: a “high-low mix” of exquisite, expensive systems and masses of cheap, expendable ones. Right now, America can’t produce enough of either. Drones need batteries, motors, sensors, and secure communications. Autonomous vehicles need processors and factories. AI systems need chips, power, networking, and domestic manufacturing capacity.

And the military needs a supply base that can deliver all of it quickly – after decades of letting that capacity drift overseas.

Rebuilding it is going to take more than Pentagon budgets. It’s why some of the biggest names on Wall Street are now sitting at the same table as defense leaders and emerging technology companies, working out how private capital gets pulled into the effort.

That is the opportunity I’ve been researching.

AeroVironment is one of five companies I’ve identified to profit from it – a group that spans established producers, the emerging technologies replacing them, and the critical materials both depend on. I lay out all five in a new presentation, along with the developments I believe could bring them to the market’s attention very soon.

Watch the full presentation right here.

The post AI Has Entered the Chain of Command appeared first on InvestorPlace.

While trick-or-treaters fill neighborhoods across the U.S. tonight, our neighbors to the south are preparing for another celebration: Día de los Muertos, or Day of the Dead.

On the eve of this Mexican holiday, those who celebrate are preparing their ofrendas – altars adorned with images and mementos to honor loved ones who have passed away.

It is a cultural tradition rooted in remembrance and the celebration of the cyclical nature of life and death.

Now, I have a feeling that if the market were to participate in this holiday, its ofrenda would include the once-mighty Cisco Systems Inc. (CSCO).

In its day, Cisco was the darling of the internet boom. It went public in 1990 with a $224 million valuation. By March 2000, it had grown into a $550 billion giant – briefly making it one of the most valuable companies in the world.

Also on the ofrenda would sit RCA, the radio pioneer of the Roaring Twenties. As radio took over American living rooms, RCA’s stock rose about 200-fold over the decade.

But both of these market legends eventually became symbols of booms gone bust. Cisco’s shares fell nearly 90% between March 2000 and late 2002 as the dot-com bubble burst. And RCA’s stock plunged about 98% between 1929 and 1932, after radio mania gave way to the Great Crash.

Neither company’s technology necessarily died. Radio and the internet went on to change the world.

What didn’t last was the dominance of the companies that built them.

And that’s exactly why it’s important to remember the companies that once ruled the market.

I expect we’ll see this pattern play out with AI, too. While demand for AI is clearly real, there remains an important question: Which companies will remain standing once excitement – and investment – fades? History shows that building a world-changing technology doesn’t guarantee lasting success for the businesses behind it.

That question is especially relevant as the biggest AI players, those in the Magnificent Seven who once ruled the stock market, report their most recent earnings.

In today’s Smart Money, I’ll share the latest quarterly earnings from the Mag 7 companies and what they reveal about investing in AI today. Hint: the best investments to make now are not the Mag 7 stocks that are spending billions to build AI data centers, but in the kinds of companies that can profit from AI without having to foot the construction bill.

The Price of AI Is Falling, but the Cost of Building It Isn’t

Tesla Inc. (TSLA) and Meta Platforms Inc. (META) kicked things off after the market closed last Wednesday, October 21.

Tesla’s revenue came in flat at $28.05 billion, yet its capital expenditures (CapEx) – the money a company spends on physical assets like factories, chips and data centers – more than doubled to $4.7 billion to fund its robotaxis, Optimus robots, and AI ambitions. The carmaker is now an AI builder. But for now, Tesla’s AI ambitions are costing more than they’re bringing in.

Meta’s revenue rose 26% to $64.6 billion, topping Wall Street’s estimate. But CapEx climbed to $34.9 billion for the quarter, and Meta raised its 2026 CapEx outlook to between $135 billion and $145 billion. Free cash flow – the cash left over after those investments – turned negative, at -$2.1 billion. So, the payoff from its AI investments has yet to catch up with the cost.

This past Wednesday, Alphabet Inc. (GOOGL) and Microsoft Corp. (MSFT) reported after the close.

Alphabet’s earnings per share came in at $2.67, below Wall Street’s $3.02 estimate, while revenue of $127.58 billion fell just short of the $128.22 billion estimate. Google Cloud revenue rose 103% to $30.7 billion. But CapEx also more than doubled to $51.4 billion, and free cash flow came in at -$9.1 billion.

Finance chief Anat Ashkenazi added that CapEx will “increase significantly in 2027.” The next day, the stock fell nearly 13% – its worst single-day drop ever. So, Google Cloud’s explosive growth suggests strong demand for AI and cloud services. But spending is rising just as quickly, and negative cash flow leaves investors questioning whether the investment is paying off.

Microsoft, by contrast, reported quarterly revenue growth of 19% and earnings per share of $4.89, beating expectations. Azure cloud revenue grew 48%. CapEx rose about 30% to $45.2 billion – less than investors expected – and free cash flow stayed positive at $18.6 billion. Microsoft appears to be making the strongest case that AI growth can justify the spending. But while positive cash flow is encouraging, it remains to be seen whether that growth will generate enough returns to justify the investment.

Finally, Amazon.com Inc. (AMZN) reported on Thursday after markets closed. Its Amazon Web Services (AWS) cloud business grew 39% to $46 billion, its fastest pace in nearly five years. But revenue and earnings came in slightly below estimates, and CapEx jumped to $77.3 billion – well above the roughly $59 billion analysts expected. Over the past 12 months, Amazon’s free cash flow was -$42.4 billion, and management signaled it will spend even more in 2027. Shares fell about 7% in early trading on Friday.  With spending far outpacing expectations and free cash flow deep in the red, Amazon still has a lot to prove before its AI investments pay off.

The Builders Won’t Rule Forever

The pattern here is hard to miss. AI revenue is real, and it’s growing fast. But spending is growing faster. Alphabet, Meta, and Amazon all spent more cash than their businesses brought in. And none of them plan to slow down.

Cisco and RCA were right about the future of their industries. But investors who paid top dollar for the companies building that infrastructure waited years – even decades – to break even, if they ever did. Cisco’s stock didn’t return to its 2000 high until December 2025.

I expect the Mag 7 – all of which are AI Builders– to face a similar reckoning. As AI gets cheaper, the hundreds of billions they’re pouring into data centers and chips will become harder to earn back. And the market is already starting to notice, punishing the biggest spenders and rewarding restraint.

Meanwhile, a different group stands to benefit: the companies that apply AI. These businesses don’t need to build data centers or design chips. They simply put AI to work – cutting costs, improving products, and growing profits. Every time AI gets cheaper, their opportunity gets bigger.

The biggest winners of the internet era weren’t the companies building its plumbing. They were the ones that used it. I believe the same will be true for AI.

My Fry’s Investment Report portfolio reaches well beyond the biggest names in AI. It includes a drive-thru beverage chain, multiple healthcare and biotech companies, and leaders in design and retail – businesses with different ways to benefit from changing technology and consumer demand.

Check out the full portfolio – and learn how to join us here.

I don’t expect to see the Mag 7 on the market’s ofrenda next year. But history shows that the builders of a technological revolution aren’t always the ones who get to celebrate it.

The real opportunities may shift to companies that know how to put the technology to work – and turn it into lasting profits.

Regards,

Eric Fry

The post Before Celebrating the Mag 7, Remember Yesterday’s Tech Giants appeared first on InvestorPlace.

Growing up in South Texas, I didn’t go to the neighborhood convenience store for candy or gum. I went to the icehouse.

The term was a leftover from a time before electric refrigeration when storefronts sold large blocks of ice to keep home iceboxes cold.

This was a critical business in a place as hot as Texas.

The business of delivering ice was so big that one New England native, Frederic Tudor, became known as “The Ice King.” His business cut massive blocks from frozen lakes in New England, packed them in sawdust, and shipped them to customers hundreds or even thousands of miles away.

For decades starting in the 1820s, Tudor invested in specialized equipment, icehouses, transportation networks, and distribution systems.

Then electric refrigeration became widespread, and the demand for ice delivery, well …melted away.

Another Industry May Be Approaching a Similar Turning Point

The business cycle repeats this process more often than you might think.

At the beginning of the 20^th century, cities depended on horses for transportation and deliveries. The widespread adoption of automobiles put carriage manufacturers, blacksmiths, harness makers, stables, and feed suppliers out of business.

Kodak dominated the film business for generations, but digital cameras gave consumers a better alternative to buying film and paying to develop every photograph.

Blockbuster operated thousands of stores nationwide. But Netflix and other streaming services made their business model obsolete.

Nokia was the world’s leading cellular phone manufacturer when Apple introduced the iPhone in 2007. Just a few years later, smartphones shifted the marketplace, and Nokia was left behind.

And now Luke sees that a similar pattern may be emerging in a familiar industry.

For decades, big companies have dominated this industry by building increasingly sophisticated – and increasingly expensive – products.

They’ve invested billions of dollars in research, manufacturing facilities, and specialized equipment.

And they’ve developed relationships with some of the world’s most powerful customers.

But a new generation of technology is challenging the economics that made these companies so successful. Less expensive innovations can now accomplish tasks that once required equipment and infrastructure costing millions of dollars.

When technology changes the rules of an industry, the big money will flow in new directions. Companies that seemed insignificant can suddenly become essential suppliers.

And investors who recognize the shift early can find themselves in on the ground floor of the companies that will dominate the future.

That’s exactly the kind of opportunity technology investing expert Luke Lango has spent his career looking for.

Luke knows that when a technological revolution begins, the biggest winners aren’t necessarily the companies everyone already knows.

Sometimes they’re the relatively obscure businesses supplying the technology that makes the revolution possible.

And he’s demonstrated that insight before.

Consider Bloom Energy (BE).

The stock is considered part of the AI megatrend that started in November 2022. Data centers require massive, continuous amounts of electricity, and BE manufactures solid-oxide fuel cells that can be installed quickly and can provide electricity without relying on the traditional power grid.

Luke first recommended the stock in 2022, before ChatGPT’s debut and the start of the AI megatrend.

What did Luke see? Here’s what he wrote in May 2022.

We believe the world is embarking upon a journey toward energy independence. The end goal of this movement is to create a series of distributed energy systems (as energy folks like to call them) that are cheaper, easier, more reliable, and more convenient than the current interconnected global energy ecosystem.

We call this movement the Distributed Energy Revolution – and we think it’s a big, big idea.

It will rewrite the rules of the multi-trillion-dollar energy industry and create a new generation of energy infrastructure titans.

And investors who followed Luke’s recommendation had the opportunity to see gains of more than 1,000%!

Right now, Bloom Energy is trading below Luke’s buy below price of $300. So, he believes there is still plenty of room for this stock to grow.

Now, Luke believes he’s identified another major technological transformation.

And he thinks it could create an entirely new generation of stock market winners.

The transformation Luke is tracking now isn’t being driven by consumer demand alone.

Some of the world’s most powerful institutions are preparing to spend enormous sums to embrace a new generation of technology.

And just as Bloom Energy became an essential supplier to the AI revolution, Luke believes a handful of little-known companies could become indispensable to this next wave of spending.

He’s identified several stocks he believes are especially well positioned to benefit.

And he’s revealing them in a special presentation he’s prepared for investors.

Click here to watch Luke’s presentation and discover the technological revolution he believes could create the next generation of stock market winners.

You may already know the companies that dominated the last era.

The question is whether you’ll recognize the companies positioned to dominate the next one.

Icehouses rapidly disappeared after the advent of electric refrigeration, even if the name survived a little longer. But you’d rather be invested in new technologies than the ones they’re replacing.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post An Entire Industry Is About to Change. Again. appeared first on InvestorPlace.

For my colleague Luke Lango, this glimpse at DoorDash’s new delivery system is part of a much bigger shift taking place right now.

A Senior Investment Analyst at InvestorPlace, Luke has been following AI’s move into machines that carry goods, operate equipment, and work alongside people. And he believes the companies supplying those machines could offer investors opportunities well beyond the familiar AI names.

And in his latest briefing, Luke explains which ones he’s watching and what could bring them to investors’ attention.

Take it away, Luke…

****************************

It’s 8 a.m. on a Monday, and you just ordered a hot coffee through DoorDash Inc. (DASH) to start your day. Only, the estimated arrival time keeps getting pushed later and later.

Your driver is stuck at a light. Then they hit traffic at another turn. Just when you think they’re heading to you, they make another stop first. By the time the cup finally reaches your door, that first satisfying sip has become a lukewarm disappointment.

When you used DoorDash, you paid a premium for convenience. Now you’re putting your coffee in the microwave.

The same frustration builds with every order of cold fries or late dinner that leaves your guests’ collective stomachs grumbling. Once an order leaves the kitchen, every extra minute can make it a little less worth waiting for.

But DoorDash is working on a way to shorten that wait.

How? By bypassing traffic and human decision-making entirely.

On Sept. 30, the company unveiled DoorDash Air, a new drone delivery system, with pilots planned in Northern California and restaurant partners including Chipotle Mexican Grill Inc. (CMG) and Popeyes.

DoorDash says initial tests produced deliveries from the restaurant to the customer’s door in under five minutes on average. Those results cover a limited sample of order sizes and distances, and delivery times aren’t guaranteed.

Still, you can understand the appeal. Your dinner could fly over the traffic that would otherwise hold it up.

For investors, though, the most revealing part of the announcement was where DoorDash began building the system.

Before Dinner Can Take Flight

Of course, there are some logistics that need to be sorted out first.

Who loads the drone? Does the bag fit on it? What happens to the drinks?

Without changing a thing, you might save five minutes in the air but add ten minutes of work inside the restaurant.

Delivery Drone Carrying Package Over Urban Buildings. Source: Envato

DoorDash says it designed its loading options to fit existing restaurant operations. And that’s where this becomes an investment story.

A working delivery network needs manufacturers to build loading equipment, suppliers to provide sensors, and batteries that can carry an aircraft and its cargo through repeated trips.

As more machines go to work, those practical requirements can create demand for businesses far beyond the familiar AI names.

Someone has to make the loading equipment, supply the sensors, and provide the power. That’s why I’m watching the companies that can help turn a promising demonstration into equipment customers could use every day.

An AI system that can guide a drone or direct a robot opens similar possibilities. Turning those possibilities into thousands of working machines takes motors, sensors, specialized materials, and factories capable of producing them reliably.

That creates a challenge when choosing stocks: Which companies can turn growing demand into actual deliveries?

AI Is Getting a Body

I call what DoorDash is doing “physical AI”: machines that use artificial intelligence to act in the world around us.

That includes warehouse robots, vehicles that drive themselves, and drones that can navigate without someone steering every movement. Humanoid robots could eventually take on a wider range of jobs in spaces designed for people.

These machines have something in common. They have to work around real obstacles, with real consequences when something goes wrong.

A warehouse robot needs to move goods without damaging them or injuring someone. A delivery aircraft needs to reach the right address and get its cargo down safely. Being clever is only useful if the machine can also do its job dependably.

And there are already businesses earning money from this shift.

Consider Symbotic Inc. (SYM), which supplies robotic systems used to move and organize goods in warehouses. In its third quarter of fiscal 2026, it reported $721 million in revenue, up 22% from a year earlier, and $55 million in net income.

That gives investors actual sales and profits to examine. It’s one company worth researching if you’re interested in physical AI.

This is the kind of evidence I want to see: people paying for machines that do useful work. But there’s another requirement these machines can’t escape.

Power.

A Smarter Robot Still Needs a Better Battery

A machine that moves freely through a warehouse or flies across town can’t drag a power cord behind it.

It has to carry its energy. And adding more battery adds weight that the machine must ferry along with everything else.

That creates a difficult trade-off. A bigger battery might allow longer trips, but it can also leave it with less carrying capacity. Charging takes time, too, and batteries wear down with repeated use.

Think about a delivery operator choosing between another flight and a return trip to recharge. Or a business paying for a robot that spends too much of the workday plugged into a wall.

Battery performance affects how much useful work the customer gets for the money. That’s why I see advanced batteries as much more than an electric-car story.

Solid-state batteries (SSBs) are one promising approach. They replace the liquid inside conventional batteries with a solid material. Depending on the design, that could allow more stored energy in a smaller or lighter package and reduce some fire risks.

Researchers at Oak Ridge National Laboratory are testing whether these battery advances can hold up outside small laboratory experiments. Their work specifically includes potential uses in drones and robotics.

There’s still work to do, though. A battery has to survive repeated use and be manufactured consistently at a price customers can afford. Solid-state designs also need careful safety testing; Sandia researchers are studying how they can fail and overheat.

But the opportunity is easy to understand. Help a machine work longer without making it heavier, and you could make that machine useful to more customers.

Someone Has to Build Enough of Them

Better batteries are one part of the job. Producing them in dependable quantities is another.

On July 14, Re:Build Manufacturing announced a line of U.S.-assembled battery packs for commercial and defense drones. It connected the launch to a broader expansion of drone manufacturing at its Pennsylvania facility, which was revitalized as part of an $81 million investment.

These are lithium-ion products. Customers need equipment they can use today while researchers work on what comes next.

And this is where the story becomes much bigger than dinner.

The ability to produce reliable machines in large numbers matters enormously to national defense. A promising design offers limited protection if the equipment takes too long to arrive or its parts are difficult to replace.

America needs manufacturers that can deliver, along with suppliers that can keep those manufacturers working.

As AI moves into drones and other physical systems, the stakes rise. A failure can mean more than a late delivery. Protecting people and essential services requires equipment that works when it’s needed… and enough of it to do the job.

Follow the Money to What America Needs to Build

DoorDash needs more than an aircraft to get dinner to your door. It needs equipment, power, and a system that works reliably from the kitchen to the doorstep.

America faces the same challenge on a much larger scale: turning advanced technology into machines it can build, deploy, and depend on.

For investors, the question is concrete: Which companies supply the parts, materials, and production capacity that make those plans possible?

That’s the opportunity I’ve been researching.

At July’s Pennsylvania Defense and Innovation Summit, government, finance, technology, and military leaders gathered at the U.S. Army War College. Sen. Dave McCormick’s office reported more than $10 billion in new investment commitments spanning shipbuilding, advanced manufacturing, AI, and robotics.

The announcements included a new drone battery production line, expanded manufacturing facilities, and equipment to increase output. These projects still have to deliver, but they show investors where to start looking.

Consider what happens when a customer moves from testing a handful of drones to ordering thousands.

The manufacturer needs more batteries, motors, and specialized components. It needs dependable sources of raw materials. And it needs suppliers that can increase production without sacrificing quality.

A supplier that solves that problem can become essential to its customer’s expansion.

That’s why I’m following the buildout all the way down to the businesses that make it possible.

My latest briefing takes you inside the investment thesis behind America’s push to rebuild its industrial capacity.

I explain the companies I’m watching, what makes their capabilities valuable, and the developments that could bring them to investors’ attention.

You’ll come away with a clearer way to evaluate this opportunity… and specific businesses to put on your research list.

Watch the briefing now to discover the companies I’m watching as America funds and builds its next generation of machines.

Sincerely,

Luke Lango
Senior Investment Analyst, InvestorPlace

The post AI’s Next Shift, Hiding in a Drone Battery appeared first on InvestorPlace.

Your driver is stuck at a light. Then they hit traffic at another turn. Just when you think they’re heading to you, they make another stop first. By the time the cup finally reaches your door, that first satisfying sip has become a lukewarm disappointment.

When you used DoorDash, you paid a premium for convenience. Now you’re putting your coffee in the microwave.

The same frustration builds with every order of cold fries or late dinner that leaves your guests’ collective stomachs grumbling. Once an order leaves the kitchen, every extra minute can make it a little less worth waiting for.

But DoorDash is working on a way to shorten that wait. 

How? By bypassing traffic and human decision-making entirely.

On Sept. 30, the company unveiled DoorDash Air, a new drone delivery system, with pilots planned in Northern California and restaurant partners including Chipotle Mexican Grill Inc. (CMG) and Popeyes.

DoorDash says initial tests produced deliveries from the restaurant to the customer’s door in under five minutes on average. Those results cover a limited sample of order sizes and distances, and delivery times aren’t guaranteed.

Still, you can understand the appeal. Your dinner could fly over the traffic that would otherwise hold it up.

For investors, though, the most revealing part of the announcement was where DoorDash began building the system.

DoorDash Air Shows Why the Hard Part Starts on the Ground

Of course, there are some logistics that need to be sorted out first. 

Who loads the drone? Does the bag fit on it? What happens to the drinks?

Without changing a thing, you might save five minutes in the air but add ten minutes of work inside the restaurant.

DoorDash says it designed its loading options to fit existing restaurant operations. And that’s where this becomes an investment story.

A working delivery network needs manufacturers to build loading equipment, suppliers to provide sensors, and batteries that can carry an aircraft and its cargo through repeated trips.

As more machines go to work, those practical requirements can create demand for businesses far beyond the familiar AI names.

Someone has to make the loading equipment, supply the sensors, and provide the power. That’s why I’m watching the companies that can help turn a promising demonstration into equipment customers could use every day.

An AI system that can guide a drone or direct a robot opens similar possibilities. Turning those possibilities into thousands of working machines takes motors, sensors, specialized materials, and factories capable of producing them reliably.

That creates a challenge when choosing stocks: Which companies can turn growing demand into actual deliveries?

Physical AI Is Moving Into the Real World

I call what DoorDash is doing “physical AI”: machines that use artificial intelligence to act in the world around us.

That includes warehouse robots, vehicles that drive themselves, and drones that can navigate without someone steering every movement. Humanoid robots could eventually take on a wider range of jobs in spaces designed for people.

These machines have something in common. They have to work around real obstacles, with real consequences when something goes wrong.

A warehouse robot needs to move goods without damaging them or injuring someone. A delivery aircraft needs to reach the right address and get its cargo down safely. Being clever is only useful if the machine can also do its job dependably.

And there are already businesses earning money from this shift.

Consider Symbotic Inc. (SYM), which supplies robotic systems used to move and organize goods in warehouses. In its third quarter of fiscal 2026, it reported $721 million in revenue, up 22% from a year earlier, and $55 million in net income.

That gives investors actual sales and profits to examine. It’s one company worth researching if you’re interested in physical AI.

This is the kind of evidence I want to see: people paying for machines that do useful work. But there’s another requirement these machines can’t escape.

Power.

Battery Performance Could Become a Physical AI Bottleneck

A machine that moves freely through a warehouse or flies across town can’t drag a power cord behind it.

It has to carry its energy. And adding more battery adds weight that the machine must ferry along with everything else.

That creates a difficult trade-off. A bigger battery might allow longer trips, but it can also leave it with less carrying capacity. Charging takes time, too, and batteries wear down with repeated use.

Think about a delivery operator choosing between another flight and a return trip to recharge. Or a business paying for a robot that spends too much of the workday plugged into a wall.

Battery performance affects how much useful work the customer gets for the money. That’s why I see advanced batteries as much more than an electric-car story.

Solid-state batteries (SSBs) are one promising approach. They replace the liquid inside conventional batteries with a solid material. Depending on the design, that could allow more stored energy in a smaller or lighter package and reduce some fire risks.

Researchers at Oak Ridge National Laboratory are testing whether these battery advances can hold up outside small laboratory experiments. Their work specifically includes potential uses in drones and robotics.

There’s still work to do, though. A battery has to survive repeated use and be manufactured consistently at a price customers can afford. Solid-state designs also need careful safety testing; Sandia researchers are studying how they can fail and overheat.

But the opportunity is easy to understand. Help a machine work longer without making it heavier, and you could make that machine useful to more customers.

Scaling Physical AI Requires Manufacturing Capacity

Better batteries are one part of the job. Producing them in dependable quantities is another.

On July 14, Re:Build Manufacturing announced a line of U.S.-assembled battery packs for commercial and defense drones. It connected the launch to a broader expansion of drone manufacturing at its Pennsylvania facility, which was revitalized as part of an $81 million investment.

These are lithium-ion products. Customers need equipment they can use today while researchers work on what comes next.

And this is where the story becomes much bigger than dinner.

The ability to produce reliable machines in large numbers matters enormously to national defense. A promising design offers limited protection if the equipment takes too long to arrive or its parts are difficult to replace.

America needs manufacturers that can deliver, along with suppliers that can keep those manufacturers working.

As AI moves into drones and other physical systems, the stakes rise. A failure can mean more than a late delivery. Protecting people and essential services requires equipment that works when it’s needed… and enough of it to do the job.

Physical AI Is Becoming a U.S. Manufacturing Story

DoorDash needs more than an aircraft to get dinner to your door. It needs equipment, power, and a system that works reliably from the kitchen to the doorstep.

America faces the same challenge on a much larger scale: turning advanced technology into machines it can build, deploy, and depend on.

For investors, the question is concrete: Which companies supply the parts, materials, and production capacity that make those plans possible?

That’s the opportunity I’ve been researching.

At July’s Pennsylvania Defense and Innovation Summit, government, finance, technology, and military leaders gathered at the U.S. Army War College. Sen. Dave McCormick’s office reported more than $10 billion in new investment commitments spanning shipbuilding, advanced manufacturing, AI, and robotics.

The announcements included a new drone battery production line, expanded manufacturing facilities, and equipment to increase output. These projects still have to deliver, but they show investors where to start looking.

Consider what happens when a customer moves from testing a handful of drones to ordering thousands.

The manufacturer needs more batteries, motors, and specialized components. It needs dependable sources of raw materials. And it needs suppliers that can increase production without sacrificing quality.

A supplier that solves that problem can become essential to its customer’s expansion.

That’s why I’m following the buildout all the way down to the businesses that make it possible.

My latest briefing takes you inside the investment thesis behind America’s push to rebuild its industrial capacity. 

I explain the companies I’m watching, what makes their capabilities valuable, and the developments that could bring them to investors’ attention.

You’ll come away with a clearer way to evaluate this opportunity… and specific businesses to put on your research list.

Watch the briefing now to discover the companies I’m watching as America funds and builds its next generation of machines.

The post DoorDash’s Five-Minute Drone Test Opens a Much Bigger AI Story appeared first on InvestorPlace.

Unfortunately, that includes finding ways to break into computer systems…

Last week’s internet security scare offered a troubling glimpse of this new reality. AI helped researchers uncover dangerous vulnerabilities in software used across millions of websites, triggering an urgent race to protect affected systems before attackers could exploit the weaknesses.

For our technology expert Luke Lango, the episode highlights an investment opportunity that extends well beyond traditional cybersecurity.

In today’s Friday Digest takeover, Luke explains why increasingly sophisticated AI could force businesses and governments to spend far more protecting their digital infrastructure. He highlights one established cybersecurity company that could benefit, and then takes the argument a step further.

As AI moves into drones, robotics, and other physical systems, the need for protection expands to factories, power plants, military installations, and critical infrastructure. And meeting those threats will require an enormous range of technologies, components, and specialized manufacturers.

Luke explores that broader opportunity in his latest free briefing, where he identifies companies he believes could benefit as America strengthens its defenses. You can watch it right here.

The AI Revolution is creating extraordinary new capabilities. Luke believes protecting ourselves from some of them could become a major investment theme of its own.

I’ll let Luke take it from here.

Have a good evening,

Jeff Remsburg

Last week, for operators of affected websites, the choice was terrible. Either take the site offline, cutting off customers and business, or leave it running with a flaw that could let an attacker take over the server without the need for a password.

The National Security Agency recommended taking affected systems offline if they couldn’t be updated or otherwise secured right away. And many organizations did just that.

Imagine making that decision for your business. Keep the heart of your business running and risk exposing your systems or take it down and risk losing customers.

Before the vulnerability became widely known, a repair was scheduled for Thursday, Oct. 22. But two days before the scheduled fix, word began spreading online about dangerous flaws in PHP, a programming language used to run roughly 70% of websites across the internet.

The PHP team brought the release forward to Wednesday. Suddenly, the companies preparing easy-to-install updates had one less day to finish.

After the accelerated release was announced, a security firm mistakenly published a demonstration video, revealing additional clues. And even after the original was deleted, copies kept circulating. By Wednesday, purported exploits for the vulnerabilities, dubbed “PHP2Shell,” were circulating, though the PHP team said it had not identified a working public exploit at the time of release.

The pressure was mounting: Every hour online meant more exposure. Every hour offline meant more disruption.

Enter Ondřej Surý, a volunteer maintainer in Czechia.

The PHP project had notified him earlier that week; now he, too, had one less day to prepare. But a fix couldn’t protect their servers until it reached them in a form they could use. Surý’s role was to turn the repair into updates that website operators could quickly install.

When the dust settled, his work earned him an extraordinary description from The Atlantic: “The Man Who Saved the Internet Yesterday.”

Now consider what helped bring this emergency to light in the first place.

Artificial intelligence.

OpenAI says researchers at security firm Calif used its AI to uncover the PHP flaw. While researchers at Google’s Wiz independently found and reported the vulnerabilities known as PHP2Shell.

Now imagine attackers using AI to find and exploit a vulnerability before defenders can fix it – cutting power across several cities, shutting down multiple ports, or disrupting communications at military bases.

I’ve spent years looking for companies that will benefit as AI gets smarter. Last week reminded me that some of those companies will make their money helping protect the rest of us.

Today, I want to show you one cybersecurity company worth considering. Then I’ll explain why I think the opportunity goes well beyond keeping websites online.

The Patch Is Just the Beginning

AI can help researchers find weaknesses in software. It can also help criminals figure out how to break in. OpenAI warned about both sides of that problem when it explained what happened with PHP.

For businesses, that could mean spending money sooner than they planned.

A business may have software that has worked for years. Employees know how to use it. Customers depend on it. Replacing it would cost money, take time, and risk interrupting operations.

So the business keeps it running.

Then someone finds a weakness, and fixing it becomes a priority. The company has to find every computer using that software and update it without stopping employees from doing their jobs.

AI can help find the problem. People still have to get it fixed.

As these weaknesses become easier to find, companies need to get faster at dealing with them. They need to know which computers and programs are at risk, spot signs of a break-in, and stop an attacker from reaching more of the business. And their security teams need tools they can actually use.

I think AI will move more of that work from “we’ll get to it” to “we need to pay for this now.”

The companies getting that money will have to earn it. AI will make some security work cheaper by doing it automatically. But businesses will still pay for tools that keep them safer and make life easier for their employees.

That’s where I’m looking.

One Cybersecurity Stock Worth Your Attention

Fortinet Inc. (FTNT) is one of the cybersecurity stocks we’re looking at closely after the PHP threat.

Fortinet helps businesses protect their computers and the connections between them. Its tools can block unwanted traffic and help keep people from breaking in. It also protects the computers used to run factory equipment and other machinery.

Here’s what interests me about that business.

Think about a business with offices, factories, employees working from home, and programs they use over the internet. All of that needs protection. Using a separate security tool for each part can leave employees with a complicated job.

Fortinet brings many of those tools together. That lets a business manage more of its security in one place.

And this is already a substantial, profitable business.

In the second quarter of 2026, Fortinet reported $2.05 billion in revenue, up 26% from a year earlier. After paying its operating expenses, it kept about 34 cents of every revenue dollar as operating profit.

Those results give us a way to judge the opportunity. Are customers still spending? Are sales growing? Can Fortinet keep making strong profits while improving its products?

We still have to be careful about what we pay for the stock. Fortinet has competitors, and it has to keep delivering for customers. I’d weigh the share price against its sales, profits, and prospects before buying.

But it’s worth a closer look. Fortinet already helps businesses deal with problems that AI could make more urgent.

And its work with factories and other industrial customers points to a bigger opportunity.

When a Software Problem Becomes a Physical One

Think about what happens when a hacker breaks into the computers used by a factory or a power company.

Those computers may help run machinery, check equipment, or keep an essential service working. If they stop working properly, production could stop, too. The damage can reach far beyond a website that won’t load.

That’s why I think investors should look at the wider need for protection.

The NSA’s involvement in the PHP response helps explain why this matters to the country. The agency warned about risks to government and national security computers, as well as other affected systems.

The U.S. and its allies need better protection against hackers. They also need stronger defenses against physical attacks.

Consider what it takes to protect a power plant from both a hacker and a drone that can fly without someone steering it.

You need to secure the computers. You also need equipment that can spot and stop the drone. And designing that equipment is only the start. Someone has to make the parts, build the finished product, test it, and deliver enough of it to do the job.

As AI moves into more machines and equipment, investors have more businesses to consider.

Who can build what’s needed? Who can supply parts that work reliably? Which factories need to grow before customers can buy enough of the new equipment?

The answers lead us to manufacturers, materials producers, and the companies supplying them. And that’s where another big wave of spending could begin.

Follow the Spending Beyond the Screen

Last week, Ondřej Surý became known as “the man who saved the internet.” But he had spent years doing the work that made his response possible. The emergency simply revealed how much depended on someone most people had never heard of.

It also revealed how quickly a problem can become impossible to postpone. America now faces this challenge on a wide scale as new technology changes what it takes to defend the country.

Now consider the stakes when the threat reaches a power plant, a port, or a military base.

As AI moves into drones and other machines, the potential damage becomes physical. Equipment can be destroyed. Essential services can be interrupted. Lives can be lost.

Meeting those threats requires better technology; and the factories, materials, and workers to build it.

The response is already drawing investment. But developing better technology is only part of the job. Someone has to supply the materials, manufacture the components, and turn a promising design into equipment that can be deployed.

That’s why I’m paying attention to where the money is moving right now.

I want you to understand where it could go next… and which businesses could benefit.

In July, government, technology, finance, and military leaders gathered at the U.S. Army War College for the Pennsylvania Defense and Innovation Summit.

Sen. Dave McCormick’s office reported more than $10 billion in new investment commitments. The announcements covered shipbuilding, ammunition and weapons, and newer technologies such as AI and robotics.

Those commitments still have to turn into completed projects. But they give investors a concrete reason to start looking now.

Every new production line needs equipment. Every manufacturer needs parts and materials. And when customers move from testing a few products to ordering hundreds or thousands, the companies supplying them can become much more important.

That’s the opportunity I’ve been researching as America strengthens its defenses.

Some of those businesses remain unfamiliar to most investors. But as defense spending reaches their factories and order books, that will change.

The time to study these businesses is while their opportunity is taking shape.

Fortinet gives you one company to consider for protecting computer systems. My latest briefing takes you further, into the businesses that could help America prepare for threats in the physical world.

Wait until a company’s new orders and expanding factories are obvious to everyone, and its share price may already reflect much of that growth.

Watch my latest briefing now to discover the companies supplying America’s defense buildout and learn what makes them worth your attention as an investor.

Sincerely,

Luke Lango

Senior Investment Analyst, InvestorPlace

The post The Volunteer Who Saved the Internet appeared first on InvestorPlace.