A critical question for your portfolio and where to look for winners today VIEW IN BROWSER If the board fired us and brought in a new CEO, what would he do? In the mid-1980s, Andy Grove posed that question to Intel co-founder Gordon Moore. At the time, Intel was primarily a memory chip company – and it was in trouble. Japanese competitors were undercutting prices and eroding margins. The business that had defined Intel was becoming a commodity. The honest answer to Grove’s question was unsettling. A new CEO, unburdened by nostalgia, would exit the memory business. But that was a huge problem. You see, memory chips weren’t just Intel’s foundation. They were the company’s identity. Walking away felt almost disloyal. But clinging to that identity was slowly strangling the firm’s future. The real opportunity – the segment with stronger economics and greater long-term potential – was in microprocessors. So, Grove and Moore took a big leap and made the hard move themselves. They shifted capital, talent, and focus away from the business that had made them successful and toward microprocessors – the one that could make them dominant. This wasn’t a retreat. It was repositioning. Intel didn’t go defensive. It didn’t go “risk off.” It didn’t cling to the things that had made it successful in the past. It rotated – and that decision laid the groundwork for decades of leadership in the personal computer revolution. Moving on from what made you a winner yesterday isn’t surrender. Sometimes it’s the most aggressive move you can make. | Recommended Link | | | | “I predict OpenAI will go public this year… and I’ve found a little-known way for you to get in BEFORE its shares go public—with as little as $10.” That’s the prediction of Silicon Valley insider Luke Lango. He says this single investment is your best chance to achieve the biggest gains this year… and set yourself up for even bigger gains in the years to come. Best of all, he’s sharing a ticker symbol which you can use to claim a stake right now – for FREE. Click here to learn more. |  | | The Market Rotation Happening Today Markets go through similar moments. After three outstanding years, the market seems stuck in neutral. As I write, the S&P 500 is up less than 1% in 2026. 
This is a far cry from the last few years. If your portfolio mirrored the S&P’s returns over the last three years, you’re probably quite happy. 2025: +16% 2024: +23% 2023: +24% But those results are in the past. And, as Grove and Moore understood, expecting the same performance from yesterday’s winners is a mistake. That’s the mistake too many business leaders make. They cling to what worked. They defend yesterday’s breakthrough. By the time the shift is obvious, the easy gains are gone. That’s why Andy Grove’s question matters today more than ever for investors. If you fired yourself as portfolio manager… If you brought in a new CEO for your investments… What would he or she do right now? Would he double down on the same AI stocks everyone piled into over the last two years? Or would she step back and ask a harder question: Where are the next margins forming? Because here’s the truth most investors are missing… What’s happening in the market right now isn’t “risk off.” It’s rotation. The Second Phase Starts Now The first phase of any technological revolution is about visibility. The flashy, consumer-facing application. The name everyone recognizes. The second phase is about infrastructure. That’s the phase we’re entering now in AI. Let’s look at what Elon Musk is doing. He isn’t just building another chatbot. He’s linking together 100,000 GPUs in Tennessee — with plans to scale even further. Microsoft, Amazon, Meta, and Alphabet are collectively spending hundreds of billions of dollars building data centers, securing chips, upgrading networks, and reinforcing power supply. That’s not speculation. That’s capital expenditure. And when that kind of money moves, leadership moves with it. This is where investors often misread the moment. They see some of the early AI winners pause and assume the market is turning “risk off.” But the market hasn’t moved to “risk off.” It’s rotating deeper – from the applications layer to the infrastructure layer. If you’re going to ask Andy Grove’s question about your own portfolio – what would a new CEO do here – the answer may not be only owning the same AI stocks that already had their explosive runs. It may be to look at the companies quietly enabling the next phase. What This Looks Like in Practice One example Louis Navellier recently highlighted is InterDigital (IDCC). InterDigital develops wireless and video communication technologies – the connective tissue that allows high-performance computing systems, AI platforms, and data-heavy applications to function at scale. As AI workloads expand, the demand for faster, more efficient data transmission only increases. This isn’t a chatbot or a headline stock. It’s infrastructure. Sales are up 28% year over year, and the stock currently carries an “B” rating in Louis’ quantitative Stock Grader system, indicating superior financial strength and growth characteristics. 
That’s what rotation looks like in practice. It’s not a retreat or responding to fear. It’s repositioning. The investors who understand this distinction aren’t abandoning AI, but moving to where the next margins are forming. And InterDigital is just one example of the kind of repositioning disciplined investors are making right now. If you’re serious about asking Andy Grove’s question of your own portfolio, it may be worth seeing how a disciplined quantitative investor is answering it right now. Louis Navellier has already repositioned hundreds of millions of dollars into what he believes are the strongest beneficiaries of AI’s infrastructure phase – companies earning his highest grades for financial strength and growth momentum. InterDigital is one example. There are others. If you’d like to see the full list and understand how his Stock Grader system identifies where capital is quietly flowing next, you can learn more about his current positioning here. Because in markets, as in business, the biggest mistake isn’t moving too soon. It’s waiting too long. You can see Louis’ latest analysis here. Enjoy your weekend, Luis Hernandez
Editor in Chief, InvestorPlace | 
No comments:
Post a Comment