AI Has Become the Only Trend That Matters
By Brett Eversole
Technology is advancing at a pace we've never experienced in our lifetimes... The artificial-intelligence ("AI") boom threatens to upend the way we work and live. It might even threaten human civilization if the AI doomers are correct. We're entering a world where the sci-fi elements of movies from the 1980s and '90s aren't just a dream... but a reality. We've got flying cars, self-driving cars, humanoid robots, and a path toward superintelligence. This convergence of technologies has been a long time coming. And improvements are happening at an exponential pace. It's almost impossible to know just where we'll be in five to 10 years. While that sounds scary, it also makes this moment an incredibly exciting time to be alive. Yet, as an investment analyst who covers large, macro trends... I've never been more bored. You see, at a glance, it appears like there's a lot going on in the markets. It seems like there are a lot of big trends... and that they're happening in different corners of the market – everything from commodities to industrials to technology. It should be an analyst's dream. It's not. Because right now, everything that's working has a common thread... It's all AI. That probably seems overly simplistic. But it's true. Today, I'll show you what I mean by focusing first on just the U.S...
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 This Market Is Much More Dangerous Than You Think The numbers don't lie: GDP... inflation... employment... consumer sentiment – all very ugly. The federal debt is spiraling. The biggest threat: the bursting bubble of manic AI valuations and the debt-fueled build-out. You don't have to "sit out" – but you absolutely MUST move at least some money into the single-best defensive strategy we know... one that's poised to explode when everything else hits the fan. This is your No. 1 financial move to make today. |
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If It's Booming in the U.S., It's Linked to AITechnology companies dominate the top of our market. Hyperscalers like Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META) helped dig us out of the 2022 bear market by spending like crazy to develop AI. Much of that spending went to chipmaker Nvidia (NVDA). Its graphics processing units make AI possible. And the demand for its chips made Nvidia one of the world's most valuable companies. Of course, the same is true for tech stocks and semiconductors. Both groups have exploded over the past three years, with tech stocks up nearly 150%... while semiconductors have roughly tripled. Much of those returns are thanks to Nvidia and the recent boom in memory-chip companies. But in reality, most stocks in these groups are performing well. And it's all thanks to AI. Consider a company like Ciena (CIEN). It sells the optical-network solutions that make high-speed Internet and cloud connectivity work. It was one of the biggest winners during the dot-com bubble. But after the crash, the stock was dead money for more than two decades. Now, it's finally booming again... thanks to – you guessed it – AI. Adjusted earnings per share have grown nearly 500% over the past six quarters. That boom in profitability has led the stock to rally 360% since the end of 2024. Dell Technologies (DELL) is another great example. A year ago, no one thought of this computer-hardware business as an AI stock. But today, the company is seeing massive growth by supplying AI-optimized servers for the current data-center build-out. In its most recent quarter, Dell's revenue was up more than 50% from the same period a year ago. Profits more than tripled. And investors have taken notice. This boring, old tech stock is up about 300% in just the past 12 months. And AI spending has led to booms in places you wouldn't have expected... Many boring industrial stocks saw demand explode as the data-center build-out began. That includes mechanical, electrical, and plumbing contractor Comfort Systems USA (FIX). The stock is up more than 2,000% over the past five years. Other big names like Caterpillar (CAT) have gotten a boost, too. The manufacturing and construction giant has become a key supplier of power systems for data centers. The stock is up more than 130% since the end of 2024. Electrical-equipment maker GE Vernova (GEV) is in a similar position thanks to its heavy-duty turbines. Its stock is up about 200% over the same period. This isn't a tough market to figure out. We have a massive, once-in-a-generation trend. It's creating insatiable demand for everything from semiconductors to servers to cooling systems to cabling and network equipment. Anything that touches the AI boom is soaring. In short, this trend is the only thing that matters for U.S. investors. That has mostly been the case for years. And you shouldn't expect it to change anytime soon. What's interesting is that this story has started to grow. Now, AI is beginning to dominate markets outside the U.S., too. Tomorrow, I'll show you just how crazy some global markets have gotten. Good investing, Brett Eversole
Editor's note: In 1995, a little-known company went public... and helped kick off one of the biggest technology booms in history. Today, Brett believes we're on the cusp of a similar setup in AI. In his new, free presentation, Brett reveals the date the "AI Melt Up" will kick off – and the new group of winners set to take hold during the next phase of the AI boom.
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Further ReadingMost people who hurried to California during the Gold Rush were hoping to strike it rich. One businessman had a different idea: Sell the picks, shovels, and supplies they'd need along the way. He made a fortune without mining for gold – and his strategy still applies to today's biggest investment trends. Investors are often told to buy low and sell high. That simple rule can make rising markets surprisingly difficult to navigate. Instead, more than 70 years of data shows that when stocks surge over a short period, they often keep climbing. And today's rally has created an unusually strong momentum signal. |
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