Meanwhile, our hypergrowth expert Luke Lango is urging investors to position themselves in AI-related software stocks
Move aside, chip stocks. It’s time for the software stock boom.
That’s Luke’s advice for how to play the summer rally he believes is about to kick in.
Luke’s forecast borrows from the Dot Com boom. In short, during the first wave of Dot Com profits, it was the internet infrastructure stocks that soared. But in the second wave, software stocks that did business on top of that infrastructure took over the market leadership.
Luke sees the same pattern repeating today. We’ve already had explosive returns from chip stocks – most notable, Nvidia. But now it’s time for software to take over.
Here’s Luke with more:
For nearly two years, AI chip stocks have been the market’s biggest winners because they provide the industry’s ‘picks and shovels.’ That is, in order for companies across the globe to develop AI models, they first need chips to build those models on.
It’s the AI Boom’s ‘first derivative,’ if you will – the first wave.
But we think that trend has mostly played out. Companies spent billions on a chip buying spree in 2023 and 2024. So, what will they do now?
They’ll create new AI models and applications – which is exactly why software stocks should boom this summer and into 2025.
Luke suggests we’re going to see hundreds of new AI models and applications as we move into next year. He says that by the end of 2025, we’ll be “drowning in AI software.”
Luke highlights AI software providers C3.ai and Palantir – management at both companies report that demand for AI applications is soaring. C3.ai’s execs used the term “staggering.”
By the way, legendary investor Louis Navellier also is bullish on Palantir.
From Louis and his research staff, last week:
Palantir is wrapping up May with a bang, with its announced win of a $480 million AI contract with the U.S. Department of Defense.
Palantir stock has moved slightly higher on this news, but this contract award could mark the start of another strong run for this AI software play.
You can read the free analysis right here.
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Finally, let’s end today with a few well-deserved “congratulations”
In Saturday’s Digest, our fellow Digest-writer and Editor-in-Chief Luis Hernandez highlighted the 130% winner that Louis’ Growth Investor subscribers just took on their Builders FirstSource, Inc. (BLDR) position last week.
I’ll echo Luis’ congratulations to the Growth Investor subscribers. But they’re not the only ones cashing.
Last Thursday, Eric Fry’s Speculator subscribers took partial profits on their HP calls to the tune of 130% in less than one month. This happened after HP’s revenues and earnings both topped analyst estimates, and the company’s PC sales increased for the first time in two years.
By the way, it was only two weeks ago that Speculator subscribers locked in 115% gains on Corning. Eric is truly one of the best in the business.
Meanwhile, about two weeks ago, Luke Lango’s Early Stage Investor subscribers took partial profits on a handful of positions:
- Taiwan Semiconductor (TSM) for ~80% profits
- Arteris (AIP) for ~50% profits
- Arhaus (ARHS) for ~140% profits
- Impinj (PI) for ~425% profits
Luke’s subscribers have been racking up a series of big wins this year as the AI sector has continued jumping.
And a final “congratulations” goes to the traders who follow Jonathan Rose over in Masters in Trading Live. They just closed their strangle trade on Foot Locker for a 30% gain. This trade lasted only three weeks, during which time the S&P traded sideways.
This was an interesting trade. Jonathan’s awareness of what the big money was doing in the options market alerted him to the likelihood of a big move coming with Foot Locker. The issue was “in what direction would that move go?”
Jonathan recommended that his followers cover their bases by initiating two positions: one bullish, one bearish. That way, they’d be covered if Foot Locker popped in either direction, as long as the move had enough volatility.
Fortunately, volatility is what they got. Foot Locker’s price soared, causing the gains on the bullish leg of the trade to net out to a 30% win on the entire position.
Jonathan’s trading approach to earnings and market-moving events is one of the most lucrative we’ve seen. Meanwhile, we continue receiving fantastic feedback about his ability to make complex trading topics simple.
We couldn’t be happier Jonathan has joined our corporate family through Masters in Trading Live . To learn more about joining him and cashing in on upcoming volatility plays, click here.
It’s always nice to put a few bucks in your pocket, especially when the broad market is moving sideways. So, a well-deserved “congratulations” to all.
Coming full circle, if Eric, Thomas, Luke, and Louis are right, the next congratulations might be coming from leading copper and/or AI-software plays. Give them a good look today.
Have a good evening,
Jeff Remsburg
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