Today’s issue in preview:
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AI Bulls Keep Winning as Leading AI Stocks Power to New Highs
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Are you making money here? A key robotics ETF reaches new highs, confirming the robotics boom is alive and well.
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Gold stocks are poised to move higher. Are you on board?
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Our recommendations to own critical resources and Power Grid Upgrade stocks continue to pay off.
AI Bulls Keep Winning as Leading AI Stocks Power to New Highs
Credit: EvgeniyShkolenko
The AI bears took yet another beating last week. Leading AI infrastructure stocks ASML (ASML), Lumentum (LITE), Applied Materials (AMAT), Analog Devices (ADI), Cienna (CIEN), Coherent (COHR), and Western Digital (WDC) reached new all-time highs.
Each of these companies plays an important role in the historic AI infrastructure build-out. And their booming businesses are sending us an important message.
In late 2022 – before Chat GPT was released to the public – I began telling friends and colleagues that AI was about to explode into public awareness. Shortly after, AI did just that, marking the beginning of one of the biggest investment themes of our lives.
Now, more than three years into this super boom, big tech companies such as Google, Amazon, and Microsoft are in a race to build the world’s best AI models and infrastructure. This year, they are on pace to spend over $600 billion on AI infrastructure, with more than a trillion dollars coming behind it. It’s the largest infrastructure spending boom in world history.
Whether Big Tech’s massive investment pays off has become the most important issue in the stock market.
AI bears say much of this spending is crazy. It won’t generate the revenues and earnings required to justify it. Once the world realizes this is the case, GDP growth will stall, and the stock market will crash.
AI bulls say, “AI is the most transformative innovation of the century. Big Tech leaders know what they are doing. The investments will pay off.”
Regular readers know we like to know both sides of any debate about the “fundamentals” of a megatrend. But what the market thinks of those fundamentals is far more important than either side’s beliefs. For the past three years, I’ve frequently cited that the market likes the “AI Boom” thesis, as evidenced by the rising market values of AI infrastructure stocks.
The companies mentioned above produce advanced semiconductors, data transfer equipment, and data center infrastructure… all critical to the AI infrastructure build. They are on the receiving end of Big Tech’s historic, multi-trillion-dollar spending spree. Last week, each one hit a new all-time high.
The AI infrastructure megatrend will end someday. All trends eventually end. But the market says this one is alive and well. In the parlance of today’s youth, the market is telling the AI Bust camp, “Have fun being poor.”
Are you making money here? A key robotics ETF reaches new highs, confirming the robotics boom is alive and well.
Credit: SweetBunFactory
Last week, the ROBO Global Robotics and Automation Index ETF (ROBO) advanced 2.88% to reach an all-time high. It’s yet more evidence that the robotics megatrend is a great place for investment capital.
Over the past two years, I’ve urged friends and colleagues to become heavily involved in the robotics megatrend. It is one of the most significant financial opportunities of our lives.
Robotics is a massive, multifaceted trend that will transform the world. It will yield greater factory automation, autonomous cars, autonomous air taxis, humanoid worker robots, and much more. Robotics will allow us to greatly increase our interaction with AI. Smart machines must also play a key role in America’s enormous push to increase its manufacturing capacity. Soon, Amazon’s robotics workforce will be larger than its human workforce.
Much more important than this forecast, however, is what the market thinks of this forecast. In the case of robotics, the market thinks highly of it. ROBO is one of the largest robotics ETFs on the market. It holds a diversified mix of machine sensory companies, industrial robot manufacturers, and robot component makers. If you don’t want to try and pick individual robotics winners, ROBO is a good option for exposure to the trend.
As you can see in the chart below, ROBO suffered a big drop during last year’s “tariff tantrum.” Since then, the fund has enjoyed a huge rally powered by strong investment flows into robotics. Shares are up 31.5% over the past year. It’s highly likely this trend keeps running.
Gold stocks are poised to move higher. Are you on board?
Credit: brightstars
After taking a breather to digest their gains, it looks like gold stocks are ready to run again.
In 2003, I placed over half of my net worth into physical gold. Since making that bet, gold is up about 1,200%, far outperforming stocks. I haven’t sold one ounce along the way. And now, all these years later, the best reason I can find to be bullish on gold is the same reason why I bought gold in the first place:
The governments of most Western nations have promised far too many things to far too many people. They are spending far more on taxpayer benefits and wars than they collect in tax revenues.
The related debts and obligations governments have taken on cannot be paid back with sound money. They can only be paid back with debased, devalued money… much of which is created out of thin air. This is driving inflation and significant currency debasement. Put differently, prices are going up because the value of our money is going down.
Unfortunately, the runaway train of government spending is unlikely to slow down soon. No politician can win a major election by promising reduced government spending and benefits. Too many voters are economically illiterate. They don’t understand why the spending and printing is ultimately harmful. And too many voters have a vested interest in seeing the spending continue.
As a result, many central banks, investment funds, and individuals are accumulating gold as “debasement defense.” This is sending the price gold through the roof. It’s up 152% over the past two years.
In response, gold mining stocks are in a long-term uptrend. As you can see in the one-year chart below, the VanEck Gold Miners ETF (GDX) rallied throughout 2025. After soaring in November, December, and January, GDX began consolidating sideways. But recently, shares picked up momentum and are poised to break out to new highs. I believe it’s going to happen soon.
Market Notes
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The market values of railroad giants CSX Corp (CSX), Union Pacific (UNP), and Norfolk Southern (NSC) just reached all-time highs. Soaring transportation stocks are a bullish economic signal.
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Our recommendation to invest in critical resources continues to pay off. Shares of mining giant BHP Billiton (BHP) just reached all-time highs.
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Our recommendation to invest in the giant Power Grid Upgrade theme continues to pay off. Big electrical contractors MYR Group (MYRG) and Quanta Services (PWR) recently hit all-time highs.
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The American economy continues to do much better than the pessimists expected. The market’s largest manufacturing stock ETF – the Industrial Select Sector SPDR Fund (XLI) recently reached an all-time high.
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South Korean stocks are soaring. The iShares South Korea ETF (EWY) recently reached an all-time high. South Korea’s stock market is heavily weighted towards AI memory makers. EWY is up 148% over the past year.
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The AI Lawnmower continues to cut down stocks in the KIDS category and drive the K-Shaped stock market. Software leaders Salesforce (CRM), Adobe Systems (ADBE), Intuit (INTU), Workday (WDAY), Docusign (DOCU), Monday.com (MON), Atlassian (TEAM), and Trade Desk (TTD) reached new one-year lows today. Consulting giants Accenture (ACN) and Booz Allen Hamilton (BAH) reached new one-year lows today. Online travel firm Booking Holding (BKNG) reached a new one-year low today.
Regards,
Brian Hunt
Editor, Money & Megatrends
