This unique power stock will benefit from AI’s soaring electricity demands

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Today’s issue in preview:

• This unique power stock will benefit from AI’s soaring electricity demands

• These six risky high-tech stocks have enormous upside

• How to own a collection of world-class, cash-generating businesses… in one ETF.

• Learn our Top Themes to buy now

This unique power stock will benefit from AI’s soaring electricity demands

Credit: tiger strawberry

Over the past year, we’ve enjoyed a handful of very large winners thanks to the boom in AI infrastructure spending and the voracious power demands it drives.

One of the richest areas of this boom for us has been in the Engineering & Construction industry group.

In October 2024, I sent a note to colleagues that covered the bull case for E&C stocks. I described them as a vehicle for investing in the AI data center building boom.

E&C firms design and build giant infrastructure projects, such as electric power plants, data centers, transmission lines, factories, airports, and skyscrapers. Well-positioned firms in this space are enjoying soaring revenues thanks to Big Tech’s race to build AI data centers… a race that will see the likes of Google and Amazon invest a colossal $700+ billion this year.

E&C firms also have a “Donald Trump” kicker in the form of our president’s efforts to massively increase U.S. manufacturing capacity. This push will see trillions of dollars spent on building new factories and the power grids required to operate them. Apple (AAPL), for example, has committed to invest $600 billion in U.S.-based manufacturing over the next four years. Nvidia (NVDA) said it will invest $500 billion in U.S.-based manufacturing over the next four years.

Powered by the trends above, our in-house Engineering & Construction stock index is up 66.8% year to date. E&C leader Sterling Infrastructure (STRL) is up 158% this year.

In other words, the trend is your friend in E&C stocks. This is good for SOLV Energy (MWH).

SOLV is one of America’s largest solar energy-focused E&C firms. It performs a wide variety of solar energy installation services, including building solar farms, installing battery systems, and providing grid hookups. Plus, once the infrastructure is working, SOLV provides power companies with maintenance and monitoring services.

Most people don’t realize this, but solar energy installations and use in America are soaring.

In 2025, solar accounted for 54% of all new electricity-generating capacity added in the United States, marking the fifth consecutive year that solar was the nation’s largest source of new generating capacity. Solar and wind together supplied a record 19% of all U.S. electricity generation in 2025, up from just a small fraction a decade earlier. Over that same 10-year period, U.S. solar generation increased more than sevenfold

Solar is playing an increasingly larger part in powering AI data centers and new factories. Solar infrastructure can be built and brought online much faster than conventional nuclear or natural gas-fired power plants. This is a very attractive quality during the current “mad dash” to install AI data center power infrastructure as fast as humanly possible. It drove 66% year-over-year quarterly revenue growth for SOLV.

As we’ve covered, the AI Power Consumption boom is driving big returns in E&C stocks, Power Grid Upgrade stocks, and energy pipeline stocks. We expect it to drive strong returns in the solar energy installation business as well.

These six risky high-tech stocks have enormous upside

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Over the past six months, we have written many pieces that forecasted and then detailed the strong breakout in biotechnology and genomics stocks.

After years of disappointing investors, these themes are delivering strong returns … and have enormous upside from here. One of our top recommendations here – the ARK Genomic Revolution ETF (ARKG) – is up a massive 24% over the past month and just broke out to a new one-year high.

Genomics is the science of analyzing human DNA – often referred to as the “software code of life” – to create tests, medicines, and treatments.

Years of innovation in this field have us on the brink of creating many customized treatments based on an individual’s DNA… and even “editing” genes to cure disease. Bulls on the industry believe it will get a giant “AI boost,” since super-intelligent computer programs can analyze genes and treatment effects so well… and have the potential to create drugs on their own.

The fusion of AI plus genomics should generate dozens of compelling stock narratives over the coming years. Researchers running superintelligent AI programs will be able to run millions of digital simulations of drugs and treatments. This will put medical innovation into overdrive… and create many big stock market winners.

The personalized approach to medicine that genomics offers has us on the cusp of a historic revolution in healthcare. Ten years from now, medicine will be transformed… and a lot of money will be made along the way.

Now that the genomics trend is underway, it’s a good time to understand the potential of the “gene editing” industry group.

Gene editing is a group of technologies that allow scientists to precisely change a person’s DNA. By acting like precision “molecular scissors”, these tools cut the DNA at a specific spot to remove, add, or alter genetic material. Bulls on the technology believe it will usher in an incredible new era of treating and eradicating many diseases and disorders. The pioneers of this technology won a Nobel Prize in 2020.

There’s less than a dozen “pure play” gene editing firms. They include CRISPR Therapeutics (CRSP), Beam Therapeutics (BEAM), Intellia Therapeutics (NTLA), Prime Medicine (PRME), and Editas Medicine (EDIT).

These firms don’t generate much revenue right now. Owning these companies is a bet on future breakthroughs. They are more like high-tech science projects than they are profitable operating businesses… and their stocks are extremely volatile. Investing here is like being a venture capitalist in the stock market.

When the market believes in the technology, these stocks can soar hundreds of percent. When there are setbacks with the adoption and progress of the technology, these stocks plummet. Gene editing stocks can put roller coasters to shame. Widows and orphans are encouraged to pass on this group.

Recent price action is encouraging for gene-editing bulls. Intellia recently broke out to an eight-month high. Editas is close to an eight-month high. Beam is near a one-year high. Given the tailwinds in favor of biotechnology and genomic stocks, the gene editing group looks like a good – and, to be clear, speculative – bet right now.

How to own a collection of world-class, cash-generating businesses… in one ETF.

Credit: arda savasciogullari

In today’s fast-moving, high-tech financial world, where AI, robotics, and the voracious demand for “compute” get so much press, it’s good to know that collecting old-fashioned dividends still makes a lot of sense.

As evidence, we present a trailing 12-month gain of 15.8% and a recent all-time high for the Invesco Dividend Achievers ETF (PFM).

A dividend is a payment a company makes to its shareholders, typically distributed from its profits. Dividends are typically paid by companies on the larger, more stable side of the stock market spectrum.

In the world of dividend payers, there is an elite class of firms that have raised their dividends for 10 consecutive years. These elite, high-quality firms are called Dividend Achievers.

Some legendarily great businesses that are members of the exclusive Dividend Achievers club include Johnson & Johnson (JNJ), PepsiCo (PEP), 3M, Wal-Mart (WMT), Visa (V), Procter & Gamble (PG), Coca-Cola (KO), Chevron (CVX), and ExxonMobil (XOM).

Some of these firms have increased their dividends not for “just” 10 years in a row, but 30, 40, and even 50+ years in a row.

These businesses have paid and increased their dividends through recessions, bear markets, and a global pandemic. In terms of consistency, these firms rank just behind the rising sun. PFM is a fund designed specifically to own such firms… and it recently reached new all-time highs.

In the world of investing, there are many ways to succeed. You can win with high-growth technology stocks. You can win with regular index funds. You can win with real estate.

If you’re the type that likes to win by owning stable businesses that generate steady cash flow and return it to shareholders, it’s good to know PFM is at a new high. For many people, regular cash income never goes out of style.

Market Notes

• Our March 27th recommendation to own cybersecurity stocks is still paying off. Palo Alto Networks (PANW) and Tenable Holdings (TENB) hit new highs today. PANW is now up 137% since our recommendation.

• Our February 5th recommendation to own actuation and bearings giant Regal Rexnord (RRX) as a way of playing the robotics megatrend has paid off well. It’s now up 58% over the last year.

• Our October 30th biotech recommendation remains strong. Guardant Health (GH), AxoGen (AXGN), and Aclaris Therapeutics (ACRS) all rose to new highs today.

• The Boomer health care trend continues to produce winners. Leading senior living firm Welltower (WELL) reached a new all-time high today.

• Our recommendation to invest in the genomics megatrend continues to pay off. Leading genomics testing/data firm Natera (NTRA) reached a new one-year high today.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

It’s one of Trump’s biggest holdings. Do you own it?

President Trump owns up to $5 million in shares of this AI company (not Nvidia or SpaceX). He’s strongly endorsed its leadership and products. And he just awarded it with a nearly $10 billion Pentagon contract. No wonder one legendary fund manager says it could become the cornerstone of your retirement.

Click here for its name and ticker.