A small stock with huge AI upside

Today’s issue in preview:

• A small stock with huge AI upside

• While you weren’t paying attention, a critically important stock group just hit new highs

• Four stocks that stand to benefit from AI’s soaring power consumption problems

• Our red hot hand becomes white hot: Navitas soars 51% in 13 days… our thematic trades in solar energy, neoclouds, and satellites generate more profits.

A small stock with huge AI upside

Credit: Vladimir Vladimirov

On Wednesday, the Wall Street Journal reported that leading AI firm Anthropic is on track to generate $10.9 billion in revenue during the second quarter. That would be more than the company generated in all of 2026 and double the amount of revenue it generated in the previous quarter.

This is the fastest rate at which a relatively large company has ever grown its revenues. It shows that demand for AI-generated products and services is exploding at rates never seen before in the history of capitalism.

Regular Money & Megatrends readers know where we think this super boom is headed next: The Agent Supernova.

Our wildly bullish forecast goes like this…

After years of development, AI is now advanced enough to perform many everyday tasks people do… and the list is only getting longer. Over the next 12–24 months, AI “agents” will help manage factories, perform financial analysis, manage inventories, write software, design websites, create legal documents… and thousands of other tasks.

Soon, we will see an explosion of AI agents working in factories, offices, stores, labs, hospitals, schools, and on construction sites. We will have agents working with people. Agents working with other agents. Agents running businesses. Agents negotiating and haggling with other agents.

The Agent Supernova is poised to reorder how the world works. It will break and reform many businesses, industries, and societal norms. Of course, the business and investment implications here are huge. The Agent Supernova will end many businesses and jobs as we know them… while creating thousands of new ones. The economic deck is about to get reshuffled, and the opportunities are huge.

Within the next two years, the number of AI agents operating in the American economy isn’t poised to increase by 10X… or 50X… or even by 1,000X. Try at least 100,000X.

This is the coming Agent Supernova.

Over the past two months, we’ve detailed many ways to benefit from the coming explosion of AI agents. We’ve scored huge wins in Cisco (CSCO), Marvell Technologies (MRVL), CrowdStrike (CRWD), Palo Alto Networks (PANW), and Dell (DELL). These firms stand to benefit as the AI infrastructure buildout progresses.

And they must all recognize that the Agent Supernova has a fraud problem.

The AI-related technologies that will benefit society through many forms of innovation are the same technologies that will simultaneously hand criminals the most powerful toolkit they’ve ever had.

Today, a fraudster can generate a realistic fake ID in seconds and clone someone’s voice from three seconds of audio. The fraudster can also use AI to create a deepfake video that blinks, turns, and smiles on command. These nefarious products can allow them to bypass security checks that banks and financial institutions rely on to verify identity.

Fake identities are being used to open accounts, access credit, and move money through automated systems at massive scale. As the number of agents multiplies, the number of potentially harmful interactions they have with humans multiplies as well.

An AI agent books travel on your behalf? It needs to authenticate you. An AI agent onboards a new customer? It needs to verify they are real.

Every interaction is a potential point of cyberattack.

This means the Agent Supernova doesn’t just demand enormous amounts of electric power, hard infrastructure, and compute. It will also demand vigorous cybersecurity services. It will demand authentication. Businesses and individuals need to know that the human or the agent they are communicating with is who or what they claim to be. And in a world of AI-generated fakes and scams, that’s no easy feat.

That’s the problem Mitek Systems (MITK) was built to solve.

Mitek is a $640 million company with a 25-year head start on this challenge. Its legacy business – processing over one billion mobile deposits annually – has made it the trusted identity backbone for many North American financial institutions. Major customers include JPMorgan Chase, Bank of America, PayPal, and Capital One.

Mitek’s legacy business didn’t just build revenue. It built something more valuable: a deep distribution network inside the most fraud-sensitive, compliance-driven industry in the world. When those financial institutions need to upgrade their defenses against AI-generated fraud, they already have their contact.

Now Mitek is turning that foundation into something much larger.

Its Verified Identity Platform brings together identity document authentication, biometric liveness detection, deepfake and voice-clone scoring, and real-time fraud analytics.

In plain English: it checks that your ID is real, confirms you are a live human and not an AI-generated fake, and makes a fraud decision in seconds.

The numbers are showing the momentum in this business in the early innings of the agent supernova. The Fraud and Identity Solutions segment is growing 30% year over year and has now crossed 50% of total company revenue. The wider business is growing at 19%. And just two weeks ago, Mitek reported its highest quarterly revenue in company history, with adjusted EBITDA margins of 41%. This shows how well this model scales as adoption deepens.

The Agent Supernova needs infrastructure. It needs semiconductors. It needs neoclouds. But before any of it can be used at a massive scale, its customers need to know their money, data, and identities are safe. This makes Mitek a unique member of our Agent Supernova “picks to click” list.

While you weren’t paying attention, a critically important stock group just hit new highs

Credit: vitpho

This week, coverage of the SpaceX IPO and Nvidia’s earnings has dominated the financial press. So, it’s no wonder scant attention is being paid to a powerful message the market is sending us regarding the U.S. economy.

This week, the stock prices of J.B. Hunt (JBHT), Saia (SAIA), Knight-Swift Transportation (KNX), Marten Transport (MRTN), and Werner Enterprises (WERN) reached new one-year highs.

If you have the faintest idea of how the world works, you know this is a sign that the U.S. economy is doing much better than portrayed in the mainstream media.

The companies listed above are among America’s largest trucking companies… which, for me, makes them a critical industry group to track.

The trucking industry isn’t glamorous. You’re never going to see a long and hyperbolic financial newsletter promo about it. No money manager or financial guru will go viral for a big call on it.

However, the trucking industry is a critical component of the U.S. economic machine. Virtually every piece of clothing, every piece of furniture, every package of food, every appliance, every device, every building material, every tool, and every household good purchased in America is transported by truck multiple times on the way to its end user. Trucking is the economy’s circulatory system.

This means the stocks of large trucking companies like J.B. Hunt, Saia, Marten, Werner, and Knight-Swift are “highly economically sensitive.” These stocks do well when America is making things, buying things, building things, and transporting things. Their stock price trends have more to tell us as any CPI report or comment from a Federal Reserve board member.

Many investors fixate on government data such as unemployment figures, job hirings, and the Consumer Price Index. I like to know that data as everyone else does.

However, when I want a read on what’s really happening in the economy, I place far greater focus on what’s happening in the real world. I look at stock prices. In doing this, I listen to the judge, jury, and executioner of any thesis, any trend, and any claim: The market.

This week, despite concerns that the war with Iran could constrict Middle Eastern flows of oil, natural gas, sulfuric acid, and helium and wreak havoc on the economy, the stock prices of these companies reached new one-year highs. The uptrend is being driven by strong revenue growth and the prospect of good times ahead for truckers.

Right now, one of the biggest debates in the investment world is focused on the economic effects of the Iran war. You could call this debate “The Doomers vs. The Optimists.”

The Doomers say Epic Fury’s constriction of critical Middle Eastern resources such as oil, natural gas, fertilizer, and sulfuric acid will lead to serious economic disruption, then a recession, and then a bear market.

The Optimists say those concerns are overblown… this, too, shall pass… and the economy and stock market will continue to grow.

You can read a thousand opinions and forecasts related to the Iran war and its effects. However, there’s only one source of objective truth: Market prices.

Market prices are the sum total and final expression of all knowledge held by industry insiders, connected money managers, government officials, and bankers who quietly control huge swaths of the economy. These people know 50 times more about their industries of focus than you or I do. Their knowledge manifests itself through action… and that action that sets market prices. Market prices are not always perfect, but the vast majority of the time, they know hell of a lot more than any economist or investment guru.

If you ever get brain overload from listening to or reading lots of “experts” espousing lots of conflicting opinions about a war, a technology, or the health of the economy, you can easily tune them out and focus on signals that contain more distilled insider knowledge in them than all those experts combined: Market prices.

Right now, the healthy uptrend in trucking stocks is telling us the Optimists are right about the Iran War. Other key transportation firms, FedEx (FDX) and railroad giant Union Pacific (UNP), are also trending higher and near new highs.

This is war we are talking about… so anything can happen. But as of right now, the trend of the critically important trucking group is up. The market is siding with the Optimists. Conduct your financial affairs accordingly!

Four stocks that stand to benefit from AI’s soaring power consumption problems

Credit: KanawatTH

As you consider the investment merits of cybersecurity in the AI age (see above), don’t forget the opportunities AI will create in the power management semiconductor theme.

After all, the price action in Navitas Semiconductor (NVTS) is telling us today that the industry is full of opportunity. The stock climbed 5% this morning, reaching a new all-time high.

In our May 8 issue, I detailed how you can’t read an AI investment research report or listen to an AI-focused podcast without hearing about its insatiable demand for electric power and how it is the limiting factor in AI proliferation. You hear about towns protesting AI data center power consumption. You hear how limited power access is limiting Anthropic’s growth. You hear why limited power access is driving Elon Musk to operate data centers in space.

All this means that the pressure to improve AI’s power consumption efficiency – or its “unit of intelligence per unit of power ratio” – is enormous. Any improvement in AI power consumption efficiency – no matter how small – can produce huge cost savings across the industry.

And that means companies that help improve AI’s power consumption efficiency stand to make huge amounts of money and create wealth for their shareholders.

AI data centers need high-voltage, high-density power systems to keep everything running. Edge devices like robots, smart homes, and autonomous vehicles need efficient local power management to run locally without burning through batteries or generating excess heat.

You could think of the potential savings and efficiency gains here by thinking of America and its automotive fleet of 280+ million cars driving billions of miles every year. All that driving consumes so much gasoline that tiny gains in overall fuel economy can yield significant savings in fuel costs.

Now, instead of picturing car traffic and its gasoline consumption, think of AI’s data and “thinking” traffic and its electricity consumption.

Small power-efficiency gains across many AI data centers, communication networks, and Edge Computing devices can result in significant overall power cost savings… plus greater growth opportunities for hundreds of AI applications.

The semiconductor industry is varied. It has dozens of large players that focus on different application areas. One of these applications is electric power management: Ensuring AI data centers and communication networks use power efficiently. Ensuring cars, robots, factories, phones, hospitals, and office computer networks use power efficiently.

Since AI usage is poised to proliferate during the Agent Supernova, the demand for innovation and quality equipment from the power management semiconductor sector is poised to soar. We said this would benefit “power management” semiconductor players like Navitas, Texas Instruments (TXN), ON Semiconductor (ON), and Wolfspeed (WOLF).

To this bull case, the market says, “so far, so good.” Navitas’ big gain today makes the stock up a gigantic 51% in less than two weeks since our note. It’s a bull market in power management semis!

Market Notes

• Our recommendation of semiconductor leader Marvell Technologies (MRVL) continues to win. The stock hit a new one-year high today and is up a huge 95% in less than two months after our original note.

• Our Oct. 2, 2025, solar plays are doing well. Enphase Energy (ENPH) just hit a new high. It’s now up 65% YTD.

• Our April 17th recommendation to own Iridium (IRDM) is flying. IRDM just hit a new yearly high, up 189% in the last six months.

• Our April 15th recommendation to own the neoclouds is doing well. Leading neocloud Nebius (NBIS) is up 15% today on news it is raising prices by 30%.

Regards,

Brian Hunt
Editor, Money & Megatrends

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