AI data traffic is starting to soar. Here’s how to profit

Today’s issue in preview:

• AI data traffic is starting to soar. Here’s how to profit

• This energy sector is exploding in size. Demand is soaring. Are you long?

• AI could vaporize a huge portion of your retirement account

• Our phenomenal track record gets ever better: Our thematic trades in Solar Energy, AI Data Traffic, and AI infrastructure generate another round of profits

AI data traffic is starting to soar. Here’s how to profit

Credit: DKosig

Investing in our AI Data Traffic theme turned out to be a good idea. A really good idea.

Yesterday, communications equipment and software giant Cisco (CSCO) reported fantastic quarterly business performance. For the recent quarter, Cisco earnings rose 10% to $1.06 on an adjusted basis. Revenue climbed 12% to $15.8 billion.

For the coming quarter, Cisco forecasted revenue of $16.8 billion, above estimates of $15.8 billion. In the recent quarter, AI infrastructure orders reached $5.3 billion, up from $2.1 billion in the previous quarter. Cisco increased its fiscal 2026 AI-related order estimate to $9 billion, up from $5 billion.

The positive report sent Cisco stock soaring 16% in early trading.

Regular readers shouldn’t be surprised to hear Cisco is benefiting from the proliferation of AI. On March 27, I detailed how Cisco and other data traffic stocks are poised to benefit from the coming Agent Supernova.

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 performing work in factories, offices, stores, ships, building sites, labs, hospitals, schools, and businesses. Soon, 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.

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.

In our original note on Cisco, I detailed how this explosion in AI agent activity will drive a massive surge in data traffic, which is great for companies like Cisco. Just one AI agent working for a business can create enormous amounts of web traffic.

Remember, agents work much faster than humans. They don’t take breaks or vacations. They can search for information and transact at the speed of light. An explosion of agent usage will generate an explosion of internet traffic.

That’s our bull case anyway. But we care less about our bull case than what the market thinks of our bull case. You can be bullish on an investment theme all you want, but if the market does not send it higher, then your thesis isn’t worth much.

It turns out the market enthusiastically approves of the AI Data Traffic theme. Today’s share price spike puts Cisco up a giant 44% in less than two months after our note (a 334% annualized pace).

The Agent Supernova is poised to change the world forever, creating enormous opportunity. As Cisco has demonstrated, investing in increased communication traffic is one way to capitalize on it.

By investing here, you are not trying to pick single AI application winners. Instead, you are making the very high probability bet that everyone and every business using AI will drive increased data traffic. We bet more new highs are in the cards for Cisco and other beneficiaries of the AI Data Traffic boom.

AI could vaporize a huge portion of your retirement account

Credit: Bill Oxford

When Elon Musk talks about the fast moving, world-shaping effects of AI, he often calls the technology a “supersonic tsunami.” AI is the fastest developing technology in history… and it promises to reshape the world in massive ways. Plus, its progress is being fueled by the largest collective investment effort of all time.

This week, the supersonic tsunami created another round of losers in the “K-shaped stock market” I’ve been writing about for months.

• Shares of consulting giant Accenture (ACN) just reached a new one-year low. They are down 50% over the past year.

• Shares of data and analytics giant CoStar (CSGP) just reached a new one-year low. They are down 57% over the past year.

• Shares of real estate information firm Zillow (Z) just reached a new one-year low. They are down 45% over the past year.

• Shares of consulting giant Gartner (IT) just reached a new one-year low. They are down 68% over the past year.

Over the past year, we’ve detailed many ways to leverage the supersonic tsunami’s effects to make a lot of money quickly. Our recommendations in optical networking stocks, space stocks, E&C stocks, Power Grid Upgrade stocks, robotics stocks, and semiconductor stocks have generated large returns over short time periods. They’ve served as a “live fire demonstration” that right now, you can make money in stocks faster than ever.

But there’s a dark side to the supersonic tsunami. Due to blazing technological change, you can not only make money faster than ever in stocks… You can also lose money in stocks faster than ever.

Over the past three months, we’ve detailed how stocks in the KIDS category are the most vulnerable to the supersonic tsunami. KIDS is my acronym for Knowledge work, Information collection and analysis, Data collection and analysis, and Software.

Generally, these businesses sell digital products and services. We’re talking consulting firms. Credit rating agencies. Financial data providers. Software firms. You can’t stub your toe on what they sell.

These companies sell products and services that AI programs could produce for a very low cost soon. If someone using AI can code a product or service into existence, then any business related to it is in danger.

AI will put some of these KIDS work companies out of business. But keep in mind, it doesn’t have to put them out of business to make them stock market losers. AI only needs to lower the cost of producing what they produce over the long run. This will enable hordes of AI-centric competitors to throw a heavy wet blanket over their growth rates, profit margins, and P/E multiples.

Concerns over this trend have manifested in the steep market-value declines of the companies listed above.

Technological disruption isn’t producing just a “K-Shaped economy.” It’s also creating a “K-Shaped stock market” full of big winners and big losers. Much of your investment success over the next decade will depend on whether you are positioned to benefit or be harmed by the supersonic tsunami that is AI.

This energy sector is exploding in size. Demand is soaring. Are you long?

Credit: Bilanol

It’s official: Solar energy has returned to “rip roaring” bull market mode… and the industry is full of opportunity.

Yesterday, the Invesco Solar ETF (TAN) surged 3.5% to reach a new one-year high. The fund is up 17% over the past month.

This upswing makes solar energy one of the world’s top-performing themes right now… and it makes our September 23 recommendation to own it a big winner, up 46% in less than nine months.

The bull case for solar energy is simple: Given AI’s enormous promise, giants like Google, Meta, Microsoft, and OpenAI are spending trillions of dollars on data centers, AI chips, and other infrastructure components. It’s the largest collective investment effort of all time.

All that AI infrastructure is becoming a massive new source of electricity demand and driving a bull market in almost all forms of electric power production. Goldman Sachs forecasts global data center power demand will surge 220% by 2030 compared to 2023 levels. U.S. data centers already account for 7% of U.S. electric power consumption, a figure that is expected to rise significantly.

Industry experts believe solar energy can’t compete with nuclear and fossil fuels to supply the enormous amounts of “always on, always there, baseload” power needed for AI data centers.

However, inexpensive and easily installed solar systems can supply smaller consumers, such as homes, offices, stores, and small factories. This means demand for solar power is increasing because AI is driving up the price of other forms of electricity.

The world installed a record 597 gigawatts (GW) of solar power in 2024 – a 33% surge over 2023. In the first six months of 2025 alone, the world added 380 gigawatts of new solar capacity – 64% higher than the same period in 2024, when 232 GW were installed. The rapid expansion of solar capacity has made it the fastest-growing source of new electricity generation. In 2024, global solar output rose by 28% (+469 TWh) compared to 2023, more than any other energy source.

China alone added 329 GW of solar capacity in 2024, accounting for 55% of global installations. India more than doubled its installations in 2024, with a 145% annual market increase – 30.7 GW added, up from 12.5 GW in 2023.

Driven by this building boom, many leading solar firms such as First Solar (FSLR), Sunrun (RUN), and Nextpower (NXT) are reporting 20%–35% annual top-line growth.

Right after I published my bullish note in September, solar stocks – as tracked by TAN – took off like a rocket, climbing 37% in five months. Then, TAN corrected and digested its gains. Over the past month, TAN has broken out of its consolidation area to reach new highs.

The sector received a boost this week from solar energy equipment and software giant Nextpower. The stock jumped 11% yesterday after the company surpassed fiscal 2026 fourth-quarter earnings expectations and raised its revenue outlook based on a backlog of more than $5 billion amid strong demand. The jump sent Nextpower to a new all-time high.

It’s a bull market in virtually every form of electric power production… including the one that gets free fuel from the sun.

Market Notes

• Our recommendation of semiconductor leader Marvell Technologies (MRVL) continues its winning ways. The stock hit a new one-year high today and is up a huge 117% in less than two months after our original note.

• High-end cruise line operator Viking Holdings (VIK) reached a new one-year high today. The rich continue to spend.

• Our recommendation to ignore the AI bears and stay long AI infrastructure continues to pay off. Semiconductor giant Nvidia (NVDA) reached a new all-time high today.

• Our recommendation to stay long the bull market in virtually every form of electric power generation remains a winner. Shares of geothermal energy giant Ormat (ORA) reached a new all-time high today.

• The American consumer continues to spend with enthusiasm. The stock price of Starbucks (SBUX) reached a new one-year high today.

Regards,

Brian Hunt
Editor, Money & Megatrends

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