Today’s issue in preview:
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One of the world’s best investors bets on Brazil. Why it’s poised to head higher
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Soaring AI power demand will send this sector higher
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A tsunami of money is headed towards U.S. factory building. Here’s how to get your share of it.
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Our hot hand continues: Defense stocks, robotics stocks, oil stocks, and AI infrastructure stocks reach new highs.
One of the world’s best investors bets on Brazil. Why it’s poised to head higher
Credit: isitsharp
This week, our Brazil trade got a big seal of approval from one of the world’s greatest investors.
On Wednesday, it was reported that billionaire investor Stan Druckenmiller amassed a large position in the iShares Brazil ETF (EWZ) during the fourth quarter of 2025. Druckenmiller’s Duquesne Family Office acquired over 3 million shares, according to regulatory filings.
Back in September, I detailed the bullish price action in Brazilian stocks and recommended owning them. At the time, I noted how Brazil was a good way to invest in the critical resources uptrend.
Critical resources are the building blocks of the economy. Think raw materials like crude oil, natural gas, iron ore, copper, corn, and cotton.
Mining, extracting, planting, harvesting, processing, refining, and transporting these critical resources is a multi-trillion-dollar business that drives the economy.
With technologies like AI changing the world, it’s easy to forget about critical resources as an asset class. But when they enter uptrends, those uptrends tend to last a long time, and they tend to go higher than most people think is possible.
For many professional investors, Brazil is a preferred way to play commodities in the stock market. Brazil is the world’s largest producer of soybeans, sugar, and coffee. It’s a major producer of cattle, cotton, corn, and orange juice. It’s a major producer of iron ore and crude oil.
Given all this, Brazil’s economy is closely tied to the commodities sector. Its stock market tends to rise and fall with resource prices. This is why I recommended EWZ, and maybe why Stan Druckenmiller bought it.
Druckenmiller is one of the world’s greatest investors. He’s on my “Mt. Rushmore” of investors and traders. It’s been reported that “Druck” achieved 30% annual returns for 30 years without a single down year. That earns him his own wing in the Wall Street Hall of Fame.
The one-year chart of EWZ shows Brazil is in a strong uptrend and poised to reach a new high. And we’re in good company with Druck.
Soaring AI power demand will send this sector higher
Credit: RHJ
Uranium stocks are poised to break out and head higher. Are you on board yet?
In 2022, I sent a bullish note to colleagues, highlighting the emerging uptrend in uranium miners such as Cameco (CCJ) and Uranium Energy (UEC).
Since my original call, uranium miners have generated massive returns. CCJ is up 441%, and UEC is up 397%. If you missed that trade, I’ve got good news!
The big trend in uranium miners is likely to continue.
Regular readers know one of the largest and most profitable facets of the AI megatrend is power consumption. Thanks to AI’s enormous promise, giants like Google, Meta, Microsoft, and OpenAI are spending hundreds of billions of dollars a year on data centers, AI chips, and other infrastructure components.
All that AI infrastructure is poised to consume huge amounts of electricity. Goldman Sachs forecasts global power demand from data centers will climb 50% by 2027 and by as much as 165% by the end of the decade.
Given this outlook, AI companies and their power providers are spending huge amounts of money to expand nuclear power capacity. Nuclear provides “always on” carbon-free baseload power. Bloomberg reports that surging nuclear demand will drive $350 billion in nuclear spending in the US by 2050.
This “Nuclear Renaissance” theme depends on uranium as fuel. Demand for uranium is soaring, but supplies are constrained right now and will be for years to come. Like we’ve covered with copper mines, AI cannot code a uranium mine into existence.
You can get long on this theme in several ways. In the past, I’ve mentioned nuclear power equipment and service companies such as BWX Technologies (BWXT), Mirion Technologies (MIR), and Centrus (LEU).
You can also take the “one click, and you’re done” route with a uranium miner fund such as the Global X Uranium ETF (URA) or the Sprott Uranium Miners ETF (URNM). Both funds own diversified baskets of uranium miners and both hold huge positions in blue-chip Cameco.
As you can see in the URA chart below, uranium miners are in a long-term uptrend and are poised to break out to a new all-time high. Given the bullish demand outlook, I bet those new highs arrive soon.
A tsunami of money is headed towards U.S. factory building. Here’s how to get your share of it.
Credit: CHUNYIP WONG
As I expected, we’re seeing a big bull market in building things.
As evidence, I present you with the soaring revenues and market values of America’s leading engineering and construction stocks. This week, leaders in this field – Quanta Services (PWR), Argan (AGX), and Mastec (MTZ) soared to new all-time highs.
In October 2024, I sent a note to colleagues that covered the bull case for engineering and construction (E&C) stocks. I described them as a way to invest in the AI data center building boom.
E&C firms design and build giant infrastructure projects such as airports, skyscrapers, power plants, subways, and data centers. 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 and unprecedented $600+ 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 hundreds of billions of dollars spent on building new factories and the power grids required to operate them.
Given the extreme urgency behind Big Tech’s AI data center buildout and Trump’s manufacturing push, the bidding process for many infrastructure builds will consist of E&C companies throwing out absurdly high bids… then Big Tech or the White House replying, “Sure, we’ll take five of them. Can you start yesterday?”
But you don’t have to listen to me. Listen to the market!
It knows a lot more about this trend than I ever will. This week, PWR climbed 5.7% to reach a new all-time high. AGX climbed 5.4% to reach an all-time high. MTZ climbed 2.3% to reach an all-time high. These firms have gained an average of 142% since my original note.
Both the AI data center buildout and the manufacturing capacity buildout are big, multi-year themes. This means well-positioned E&C stocks will likely continue their winning ways.
Market Notes
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Our 24th October recommendation to get long the defense spending boom continues to pay off. Defense giants Lockheed Martin (LMT) and Northrop Grumman (NOC) reached new all-time highs today.
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Our 2024 recommendation to invest in the robotics megatrend continues to be a big winner. The ROBO Global Robotics and Automation ETF (ROBO) reached a new all-time high today. It’s up 31% over the past year.
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The AI infrastructure boom continues to create big stock market winners. AI infrastructure leaders Cienna (CIEN), Applied Materials (AMAT), and Lumentum (LITE) reached new all-time highs today.
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Our September 2025 recommendation to get long oil stocks continues its winning ways. Energy leaders Cenovus (CVE) and Haliburton (HAL) reached new one-year highs today.
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AI demand shocks continue to create major stock winners. AXT (AXTI), the AI bottleneck play we covered in January, soared 23% today to reach an all-time high.
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Semiconductor inspection and process control giant Onto Innovation (ONTO) is one of the few semiconductor plays up today. It reported strong earnings after the close yesterday.
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Shipping giants Diana Shipping (DSX) and Hafnia (HFN) reached one-year highs today. These are bullish economic signals.
Regards,
Brian Hunt
Editor, Money & Megatrends
