The AI boom is poised to take an extraordinary new turn. Three stocks for what comes next

Today’s issue in preview:

• The AI boom is poised to take an extraordinary new turn. Three stocks for what comes next

• This megatrend was generating huge stock winners before Epic Fury. The war just made it stronger

• Our oil and gas recommendations continue leading the market.

The AI boom is poised to take an extraordinary new turn. Three stocks for what comes next

Credit: imaginima

Prepare for the Agent Supernova – an enormous world-changing megatrend that can make you a lot of money.

That’s the “takeaway” from our March 16 issue on the coming super boom in AI task managers… aka “agents.”

Years of development have made AI advanced enough to perform many everyday tasks people do now… and the list of tasks is only getting bigger.

In the next 12–24 months, AI agents will assist with managing factories… performing financial analysis… managing business inventories… writing software… designing websites… creating legal documents… and thousands of other things.

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. Agents working with people. Agents working with other agents. Agents running businesses. Agents negotiating and haggling with other agents.

The Agent Supernova is about to introduce billions of “AI workers” into our economy to perform all kinds of roles… with very little day-to-day human oversight.

The business and investment implications are huge. The Agent Supernova will transform many businesses and industries, and end many as we know them… while creating new ones. The economic deck is about to get reshuffled.

The bigger the impact a megatrend can have on our world, the bigger the capital gains it can generate in your portfolio. This is why the Agent Supernova is such a big opportunity. It’s why we will be writing about and investing in this trend for years.

One compelling theme inside the Agent Supernova megatrend is internet traffic. 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.

Companies poised to benefit from this explosion of traffic include:

Cisco (CSCO): CSCO is a $323 billion company that has risen 32% over the last year and just set a new 21-day high. CSCO benefits massively in the agentic world because they sell the equipment that lets data move. CSCO provides switches (which move data between machines within a data center) and routers (which move data across networks). As AI becomes more agentic, CSCO’s infrastructure keeps these systems connected.

Ciena (CIEN): CIEN has risen 79% YTD to a $62 billion market cap, but demand for its products is only just getting started. CIEN provides optical networking equipment that enables data to move at very high speeds over long distances. CIEN is one of the leaders in the optical space along with Lumentum (LITE) and Applied Optoelectronics (AAOI).

Arista Networks (ANET): ANET has risen only 1% YTD, lagging CIEN and CSCO, but there’s potential here as well. ANET builds the high-speed switches that sit inside data centers, similar to CSCO. ANET has carved out a much more niche market in GPU-to-GPU communication, which means they should benefit more from the agentic world over the next few years. Expected revenue growth is 27% in 2026, up to $11.5 billion.

Akamai Technologies (AKAM): AKAM helps to route, optimize, and secure traffic rather than physically enabling capacity for that data to exist. It benefits massively from higher usage, so this could be an interesting stock to watch as well, with a market cap of just $17 billion today. We think of it as more of a secondary beneficiary of the wider trend… and a lot of the time, these are the stocks that move more, since they’re much less known at the start.

The Agent Supernova is poised to change the world forever and create enormous change and opportunity. Investing in increased communication traffic should prove to be one way to capitalize on it.

This megatrend was generating huge stock winners before Epic Fury. The war just made it stronger

Credit: KE ZHUANG

The war in Iran will have all kinds of long-term consequences, but from a business and investment standpoint, a major one will be bull markets related to electric power production going from strong to stronger.

I was bullish on electric power production themes such as nuclear and solar before Iran.

I’m even more bullish now.

Here’s why…

Over the past two years, I’ve been bullish on virtually all forms of electric power production, largely due to AI’s soaring power demands.

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. More than a trillion dollars has been spent so far. More than $2 trillion will follow.

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 as much as 165% by the end of the decade.

This demand is driving a big bull market in virtually every form of electric power production. In these pages, I’ve highlighted trends and opportunities in solar energy, nuclear energy, utility stocks, natural gas producers, and Power Grid Upgrade investments.

These themes have generated extraordinary wealth and big capital gains over the past two years. They are very likely to continue doing so.

Not that they needed a boost, but Epic Fury is giving them one.

Closing the critical Strait of Hormuz justifiably gets a lot of press. The Strait of Hormuz is a vital waterway through which roughly 20% of global oil consumption flows.

In addition to oil, vital natural gas and fertilizer supplies flow through the strait. Its closure is having destructive consequences for businesses and countries that depend on Middle Eastern resource flows. Those consequences could go from “destructive” to “catastrophic” if the closure lasts another month.

For many countries and businesses, this situation is a brutal “slap in the face” reminder: If you’re a large business or country whose survival or smooth operation depends on uninterrupted resource flows from the Middle East, you are in a dangerous, vulnerable position.

If your business or country depends on resource flows from the Middle East, you are not truly safe or secure. No CEO or major shareholder wants their business to be in that position. No citizen wants their country to be in that position. Many powerful and influential people are realizing this is a big risk that must be mitigated if humanly possible.

This means building and buying as many forms of “not Middle Eastern” resource supply chains as possible economically… with electric power production being the most important.

The drive to become more energy independent is not a one-year-and-you’re-done project. It is a multi-decade megatrend. It will act as a long-term tailwind for virtually every form of energy production, helping businesses and countries become less reliant on Middle Eastern oil and gas. Solar energy. Nuclear energy. Geothermal energy. Hydroelectric energy. U.S. natural gas. South American, African, and Canadian oil and gas. It’s all going to catch extra bids.

Before Epic Fury, virtually every industry related to supplying electric power or building/maintaining electric grids was in a strong uptrend. The world was in a mad dash to secure safe, preferably locally produced, electric power before Epic Fury. Solar energy stocks were rising. Geothermal energy stocks were rising. Power Grid Upgrade stocks were rising. Nuclear energy stocks were rising.

I’ve made a lot of money from these trends, and anyone reading my work had the opportunity to benefit as well. I plan on making even more money here. The drive among many large businesses and countries to be as power- and resource-self-sufficient as possible will act as a powerful tailwind for this already powerful trend.

I’ve been very bullish on solar, nuclear, natural gas, utilities, and Power Grid Upgrade stocks. Epic Fury and its consequences have me even more bullish. I’m long and looking to get longer.

Market Notes

• Our September 29th recommendation to own oil stocks is paying off like a broken slot machine. Oil giants Occidental Petroleum (OXY), Cenovus Energy (CVE), Devon Energy (DVN), Permian Resources (PR) and Coterra Energy (CTRA) all hit new all-time highs today.

• Our October 2025 recommendation to own the natural gas theme is paying off. The First Trust Natural Gas ETF (FCG) just hit a new yearly high. It’s up 39% over the last three months. Individual leader Range Resources (RRC) reached a new one-year high.

• Our recommendation to own oil and gas pipeline operators continues to win. Industry giant Enterprise Products (EPD) reached a new all-time high today.

• The chemicals industry continues its recovery. Dow (DOW) and LyondellBasell (LYB) reached one-year highs.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

Why are companies flying spy planes over Elon’s closely-guarded AI lab?

Elon did the seemingly impossible – far faster than anyone expected… And it’s sent the tech industry into PANIC MODE. ChatGPT, Claude, Google Gemini, and DeepSeek could soon become obsolete. And three little-known firms could soar 10X or higher as a result.

Get the details here.