The AI Data traffic theme is about to take off

Today’s issue in preview:

• The AI Data traffic theme is about to take off

• Earnings are exploding for this beneficiary of the data center boom

• Why it’s time to be bullish on Bitcoin.

• Our extraordinary track record gets even better: AI infrastructure, E&C stocks, AI chemicals, and data traffic stocks continue enriching shareholders. Are you one of them?

Earnings are exploding for this beneficiary of the data center boom

Credit: Gerville

Yesterday, we detailed the outstanding AI-driven quarterly business performance of Google parent Alphabet (GOOG), Microsoft (MSFT), and Amazon (AMZN).

Revenue from Microsoft’s AI-driven Azure unit and other cloud services surged 40%. Google’s AI-driven cloud revenue grew 63%. Amazon’s Web Services’ division – driven by AI compute demand – grew revenues 28%.

Big tech firms are seeing so much progress in AI development and so much demand for AI programs that they plan to spend as much as $725 billion this year on AI infrastructure. This is on top of the $1 trillion+ they’ve already invested. More than $3 trillion is forecasted to follow.

Much of this money will be spent on building gigantic AI data center buildings and the components they need to operate.

But who will actually build those data centers and the electrical infrastructure they cannot operate without?

Regular Money & Megatrend readers know the answer. And they know those builders have proven to be one of the true “home run” megatrend trades of the past two years… plus one of the world’s hottest industry groups in 2026.

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

E&C firms design and build large infrastructure projects, including electrical transmission lines, airports, skyscrapers, power plants, 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 $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 more than a trillion 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 consists 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?”

That’s the bull case for E&C stocks. But regular readers know we care more about what the market thinks about a forecast than the forecast itself. In the case of E&C companies, the market enthusiastically approves.

Since my original note, I’ve followed up with over a dozen updates reiterating my recommendation. During this time, Argan (AGX) is up 423%. MasTec (MTZ) is up 214%. Sterling Infrastructure (STRL) is up 215%. The strength in these individual names has propelled the M&M E&C stock basket to an extraordinary 2026 gain of 55% (an annualized pace of 146%).

This week, the E&C group exploded higher thanks to big tech’s terrific earnings reports and its own excellent quarterly business performance. One leader we’ve mentioned many times before – MYR Group (MYRG) – exploded 19.8% yesterday to reach a new time high after reporting strong AI data center-driven growth.

Expect this group to go higher as the AI infrastructure boom and U.S. factory building boom continue.

The AI Data traffic theme is about to take off

Credit: metamorworks

Engineering Construction isn’t the only investment theme enjoying an earnings surge thanks to the AI infrastructure boom.

The AI Data Traffic theme is enjoying a revenue surge as well… and the related stocks are responding.

As evidence, we present this week’s new all-time high in Cisco (CSCO).

For the past three years, I’ve urged investors to ignore the AI bears and stay long the AI infrastructure megatrend. This advice has been very useful. On April 9, I highlighted how AI infrastructure stocks of many kinds have soared to all-time highs.

Cisco is a clear beneficiary of the AI infrastructure megatrend. It sells equipment and software that businesses use to build computer networks. It also sells equipment that AI data centers need to operate. Driven by AI, its quarterly revenue from networking equipment climbed 21% year over year.

Cisco stands to benefit from the next phase of the AI boom, which we call the “Agent Supernova.” This is where AI programs autonomously perform work that only humans can perform now. Soon, we will see an explosion of AI agents performing work in factories, offices, stores, ships, building sites, labs, hospitals, schools, and businesses.

On March 27, 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. Cisco is up 20% this year and this week reached a new all-time high.

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

By making an investment 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.

Why it’s time to be bullish on Bitcoin

Credit: BlackJack3D

Our March 13 recommendation to be bullish on Bitcoin is off to a good start. Today, Bitcoin broke above $79,000, its highest level in three months.

About one month ago, I saw the encouraging price action in Bitcoin and identified it as bullish for the world’s top cryptocurrency.

For Bitcoin’s “true believers,” this encouraging price action was a welcome change from the carnage of October 2025 to February 2026. During that period, Bitcoin plunged about 48%, a drop that punched big holes in many crypto portfolios.

Crypto specialists attributed this decline to the U.S. government withdrawing liquidity from financial markets, as well as to gold and AI trades drawing money flows that could have been directed toward Bitcoin.

Most long-term Bitcoin believers see it as a “store of value” that should maintain its purchasing power, as do gold and beachfront homes. It should be a digital form of “hard money.” Sounds great.

However, from October 2025 to February 2026, Bitcoin traded more like a failing technology company than anything you’d call strong and stable.

In March, Bitcoin’s trading behavior changed significantly. It formed a bottom and gained 9.5% in one month, while technology stocks dropped and gold gained just 3.2%. Importantly, Bitcoin outperformed stocks and gold as Operation Epic Fury created tremendous market volatility and hammered many sectors of the stock market.

It was a “port in the storm.”

So, after months of disappointing believers, is Bitcoin the “store of value” back? Is it ready to be a “port in the storm” and a stabilizing component of serious portfolios? In mid-March, I said it’s a bet worth making.

The market says “so far, so good.” Bitcoin is consistently making higher highs and higher lows on the chart and remaining above its early 2026 lows. We’re now in a favorable price environment for Bitcoin and related cryptocurrency vehicles such as trading platform Coinbase (COIN) and Bitcoin holding firm MicroStrategy (MSTR).

Market Notes

• Our recommendation of the Invesco Equal Weight Technology ETF (RSPT) continues to pay off. The fund – which we said “lets you benefit from the largest investment effort in all recorded history” – reached a new one-year high today.

• Our March 6th recommendation to own AI chemical stocks is paying off. Chemours (CC) just hit a new high. It’s up an incredible 61% since our note.

• Our recommendation to ignore the AI bears and stay long the AI boom continues to pay off. Leading computer memory makers Seagate (STX) and Micron (MU) reached new all-time highs today. Optical networking leader Lumentum (LITE) reached a new all-time high today. Semiconductor maker Intel (INTC) reached a new one-year high. Data center networking leader Lightwave Logic (LWLG) reached a new one-year high.

• America’s largest billboard advertising company Lamar (LAMR) reached a new all-time high today. This is a bullish economic signal. If America’s businesses are spending big on advertising, that’s a good sign.

• Apparel giant Lululemon (LULU) reached a new multi-year low today. The giant is a victim of its own market creation. Competitors have flooded its market with cheaper competitive products.

If so, you’re missing out! You can get my daily insights delivered straight to your inbox — free, every day the market is open. Sign up here to stay in the loop.

Regards,

Brian Hunt
Editor, Money Megatrends

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