The AI infrastructure trade explodes higher. Are you profiting from these stocks?

Today’s issue in preview:

• The AI infrastructure trade explodes higher. Are you profiting from these stocks?

• The world’s largest AI firms can’t buy enough compute. That’s bullish for these stocks

• Demand for this metal is soaring. Investments related to it might do the same.

• Our incredible track record gets better: Our thematic trades in AI Semiconductors, Solar Energy, Neoclouds, and Cybersecurity generate more gains.

The world’s largest AI firms can’t buy enough compute. That’s bullish for these stocks

Credit: Gerville

Yesterday, leading neocloud firm Nebius (NBIS) soared 8.6% to reach an all-time high. The big move was attributed to news that widely followed technology fund manager Leopold Aschenbrenner recently acquired a large stake in the company.

Avid readers of Money & Megatrends aren’t surprised to hear the neocloud theme is moving higher. Back in April, I detailed how the M&M Neocloud Basket – our in-house neocloud stock index – was breaking into new price territory and speculated the rally would continue.

Neocloud companies own and operate AI data centers. Traditional cloud providers (AWS, Azure, Google Cloud) are general-purpose platforms built to serve every computing need. Neoclouds are purpose-built to serve AI companies with enormous computing needs.

Big customers such as Meta use neocloud data centers to train and operate bleeding-edge AI models. Neocloud businesses do all the logistical work of securing, building, and operating AI data centers so AI model builders can focus on building models. In industry speak, neoclouds provide “compute” to big tech.

As we’ve recently covered, demand for AI-related services such as Anthropic’s Claude Code is exploding… but big tech firms don’t have enough “compute” – or fully powered AI data centers operating – to meet the soaring demand.

Nebius recently confirmed the “bull case” for neoclouds by reporting a huge 684% year-over-year revenue increase. Thanks to rising demand from big customers like Microsoft (MSFT) and Meta (META), the company announced plans to expand its compute capacity.

“We continue to see unprecedented demand across the market,” Nebius wrote in its report. “Compute and cloud needs are vastly exceeding capacity as more industries embrace AI.”

After the earnings report, Nebius’ stock jumped 18% to reach a new all-time high. And as noted above, the stock surged to another new high after the market learned of Aschenbrenner’s new stake in the company.

The stock is up 33% since we published our note in April (a 267% annualized pace). Fellow neocloud stocks CoreWeave (CRWV) and Iren (IREN) look poised to follow suit. The trend is also poised to further benefit the $14 billion market cap neocloud facility builder and operator Applied Digital (APLD). The stock recently broke out of a long consolidation period and could run much higher as the trend develops.

Big tech is spending over $600 billion on AI this year and still can’t get enough compute. Demand is overwhelming their current capacity. This is long-term bullish for neoclouds… and the rally has room to run.

The AI infrastructure trade explodes higher. Are you profiting from these stocks?

Credit: Victor Golmer

My recommendation to ignore the AI bears and stay long the AI infrastructure boom is paying off well. Spectacularly well, you might say.

Last night, Money & Megatrends recommendation, Dell Technologies (DELL), reported its first-quarter business performance. The personal computer and AI hardware maker crushed Wall Street estimates. Driven by AI infrastructure spending, revenue increased 88% year-over-year for the first quarter.

Dell said its AI server revenue jumped 757% year over year to $16.1 billion. In 2026, Dell now expects AI revenue of $60 billion, up from its $50 billion projection in February. That would be 144% year-over-year growth.

In response, the stock is up a gigantic 32% this morning. Shares are up 144% since our recommendation just less than two months ago.

In other words, the AI infrastructure boom is alive and well… and full of opportunity.

In late 2022 – before ChatGPT was released to the public – I told friends and colleagues that AI was about to explode into public awareness. Shortly after, AI did just that, marking the beginning of one of the biggest investment themes of our lives.

Now, more than three years into this super boom, big tech companies Meta, Google, Amazon, OpenAI, and Microsoft are engaged in an epic race to build the world’s best AI models and infrastructure. This year, they are on pace to spend over $600 billion on AI infrastructure, with more than a trillion dollars coming behind it. It’s the largest infrastructure spending boom in history.

Whether Big Tech’s massive investment pays off has become the most important issue in the stock market.

For the past two years, vocal AI bears have said this spending is madness. It won’t generate the revenues and profits required to justify it. Once the world realizes this is the case, GDP growth will stall, and the stock market will crash.

AI bulls say, “AI is the most transformative innovation of the century. Big Tech leaders know what they are doing. The investments will pay off.”

For the past three years, I’ve urged investors to ignore the bears and stay long the AI infrastructure boom.

Dell isn’t the only stock turning in a spectacular mid-year performance. Our AI semiconductor recommendations AMD (AMD) and Arm Holdings (ARM) have skyrocketed since we recommended them on March 31. Driven by strong AI infrastructure spending, the stocks are up 161% and 146%, respectively. These are blazing annualized rates of 979% and 887%, respectively.

These recent moves are more evidence that our longstanding recommendation to ignore the “AI Bust” camp… and stay in the “AI Boom” camp continues to pay off. Trends tend to persist and winners tend to keep winning, so we recommend staying long the boom.

Demand for this unique metal is soaring. Investments related to it might do the same.

Credit: AK2

This week, the AI boom and Iran have taken up most of the investment media’s headlines… which means silver is continuing to set up a big potential trade in virtual anonymity.

On April 23, we laid out the case for silver resuming an explosive uptrend that began in mid 2025.

I’ve been long and bullish silver for many years. I believed the precious metals would rise due to U.S. dollar debasement… while also enjoying a high-tech tailwind. (I wrote more about how to protect yourself from dollar debasement here.)

Most people don’t realize this, but silver has the highest electrical and thermal conductivity of any metal. This makes it a critical component in AI infrastructure, solar energy systems, and other electrical systems. In small, densely packed areas like AI servers, heat dissipation is critical.

Silver was one of the world’s top trends in 2025, returning about 145%. Since going on that huge run that peaked around $121 per ounce in January, silver has corrected and traded in a sideways consolidation range.

The uptrend that started in 2025 will likely continue.

As we covered in our Feb. 19, 2026, piece on Edge Computing, AI is moving towards “the edge.” AI will increasingly be run on local devices such as phones, cars, homes, robots, jets, boats, satellites, and spacecraft.

This is the foundation behind the long-term thesis on edge AI, autonomous systems, humanoid robots, and physical AI. These systems don’t just demand more electrical performance – they demand better electrical performance within increasingly tight thermal and power constraints. Every watt matters. Every degree of heat matters.

The infrastructure that enables this level of efficiency spans connectors, switches, relays, semiconductor packaging, and thermal management components – the bottlenecks that we have spoken about regularly here at Money & Megatrends. And silver is present in every single one of those critical infrastructure pieces.

To put this into perspective…analysts estimate that if just 10% of new global data centers integrate silver-enhanced components into their power and cooling systems, industrial silver demand could rise by 10% over the next decade.

As with most metals today, there’s a supply-side layer to this bullish scenario. The 2025 World Silver Survey reported a structural deficit of 148.9 million ounces in 2024, with cumulative deficits since 2021 now around 680 million ounces. The market has been running short on silver for years. And it’s only getting worse.

More concerning is that roughly 80% of the world’s silver is mined as a byproduct of extracting base metals like lead, zinc, and copper. Even if demand pushes silver prices significantly higher, miners simply can’t just turn on more silver production. Their output is dictated by the production economics of the primary metals in that mine. The market cannot drill its way out of a silver shortage.

There are various ways to express a bullish silver thesis. The simplest is through an ETF. The iShares Silver Trust (SLV) is the largest physically backed silver ETF, with over $40 billion in assets.

As for silver miners, there’s the Global X Silver Miners ETF (SIL), which holds a diversified portfolio of silver mining companies and has $5.1 billion in assets. If you want exposure to both physical silver and mining stocks in one vehicle, the Sprott Silver Miners & Physical Silver ETF (SLVR) is an expression of that.

For those who prefer individual stocks, three compelling silver miners are Pan American Silver (PAAS) – the world’s largest silver-focused producer with 10 mines across the Americas and $1.3 billion in cash; First Majestic Silver (AG) – the highest-purity silver producer in the industry with 58% of revenue coming directly from silver; and Hecla Mining (HL) – the largest silver producer in the US and Canada with 100% North American operations, insulating it from the geopolitical risk that affects most of its peers.

The chart below shows how, over the past few months, silver has traded in what I call a “compression pattern.” Its recent range of highs and lows is tighter than that which preceded it. Such compression patterns often lead to strong moves in the direction of the primary trend. Plus, such patterns create trade setups where the “golden ratio” can work in your favor. The “golden ratio” is my nickname for trades where the difference between potential upside and downside is large, in the upside’s favor.

The higher this ratio is, the more you can win versus what you can lose, the better. Most of the market’s consistently successful traders look for trades that can give them at least $4 of upside for every $1 of downside.

Successful trading – the kind that can make you serious money – isn’t about being right all the time. An obsession with a high win rate is a loser’s mentality. Instead, successful trading is about finding and structuring trades that offer golden ratios, executing such trades, and then repeating the process as many times as possible. Doing all this lets you make a lot of money using 2^nd-grade math.

With silver, traders can enter positions near recent lows, set a stop near those lows, structure a “high upside, low downside” trade, and have the golden ratio work in their favor.

Market Notes

• Our recommendation to own solar energy stocks remains a huge winner. The Invesco Solar ETF (TAN) jumped 4% this morning to reach another new one-year high.

• It’s a bull market. The S&P 500, the Dow Industrials Average, and the Nasdaq 100 hit new all-time highs today.

• Importantly, it’s a broad bull market. The Invesco S&P 500 Equal Weight ETF (RSP) reached a new all-time high today.

• Cybersecurity stocks are enjoying a strong week. SailPoint (SAIL) advanced 4.5% this morning to reach a multi-month high. The stock is up 41% since we recommended it in March. CrowdStrike (CRWD) advanced 5.7% this morning to reach a new multi-month high. The stock is up an incredible 81% since we recommended it in March.

Regards,

Brian Hunt
Editor, Money & Megatrends

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