These under-the-radar AI stocks are soaring… and have room to run higher

Today’s issue in preview:

• These under-the-radar AI stocks are soaring… and have room to run higher

• The more AI data centers they build, the more these stocks will go up

• Spending on this industry is about to explode. Here’s how to profit

• The genomics theme stages a major breakout

These under-the-radar AI stocks are soaring… and have room to run higher

Credit: Alexander Sikov

It’s good to be on the receiving end of the largest collective investment effort of all time.

Yesterday, the “big three” of the semiconductor equipment stock group – Applied Materials (AMAT), KLA Corp (KLAC), and Lam Research (LRCX) – confirmed that statement by hitting new all-time highs… while generating another big thematic trade winner for us.

Given AI’s enormous promise, large tech firms such as Google, Amazon, Microsoft, OpenAI, Oracle, and Meta have invested over $1 trillion in specialized semiconductors, data centers, and other AI infrastructure components. They are on pace to invest around $700 billion this year alone and more than $3 trillion after that. Both the scale and the velocity of this investment boom are unprecedented. It is the largest collective investment effort of all-time.

Semi equipment makers are one of the most underappreciated cogs in the global AI semiconductor production machine. They do not build semiconductors themselves. Instead, they provide a wide range of critical services and equipment that enable semiconductor production.

They sell chip fabrication machines and chip components and provide testing services, among other vital services that keep the semiconductor industry going. They sell picks and shovels to the companies making picks and shovels.

No semiconductor equipment industry, no AI boom.

AMAT, KLAC and LRCX are the three U.S. leaders in semiconductor equipment. Each firm holds a dominant role in the AI semiconductor equipment industry, is enjoying terrific revenue growth, and is experiencing a strong uptrend. They are all up more than 100% over the past year.

On March 20, I detailed how these three stocks were holding up well during the Epic Fury-induced market decline. This “relative strength” was a bullish sign. It was a “tell” from the market… that the fundamental forces driving these stocks are very strong. And this week, those fundamental forces drove the semi equipment group to new all-time highs. They are up an average of 41% since our March 20 note (an annualized pace of 202%).

In other words, it’s good to be on the receiving end of the largest investment boom of all time. We remain bullish on the semiconductor equipment theme.

The more AI data centers they build, the more these stocks will go up

Credit: piyaphat50

On April 30 of this year, electrical grid infrastructure giant Quanta Services (PWR) reported that its first-quarter revenue surged 26%, and its work backlog climbed to a giant $48.5 billion.

Powered by this growth, Quanta’s stock is up 104% over the past year.

In other words, the Power Grid Upgrade business is booming.

Regular Money & Megatrends won’t be surprised to hear Quanta’s business is booming. We’ve mentioned it many times as a premier play on the Power Grid Upgrade megatrend.

On Oct. 7, I detailed how big tech is conducting the largest investment effort of all time. It has spent more than $1 trillion on AI infrastructure over the past three years, and more than $3 trillion is set to follow it.

All that AI infrastructure is poised to consume huge amounts of electricity. Goldman Sachs forecasts global data center power demand will climb 50% by 2027 and as much as 165% by the end of the decade. J.P. Morgan forecasts that global power demand will grow at a 3.6% compound annual rate from 2026 to 2030, a pace 50% higher than the previous decade.

This creates a big investment opportunity.

The U.S. power grid is often called the world’s largest machine. It’s a giant network of power stations, transmission lines, substations, and underground wires. Most people barely know it’s there or how it works, but without this big machine, your lights don’t turn on, there’s no Netflix, and your iPhone doesn’t charge.

Industry experts say the power grid is aging and creaking under the strain of increased electricity demand. The American Society of Civil Engineers (ASCE) gave the energy sector a D+ in its 2025 Infrastructure Report Card, citing concerns about rising energy demand, aging infrastructure, and a lack of transmission capacity.

Soaring electricity demand… a grid badly in need of an upgrade… AI supremacy on the line… and trillions of dollars of economic output on the line. As we said in October, it’s a recipe for a bull market in companies that build, repair, and upgrade our power grid.

This theme – which we call the Power Grid Upgrade – has become one of the biggest home run trades of the past year. Since my note, Quanta Services is up 64%. Fellow contractors MYR Group (MYRG) and Centuri Holdings (CTRI) are up 117% and 50%, respectively. Power plant turbine maker GE Vernova (GEV) is up 56%. Electric grid component maker Powell Industries (POWL) is up180%. These are huge gains in a short time.

This trend should also greatly benefit Valmont Industries (VMI) over the next five years. Valmont is the largest manufacturer of steel power line transmission towers and poles in the U.S. These are the 100+ foot-tall towers that support the power lines that make our modern way of life possible.

By default, if you spend lots of money upgrading the power grid, you spend money on new power line towers. The Department of Energy aims to expand long-distance transmission line capacity by 16% by 2030, including the construction of over 7,000 miles of new power lines.

Valmont began as a leading producer of irrigation equipment but has expanded into a major producer of transmission line towers, cell phone towers, substation poles, and traffic light poles. It has a market share of more than 30% in the booming transmission line tower business.

In April, Valmont reported strong Q1 2026 results, beating Wall Street estimates and raising full-year guidance. Diluted EPS grew 27.5% year-over-year to a record $5.51, on revenue of $1.03 billion (a 6.2% increase). Shares recently broke out to a new all-time high… and have further to run as the big, multi-year Power Grid Upgrade trend plays out.

Spending on this industry is about to explode. Here’s how to profit

Credit: Mirjana Pusicic

What’s it worth to live another healthy 10 or 20 years?

For people of means, it’s worth at least $50,000 up front… and $50,000 every year after that.

West Palm Beach, Fla.-based Radence is a high-end health diagnostics and monitoring firm that caters to wealthy people seeking to improve their health and increase longevity.

Barron’s reports that for a one-time fee of $50,000 and an annual membership fee of $50,000, Radence clients get access to a variety of cutting-edge tests designed for early detection of disease and disorders. These tests include organ imaging, microbiome profiles, and genetic analysis.

Radence and firms like it operate in the booming business and investment theme we call the “Longevity Frontier.”

Longevity Frontier businesses sell health care supplements, diagnostic services, treatments, and therapies… all with the goal of extending a person’s “healthspan,” or the number of healthy years they have left.

Growing interest in longevity has fueled soaring sales of books and products by industry gurus like David Sinclair, Dave Asprey, and Peter Attia. It has powered diagnostic firm Function Health to huge revenue growth and a $2 billion+ valuation. It drove OpenAI CEO Sam Altman to invest $180 million into Retro Biosciences, which aims to create drugs to rejuvenate aging cells. It made Netflix’s longevity documentary Don’t Die a popular hit.

Many Longevity Frontier products and treatments have been proven useful. They have solid science backing them. However, some fall into the “might be helpful” rather than the “definitely are helpful” category. These products and treatments are not covered by regular health insurance. They do not have solid clinical trials or research studies to support their claims of efficacy. A lot of hope and out-of-pocket cash payments are fueling this trend.

A big part of this industry’s revenue comes from wealthy people over 60 who buy all kinds of treatments, supplements, and tests that could help them get a few extra healthy years.

Data from the Federal Reserve shows that between 15 million and 20 million baby boomers are millionaires. More than 1 million boomers are worth more than $10 million. The U.S. population aged 80 and older is projected to roughly double, from 14.7 million in 2025 to 29.4 million by 2045. This is the largest group of wealthy people in history.

This means there are a lot of motivated, older, wealthy people out there who can spend big money on longevity.

One of the leaders of this investment trend – you could even call it the poster child – is drug giant Eli Lilly (LLY). Lilly is the world’s largest seller of glucagon-like peptide-1 (GLP-1) medications. GLP-1 drugs mimic a natural gut hormone. They control blood sugar by stimulating insulin release, which slows digestion and reduces appetite.

Over the past 5 years, this class of medications has exploded in popularity. Many people who take GLP-1 drugs see drastic weight loss in less than six months… which should extend their lives. Studies indicate GLP-1 drugs may also lower cholesterol, slow cancer growth, and reduce cardiac disease risk.

In other words, GLP-1s are believed to be the closest thing to “miracle longevity drugs” that we currently have. As a result, Eli Lilly’s sales are skyrocketing. The company recently reported quarterly sales growth of 56%. The results were driven by a 65% jump in demand for Lilly’s weight-loss drug Mounjaro… and they helped Lilly stock break out of a consolidation phase in May and reach a new all-time high. Bulls on the stock say the next generation of Lilly’s GLP-1 drugs will show greater efficacy and drive greater sales.

The Baby Boomers are an enormous demographic group that has entered the stage of life when spending on health and longevity skyrockets. Many of them have a lot of money they are willing to spend to pursue a longer healthspan. It’s all long-term bullish for Eli Lilly and other companies in the longevity business.

Market Notes

• We officially have our upside breakout in genomics. The ARK Genomic Revolution ETF (ARKG) jumped 8% this morning to reach a new one-year high.

• Genetic testing firm Illumina (ILMN) reached a new one-year high today.

• The health care sector bounce we forecasted in May continues to generate gains. The Health Care Select Sector Fund (XLV) climbed 2.8% this morning to reach a multi-week high.

• Construction equipment rental firm United Rentals (URI) reached a new all-time high today. The company is benefiting from the U.S. factory and data center building booms.

• Trucking giants J.B. Hunt (JBHT) and Old Dominion (ODFL) reached new one-year highs today. These are bullish economic signals.

Regards,

Brian Hunt
Editor, Money & Megatrends

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