This premier bet on AI and robotics just hit a new high. Are you on board?

Today’s issue in preview:

• This premier bet on AI and robotics just hit a new high. Are you on board?

• The most important Iran war news you’re not hearing in the mainstream press

• This under-the-radar AI infrastructure trend just powered to new highs. Are you benefiting?

• Our recommended themes continue to hugely reward shareholders: New highs for AI infrastructure, Power Grid Upgrade, chemicals, and robotics.

This premier bet on AI and robotics just hit a new high. Are you on board?

Credit: CHUYN

One of the world’s best bets on AI and robotics just reached a new all-time high.

That’s bullish for AI. It’s bullish for robotics. It’s bullish all things technology.

Are you positioned to benefit?

Over the past year, I’ve frequently called Amazon (AMZN) one of the best ways to invest in the robotics megatrend. Most people know Amazon as the online retailer. Almost nobody thinks of Amazon as a robotics company – and that blind spot is where the opportunity lies.

Last June, Amazon announced it had deployed its one millionth robot across its fulfillment network, making it the world’s largest operator of mobile robots. But that was just the beginning.

In the past two months alone, Amazon has made three separate robotics acquisitions. It bought Rightbot for warehouse automation. It bought RIVR, a Swiss company building four-legged robots that carry packages from the delivery van to your front door. And it bought Fauna Robotics, a humanoid robot startup founded by former Meta and Google engineers.

In his most recent shareholder letter, CEO Andy Jassy said Amazon is “still in the early stages of how we’ll leverage robotics.” That word, leverage, is the key to the whole story.

Here is why:

Amazon employs around 800,000 people in warehouses and delivery operations. That is an enormous cost. Every robot that replaces or assists a manual task lowers operating costs over the long term.

Amazon’s retail operation generated around $520 billion in revenue in 2025. Even a 2% improvement in profit margin from robotics translates into an extra $14 billion of profit. At Amazon’s scale, small efficiency improvements become enormous in dollar terms.

But this is only one part of the Amazon bull case.

AWS, Amazon’s cloud computing division, just posted its fastest growth in thirteen quarters. Revenue hit $35.6 billion in Q4 2025, up 24% year-over-year, with an annualized run rate of a colossal $142 billion. AWS operates at a 35% profit margin, which means it generates around $50 billion in profit. Put a conservative 30x multiple on that, and AWS alone is worth approximately $1.5 trillion.

Amazon’s total market cap today is $2.7 trillion. Subtract $1.5 trillion for AWS, and you are paying just $1.2 trillion for everything else. That everything else includes:

• The world’s largest retail business, doing $520 billion in revenue

• The third largest digital advertising platform on earth, generating $85 billion in revenue and growing at 22% – behind only Google and Meta

• Amazon Prime, with over 200 million subscribers worldwide

• A $33 billion investment in AI powerhouse Anthropic, one of the leading AI companies in the world.

• Moonshot bets like Project Kuiper (satellite internet), Zoox (autonomous vehicles), and more.

• The whole robotics division mentioned earlier.

One stock. Every major technology megatrend of the next decade. And the market is effectively giving you the retail empire, the ad business, the AI investment, and the robot fleet for $1.2 trillion.

That is the Amazon bull case. As you can see below, the market likes it. After suffering a correction in February, the stock has climbed 21% over the past month and just today broke out to new all-time highs. Count us bullish on Amazon.

The most important Iran war news you’re not hearing in the mainstream press

Credit: Ian Dewar Photography

This week, the market is sending us more signals that the U.S. economy is doing much better than most people think. On Thursday, shares of Union Pacific (UNP), CSX Corp (CSX), and Norfolk Southern (NSC) rallied to all-time highs.

The companies above are three of America’s largest railroad companies… and their stocks are among the market’s strongest performers this year. Their surging stock prices are very positive “real world” economic indicators.

The story here is essentially the same as the soaring stock prices of America’s most important trucking firms, which we detailed on April 22.

The railroad industry is not glamorous. There are no “rock star” CEOs in railroads like there are in technology. You’re never going to see a long and hyperbolic financial newsletter promo about it. No money manager or financial guru will go viral for a big call on it.

However, railroads are a “mission-critical” component of the U.S. economic system. They transport vital resources, including coal, chemicals, grain, lumber, and cement. Around 75% of new cars sold in the U.S. spend time on a train. Railroads haul enormous amounts of electronics, clothes, and building materials. Thus, they are essential vessels of the economy’s circulatory system.

This means the stocks of railroad companies such as Union Pacific are “highly economically sensitive” and powerful financial indicators. These stocks do well when America is making things, buying things, building things, and transporting things.

This week, despite concerns that the war with Iran could constrict Middle Eastern flows of oil, natural gas, sulfuric acid, and helium and wreak havoc on the economy, the stock prices of these companies reached new one-year highs.

The surging railroad stock group joins the surging hotel stock group, the surging trucking stock group, surging Cummins (CMI), and surging Caterpillar (CAT) to collectively sing the same song: The market clearly siding with the Optimists in the big Iran debate playing out in the financial world right now. The market is saying the economy is doing much better than most people think. Conduct your financial affairs accordingly!

This under-the-radar AI infrastructure trend just powered to new highs. Are you benefiting?

Credit: Nikada

If you’ve been reading – or happen to know – one of the many financial gurus and analysts who have been bearish on AI development, send them well wishes – or even prayers – today.

After all, they’ve had a very rough 12 months. They’ve been run over by the decade’s most powerful financial megatrend.

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… one that has produced dozens of 100%+ stock winners.

Now, more than three years into this huge boom, big tech firms Meta (META), Google (GOOG), Amazon (AMZN), OpenAI, and Microsoft (MSFT) are engaged in an epic race to build the world’s best AI models and infrastructure. They’ve already spent more than a trillion dollars. This year, they are on pace to spend over $700 billion on AI infrastructure, with more than $3 trillion expected to follow. It’s the largest collective investment effort in all recorded history.

During this boom, many AI skeptics have said big tech’s 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.

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.

Today, the bears took another beating as the VanEck Semiconductor ETF (SMH) advanced 3.7% to reach new all-time highs. This ETF is one of the most prominent embodiments of the AI infrastructure super boom that so many people have been on the wrong side of. It has demolished the “AI bust” thesis by soaring 139% over the past year.

Plus, one of the unsung, under-the-radar heroes of the AI super boom – the semiconductor equipment group – surged to all-time highs today.

Semiconductor equipment makers play a special role in the AI megatrend. They do not build semiconductors themselves. Instead, they provide a wide range of services and equipment that enable semiconductor production. They sell fabrication machines, chip components, and provide testing services, among other vital services that make the semiconductor industry go. They sell picks and shovels to the companies making picks and shovels.

No semiconductor equipment industry, no AI boom.

The three U.S. leaders in semiconductor equipment are Applied Materials (AMAT), Lam Research (LRCX), and KLA (KLAC). Each firm holds a dominant role in the AI semiconductor equipment industry, is enjoying terrific revenue growth, and is enjoying 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. 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.

Market Notes

• Our January 30th recommendation to continue owning the memory theme has done well. Micron (MU) just hit another yearly high. It’s now up 544% over the last year.

• Our October 7 recommendation to own the power grid upgrade is paying off. Monolithic Power Systems (MPWR) just hit a new high, and it’s up 178% over the last year.

• Our recommendation to be long the robotics megatrend continues to pay off. Semiconductor and robotics leader Teradyne (TER) reached a new all-time high today.

• America’s largest funeral service firm – Service Corp International (SCI) reached a new all-time high today. The stock is a grim beneficiary of the aging Baby Boomer trend.

• Our March 6 recommendation to own the chemicals industry is proving to be well-timed. Chemours (CC) just hit a new high.

Regards,

Brian Hunt
Editor, Money & Megatrends

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