Three stocks to invest in an industry guaranteed to soar in size

Listen to the audio version of this article (generated by AI).

Today’s issue in preview:

• Three stocks to invest in an industry guaranteed to soar in size

• Soaring AI Power demand is driving a bull market in this unique technology. How to invest.

• The next big AI trade is leaving the station. Are you on board?

• Our incredible track record gets better: Thematic trades in Genomics, Semi Equipment, Cybersecurity, and Longevity run to new highs

• Learn our Top Themes to buy now

Soaring AI Power Consumption is driving a bull market in this unique technology. How to invest

Credit: imaginima

On April 28, energy infrastructure firm Bloom Energy (BE) reported an extraordinary 130% year-over-year increase in quarterly earnings.

Bloom produces fuel cells that help power AI data centers. The company’s unique products allow AI data center owners to get up and running without depending on conventional electric grid systems.

Bloom’s incredible growth is a result of the mad dash to get AI data centers the electric power they need to get up and running by any means necessary. This mad dash has propelled Bloom’s stock to a 1,109% gain over the past year.

Avid Money & Megatrends readers know the “bull case” for this trend.

Given AI’s enormous promise, large tech firms such as Google (GOOG), Amazon (AMZN), OpenAI, and Meta (META) have invested over $1 trillion in specialized semiconductors, data centers, and other AI infrastructure components. They are on pace to invest over $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.

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.

AI’s soaring electricity demand far exceeds the conventional power grid’s ability to meet it. So, AI companies are finding all kinds of alternatives and workarounds. The urgency of the situation and the astronomical sums involved demand it.

This is all bullish for power infrastructure firms like Fluence Energy (FLNC).

Fluence is in the BESS business.

BESS stands for Battery Energy Storage Systems. A BESS is essentially a giant battery. It stores energy from sources such as wind and solar, or from conventional fossil fuels.

This big battery hardware is paired with software that actively decides when to discharge electricity into the grid or to a large power user such as a data center. BESS technology is a critical component of energy infrastructure in areas that can generate substantial solar and wind energy.

As the world builds more renewable energy infrastructure, the need for storage alongside it grows. You can’t run a grid on solar and wind alone without having storage systems that can supply power when the sun isn’t shining, and the wind isn’t blowing. That’s where BESS comes in. McKinsey estimates BESS capacity to grow between 2-2.5x over the next 4 years.

Fluence is a $3.4 billion builder and operator of BESS. Its customers are utility firms and data center operators currently in the “mad dash” to get data centers up and running to meet soaring market demand.

Fluence’s 2026 revenue guidance sits at $3.2 billion to $3.6 billion. Its backlog is at $5.6 billion. In other words, the company’s contracted future revenue exceeds its current market cap. We told you demand for electric power is booming.

As we’ve covered in these pages, the AI Power Consumption boom is driving big returns in E&C stocks, Power Grid Upgrade stocks, and energy pipeline stocks. We expect it to drive strong returns in the BESS business as well.

Three stocks to invest in an industry guaranteed to soar in size

Credit: ultramarinfoto

Over the past nine months, we have written over two dozen research notes on the bull market in health care. It’s a massive, diverse industry encompassing biotech, genomics, senior living facilities, and medical devices.

Our bullish position on this trend has been richly rewarded, as many of these facets are among the top-performing investment themes of the past six months. Biotech and genomics, for example, surged to new one-year highs in June. Our proprietary market leaders lists are chock-full of health care firms.

I’m a firm believer in doing more of what’s working and investing with megatrends that are working in my favor. With that in mind, let’s dig into the ophthalmology industry.

Ophthalmology is the branch of medicine that deals with the diagnosis and treatment of eye disorders.

There are 2.2 billion people on earth with some form of visual impairment – that’s more than one in four people alive today.

And here’s the part that should get your attention as an investor. Of those 2.2 billion, at least 1 billion have a condition that could have been prevented or treated but hasn’t been. The gap between the scale of the problem and the quality of care being delivered is enormous. But that gap is poised to get smaller. The companies working to improve outcomes are poised to make investors a lot of money.

Here’s why:

The eye is one of the most data-rich organs in the entire body. A single retinal scan contains thousands of data points – blood vessels, nerve tissue, fluid levels, cellular structure. For decades, reading those scans relied on the expertise of a specialist. AI systems can now analyze retinal images and diagnose conditions such as diabetic retinopathy, AMD, and glaucoma with precision exceeding that of human experts.

Just as AI and genomics are being fused to create personalized drug treatments, AI and gene therapies are now driving the biggest changes in ophthalmology.

The numbers tell the story. By 2050, an estimated 61 million people will be blind, and 474 million will have moderate to severe impairment – nearly double today’s figures. This is because of an aging population and a population that is highly prone to diabetic retinopathy, glaucoma, and AMD. The patients and the addressable market are there and desperately need the technology to treat them at scale.

Three names stand out to us right now. Here they are:

Harrow (HROW) is a $1.5 billion company and one of the purest plays on this theme. It’s a pharmaceutical company that produces prescription eye drops and ophthalmic drugs. Harrow’s products are not typically found at neighborhood pharmacies. They are specifically prescribed by eye specialists. The company has a strong track record of revenue growth and is well-positioned to benefit from an aging population.

Ocular Therapeutix (OCUL) is a $2 billion biotech developing next-generation drugs for retinal diseases. It is potentially sitting on one of the most underappreciated clinical breakthroughs in eye care in recent years. It recently announced positive Phase 3 results for its drug AXPAXLI. This will make it the first drug to beat the current best-in-class drugs for wet AMD – a disease that causes irreversible vision loss affecting tens of millions of people. With $667 million in cash providing runway to 2028, the upside here could be substantial relative to the risk.

Alcon (ALC) is a $40 billion company that is the largest and most pure play on the theme. It makes the surgical equipment used in cataract procedures, the intraocular lenses implanted during those surgeries, and a broad range of consumer vision products, including contact lenses and dry eye drops. It makes it the blue-chip anchor of this group. Revenue growth is now fairly slow, but EPS growth is set to grow around 18% annually through to 2029, which at 18x NTM EPS makes this a safer bet on the theme.

An average of 11,000 Americans turn 65 every day. This is the enormous Baby Boom generation growing older… and entering the phase of life where spending on health care skyrockets. As we get older, our eyes weaken and become more susceptible to disorders. This makes the ophthalmology industry one of the rare sectors where strong and growing demand is virtually guaranteed.

The next big AI trade is leaving the station. Are you on board?

Credit: piyaset

To track and trade the world’s strongest business and investment trends, we monitor over 170 industry groups, over 30 proprietary thematic indexes, and over 70 ETFs.

This trend-tracking system serves as our “all-seeing eye,” monitoring the entire financial world… designed to spot and capitalize on powerful market trends. An ant can’t crawl around, and a dollar can’t be spent without our trend tracker seeing it.

Today, our system identified the ARK Genomic Revolution ETF (ARKG) as its top-performing ETF over the past month. This means the genomic industry – with its bleeding-edge diagnostics, gene-editing innovations, and futuristic gene therapy treatments – is one of the true market leaders right now.

The legendary growth stock trader (and one of my greatest “virtual coaches” via his books) William O’Neil urged stock traders to buy the leading stocks in the leading industries. O’Neil was a powerful advocate of selecting hypergrowth themes and industries first, then leading stocks in those themes second. Owning the leading stocks in the leading industries gets not one, but two tailwinds working in your favor as an investor.

Constant Money & Megatrends readers are not surprised to see the genomics theme among the market’s leaders. Over the past few months, we’ve written over half a dozen research notes about the extraordinary upside potential of biotech and genomics.

Genomics is the science of analyzing human DNA – often referred to as the “software code of life” – to create tests, medicines, and treatments.

Years of innovation in this field have us on the brink of creating many customized treatments based on an individual’s DNA… and even “editing” genes to cure disease. Bulls on the industry believe it will get a giant “AI boost,” since super-intelligent computer programs can analyze genes and treatment effects so well… and have the potential to create drugs on their own.

The fusion of AI plus genomics should generate dozens of compelling stock narratives over the coming years. Researchers running superintelligent AI programs will be able to run millions of digital simulations of drugs and treatments. This will put medical innovation into overdrive… and create many big stock market winners.

The personalized approach to medicine that genomics offers has us on the cusp of a historic revolution in healthcare. Ten years from now, medicine will be transformed… and a lot of money will be made along the way.

As I mentioned on May 28, ARKG is one way to track and trade the genomics theme. It owns a basket of bleeding-edge genomic companies. One of its largest holdings, Tempus AI (TEM), is often cited as a premier way to play “AI in health care.” Another large holding is genomics “picks and shovels” leader Twist Bioscience (TWST).

ARKG also holds significant positions in genetic diagnostic service firms Natera (NTRA) and Illumina (ILMN)… plus positions in promising “gene editing” companies CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA).

It’s increasingly looking like genomics is being painted with the “AI brush,” a development that can turbocharge any trend or stock here in 2026. ARKG and many of its constituents hit new all-time highs today. More are likely to follow.

Market Notes

• Our recommendation to own Semiconductor Equipment stocks remains a huge winner. Industry leader Applied Materials (AMAT) soared 9% this morning to reach a new all-time high. Our industry basket is up 78% since our March 20 note.

• Our June 4th recommendation to own the Longevity Frontier is paying off well. Eli Lilly (LLY) just hit a new high along with Biogen (BIIB).

• Our March 27th recommendation to own cybersecurity stocks is still paying off. Palo Alto Networks (PANW) and Fortinet (FTNT) hit new highs today. CrowdStrike (CRWD) is up 93% since our recommendation less than three months ago. PANW is now up 49% since our recommendation.

• Our recommendation to own utilities to invest in soaring AI power demand remains a winner. Large utility Duke Energy (DUK) reached new one-year highs today.

• Telecommunications giants AT&T (T) and T-Mobile (TMUS) reached new one-year lows today.

Regards,

Brian Hunt
Editor, Money & Megatrends

An urgent message from our colleagues:

Chaikin: “A Dramatic Acceleration in AI Will Cleave the Stock Market in Two This Summer”

Marc Chaikin, the 60-Year Wall Street legend who called Nvidia before it soared 45,000%, says a dramatic shift in AI is unfolding right now behind locked doors in Silicon Valley. As AI wakes up and gains free will, Marc has prepared a FREE investment playbook specifically for this moment in history – including a backdoor, pre-IPO way into Anthropic before they go public.

All the details are FREE right here…