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AI Energy Trading Has Plenty of Room to Run… Why Was This Stock Soaring 50%+ Last Thursday… The Average SpaceX Investor Is Likely to Lose Money Right Now… How to Profit from Wall Street’s ‘Time Machine’
nvidia (NVDA) CEO Jensen Huang pulled no punches last week:
The United States lags woefully behind in energy production.
He made the comment in Sherman, Texas, at a flagship event for Nvidia’s $2 billion manufacturing expansion.
But Huang’s endorsement of the AI energy theory did not stop there:
Artificial intelligence factories will become the infrastructure for the new industrial revolution…
Ten years from now, I think we will look back and realize that AI is what made it possible to invest in sustainable energy, modernize our energy grid, and reshape the workforce.
Reading between the lines, Hwang just said that the US power grid is not built to meet what AI requires of it — and we have a long way to go before we reach its speed.
So, for investors wondering how to invest in AI at this point in the cycle, this is one of the clearest roadmaps from one of the most credible voices possible.
Our technology expert Luke Lango, editor Innovation investorThis thesis has been followed closely. Here is from last Wednesday’s daily notes:
AI builds outpace the energy infrastructure beneath it, and this gap is a non-discretionary, multi-year structural demand cycle for the entire power and energy supply chain – core nuclear, fuel and services, SMR, grid and electricity, data center power and cooling.
Jensen just stood up in Texas and confirmed what we already knew: AI needs more power, America didn’t build it, and companies that fix that are indispensable.
Luke recommends a lead basket AI shares Across this supply chain in Innovation investor. While I’ll save them for his subscribers, I’ll share with you some of the ones I highlighted in last week’s daily notes that fall in the direct path of this structural demand gap:
- On the basic nuclear side, energy constellation (CEG) and view (VST) They are the largest operators of current US nuclear capacity.
- For uranium fuel and services, see Kamiko (CCJ) and PWX Technologies (BWXT).
- For exposure to SMRs with higher risk and higher reward: oklo (Yes) and Noscale power (SMR).
- On the grid and electricity side, Quanta Services (PWR) and Hubble (center) They are two companies that are actually building and modernizing the transportation infrastructure needed to do all of this.
Bottom line: Huang just endorsed this trade. If you’re looking for how to invest in AI today, start your research here.
Now, if Hwang is right, energy trading using AI could deliver huge returns in the coming years.
But last week, some subscribers received a similarly huge payout overnight…
When two analysts are down on the same stock independently, it’s worth paying attention
Last week, veteran trader Jonathan Rose messaged me after realizing he and Luke were both making the same trade right now – and it just blew up.
In the middle of this overlap is Butterfly Network Company (Pfly)
Jonathan put his Masters in Commerce: All Access Subscribers to two call sites on BFLY. Meanwhile, Luke, who heads the trading service Breakout traderjust issued a new trade alert of the same name last Tuesday.
Jonathan’s and Luke’s subscribers had a big day last Thursday when BFLY shares rose 56%. It has been pulled back a bit by profit taking as I write on Monday morning, but it is still very high.
Two analysts, two different methodologies, same overnight vertical return.
So, what drives it?
Last week, AI imaging company Midjourney announced the launch of Midjourney Medical — a new healthcare division — along with a prototype of a 60-second full-body ultrasound scanner called Midjourney Scanner.
Each module includes 40 of Butterfly’s on-chip ultrasound modules. Midjourney’s stated ambition: to deploy 5,000 “Midjourney Spas” and 50,000 scanners globally by 2031.
This is a potential supply relationship of enormous scope for a company with a market capitalization of approximately $1.4 billion.
The market certainly thinks so, leading to a 50% rally last Thursday.
What makes BFLY particularly interesting is that Luke and Jonathan got there in very different ways
Luke Breakout trader The service is built around staging analysis – a framework that removes fundamental noise and focuses entirely on price structure.
The thesis is simple: stocks go through four phases (base building, uptrend, top, downtrend), and the only time you want to own something is when it’s in a clean uptrend from phase two.
Luke spotted BFLY breaking out of a three-year fundamental pattern with all three major moving averages turning higher and an RSI reading indicating strong momentum below overbought.
For Luke, the primary story was secondary. Price was the signal.
Jonathan got there through a different lens – the long-term strategic picture of where butterfly chip technology fits within the emerging brain-computer interface ecosystem.
He was tracking the company’s five-year co-development agreement with Forest Neurotech, whose leadership recently joined Merge Labs (Sam Altman’s latest venture). The hardware connection between BFLY’s ultrasound-on-a-chip technology and the non-invasive BCI research underway at that organization made Butterfly interesting ahead of this week’s Midjourney news.
Same stock. Completely different maps. Huge returns.
Luke’s subscribers, which entered trading last Tuesday, are up almost 50% as I write.
Jonathan’s subscribers, who play with options, have received triple-digit profits – last week, one subscriber reported a 400% win.
Below is a screenshot of some of those subscribers writing to Jonathan. If you can’t read them, here are some to give you an idea:
- “300% on BFLY. Thanks JR.”
- “344% on BFLY… Thanks JR for the great deal!!”
- “Out of 205% of BFLY, thank you JR.”
- “400% on BFLY, thank you Junior!”
If you missed BFLY, don’t worry…
Back on May 8 — more than six weeks before the 56% BFLY session — Jonathan posted a free article titled “Follow the Money: 7 Sam Altman Stocks to Buy Before the Market Starts“BFLY was one of his top two choices.
While the Midjourney Medical partnership that sent BFLY soaring last Thursday was a different catalyst than the one Jonathan originally sketched, the fundamental reason why BFLY is worth owning hasn’t changed — just deepened. The stock was already in the way of serious capital.
If you missed the BFLY step, This piece is still worth reading. It covers six other stocks that are on the same Sam Altman capital map — including what Jonathan considers the cleanest Altman name publicly traded at the moment.
For those interested in a glimpse Masters in Commerce: All Access Winners like BFLY, I suggest Verified by Jonathan Masters in Trading 7 Day Challenge. It provides a step-by-step trading system designed for beginners. You can find more information on how to join here.
And for Luke’s continuing work in defining the second stage Breakout trader, Click here.
Congratulations to all Masters in Commerce: All Access and Breakout trader Subscribers!
Looking back, not all AI-adjacent commerce works in this straightforward way, of course. And the contradiction between what happened with BFLY and what is happening with it SpaceX (Spex) Helps clarify this point.
Is SpaceX following a historical IPO pattern?
In our June 11 digesturged us to be cautious about SpaceX’s IPO. Not because the company isn’t exceptional, but because 45 years of data from the leading expert on IPOs — Professor Jay Ritter — says that individual investors who buy in on the euphoria of day one tend to regret it.
Now, as expected, SPCX is up out of the gate. After pricing its IPO at $135, the stock rose to an intraday high above $225 on June 16. But since then, it has declined by about 25%.
according to CNBC Last Thursday, the five-day weighted average price was around $181, and the price has fallen further since then. It’s down about 10% today as I write.
This means that the average investor who bought on the open market after an IPO saw almost all of his post-IPO gains disappear, and is now likely to take a loss.
We’re not gloating – for all we know, the SPCX could double by the end of the week, and these investors could enjoy a huge payday.
But the historical data we mentioned in digest This suggests that this pattern is repeated often, and even now history is repeating itself.
This means the broader point we made on June 11 digest It still stands – and Luke explained it better than anyone before the IPO arrived:
The biggest gains from tech IPOs never go to investors who bought on day one.
They went to investors who owned the ecosystem around those companies before Wall Street came along to reprice it.
Luke calls this “Back door before IPO— a group of publicly traded companies that power, power, and benefit from the creation of AI infrastructure, and which are believed to be significantly repriced the moment their S-1 IPO filings arrive.
OpenAI and Anthropic are still in the pipeline. The window he was describing — owning the ecosystem before the advent of Wall Street — has not yet closed. Click here for more of Luke explaining what he sees.
This brings us to the toughest question running through these three stories…
How do you find the next AI energy play, or the next BFLY, before Wall Street finds it?
This question has a systematic answer…
One of the most reliable instincts in investing is to look one step beyond the obvious story
It’s the thread that runs through everything we’ve covered today — Luke’s AI power basket is one step away from the infrastructure just validated by Jensen Huang… Jonathan and Luke found BFLY right before it exploded… And SpaceX’s entire pre-IPO backdoor is built on the idea that the real money is in the peripheral players, not the main name.
But although this idea is easy in theory, it is difficult to implement…
Most retail investors don’t have the time or tools to solve it. Frankly, most newsletter analysts don’t do that either, because that would require scanning a universe of hundreds of companies across sectors, filtering out fundamental and technical metrics simultaneously, and doing it early enough to matter.
This is exactly the problem that Mark Chaikin has spent his career building tools to solve.
Longtime market followers will know Mark by his Power Scale — a 20-factor rating system he spent decades developing, which now covers more than 5,000 stocks. He’s used this framework to navigate some of the market’s most turbulent moments, including the coronavirus crash and the 2022 bear market.
Now he and colleague Joe Austin — a former portfolio manager who managed more than $10 billion in assets during a 40-year career on Wall Street — are unveiling what they call the most powerful tool they’ve ever built: an AI-powered platform that scans decades of market history to find stocks whose fundamental and technical “fingerprints” closely match the early profile of multiple proven companies, before Wall Street went viral.
They’re calling it a time machine, and they’re displaying it like this for the first time Wednesday 24 Junein free broadcast. If you’re interested in a systematic, quantitative-based approach to finding the next generation of AI winners, this is the event for you. You can reserve your seat here.
We’ll keep you updated on all these stories here at digest.
I wish you a good evening,
Jeff Remsburg
