Don’t let this common mistake hurt your wallet
The data seemed clear, but that didn’t mean the conclusions were.
During World War II, American military analysts examined bombers that returned safely from missions over Europe. They mapped every bullet hole across the plane and soon discovered that patterns emerged. The wings and fuselage were full of damage.
The conclusion seemed clear. Strengthening areas where aircraft are exposed to the greatest amount of fire.
Credit: rancho_runner
It was a completely rational reaction, but completely wrong.
Statistician Abraham Wald saw what everyone missed. The aircraft they were studying were those that He survived.
The data showed where planes could take a hit and be able to return home. The dangerous and deadly sites were invisible because those planes never returned.
In other words, the military wasn’t about to act on bad data. They were about to behave badly lesson.
This distinction – between what happens and what we think it means – is perhaps one of the most important and overlooked forces in shaping how we understand the world, and the stock market.
Is AI in a bubble?
OpenAI news sparked a tech selloff this week when The Wall Street Journal It reported that the company behind ChatGPT missed revenue and other key targets in 2025. The report noted that the company fell short of its goals of growing new users and reaching 1 billion weekly active users by the end of the year.
Following the report, Advanced Micro Devices (AMD), intel (Intech) and Qualcomm (QCom) Each fell by at least 3%. the Van Eek semiconductor box (Name it) It also decreased by about 4%.
OpenAI denied the report, calling it “ridiculous.”
But that hasn’t stopped AI bears from once again speculating that it’s all just a bubble.
from Financial audit:
from Mediation:
Then those responsible for artificial intelligence announced their profits…
Let’s start with alphabet (Google).
Google Cloud revenue rose 63% year-over-year to $20.02 billion — far exceeding Wall Street expectations of $18.05 billion. Total revenue was $109.9 billion versus $107.2 billion agreed upon, with net income up 81% from last year.
Microsoft (MSFT) Revenue was $82.89 billion, versus $81.39 billion expected, with adjusted EPS of $4.27, versus estimates of $4.06. Azure and other cloud services grew 40% — beating analysts’ range of 38.8% to 39.3%.
dead (dead) Beat on revenue – $56.31 billion vs. $55.45 billion expected, up 33% from prior year and fastest quarterly growth since 2021. Additionally, adjusted EPS of $7.31 beat estimates of $6.79.
finally, Amazon (Amzn) It was the best report of the group. Amazon Web Services (AWS) grew 28% to $37.59 billion — the fastest pace in 15 quarters, up from 24% last quarter. Total revenue of $181.52 billion beat the consensus of $177.3 billion, and earnings per share of $2.78 overwhelmed expectations of $1.64.
Construction investment continues to worry investors, but growth, order backlog and margin levels should help alleviate some concerns.
Even if OpenAI is struggling, which they vehemently deny, the rest of the big AI players are still “committed” to the AI business.
Profits cut through the noise
But this is exactly why investors get into trouble.
They don’t just interact with the data, they interact with what they do He thinks Data means.
One negative headline is “The AI boom is over.”
One sale becomes “the bubble bursts.”
But just like World War II analysts…they draw conclusions from what is visible but miss what matters.
In today’s market, this difference can mean a gap between chasing the hype and identifying the real winners early.
That’s why market pros like investing legend Louis Navellier don’t rely on headlines or speculation. Instead, they focus on the hard data that actually moves stock prices – earnings, growth, and institutional demand.
Right now, this data tells a very different story about AI.
Put Lewis in his place Growth investor We subscribed to the AI trend early, and it continues to find winners today by focusing on companies that can inevitably benefit from hyper-scale-up spending.
For example, one of the keys to the AI megatrend is power.
Global data center power demand is expected to rise by 50% by 2027, and up to 165% by the end of the decade, according to analysts at Goldman Sachs. JPMorgan analysts expect global energy demand to grow at a compound annual rate of 3.6% from 2026 to 2030, a pace 50% higher than the previous decade.
While Wednesday’s super-fast earnings got all the attention, a much smaller player, Quanta Services (PWR)It also reported profits and achieved extraordinary results.
This is the summary Lewis sent to him Growth investor Subscribers.
The company reported first-quarter adjusted earnings of $2.68 per share on revenue of $7.87 billion, representing earnings growth of 50.6% year over year and revenue growth of 26.3% year over year. The analyst community expected earnings of $2.03 per share on revenue of $6.99 billion, so Quanta Services posted an earnings surprise of 32% and a revenue surprise of 12.6%.
Quanta Services also noted that it ended the first quarter with a record backlog of $48.5 billion. Thanks to the “exceptional first quarter,” the company increased its forecast for 2026.
For fiscal 2026, Quanta Services now expects total revenue between $34.7 billion and $35.2 billion and adjusted earnings per share between $13.55 and $14.25. The revised forecast is well above current analyst estimates.
The stock rose on Thursday, and is now up 125% in the past 12 months, far outpacing the broader market’s 30% gain.
Lewis initially recommended Quanta in 2021, so his subscriber share rose more than 660%.
Lately, Lewis has been searching A new government project Being developed at a hidden government lab in Tennessee, 40,000 scientists are finishing work on an AI computer 283 trillion times more powerful than today’s data centers — extending more than 700 miles and designed to accelerate AI breakthroughs by 36,000%.
when “Golden Dawn” When the project launches, it could instantly overtake ChatGPT, Gemini, and Grok — and lead to a $100 trillion AI market reset.
The lesson of World War II bombers is simple but often forgotten
Many headlines focus on missed targets… near-term volatility… and whether the boom has gone “too far”.
But beneath the surface, the world’s largest companies are still spending billions. Infrastructure is still under construction. Demand is still accelerating.
The real opportunity is not to respond to the hype.
It’s in understanding what the noise distracts you from.
This is exactly what Louis Navellier is focusing on now.
And with breakthrough projects like “Golden dawnOn the horizon, the next wave of AI winners may already be taking shape — long before most investors realize it.
Enjoy your weekend,
Luis Hernandez
Editor-in-Chief, InvestorPlace
