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AI Trading Turns to CPUs… Luc Lango with a Pick of AI Stocks to Consider… Jonathan Rose Eyes Canadian Oil Squeeze… Louis Navellier Prepares for the Warsh Era
If you act on March 19 digest And jumped in intel (Intech)congratulations – you’re up almost 150%, a move equivalent to roughly 14 times the S&P over the same period.
What is behind this boom?
A combination of growing demand for AI infrastructure, renewed enthusiasm around Intel’s foundry ambitions, and growing demand for server CPUs.
Focusing on the ‘server CPU’ element, it’s not just Intel…
As we covered yesterday digest, Advanced Micro Devices Company (AMD) — another huge maker of central processing units — jumped nearly 19% on Wednesday after strong earnings highlighted growing demand for AI data center hardware — including server CPUs.
AMD expects server CPU revenue to grow more than 70% year over year in the upcoming second quarter.
CEO Lisa Su doubled the company’s long-term forecast for the server CPU market, now expecting it to reach $120 billion by 2030 (up from a previous estimate of $60 billion).
Now, before we go any further, let’s fill in some details…
What is a CPU, and why should we care about it?
Until recently, the AI boom was defined by one thing…
Graphics processing units, or GPUs.
These specialized chips handle massive workloads simultaneously — powering everything from ChatGPT to enterprise AI systems — and have been at the heart of the AI explosion.
But as AI shifts from autonomous chatbots to coordinated AI agents (the next phase of AI racing toward us), requirements within data centers are starting to change.
This is our macro investing expert Eric Fry Fry investment report Connect this transformation:
Technology companies are now building powerful AI systems – networks of AI agents that collaborate to complete complex tasks.
Instead of answering one question, they manage the entire workflow.
This shift dramatically changes the computing requirements within data centers.
Due to this shift, a much older, less flashy piece of technology suddenly became very relevant again…
You guessed it – central processing unit, or central processing unit.
Of course, modern AI systems also rely on advanced networking, memory, and coordination software. But CPUs remain essential for directing workloads and keeping these increasingly complex systems running efficiently.
If GPUs are the engines that do the heavy lifting, then CPUs are increasingly becoming the connectors
They direct traffic, coordinate tasks, and keep everything running efficiently.
Back to Eric:
GPUs run AI models…
But increasingly central processing units (CPUs) power the system that manages artificial intelligence.
So the next phase of the AI boom may be driven not just by larger models, but by the infrastructure needed to coordinate them.
Translation: Increased demand for server CPUs.
Back to Eric:
The semiconductor industry is already seeing early signs of tightening supply for server CPUs.
Delivery times for some processors have extended to six months. Prices rose more than 10% in some markets.
This was the fundamental analysis that led us to put Intel on your radar in March. And now we have reached 150%.
We expect strong demand for CPUs to continue to push INTC and AMD higher over the next 12 months.
But the opportunity here extends beyond the CPU leaders
We also expect explosive growth to come from:
- High bandwidth memory
- Networking chips
- Interconnection between data centers
- Energy infrastructure
- AI server manufacturers
Given this array of opportunities, let’s put some new ideas on your radar today, thanks to our technology expert Luke Lango from Innovation investor.
On Tuesday, Locke topped off spending commitments of $700 billion in 2026 to build AI infrastructure, then asked… the a question…
Who benefits?
Here are some of the stocks he pointed out:
- Nvidia (NVDA) remains the main beneficiary of AI compute spending, providing GPUs for all four hyperscalers.
- Marvell technology (MRVL) builds custom chips for Amazon and Microsoft.
- Applied materials (huge), Kosovo Liberation Army Company (clutch), and L Research (LRCX) Supplying the equipment used to manufacture every chip that enters these data centers.
- Homogeneous power systems (MPWR) provides the semiconductors needed to manage power for efficient AI computing.
This list is not comprehensive. Although Locke is bullish on these companies, they are not necessarily his favorite picks in the AI space right now. To access its list of official AI recommendations at Innovation investor, Click here to learn more about joining.
Here’s Luke’s comprehensive message to investors today:
AI trading is not a narrative-based momentum trade. It’s a fundamental business based on the largest capital investment cycle in the history of technology, and is validated by real revenues, real margins, and real customer commitments.
and Businesses are on the receiving end of this spending It remains the most compelling investment opportunity on the market.
Shifting gears to the oil patch…
Over the past two days, the price of Brent crude oil has fallen from around $108 to $101 (as I write), while WTI has fallen from around $101 to $96.
As we covered in digestwas the trigger Axios The United States and Iran are close to a 14-point memorandum of understanding to end the war that has choked off nearly a fifth of the world’s oil and gas supplies, according to a report. As I write on Thursday, we are still awaiting Iran’s response to the latest proposal made by the United States
For most investors, this decline in oil prices is just a headline. By veteran trader Jonathan Rose Master of Commercethis was the final chapter in the story he had been tracking since February.
When the conflict in the Strait of Hormuz began, Jonathan was already highlighting where volatility-based opportunities might arise.
He pointed out refineries, local producers and commodity names before the crowd latched onto him – and his subscribers won a series of big victories as the conflict escalated.
Now, with oil prices falling sharply amid peace hopes, Jonathan is looking at a completely different angle – one that most traders don’t realize…
While everyone is watching the Middle East, he is looking to the Canadian oil sands
Here’s Jonathan to explain:
Bitumen — that thick, clayey oil used in Canadian oil sands — is rising to even higher levels.
To make sure we’re all on the same page, while bitumen prices have some sensitivity to fluctuations in the Strait of Hormuz, they are primarily driven by demand for Chinese infrastructure.
Oil sands producers, with low margin costs and high fixed capital, see explosive cash flow growth — and related stocks often move — when those margins expand.
More recently, margins have widened due to the “perfect storm” of higher prices and lower transportation costs.
For example, in March, Western Canada Select (WCS) Prices averaged $75.85 per barrel, about 40% higher than the previous year. At the same time, the “rebate” that Canadian producers pay to ship their oil has been significantly reduced. the Trans Mountain Expansion (TMX) It has allowed producers to access Asian markets directly, increasing industry revenues by the billions.
Which brings us back to Jonathan’s description of bitumen prices “rising” higher.
The price of bitumen, priced in Chinese yuan (because China is the world’s largest consumer), has jumped nearly 50% since January.
Back to Jonathan:
This is a huge step.
There is pressure occurring in the market that most traders do not follow.
So, how do you play it?
Jonathan built a basket of five names with direct exposure: sancor (they), Cenovus (Countering violent extremism), canadian natural resourcesKnq), imperial oil (International Maritime Organization) and Strathcona (STHRF).
in Tuesday is free Masters in Trading Live episodeHe highlighted all five, but then focused on his favorite: CNQ – low implied volatility, clean options structure, and room to head towards $60.
Instead of simply buying the stock outright, Jonathan uses options to build a risk-limited bullish position in CNQ.
The appeal of this approach is straightforward – a relatively small initial investment could yield big gains if Canadian oil producers continue to surge.
In Jonathan’s example, roughly $150 of risk could turn into $800 or more if CNQ hits the target price.
Meanwhile, risk is capped at the initial premium Jonathan pays up front – an approach Jonathan often favors when volatility creates asymmetric opportunities.
This is exactly how Jonathan works…
As the audience chases the trading that occurs in the wake of the headline, Jonathan sets himself up for the next set-up that will become tomorrow’s headline.
If you want to understand how he finds opportunities like this early on, he is Masters in Business Challenge It walks you through this exact process over the course of seven days, using real settings in real time.
Here’s Jonathan:
You’ll see how we can identify triggers, interpret important signals, and translate them into real trades – all while managing risk in real time.
You have nothing to prove. You just have to be willing to learn.
You can get more details here.
We’ll keep you updated on all these stories and deals here at digest.
Before we wrap up… Legendary investor Louis Navellier has a message for you
The Fed conversation that we’ve been tracking on digest – Interest rates are fixed, inflation is fixed, June 2027 is the new baseline – it has another aspect that caught Lewis’s attention…
He believes we are still early in a major shift in the cycle – not because interest rate cuts are coming tomorrow, but because the broader shift to a new Fed system is already underway. Historically, such shifts have been the setting for some of the stock market’s biggest winners in decades.
This happened in 1995, 2001, 2008 and 2020. Lewis believes it’s happening again – which is why he’s already looking for the right portfolio positioning.
Lewis just created a list of 53 under-the-radar stocks Stock grader The system marks. They have the same early signals he used to find some of the biggest winners in his four-decade career.
I’ll bring you more details on this over the coming days, but just a heads up: it will be livestreaming afterward Tuesday, May 13 at 1 p.m. ET To walk through it all. He will also share one of his favorite stocks for this market shift during the broadcast.
More details to come, but for Reserve your place here today for this free event, just click here.
I wish you a good evening,
Jeff Remsburg
(Disclosure: I own AMD.)
