Here is Why You Buy Now

The AI Stock that’s Disrupting Every Industry U.S. corporations are sitting on a ton of cash, and they have something to spend money on                                                                                                      [outsider club logo header] May 23, 2024 By Briton Ryle Here is Why You Buy Now I realize I might be tempting fate here. The stock market gods are spiteful. They like to reward hubris with a sound smiting. But I’m going to say it anyway: the stock market has a fantastic outlook. Commodities like copper and silver are rallying. That’s good for the asset, but also for the miners. The outlook for growth in the electricity generation and transmission market means utilities are now momentum/growth stocks as they sign supply agreements. Power generation like natural gas, solar, and even nuclear are rallying… Tons of new data centers are in the works, which will help construction. New AI servers are getting bought. Google (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN) and Meta (NASDAQ: META) each have CAPEX numbers in the mid-$30 billion range. Microsoft and Apple are adding AI functionality to their new laptops. Throw AI into iPhones and we could see a supercycle for laptops and smartphones that we haven’t seen in at least 6 years. It’s an AI market. The AI boom has spread to every corner of the S&P 500. That is not a bad thing… It has been a long time since we enjoyed a rising tide bull market that lifted all ships. Maybe the housing boom in 2003-2005. Simply put, U.S. corporations are sitting on a ton of cash. Typically they just do share buybacks to improve valuations and get incremental stock price gains. Now they have something to spend money on and are investing in future growth. Again, this is not a bad thing. ----- From A Carefully Selected Advertiser ----- The AI Stock that’s Disrupting Every Industry Move over Nvidia. There’s a new hot AI play that has soared 960% in the past year. Nvidia better watch out, at least in terms of stock performance. One high-flying artificial intelligence stock has soared 960% over the past year and may soon become as familiar as Nvidia… …the dominant, better-known, and far larger maker of AI processors. [Here's the Ticker ]( ---------------------------------------------------- The Rising Tide The stock market tends to be bullish. Savita Subramanian, Bank of America’s head of US Equity and Quantitative strategy, is one of the best analysts on Wall Street. She recently shared her research going back 300 quarters. Out of the last 300 quarters, she found that “20 were recessionary, 13 were stagflationary, and 90% of the time things were OK…” In other words, don’t be afraid to make hay when the sun is shining. Because it’s usually sunny out. Now, in particular… [On March 10, I wrote](about a couple of stocks that would benefit from new Biden administration tariffs on China. First Solar (NASDAQ: FSLR) was trading for $195 a share when I wrote that First Solar would be a big winner from tariffs on Chinese solar panels. [FSLR one year] First Solar shares are up $55 over the last few days—nearly 30%. This move is not an outlier. There are a lot of companies out there who are selling more of whatever it is they sell. Enphase (NASDAQ: ENPH) makes microinverters that convert the sunlight that solar panels capture into electricity. The stock was a former market darling. It was over $180 a year ago… [ENPH one year] Yesterday, the stock broke over $120, up around ~10%. Because if First Solar is going to sell more solar panels, Enphase will sell more microinverters. If you peg the start date from last March, right after the mini-bank crisis, this bull market is 14 months old. If you calculate it from November when Fed Chair Powell promised interest cuts this year, then the bull market is only 6 months old. The good people at Bespoke Investments say the average bull market lasts around 3 years. There is room for stocks to run, and keep running. It is time to make hay (and money). Godspeed, Briton RyleChief Investment Strategist[Outsider Club]( X/Twitter:[( You May Also Like: If you haven’t checked out Hammer’s favorite trade: [(  Here are some utility stocks we like: [(  If there’s one sector that’s missing out on the bull market, it’s this one: [(       Follow the Outsiders This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Osprey Financial Research LLC, 5004 Honeygo Center Drive Suite 102-202