Dear Reader,
Good morning. Happy Monday!
Today I want to talk about a very bullish sign:
Capital Spending in AI. This is a BIG story.
—My Top 3 Takeover Targets for 2025—
This new report reveals:
“NVIDIA’s #1 Takeover Target for 2025”…
“Amazon’s #1 Takeover Target for 2025”…
And “Big Pharma’s #1 Takeover Target for 2025.”
We just re-opened this limited opportunity for a brief window. Go here now to get our Top 3 Takeover Targets before it’s offline.
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Amazon announced earnings Thursday after the closing bell, disappointing investors.
Their top-line growth was 3-4%, maybe 6-7% on a currency-adjusted basis, which is the lowest since the firm went public.
But what’s interesting is the company’s expecting to spend $105 billion, up 35%, mainly investing in AI.
Google owner Alphabet plans to spend $75 billion – up 50%.
Meta plans to spend $65 billion, up 40%.
Microsoft, $84 billion – a near 100% increase over two years.
This really speaks to two things…
One, it shows DeepSeek really hasn’t stopped this.
These companies obviously still believe they’ve got to spend massive amounts of money to stay ahead in the AI race.
But remember, DeepSeek only came out a week or two before earnings anyway, so they’re probably going to take the next few months to digest this…
Which means the hit to Nvidia, where a lot of this spending is going, and basically AI infrastructure, certainly isn’t going to be as bad, at least this quarter.
So that spares Nvidia for those of you who have been writing in and asking.
Now, there are a handful of companies not named Nvidia that are very likely going to benefit from this.
I’ll go into those in a second, but I’ll tell you something – the other thing that’s very interesting about this capital spending is it really turns the software AI model on its head – all this spending on AI.
Because when you think of big capital spending, you think of companies like General Motors – having to build a new car plant or completely overhaul its existing plant every 20 or 30 years, which costs a lot of money – especially in inflationary environments.
The cost to replace or retool a plant after years of inflation is a lot higher than the cost to build it the first place.
But now we see these Magnificent Seven, tech companies, starting to have massive capital spending investments much like traditional American companies like General Motors.
One of the big, attractive things about these companies in the past has been that they did not have that problem.
We now see them now turning into very mature, very expensive companies.
You really can’t replicate them without a ton of money.
So all this capital spending from these tech giants will benefit a bunch of companies. This is a very bullish sign.
We’ve talked a lot about the bearish signs in the markets, so I wanted to share with you this bullish one.
One of the companies that will benefit (that’s not named “Nvidia”) is Broadcom.
Now, that stock is already up 623%, so that capital spending is largely baked into the stock price at this point.
Micron Technology, for those of you who own it, should do well.
So should Amphenol, which makes connectors that go into Nvidia chips.
The best way to play this, though, is with one company that basically has a monopoly, and is critical to every single Nvidia chip designed.
This company’s designs are in 90% of all smartphones.
You are paying this company a “royalty” and don’t even know it.
Their designs are so powerful, Nvidia tried to buy the company. But Biden’s FTC blocked the deal.
Now, this company just came out with earnings and its business is going gangbusters – up 30, 40%.
And it’s cheap relative to its prospects.
We believe with Biden’s Justice Dept. and FTC out and Trump’s in, we will see a LOT of takeovers.
This company is a critical target – they have a monopoly, and they get “royalties” on every Nvidia chip already. They are the “power behind the throne.”
That’s why Nvidia tried to buy them. I know Nvidia doesn’t want them to get bought by someone else.
So we believe, on the prospects alone, this company is a great investment.
But that it’s such an attractive takeover target for Nvidia and so many other companies makes it an urgent, great investment.
I just did a webinar on where we see takeovers going under Trump.
And for new subscribers posted a brand-new report with all the details on:
“Nvidia’s #1 Takeover Target”…
“Amazon’s #1 Takeover Target”…
And “Big Pharma’s #1 Takeover Target.”
The webinar link expired but we just opened access for a limited time to a summary you can get right here.
Have a great Monday.
“The Buck Stops Here,”
P.S. We believe these 3 new Buy Alerts could double your money or more in Trump’s first 100 days in office.
But you have to get in right away to see those gains.
