Asset manager Louis Navellier believes a Trump election victory is a lock and that means one thing for an already hot stock market…
Rocket fuel!
A “Trump AI Boom” is going to cause a small subset of stocks to soar to new highs and we reveal what they are for free in this teaser review.
The Teaser
Before global conflicts are quelled, the border is closed, and the January 6th protestors are all pardoned, an executive order will be issued that stuns the world.
Louis has more credibility than most investment newsletter authors, as he's the Chief Investment Officer of a legit asset management firm with nearly $1 billion in AUM, located in the swing state of Nevada.
Trump has already stoked the current tech boom by issuing Executive Order #13,859 in 2019.
Its purpose was to “strengthen the nation's capabilities in artificial intelligence (AI) to promote scientific discovery, economic competitiveness, and national security.”
This created a favorable environment for AI investment, which jumped by over $300 billion over the past five years, causing the “Big Five” stocks of Nvidia, Microsoft, Alphabet, Meta, and Amazon to outperform the S&P 500 four times over:
Now, if Trump is elected on November 5th, he could help usher in the next phase of the AI boom.
Power, Baby, Power
Trump is a big proponent of extracting more of America's vast underground oil reserves, which could be as high as 264 billion barrels.
He famously summarizes his energy policy into three words: “Drill, baby, drill,” and after re-taking office, his first executive order will be on energy.
To be more specific, he will unleash the cheap, abundant, readily available underground energy to solve artificial intelligence's biggest problem – power, baby, power.
Louis correctly states that energy has been “the secret sauce” of every American boom.
From water during the agricultural boom to coal being at the heart of the industrial revolution, and oil and gas driving innovation during the 20th century.
The rise of AI is no different, as it needs a cheap, abundant power source to sustain it, and Louis has found a few companies that will supply it.
The Pitch
Louis has put the names of all these stocks in a special briefing called “The Trump AI Boom: 3 Data Center Stocks with Extreme Upside Potential.“
All we have to do to get it is subscribe to a risk-free trial of Louis' Growth Investor newsletter.
The cost to join the Growth Investor is $99 and it includes a 90-day money-back guarantee, 12 issues of the newsletter containing at least one new stock recommendation, and free access to Louis' proprietary ratings on over 6,000 stocks to determine which are buys, and which ones to avoid.
Two Billion Years of Energy
As I write this, local governments, tech companies, and others are scrambling to get access to more power and transformers are getting snatched up like loaves of bread during a famine, but there is only so much to go around.
Even worse, the current energy grid is already struggling, while data usage is expected to grow by over 75% in 2025 alone, and even more after that.
This has led some industry insiders to say that “we could run out of power for AI data centers as soon as 2025.”
It's AI’s biggest hurdle and one that could stunt its growth if it isn't addressed soon.
This is where Trump's first act as President comes in.
If Louis is right, it will roll back all of the environmental regulations Biden slapped on the oil and gas industry, open up more land and sea for oil and natural gas drilling, and build more natural gas infrastructure as soon as possible.
There are more than 625 trillion cubic feet of natural gas under the ground in America, ready to consume, which is enough to meet AI's projected power demand for the rest of the decade and beyond.
Hundreds of data centers will come online if the energy tap is turned on and a few companies are positioned to reap outsized profits.
Revealing Louis Navellier's Data Center Stocks
A few clues are dropped about each of Louis' picks, starting with a leader in cloud security.
Data Center Stock #1
- Its solutions will protect all of the data coming in and out of AI data centers.
- The company already processes over 400 billion transactions every single day.
This is Zscaler Inc. (Nasdaq: ZS).
- Zscaler is a cloud security company that provides cloud-based services to protect enterprise networks and data.
- Zscaler's Zero Trust Exchange processes over 400 billion transactions and 5 trillion security signals from around the world every day.
Data Center Stock #2
- The company is introducing a revolutionary new way to distribute power in data centers.
- It’s opening up hyperscale facilities in Paris, Washington DC, Seattle, and even India, and it already has 4,200 locations in 134 countries.
Louis' pick here is Akamai Technologies, Inc. (Nasdaq: AKAM).
- Akamai is a distributed edge and cloud platform that provides solutions to data centers and other businesses.
- Its footprint spans more than 4,200 locations across 134 countries, including edge computing facilities in India.
Data Center Stock #3
- The only clue we got about this pick is that it's “combining data centers with Bitcoin mining.”
There's no way to be sure given the dearth of clues, but this sounds like Iris Energy Limited (Nasdaq: IREN).
- Iris owns and operates next-generation Bitcoin mining data centers.
Big Bucks From The Next Phase of the AI Boom?
More than $1 trillion will be spent on AI data centers over the next couple of years.
So it's clear that this is where the next wave of AI winners will likely emerge. The only question is, will Louis' picks be those winners?
Here is how each stacks up:
Zscaler: The global cybersecurity market is growing at a brisk double-digit pace, which Zscaler is currently exceeding with its 30% top-line growth. It has an early-mover advantage, but I don't expect this kind of growth to last.
Akamai Technologies: Another service provider, albeit a more profitable one than the last pick. Its margins and key metrics, like Return on Equity, aren't great, and it is loaded with too much debt for a non-capital-intensive business.
Iris Energy: In the midst of transitioning from a primarily Bitcoin mining business to a data center biz, but this won't fully happen until late 2026, as per its half-year 2024 results. The stock should get a bump as its pivot continues.
I was hoping Louis would go down the supply chain to oil and natural gas royalty plays and utility providers as a way to play the data center boom.
He does this more in another special report – How to Profit on Trump’s First Executive Order, but no details are provided on those picks in this teaser.
If resources such as water, natural gas, nuclear power, and electricity are what is going to power data centers, and in turn, AI, I would look here first and go up the chain.
Quick Recap & Conclusion
- Louis Navellier believes a Trump election victory is a lock and that means a “Trump AI Boom” in a small subset of stocks that are set to soar to new highs.
- Trump's first executive order after re-taking office will be on energy and this will kick off an AI data center boom.
- The only way to get the names of all of these stocks is in a special briefing called “The Trump AI Boom: 3 Data Center Stocks with Extreme Upside Potential.” It's ours with a $99 subscription to Louis' Growth Investor newsletter.
- If you read till the end, we revealed all of Louis' picks for free as Zscaler Inc. (Nasdaq: ZS), Akamai Technologies, Inc. (Nasdaq: AKAM), and Iris Energy Limited (Nasdaq: IREN).
- The best of the bunch is IREN, but a better way to play the data center boom is by going downstream and investing in resource suppliers and power providers, in my humble opinion.
What do you think the best way to play the AI data center boom is? Let us know in the comments.