Earnings360 Newsletter for 12/10/2024

In 2000, I warned Barron's that a popular dot-com stock was headed for trouble. It dropped 90%. Now I'm making the opposite call on that same company: buy it now. This stock has become the lifeblood of AI data centers, yet almost no one has caught the story. While the media focuses on AI chip wars, they've missed this company's essential role in building out data centers. Their hardware is so critical that a single building uses enough of it to stretch around the world eight times. If you own Nvidia, you might want to pivot. If you missed Nvidia, this is your second chance at the AI data center buildout happening worldwide.

President Trump's Executive Order 14365 classified advanced AI, chips, and compute as "strategic national assets" — placing them under direct federal protection and establishing a DOJ AI Litigation Task Force to clear regulatory obstacles. The government is also taking equity stakes in companies like Intel, MP Materials, and Lithium Americas, signaling a shift from market referee to active participant in the AI race. Investment analysts Porter Stansberry and Luke Lango believe this represents a fundamental regime change in how capital flows through the economy, and they've released a briefing identifying the stocks they believe are best positioned to benefit from this shift — and the ones they say investors should exit.