The AI trade shifts to CPUs… Luke Lango with a batch of AI stocks to consider… Jonathan Rose eyes a Canadian oil squeeze … Louis Navellier is positioning for the Warsh Era
If you acted on our March 19 Digest and jumped into Intel (INTC), congrats – you’re up about 150%, a move that’s nearly 14X’d the S&P over the same period.
What’s behind this surge?
A mix of rising AI-infrastructure demand, renewed enthusiasm around Intel’s foundry ambitions, and growing demand for server CPUs.
Zeroing in on that “server CPU” element, It’s not just Intel…
As we covered in yesterday’s Digest, Advanced Micro Devices Inc. (AMD) – another huge CPU maker – jumped nearly 19% on Wednesday after strong earnings highlighted surging demand for AI data-center hardware – including server CPUs.
AMD forecast that server CPU revenue will grow by more than 70% year-over-year in the upcoming second quarter.
And 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’s a CPU, and why should we care?
Until recently, the AI boom has been defined by one thing…
Graphics processing units, or GPUs.
These specialized chips handle massive workloads all at once – powering everything from ChatGPT to enterprise AI systems – and they’ve been at the center of the AI explosion.
But as AI shifts from standalone chatbots to coordinated AI agents (the next phase of AI that’s racing toward us), the demands inside data centers are beginning to change.
Here’s our macro investing expert Eric Fry of connecting that shift:
Technology companies are now building agentic AI systems – networks of AI agents that collaborate to complete complex tasks.
Instead of answering one question, they manage entire workflows.
That shift dramatically changes the computing demands inside data centers.
Given this shift, a much older, far less flashy piece of technology suddenly becomes critical again…
You guessed it – the central processing unit, or CPU.
Of course, modern AI systems also rely on advanced networking, memory, and orchestration software. But CPUs remain central to directing workloads and keeping these increasingly complex systems operating efficiently.
If GPUs are the engines doing the heavy lifting, CPUs are increasingly becoming the conductors
They direct traffic, coordinate tasks, and keep everything operating efficiently.
Back to Eric:
The GPUs run the AI models…
But the CPUs increasingly run the system that manages the AI.
So, the next phase of the AI boom may not be driven solely by bigger models, but by the infrastructure required to coordinate them.
Translation: growing 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 stretched toward six months. Prices have risen more than 10% in certain markets.
That was the core analysis that led us to put Intel on your radar back in March. And here we are, 150% later.
We expect outsized demand for CPUs to continue driving INTC and AMD higher over the next 12 months.
But the opportunity here extends far beyond CPU leaders
We also expect huge growth to come from:
- high-bandwidth memory
- networking chips
- data-center interconnects
- power infrastructure
- AI server manufacturers
Given this opportunity set, let’s put some new ideas on your radar today, courtesy of our technology expert Luke Lango of .
On Tuesday, Luke covered the hyperscalers’ $700 billion spending commitments in 2026 to build out AI infrastructure, then asked the question…
Who benefits?
Here he is with some of the stocks he flagged:
- Nvidia (NVDA) remains the primary beneficiary of AI compute spending, supplying GPUs to all four hyperscalers.
- Marvell Technology (MRVL) is building custom chips for Amazon and Microsoft.
- Applied Materials (AMAT), KLA Corporation (KLAC), and Lam Research (LRCX) supply the equipment used to manufacture every chip going into these data centers.
- Monolithic Power Systems (MPWR) provides power management semiconductors critical to the efficiency of AI compute.
This list is hardly exhaustive. And while Luke is bullish on these companies, they’re not necessarily his favorite AI picks right now. To access his official AI recommendation list in Innovation Investor, .
Here’s Luke’s overall message to investors today:
The AI trade is not a momentum trade built on narrative. It is a fundamental trade anchored in the largest capital investment cycle in the history of technology, validated by real revenue, real margins, and real customer commitments.
And the remain the most compelling investment opportunity in the market.
Shifting gears to the oil patch…
Over the last two days, Brent crude has tumbled from around $108 to $101 (as I write) while West Texas Intermediate has pulled back from about $101 to $96.
As we covered in the Digest, the trigger was an Axios report that the U.S. and Iran are nearing a 14-point memorandum of understanding to end the war that has strangled roughly a fifth of global oil and gas supplies. As I write on Thursday, we’re still waiting for Iran’s response to the latest proposal from the U.S.
For most investors, this pullback in oil is just a headline. For veteran trader Jonathan Rose of Masters in Trading, it was the latest chapter in a story he’s been tracking since February.
When the conflict in the Strait of Hormuz was beginning, Jonathan was already highlighting where volatility-based opportunities would arise.
He flagged refiners, domestic producers, and commodity names before the crowd caught on – and his subscribers locked in a string of big wins as the conflict escalated.
Now, with oil pulling back sharply on peace hopes, Jonathan is looking at a completely different angle – one most traders aren’t even aware of…
While everyone watches the Middle East, he’s eyeing Canadian oil sands
Here’s Jonathan to explain:
Bitumen – that thick, sludgy oil used in Canadian oil sands – is ripping higher.
To make sure we’re all on the same page, while bitumen prices have some sensitivity to Strait of Hormuz volatility, they’re primarily driven by Chinese infrastructure demand.
Oil sands producers, characterized by low marginal costs and high fixed capital, see explosive cash flow growth – and often, related stock moves – when these margins expand.
And recently, margins have been widening due to a “perfect storm” of rising prices and falling transportation costs.
For example, in March, Western Canada Select (WCS) prices averaged $75.85/barrel, nearly 40% higher than a year prior. Meanwhile, the “discount” Canadian producers pay to ship their oil has shrunk significantly. The Trans Mountain Expansion (TMX) has allowed producers to reach Asian markets directly, boosting industry revenue by billions.
Which brings us back to Jonathan’s characterization of bitumen prices “ripping” higher.
Priced in Chinese yuan (because China is the world’s largest consumer), bitumen has jumped nearly 50% since January.
Back to Jonathan:
That’s a massive move.
There’s a squeeze happening in a market most traders don’t follow.
So, how do you play it?
Jonathan has built a basket of five names with direct exposure: Suncor (SU), Cenovus (CVE), Canadian Natural Resources (CNQ), Imperial Oil (IMO) and Strathcona (STHRF).
In , he highlighted all five, but then zeroed in on his favorite: CNQ – low implied volatility, clean options structure, and room to run toward $60.
Rather than simply buying the stock outright, Jonathan is using options to structure a defined-risk bullish position in CNQ.
The appeal of this approach is straightforward – a relatively small upfront investment can yield significant upside if Canadian oil producers continue to rally.
In the example Jonathan walked through, roughly $150 of risk could turn into $800 or more if CNQ hits his target price.
Meanwhile, risk is capped at the initial premium Jonathan pays upfront – an approach Jonathan often favors when volatility creates asymmetric opportunities.
This is exactly how Jonathan operates…
While the crowd chases the trade that’s playing out in the wake of the headline, Jonathan is positioning himself in the next setup that will become tomorrow’s headline.
If you’d like to understand how he finds opportunities like this ahead of time, his walks you through that exact process over seven days, using real setups in real time.
Here’s Jonathan:
You’ll see how we identify catalysts, interpret the signals that matter, and translate those into real trades – all while managing risk in real time.
You’ve got nothing to prove. You’ve just got to be willing to learn.
We’ll keep you updated on all these stories and trades here in the Digest.
Before we wrap up… legendary investor Louis Navellier has a message for you
The Fed conversation we’ve been tracking in the Digest – rates stuck, inflation sticky, June 2027 the new baseline – has a flip side that’s caught Louis’ radar…
He believes that we’re still early in a major cycle shift – not because rate cuts are coming tomorrow, but because the broader transition to a new Fed regime is already underway. And historically, such transitions have been the setup for some of the biggest stock market winners in decades.
It happened in 1995, 2001, 2008, and 2020. Louis believes it’s happening again – which is why he’s already looking at the right portfolio positioning.
Louis just created a list of 53 under-the-radar stocks that his Stock Grader system is flagging. They have the same early signals he’s used to find some of the biggest winners of his four-decade career.
I’ll bring you more details on this over the coming days, but just a heads-up: he’s going live next Tuesday, May 13 at 1 p.m. Eastern to walk through all of it. He’ll also share one of his favorite stocks for this market shift during the broadcast.
More details to come, but to .
Have a good evening,
Jeff Remsburg
(Disclosure: I own AMD.)
