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The AI energy trade has plenty of room to run… what’s behind a 50%+ surge in this stock last Thursday… the average SpaceX investor is likely losing money now… how to benefit from a Wall Street “time machine”
Nvidia (NVDA) CEO, Jensen Huang didn’t pull any punches last week:
The United States is woefully behind in energy production.
He made the comment in Sherman, Texas, at a groundbreaking event for a $2 billion Nvidia manufacturing expansion.
But Huang’s endorsement of the AI energy thesis didn’t stop there:
AI factories will become the infrastructure of the new industrial revolution…
Ten years from now, I think we’ll look back and realize AI is what made it possible to invest in sustainable energy, upgrade our energy grid, and reconstitute a workforce.
Reading between the lines, Huang just said that America’s energy grid wasn’t built for what AI demands of it – and we have a long runway ahead to get it up to speed.
So, for investors who’ve been wondering how to invest in AI at this point in the cycle, this is one of the clearest roadmaps from one of the most credible voices possible.
Our technology expert Luke Lango, editor of Innovation Investor, has been tracking this thesis closely. Here he is from last Wednesday’s Daily Notes:
The AI buildout is outrunning the power infrastructure beneath it, and that gap is a multi-year, structurally non-discretionary demand cycle for the entire power and energy supply chain — baseload nuclear, fuel and services, SMR, grid and electrification, and data center power and cooling.
Jensen just stood up in Texas and confirmed what we already knew: AI needs more power, America hasn’t built it, and the companies that fix that are indispensable.
Luke recommends a basket of leading AI stocks across this supply chain in . While I’ll save those for his subscribers, I’ll share with you some of the ones he highlighted in last week’s Daily Notes that are sitting in the direct path of this structural demand gap:
- On the baseload nuclear side, Constellation Energy (CEG) and Vistra (VST) are the two largest operators of existing U.S. nuclear capacity.
- For uranium fuel and services, look at Cameco (CCJ) and BWX Technologies (BWXT).
- For higher-risk, higher-reward small modular reactor exposure: Oklo (OKLO) and NuScale Power (SMR).
- And on the grid and electrification side, Quanta Services (PWR) and Hubbell (HUBB) are two of the companies that physically build and upgrade the transmission infrastructure needed for all of this to work.
Bottom line: Huang just endorsed this trade. If you’re looking for how to invest in AI today, start your search here.
Now, if Huang is right, the AI energy trade could deliver an enormous return in the coming years.
But last week, some subscribers got a similar huge return overnight…
When two analysts land on the same stock independently, it’s worth paying attention
Last week, veteran trader Jonathan Rose sent me a note after realizing that he and Luke are both long the same trade right now – and it just exploded.
At the center of this overlap is Butterfly Network Inc. (BFLY)
Jonathan put his Masters in Trading: All Access subscribers into two call positions on BFLY. Meanwhile, Luke, who helms the trading service , just issued a fresh trade alert on the same name last Tuesday.
Both Jonathan’s and Luke’s subscribers had a huge day last Thursday when BFLY surged 56%. It’s pulled back some on profit-taking as I write on Monday morning, but it’s still up huge.
Two analysts, two different methodologies, same overnight vertical return.
So, what’s driving it?
Last week, AI imaging company Midjourney announced the launch of Midjourney Medical – a new healthcare division – along with a prototype for a 60-second, full-body ultrasound scanner called the Midjourney Scanner.
Each unit incorporates 40 of Butterfly’s Ultrasound-on-Chip modules. Midjourney’s stated ambition: 5,000 “Midjourney Spas” and 50,000 scanners deployed globally by 2031.
That’s a potential supply relationship of enormous scale for a company with a roughly $1.4 billion market cap.
The market certainly believes so, resulting in that 50%+ pop last Thursday.
What makes BFLY particularly interesting is that Luke and Jonathan got there by completely different routes
Luke’s Breakout Trader service is built around stage analysis – a framework that strips away fundamental noise and focuses purely on price structure.
The thesis is simple: stocks cycle through four stages (base-building, uptrend, topping, downtrend), and the only time you want to own something is when it’s in a clean Stage-2 uptrend.
Luke spotted BFLY breaking out of a three-year basing pattern with all three major moving averages turning higher and a Relative Strength Index reading that signaled strong momentum without being overbought.
For Luke, the fundamental story was secondary. Price was the signal.
Jonathan got there through a different lens – the longer-term strategic picture of where Butterfly’s chip technology sits within the emerging brain-computer interface ecosystem.
He’s been tracking the company’s five-year co-development agreement with Forest Neurotech, whose leadership recently joined Merge Labs (Sam Altman’s newest venture). The hardware connection between BFLY’s ultrasound-on-chip technology and the non-invasive BCI research underway at that organization made Butterfly interesting well before this week’s Midjourney news.
Same stock. Completely different maps. Huge returns.
Luke’s subscribers, who got into the trade just last Tuesday, are up roughly 50% as I write.
Jonathan’s subscribers, who are playing it with options, have already taken triple-digit profits – last week, one subscriber reported a 400% win.
Below is a screenshot of some of those subscribers writing in to Jonathan. If you can’t read it, here are a few of them to give you a sense:
- “300% on BFLY. Thanks JR”
- “344% on BFLY… Thanks JR for a great trade!!”
- “Out of BFLY 205%, thank you JR”
- “400% on BFLY thank you jr!”
If you missed BFLY, don’t worry…
Back on May 8 – more than six weeks before BFLY’s 56% session – Jonathan published a free piece titled “” and BFLY was one of his top two picks.
While the Midjourney Medical partnership that sent BFLY surging last Thursday was a different catalyst than the one Jonathan originally mapped, the underlying reason BFLY is worth owning didn’t change – it deepened. The stock was already in the path of serious capital.
If you missed the BFLY move, . It covers six other stocks sitting on the same Sam Altman capital map – including what Jonathan considers the single cleanest publicly traded Altman name right now.
For those interested in a glimpse of Masters in Trading: All Access winners like BFLY, I suggest . It provides a step-by-step trading system tailored for beginners. .
And for Luke’s ongoing work identifying Stage-2 in Breakout Trader, .
Congrats to all the Masters in Trading: All Access and Breakout Trader subscribers!
Stepping back, not every AI-adjacent trade works out that cleanly, of course. And the contrast between what happened with BFLY and what’s happening with SpaceX (SPCX) helps make that point.
Is SpaceX following the historical IPO pattern?
In our June 11 Digest, we urged caution on the SpaceX IPO. Not because the company isn’t extraordinary, but because 45 years of data from the preeminent expert on IPOs – Professor Jay Ritter – says retail investors who buy into first-day euphoria tend to regret it.
Now, as expected, SPCX soared out of the gate. After pricing its IPO at $135, the stock surged to an intraday high above $225 on June 16. But since then, it has pulled back roughly 25%.
According to CNBC last Thursday, the five-day volume-weighted average price sat around $181, and the price has fallen further since then. It’s down almost 10% today as I write.
This means the average investor who bought in the open market after the IPO debut has seen nearly all their post-IPO gains disappear, and is likely now sitting on a loss.
We’re not gloating – for all we know, SPCX could double by the end of the week, and those investors could enjoy a huge payday.
But the historical data we cited in the Digest suggests this pattern plays out more often than not, and so far, history is repeating itself.
This means the broader point we made in our June 11 Digest still stands – and Luke articulated it better than anyone before the IPO arrived:
The biggest gains from landmark technology IPOs have almost never gone to the investors who bought on day one.
They’ve gone to the investors who owned the ecosystem around those companies before Wall Street showed up to reprice it.
Luke calls this the “” – a group of publicly traded companies that supply, power, and benefit from the AI infrastructure buildout, and that he believes get significantly repriced the moment the big IPO S-1 filings land.
OpenAI and Anthropic are still in the pipeline. The window he’s been describing – owning the ecosystem before Wall Street shows up – hasn’t closed. .
This brings us to the harder question that threads through all three of these stories…
How do you find the next AI energy play, or the next BFLY, before Wall Street finds it?
That question has a systematic answer…
One of the most reliable instincts in investing is to look one step behind the obvious story
It’s the thread running through everything we’ve covered today – Luke’s AI energy basket sitting one step behind the infrastructure Jensen Huang just validated… Jonathan and Luke finding BFLY just before it exploded… and the SpaceX Pre-IPO Backdoor being built entirely on the idea that the real money is in the surrounding players, not the headline name.
But while this idea is easy in theory, it’s hard in implementation…
Most retail investors don’t have the time or tools to solve it. And frankly, most newsletter analysts don’t either because it requires scanning a universe of hundreds of companies across sectors, filtering on both fundamental and technical criteria simultaneously, and doing it at a moment early enough to matter.
This is exactly the problem that Marc Chaikin has spent his career building tools to solve.
Longtime market followers will know Marc from his Power Gauge – a 20-factor rating system he spent decades developing, which now covers more than 5,000 stocks. He’s used that framework to navigate some of the market’s most dislocating moments, including the COVID crash and the 2022 bear market.
Now he and his colleague Joe Austin – a former portfolio manager who ran more than $10 billion in assets across a 40-year Wall Street career – are unveiling what they’re calling the most powerful tool they’ve ever built: an AI-powered platform that scans decades of market history to find stocks whose fundamental and technical “fingerprint” closely matches the early profile of proven multi-baggers, before Wall Street catches on.
They’re calling it the Time Machine – and they’re debuting it this Wednesday, June 24, in a free broadcast. If you’re interested in a systematic, quant-driven approach to finding the next generation of AI-adjacent winners, this is the event for you. .
We’ll keep you updated on all these stories here in the Digest.
Have a good evening,
Jeff Remsburg
