The Next Phase Of The AI Trade‼️

Okay, so we're officially and I think we have been heading into the next phase of the AI trade. It's not just about GPUs anymore, memory, you know, the infrastructure itself. It goes a lot deeper than that, guys. So, we have to break down a couple stocks here that I'm watching for this next phase of the AI trade, and we're going to break down the overall market, where my head's at right now as we're seeing some more green. The VIX is down. It's one of those days, guys. The S&P is currently up 0.2%. Dow's up about 0.3. Uh looks like the Russell's actually down. Small caps are taking a bit of a crap today, guys. Excuse [clears throat] me. Down about 3/4 of a percent on the Russell, and the Qs are up actually barely uh 0.04%, but hey, it's a green day nonetheless, guys. I'll take it, especially as the S&P 500 is now taking out the highs from yesterday and Monday and Friday. We're starting to build on some positive ground here, guys, on this um ETF. And by no means is it fully breaking out, but we're starting to build some ground. Higher highs, higher lows are being made. Multi-day high, I'll take it. And on the Qs, even though we're down on the day, or not down, but flat, we're also putting in higher lows. Looking pretty solid. We, you know, we didn't take the highs out from yesterday yet, but we're right there. Yesterday, we peaked at about seven Where was it? 709? Something like that? 710? Um and that's kind of where we are now. So, if this takes out 710 today, guys, keep that number in your mind, 710 on the Qs, that's going to be very bullish um overall. So, the overall market looking pretty good. As you guys probably saw again yesterday, we had a green day, so we're building on top of yesterday. So, with that being said, let's talk about some of these stocks and the next wave or the next phase, however however you want to call it, guys, the next phase of this AI trade is starting to play out. So, everybody has been focused on obviously the chip names, Nvidia, AMD, right? Other companies like Microsoft, right? Amazon. And don't get me wrong, I love these companies. I own [clears throat] these companies, some of them at least. Uh but at the end of the day, AI is growing so massively right now, and if it continues to grow at this pace, which it will, right? We're obviously going to need more and more data centers. And guess what these data centers need, ladies and gentlemen? What do these data centers need? They need massive amounts of electricity, reliable power generation, new transmission lines, right? Transformers, switch gear, cooling systems, and huge quantities of raw materials like, oh, you guessed it, copper, right? So, we're going to break down a couple of companies that kind of fit these categories. Uh we're going to look at some utilities companies, nuclear power companies, electrical equipment manufacturers, construction companies, and commodity producers. Um so, let's dive into it here, guys, and start off with number one, stock number one, which I'm sure a lot of you guys know about. We talked about this one uh before a couple of times, right? NextEra Energy, ticker NEE, which as of right now, >> [cough and clears throat] >> chart-wise, and let me get some water here, guys. Chee- uh cheers. I appreciate you all for tuning in. So, as we can see on the charts, NEE is approaching it's at, really, it's it's literally at at it right now. A major resistance on this chart at about 90 bucks a share, 89, 90 bucks, which that was support for a good amount this year, a good amount of time all throughout it looks like mid late February up until really the end of May. So about 3 4 months we held 89 90 as support. We fell through it. Now we're trying to break back through. And listen, man, they have earnings coming up I think in 2 days. Um Yeah, in 2 days I think what is that? Friday morning? We have NEE reporting earnings and if this thing takes 90 out, there's a wide open gap to 95. Dare I say higher than that if it really starts to break out. And they're one of the largest energy and infrastructure companies in the United States. And let me draw this this other trend line out so you guys can see it. There we go. Look at that gap that could fill if earnings are strong and even longer term, right? This company with the shift in the AI trade, it's a must watch, man. There's a lot of longer term potential. So the company owns Florida Power & Light, one of the one of the country's largest regulated electric utilities, right? And they also develop renewable energy, battery storage, natural gas, and other energy projects. And what makes them extremely interesting is the fact that they have exposure to multiple parts of the power demand story with AI infrastructure exploding, right? All the data centers popping up everywhere. We have a ridiculous power demand story right now, guys. And it can develop renewable projects, right? Battery storage and natural gas infrastructure while also participating in the nuclear revival, right? And we can see, I mean again, it's right at that point where on good earnings this thing is like it's bound to explode. We have an ascending triangle playing out here. So fundamentally it's there and chart wise in the short term it's there. Um and listen, we have a lot of plays like this. Another one is Constellation Energy ticker CEG. Let me pull this up. This one not as good chart wise, I got to be honest, but hey, if you're looking at a longer term play, this is down $130 from highs recently. Um we can see on the three year chart it doesn't look too bad. The max chart doesn't look too bad. Not saying to go out and blindly buy it, but whenever a stock is down yeah, that might be discouraging in the short term, uh but that that that might not be a bad time to start buying if the fundamentals are sound, if the valuation makes sense, if the reason why it's down uh makes sense to you and and it's not like a catastrophic event to the business, if it's down really for no reason, but the fundamentals are strong, that might be a good time to start uh buying into a stock, you know, sometimes it's it's better to to buy at a cheaper price, lower price than buying into the momentum. Depending on, you know, how you trade, how you invest, uh but listen, man, this this is a nuclear power play um and reliable base load generation play and this is one of the first stocks that comes to mind for me, CEG, and renewable energy will be an important part of this solution overall, uh but AI data centers need electricity, of course, 24 hours a day, and that's where nuclear power becomes extraordinarily important and they operate the largest nuclear fleet in the United States right now, and these plants can generate large amounts of reliable carbon free power around the clock, and that makes Constellation incredibly valuable to the hyperscalers that want both dependable electricity and, of course, progress toward their carbon reduction goals. And we can see, man, again, this is not really anywhere near breaking the downtrend, but they do have earnings coming up here on the 6th of August, about 2 weeks away from today. I think 2 weeks from tomorrow. Uh might be the exact date on that. Or actually, no. I'm definitely wrong on that. Either way, they're coming up, guys, in about 2 weeks, and uh maybe we'll get more insight regarding um guidance. Hopefully, we do. Maybe the downtrend breaks, but either way, this is not a trade. It's more so, for me, a longer-term play. Uh which, again, I don't mind buying in on downtrends if I'm holding for a little bit, you know? Not not so much for a trade, right? That would worry me. But if I'm holding longer term, hey, if it's in a little downtrend, I don't mind scaling in slowly. Another one that I'm watching, guys, is Vistra. I'm sure you guys have heard of this one, ticker VST. One that's been um also kind of downtrending all year, but it's been more so flat the last couple of months. Uh potentially putting in a new base here in the mid-high hundreds. If we look at the 3-year chart, guys, this one looks pretty decent, right? On the 3-year chart and on the max chart, not too bad. And again, it kind of looks like we're putting in a new base um at this point, mid-high hundreds. Now we're at $166 a share, and we're up around 3% on the day. Um not too bad. So, this is another one in the nuclear category, right? Uh Vistra owns nuclear generation, natural gas plants, and a broader portfolio of power assets, if you guys didn't know. And that gives the company exposure, of course, to the rising electricity demand while also providing flexibility within the grid. And Vistra doesn't rely exclusively on one type of generation, of course. That could be valuable because meeting future electricity demand will likely require, believe it or not, not hard to believe, uh but a mixture of nuclear, natural gas, renewable energy, and of course, battery storage. And once again, man, the market um has kind of realized some of the opportunity over the last couple of of uh months here uh with this particular name. Well, more so the last 2 years, not months. What am I talking about? But the reality is it's pulled back. It's opened up another opportunity here for us, potentially looking to get in. Maybe we missed it a year ago, whatever. Uh but that's That's what you got to look for. Companies that The story's there, the narrative's there, you see the shift, uh the fundamentals are there, and there is potentially um or there's some short-term weakness. That That's what you want to look at for an entry, not just in Vistra, any stock, right? You want the fundamentals to be strong, the narrative to be there, you want a bunch of things in line, and somehow if that stock's pulling back, right? All while everything's intact, hey, might not be a bad time uh to consider it. So, VST, that is one that I'm watching uh very closely at this point, guys. Another one is Eaton, ticker ETN. Let me show you Let me show you this one, guys. And this is kind of moving away from power generation. Uh we also need to look at the This kind of comes into play. We have to look at the equipment required to actually manage and distribute all of this electricity. Eaton is one of the companies that comes to mind. They're an important company in this part of the supply chain as they produce electrical equipment, power management systems, switch gear, and other components used across utilities, data centers, industrial facilities, and commercial buildings, right? And generating electricity is only the first step. That power then needs to move through the grid, enter the data center, and reach thousands of servers safely and efficiently. That requires, obviously, a ridiculous amount of electric electrical equipment. And as AI server racks become denser and consume more power, data center operators need more advanced systems to control electricity, protect equipment, and prevent disruptions. And Eaton gives gives exposure to AI infrastructure without necessarily depending on uh which chip maker or cloud provider ultimately wins. It's more so, I guess, yeah, like like an overall play on the space. And as long as data centers continue being built and power grid uh the power grid continues being modernized, which that's the reality here for quite some time, most likely into the future, uh demand for electrical equipment should remain strong. Um so, ETN, this one's actually pretty flat over the last couple of months, but holding quite a nice uptrend if we're looking at uh the last 6 to 8 months. Uh looking pretty good here, right, guys? And on the one-year chart, we can see pretty much the same thing. Uh the three-year chart shows a nice uptrend. Uh the max chart, same thing. So, this one is actually up a lot recently. I mean, from 2020, this I I I guess 2020 now 6 years ago. so I mean, I tend to forget how uh I sometimes it feels like 2020 was like a year or two ago, but it's actually 6, almost 7 years ago, which is nuts. Uh but yeah, it's up a lot from 2020 and even here in the last couple of uh years, it's up a good amount. Uh but I feel like it could be consolidating, getting ready for that next move um here pretty shortly. So, let me show you guys another one here that I'm watching. Then we'll slowly wrap up the video and maybe I'll do a follow-up on some more plays. Uh let me know in the comments if you guys want a follow-up video or I guess a part two. I guess a follow-up, whatever you want to call it, guys. Uh PWR. Let's pull up PWR and uh talk about Quanta Services, ticker PWR. All right. So, PWR, think about Think about it this way. Once utilities decide to build new infrastructure, somebody, guess what? Believe it or not, somebody needs to physically construct it. The robots aren't fully here yet, guys. Somebody needs to physically construct it, and that's where Quanta Services um comes into play as they build high-voltage transmission lines, substations, renewable energy connections, and other major infrastructure projects. And guess what? They have specialized They have the specialized workforce and expertise, of course, required uh to complete projects that most ordinary construction companies simply cannot handle. And Quanta has estimated that that around 30% of their addressable market from 2026 through 2030 could be driven by AI, which is insane. 30%, but it makes sense considering this once-in-a-generation um you know, technological transformation we're currently going through right now. You know what I mean? And if we look at the stock a little bit closer on this chart th- this is probably the best one chart-wise. We hit $800 a couple months ago. Now we're down to 640 all while maintaining an uptrend here uh looking pretty strong on the one-year chart as well, especially on the one-year chart and the three-year chart. This kind of looks like you know, it's not confirming the breakout yet. We have earnings coming up too on the 30th, a week from tomorrow, next Thursday. So we're not fully breaking out yet. We have some catalyst potentially coming up but man, this one is is tempting me right now to add shares literally today but part of me is like, let me wait for the breakout. But it's like, ah it also looks pretty good here to get in right now as we are down about 20%. We're right in a bear market on the stock and again, the chart looks good especially on that one-year time frame. I don't know, what do you guys think? And overall, this company has a massive opportunity because expanding electricity generation doesn't accomplish much if the power can't be delivered to where it's needed and the grid needs new transmission capacity, upgraded substations, and more connections between gener- generation assets and data centers. And one of the biggest advantages Quanta has is again, its skilled workforce. And there is a limited number of companies capable of safely, that's the key, safely uh completing these highly specialized projects at scale. That's another key. Um so Quanta Services, PWR, and uh all the other stocks, man, are are must-watches right now in my opinion. And of course, do your own research. I'm not telling you to go buy these stocks blindly, not telling you to go, uh, you know, YOLO your entire portfolio on call options. Do your own research. These are just stocks, some of the stocks, some of the many stocks I'm watching, um, right now. So, what do you guys think? Let me know in the comments where your head's at, what you're looking to do. And yeah, hit the like button, make sure to subscribe if you want to be a part of my private Discord community. Check out the Patreon down below, pinned in the comments, or go to stossairfast.com/patreon. And I also share my private portfolio, or my Patreon portfolio updates, on Patreon. Yeah, check it out, guys. I'll see you in there. Have a great rest of your day. Peace out.