{"id":25634,"date":"2025-10-30T07:30:00","date_gmt":"2025-10-30T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=25634"},"modified":"2025-10-29T15:42:59","modified_gmt":"2025-10-29T19:42:59","slug":"how-to-profit-from-the-ai-power-crunch","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-to-profit-from-the-ai-power-crunch\/","title":{"rendered":"How to Profit From the AI Power Crunch"},"content":{"rendered":"\n
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Managing Editor\u2019s note: <\/strong>On Tuesday, Andy and Landon Swan and the \u201cKing of Quants\u201d Louis Navellier, launched a new collaboration they\u2019re calling the Ultimate Stock Strategy<\/em>.<\/p>\n

It\u2019s a new system that combines two of the world\u2019s most powerful data-driven strategies. And in backtesting, it flagged more than 240 double-your-money opportunities over a span of five years for an average gain of 244%.<\/p>\n

You can check out the launch right here<\/a>.<\/strong> You\u2019ll discover how this system not only identifies powerful market megatrends, but also the best stocks to play them.<\/p>\n

Then read on below for more from Andy on one of the megatrends he and Landon are tracking right now \u2013 what they call the AI Power Crunch. If it doesn\u2019t get solved, then the \u201cmiracles\u201d promised by AI simply won\u2019t happen.<\/p>\n<\/div>\n\n\n\n

How to Profit From the AI Power Crunch<\/h2>\n\n\n\n

BY ANDY SWAN, FOUNDER, LIKEFOLIO<\/strong><\/p>\n\n\n\n

Last month, OpenAI founder Sam Altman said something that stopped me cold:<\/p>\n\n\n\n

“Maybe with 10 gigawatts of compute, AI can cure cancer. Or with 10 gigawatts, AI can tutor every student on Earth. If we\u2019re limited by compute, we\u2019ll have to choose which one to prioritize\u2026 so let\u2019s go build.”<\/em><\/p>\n\n\n\n

Ten gigawatts. That\u2019s ten nuclear reactors\u2019 worth of \u201ccompute,\u201d or processing power \u2013 just to keep the world\u2019s smartest machines thinking.<\/p>\n\n\n\n

It\u2019s the most vivid reminder yet that AI\u2019s biggest constraint isn\u2019t algorithms, or even data. It certainly isn\u2019t imagination, either.<\/p>\n\n\n\n

It\u2019s electricity<\/em>.<\/strong><\/p>\n\n\n\n

Since OpenAI launched ChatGPT to the public in late 2022, AI adoption has exploded faster than any technology in history.<\/p>\n\n\n\n

OpenAI now serves 700 million weekly users, and compute demand at leading labs has multiplied 100-fold<\/em> in just three years.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Every question we ask these models \u2013 every image we generate, every chatbot conversation \u2013 spins up trillions of calculations. Each of those calculations burns power and generates heat.<\/p>\n\n\n\n

Multiply that by hundreds of millions of users and you get to a simple truth: The AI boom is running straight into a wall of physics.<\/p>\n\n\n\n

We\u2019re now entering what I call the \u201cAI Power Crunch.\u201d<\/strong><\/p>\n\n\n\n

It\u2019s the point where the digital world collides with the physical limits of chips, cooling, and the electrical grid itself.<\/p>\n\n\n\n

This is a massive profit opportunity for folks who understand what\u2019s going on.<\/p>\n\n\n\n

Big Tech\u2019s $400 Billion Panic<\/strong><\/p>\n\n\n\n

Wall Street\u2019s been focused on who\u2019s winning the AI \u201carms race.\u201d But look where the money is really flowing.<\/p>\n\n\n\n

Combined capital spending by Microsoft (MSFT<\/a>), Meta Platforms (META<\/a>), Google (GOOGL<\/a>), and Amazon.com (AMZN<\/a>) is set to double from roughly $200 billion in 2024 to over $400 billion by year end \u2013 and most of that surge is going into data centers and GPUs, not new apps.<\/p>\n\n\n\n

Meta alone has boosted data-center investment to $72 billion this year.
Nvidia (NVDA<\/a>) and OpenAI have announced a $100 billion buildout of new supercomputing capacity \u2013 the equivalent of 10 nuclear reactors in power draw.<\/p>\n\n\n\n

We\u2019re no longer talking about server rooms.<\/p>\n\n\n\n

We\u2019re talking about industrial-scale compute \u2013 data centers the size of football stadiums that consume as much power as small cities.<\/p>\n\n\n\n

And here\u2019s the thing: All that capital is still not enough.<\/em><\/p>\n\n\n\n

Training an AI model is a one-off cost. But inference \u2013 the constant serving of answers to billions of users \u2013 never ends. It\u2019s like paying rent forever.<\/p>\n\n\n\n

Gartner now warns cloud bills can overrun budgets by 500-1,000% when companies underestimate AI usage.<\/p>\n\n\n\n

That\u2019s why tech giants are racing to build their own chips, optimize cooling, and buy power capacity years in advance.<\/p>\n\n\n\n

Every link in that chain, from chips to memory to power delivery, is under pressure. And every pressure point creates a new class of winners.<\/p>\n\n\n\n

The Holy Trinity of Compute<\/strong><\/p>\n\n\n\n

Let\u2019s talk about the three companies I\u2019m watching most closely in this power race.<\/p>\n\n\n\n

Much like the railroads did the for the Industrial Age, these companies form the backbone of the AI Age we\u2019re entering now.<\/p>\n\n\n\n

Everyone has heard of Nvidia. It\u2019s the world\u2019s most valuable stock and the biggest player in AI compute.<\/p>\n\n\n\n

Its existing chips power an estimated 70-95% of global AI capacity. And its new H200 chips push performance to levels that used to sound like science fiction.<\/p>\n\n\n\n

But Nvidia doesn\u2019t just make chips. It also builds the software and networking stack that tie entire data centers together.<\/p>\n\n\n\n

That\u2019s why, even after tripling in revenue to $130 billion, the company still can\u2019t meet demand.<\/p>\n\n\n\n

Another AI Power Crunch stock I\u2019m watching closely is Micron Technology (MU<\/a>).<\/p>\n\n\n\n

AI chips are useless without ultra-fast memory feeding them data.
That\u2019s where Micron comes in.<\/p>\n\n\n\n

Its HBM3E memory (that stands for \u201chigh-bandwidth memory\u201d) is the pipeline that keeps AI chips from stalling.<\/p>\n\n\n\n

By mid-2025, Micron had already sold out its entire 2024 and most of its 2025 production \u2013 before it even shipped.<\/p>\n\n\n\n

And perhaps even more interesting is Nvidia rival Advanced Micro Devices (AMD<\/a>). It isn\u2019t trying to out-muscle Nvidia \u2013 it\u2019s trying to make AI cheaper to run.<\/p>\n\n\n\n

Its MI300X accelerator holds a massive 192 GB of high-bandwidth memory, allowing AI models to run without constantly swapping data in and out. That means faster responses and lower cost per query \u2013 crucial as inference bills pile up.<\/p>\n\n\n\n

AMD is developing mission critical technology. It\u2019s also lighting up on our Social Heat Score.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

AMD\u2019s Social Heat Score: 86.9 out of 100<\/em><\/p>\n\n\n\n

The Social Heat Score distills millions of consumer data points from across the web \u2013 social media, search trends, and more \u2013 into one simple number, 0 to 100.<\/p>\n\n\n\n

We target stocks with Social Heat Scores above 70. The higher, the better. This reveals what brands, products, and companies are doing well with consumers on Main Street \u2013 sometimes well before Wall Street catches wind.<\/p>\n\n\n\n

AMD currently logs an impressive 86.9 out of 100. That\u2019s a clear buy signal.<\/p>\n\n\n\n

Meta and Microsoft are already deploying AMD chips in their data centers, proving its importance in the race to make AI profitable.<\/p>\n\n\n\n

Together, these three form the backbone of the modern compute economy.<\/p>\n\n\n\n

We\u2019ve Seen This Movie Before<\/strong><\/p>\n\n\n\n

To understand how to maximize your profits in the AI revolution, it\u2019s important to know your market history. In the 1990s, everyone chased dot-coms. But the real money was in Cisco (CSCO<\/a>), building the routers.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In the 2000s, investors obsessed over search engines and internet domains with catchy mascots. The winners were Intel (INTC<\/a>) and TSMC (TSM<\/a>), powering the chips beneath it.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In the 2010s, all eyes were on mobile apps. But the breakout returns came from cloud infrastructure.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

AI is no different.<\/p>\n\n\n\n

The excitement will swirl around chatbots, image generators, and digital assistants\u2026<\/p>\n\n\n\n

But the sustainable profits \u2013 the kind that define a decade \u2013 will flow to the companies supplying the compute capacity that makes all of it possible.<\/p>\n\n\n\n

The Industrial Engines of the AI Economy<\/strong><\/p>\n\n\n\n

If Altman\u2019s right, and AI really does need nuclear-reactor levels of compute, then we\u2019re entering a global infrastructure buildout unlike anything since the dawn of the internet.<\/p>\n\n\n\n

Power grids, data centers, and chip supply chains are being re-engineered from the ground up.<\/p>\n\n\n\n

And when a technological shift collides with a physical bottleneck, it\u2019s an opportunity to create generational wealth.<\/p>\n\n\n\n

That\u2019s why I\u2019m watching Nvidia, AMD, and Micron so closely. They\u2019re not the only players, but they\u2019re three of the most critical.<\/p>\n\n\n\n

Think of them as the industrial engines of the AI economy.<\/p>\n\n\n\n

So when you hear about the latest chatbot, or the newest AI startup, remember Sam Altman\u2019s words:<\/p>\n\n\n\n

“If we\u2019re limited by compute, we\u2019ll have to choose which miracle to build.<\/em>“<\/p>\n\n\n\n

I know where I\u2019d rather be looking: at the companies making those miracles possible.<\/p>\n\n\n\n

Those are the kinds of opportunities our Social Heat Score is designed to spot early. The under-the-radar players the rest of the market hasn\u2019t quite caught onto yet \u2013 but are gaining momentum behind the scenes.<\/p>\n\n\n\n

We recently launched an exciting upgrade to this already powerful system, thanks to a new team-up with a man The New York Times<\/em> dubbed an \u201cicon among growth investors,\u201d Louis Navellier.<\/p>\n\n\n\n

It\u2019s called The Ultimate Stock Strategy<\/em><\/strong> \u2013 and it marries our predictive consumer data with Louis\u2019 tried-and-tested Stock Grader to identify the next Ciscos, Amazons, and Nvidias before <\/em>they rocket to stratospheric heights.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Social Heat Score has already delivered dozens of doubles over the last five years. Louis started developing his quantitative method in the 1970s and has delivered 676 double-your-money winners since then.<\/p>\n\n\n\n

Together, they form the Ultimate Stock Strategy<\/em><\/strong> \u2013 a strategy that would\u2019ve identified 240 such opportunities over a five-year period.<\/p>\n\n\n\n

We shared all the details on Tuesday, but it\u2019s not too late to catch the replay here<\/a>. <\/strong><\/p>\n\n\n\n

I hope you\u2019ll take the opportunity to see how this \u201cultimate\u201d strategy could work for you \u2013 and potentially even lead to a 100% gain by Christmas time.<\/p>\n\n\n\n

Until next time,<\/p>\n\n\n\n

Andy Swan<\/p>\n\n\n\n

Founder, LikeFolio<\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s a massive profit opportunity for folks who understand what\u2019s going on in the AI space\u2026<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[161],"newsletter-type":[],"ticker":[],"class_list":["post-25634","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-andy-swan"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=25634"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25634\/revisions"}],"predecessor-version":[{"id":25640,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25634\/revisions\/25640"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=25634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=25634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=25634"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=25634"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=25634"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=25634"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=25634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}