Weekly Market Report 5/31/26
Hidden AI device winner, the next potential AI bottleneck, quiet Trump stocks that have yet to run, my trading portfolio, and much more.
Bull Market:
A period in financial markets when overall asset prices are rising or expected to rise over a sustained period. It is characterized by investor optimism, confidence in the economy, and a broad willingness to buy.
This is a bull market, and it’s being powered by earnings tied to arguably the most transformational technology of our time.
Not only that but Trump revealed he made nearly 4,000 stock trades between January and March, averaging roughly 44 trades per day.
Of course he’s not sitting there actively placing every trade himself but it still says something. When the commander in chief has this much exposure to the market, it reinforces how important stocks have become to the broader political and economic picture.
Bull market things…
One thing I’ve seen over the past few days is people claiming AI is useless.
I understand that some people like to push that narrative, but I don’t understand how you can say that when there are several major things happening at the same time.
Explosive earnings
Mass adoption
Not only are earnings accelerating at a historic rate, AI is just now reaching the point where almost everyone I know is using it.
The big news that came over the weekend is the fact that we have mainstream AI powered devices coming with the Microsoft and Nvidia PC this upcoming week. Soon enough, every device will run AI locally and having an AI agent complete tasks on your phone will feel completely normal.
Things are moving quickly.
Boomers and Gen X are now using ChatGPT for everyday questions. Millennials and Gen Z are using Claude to code, build products, and launch businesses. Gen Alpha is growing up with AI embedded into school and everyday life.
AI is becoming part of daily life across every generation.
Today’s AI is the equivalent of the big, bulky computer that everyone used in the 90s.
That’s how early we are. People are underestimating where AI is headed, just as they underestimated where the interney was headed 30 years ago.
I know everyone is eager to point out a “bubble” and points at Nvidia as the new Cisco, but let’s review the facts.
Valuation: Cisco traded around 200x earnings at its 2000 peak. Nvidia trades at roughly 27x forward earnings today.
Growth: Cisco grew revenue at about a 55% CAGR from 1997 to 2000. Nvidia has grown revenue at roughly a 75% CAGR over the last three years.
Earnings: Cisco was generating around $1.3B in quarterly cash flow near the dot com peak. Nvidia is generating roughly $25B per quarter.
Also note that the dot com boom went on for 5+ years. We’re about 3.5 years into this bull market…
And yes, we are capitalizing.
Big time.
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
Last week I alerted subscribers that I added three new positions.
TE at $6.4x
FLNC at $17.8x
NET at $204x
This week I alerted subscribers to four new positions.
SMCI at $35x
MRCY at $101x
PLTR at $133x
One compute + datacenter stock that has yet to run but just got massive news last night…
This is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
The chat itself has basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly think it might be one of the most (if not the most active) subscriber chats on Substack.
Come join us!
In the remainder of this article I’m going to discuss a hidden AI device winner nobody is talking about that I’m looking to get positioned in as early as Monday (reminds me of QCOM), three Trump backed names that still haven’t exploded yet, the new potential bottleneck Larry Ellison just highlighted and the stocks best positioned to benefit, a stock with a hidden robotics angle and a massive weekly base, my trading portfolio and current holdings, my favorite charts, the overall market setup, and much more.