Weekly Market Report 5/3/26
My trading account, an explosive looking theme, a heavily shorted sector, my favorite charts, and much more.
The hot market continues, and money continues to rain down from the Magnificent Seven.
This past week we had historic Capex commitments from the big tech hyperscalers that signaled there is no slowdown in AI spend. If anything, the spend is accelerating.
As much as people want to complain about a bubble, the Capex and earnings are backing up the moves we’re seeing. AI is driving monster earnings gains which in turn is driving stock gains. The YTD earnings revisions for 2026 and 2027 continue to explode higher.
What many fail to realize is that when several companies are spending hundreds of billions of dollars for a total of tens of trillions, that acts as a major tailwind for the market and for plenty of individual companies.
These companies are not just spending aggressively, they’re generating enormous amounts of cash and then reinvesting it directly into the AI infrastructure buildout.
That money has to flow somewhere…
It’s clearly flowing into semiconductors, power, energy, datacenters, storage, cooling, software, construction, engineering, software, and generally the companies helping build the physical and digital foundation of the AI world.
That is why this market continues to broaden underneath the surface…
There are SO many opportunities out there, and we have been on an absolute tear capitalizing. Much more to come.
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post a daily thread with all of my thoughts on the day ahead, relevant headlines and macro events, my main focuses, notable upgrades and downgrades, and much more.
We have tons of smart people sharing ideas throughout the day, it’s a really impressive group. I genuinely think this might be one of the most active subscriber chats on Substack.
This is also where I post new position threads and outline my thesis behind each trade. Come join!
I want to quickly mention that I recently published my second shortage + bottleneck article here.
It’s starting to pick up steam and momentum, and many of the names are starting to see some movement. The entire group is setting up at once which can typically indicate a move is near.
The thesis was validated this past week during hyperscaler earnings.
In this one I discussed what I believe to be the next major AI bottleneck, my thesis, the names within the shortage + bottleneck, and I even highlighted which names I already own and which ones I was looking to buy.
If you recall, back on March 22nd I published an article titled “The Next AI Bottleneck” linked here.
In this article, I went in depth on why I believed the CPU trade was about to take off. I highlighted five CPU stocks I thought were set to benefit, and I’d say they played out pretty well.
INTC: $44 → $100 (+127%) (Alerted buy to subscribers at $39x on 1/6)
AMKR: $45 → $78 (+73%)
AMD: $202 → $350 (+73%)
ARM: $143 → $235 (+64%) (Alerted buy to subscribers at $140x on 4/7)
QCOM: $130 → $180 (+38%)
Not bad for just over a month.
I’m also working on my updated AI Power + Grid + Energy primer and expect to have it released within the next week or so, be on the lookout for that. I’m already positioned in a few of these, but the charts tell me there’s more coming…
In the remainder of this article I’m going to discuss my trading portfolio and all five of my new positions, what I believe could be the next 2025 nuclear/quantum style opportunity, the most hated sector in the market and why I think it’s setting up for a big move, my favorite names in that group, the massive midterm trade starting to gain momentum, the energy bottleneck, my favorite charts, the overall market, and much more.
We are absolutely crushing this market, and I’m VERY confident that is only going to continue.