by Louis Navellier
March 26, 2024
We are entering a brave new world, shaped more by groundswell public opinion than the super-elite at Davos, which is why there is a backlash against many Davos-led mandates. The biggest groundswell started with European farmers who did not like: (1) having up to 30% of their land seized, (2) reducing their livestock, and (3) eliminating chemical fertilizers to comply with the Paris Climate Accord.
As a result, a Farmer-Citizen Movement party emerged out of nowhere and is now the largest party in the Netherlands, in an abrupt right-ward shift. Farmer movements have emerged all over Europe. Even in the U.S., grocery prices are shaping public opinion and are expected to influence the upcoming election.
Elon Musk’s purchase of Twitter (now X) means the news media and other outside powers no longer have Twitter and some of its fake bots to push a certain narrative that would favor their established candidate. Musk’s move has gotten Tesla kicked out of the S&P 500 ESG index and gotten him disinvited from the World Economic Forum in Davos, Switzerland, since he has largely eliminated fake bots designed to shape opinion on the “X” forum, but he had discovered that intelligence agencies around the world, including the CIA and NSA, were apparently in the “bot” business to shape opinion and wield influence.
The best way I help skeptics picture AI is to study their pets, which tend to “react” rather than “think.” Of course, I realize that cats, dogs and horses can actually think, and maybe some of them really are plotting against us, especially mischievous cats, but by and large, most animals react. Humans are no different. We think we think, but we react more than we think we do, except when we quietly reflect, using our free will.
While cats, dogs and especially horses are “herd” animals, humans also tend to gather with other humans of like minds to exchange ideas. Naturally, an increasing amount of human interaction happens online via Facebook, Rumble, TikTok, X and other social media sites. AI is expected to increasingly dominate these sites, but increasingly, the media, manipulators and related bots are expected to dominate these triggers.
This brings me to the role of our leading AI stocks in the brave new world of providing information to the world. Nvidia and Super Micro Computer are revolutionizing data centers around the world. Not only is Nvidia upgrading its AI chip (DGX H100/DGX H200) every year, but when Nvidia founder and CEO Jensen Huang spoke before Stanford Business School recently, he confirmed that by the end of the decade Nvidia will have one very heavy liquid-cooled computer, with approximately 35 chips that would replace today’s data centers. So essentially, the speed of Nvidia’s AI chips is doubling about every year.
I should add that Nvidia, at its annual GTC Conference last week, announced the successor to its highly coveted AI chips via its new Blackwell B200 GPUs (made with 208 billion transistors), so AI processing power continues to accelerate! As a result, I humbly suggest that intelligence agencies (CIA, NSA, etc.) should beef up their AI data mining instead of striving to influence voters and youth via social media.
The other big news is that Nvidia launched a cloud service for researchers to test out their quantum-computing software. The Nvidia Quantum Cloud will first comprise a data center stacked with AI chips and systems that, together, simulate a quantum computer. As of yet, Nvidia has no quantum computer attached to its cloud service, but it will provide access to third-party quantum computers in the future.
Nvidia also announced that supercomputers at Denmark’s Novo-Nordisk Foundation and Australia’s Pawsey Super-Computing Research Centre, both dedicated to quantum computing research, will also use the company’s hardware. In the end, the major quantum computing promise stems from its computation speeds that are hundreds of millions of times faster than today’s supercomputers, since quantum computing does not rely solely on binary zeroes and ones, like current computers.
All of this talk about data centers, and Nvidia’s new Blackwell B200 GPUs, will also be great for Super Micro Computer (SMCI), which was added to the S&P 500 last week, on Monday March 18th. Clearly, SMCI is gearing up to dominate the new liquid-cooled AI chips in data centers, which are getting faster all the time. After the stock was added to the S&P, the price consolidated after Super Micro Computer announced a two million share secondary offering with Goldman Sachs, priced at $875 per share.
Goldman Sachs prepared an extensive report on what stocks will benefit from AI. Interestingly, Goldman identified 93 companies that will benefit from AI infrastructure, including semiconductor companies, cloud computing firms, data center REITs, hardware/equipment companies, cybersecurity firms and utilities. Then Goldman identified 31 other AI enabler companies, which include software companies, as well as IT service companies. Finally, Goldman identified 50 companies poised to benefit from AI generated productivity gains, including some big retailers, as well as healthcare-related companies.
Cuba Proves (Once Again) that Communism Doesn’t Work
The number of global wars, or riot zones, continues to increase. After riots erupted in Haiti, neighboring Cuba is apparently on the brink of collapse, as power blackouts and a shortage of food is causing citizens to take to the streets and protest in five Cuban cities. Video recordings posted on social media showed hundreds of demonstrators chanting “electricity and food.” To squelch protests, the Cuban government curtailed mobile internet services. Omar Everleny, a Cuban economist, said, “We have blackouts, and now a problem with food, and there’s nothing the government can do in the short term to fix things.”
Cuba’s power generation is running at barely one-third of capacity and the nation has been hurt by cutbacks in oil shipments from Venezuela. In February, the Cuban government had no flour and couldn’t guarantee the supply of bread until the end of March. For the first time ever, Cuba recently went to the United Nations World Food Program to request powdered milk for children. Tourism has largely vanished amidst the Cuba’s hardship, denying its citizens important foreign currency. The Cuban peso is now essentially worthless, so Canadian dollars, euros and U.S. dollars are their preferred currency.
Turning to Ukraine, the Biden Administration has asked Ukraine to halt any attacks on Russia’s energy infrastructure due to surging crude oil prices. In a Presidential election year, rising gasoline prices at the pump are apparently a “red line” influencing the Biden Administration! The call for a cease fire in Gaza also has election repercussions in the swing state of Michigan, where Dearborn and two other Michigan cities with a large Arab population, are turning against the Biden Administration for its support of Israel.
Due in part to these wars and partly due to seasonal demand, crude oil prices are over $80 per barrel. There have also been drone strikes by Ukraine on Russian refining facilities. China is currently importing Russian crude oil at the rate of 1.7 million barrels per day. The Ukrainian drone strikes caused a refinery in Krasnodar that normally processes around 170,000 barrels of crude oil per day, to shut down. We’ll ride this energy boom through the spring and summer peak demand, but if it looks like President Biden may be replaced by a younger candidate or if Trump may win, we could sell our energy stocks in September.
Navellier & Associates owns Nvidia Corp (NVDA), Super Micro Computer, Inc. (SMCI), Meta Platforms Inc Class A (META), and Novo-Nordisk A/S Sponsored ADR Class B (NVO), and some accounts own Tesla (TSLA) per client request, in managed accounts. We do not own Rumble Inc. (RUM). Louis Navellier and his family own Nvidia Corp (NVDA), Super Micro Computer, Inc. (SMCI), and Novo-Nordisk A/S Sponsored ADR Class B (NVO), via a Navellier managed account, and Nvidia Corp (NVDA), in a personal account. He does not personally own Tesla (TSLA), Rumble Inc. (RUM), or Meta Platforms Inc Class A (META).
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
The Role of Nvidia and Super-Data in this “Brave New World”
Income Mail by Bryan Perry
It’s Time to Lock in High Yields
Growth Mail by Gary Alexander
Economics Isn’t Rocket Science (It’s Harder than That)
Global Mail by Ivan Martchev
If the Fed Plans to Cut Rates, Then Why is the Dollar Firm?
Sector Spotlight by Jason Bodner
Is This Bull Market Boring You to Death?
View Full Archive
Read Past Issues Here
Louis Navellier
CHIEF INVESTMENT OFFICER
Louis Navellier is Founder, Chairman of the Board, Chief Investment Officer and Chief Compliance Officer of Navellier & Associates, Inc., located in Reno, Nevada. With decades of experience translating what had been purely academic techniques into real market applications, he believes that disciplined, quantitative analysis can select stocks that will significantly outperform the overall market. All content in this “A Look Ahead” section of Market Mail represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Important Disclosures:
Although information in these reports has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier’s judgment as of the date the report was created and are subject to change without notice. These reports are for informational purposes only and are not a solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in these reports must take into account existing public information on such securities or any registered prospectus.To the extent permitted by law, neither Navellier & Associates, Inc., nor any of its affiliates, agents, or service providers assumes any liability or responsibility nor owes any duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this communication or for any decision based on it.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier. in the future will be profitable or equal the performance of securities made in this report. Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.
None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The holdings identified do not represent all of the securities purchased, sold, or recommended for advisory clients and the reader should not assume that investments in the securities identified and discussed were or will be profitable.
Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for every investor. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. Investment in fixed income securities has the potential for the investment return and principal value of an investment to fluctuate so that an investor’s holdings, when redeemed, may be worth less than their original cost.
One cannot invest directly in an index. Index is unmanaged and index performance does not reflect deduction of fees, expenses, or taxes. Presentation of Index data does not reflect a belief by Navellier that any stock index constitutes an investment alternative to any Navellier equity strategy or is necessarily comparable to such strategies. Among the most important differences between the Indices and Navellier strategies are that the Navellier equity strategies may (1) incur material management fees, (2) concentrate its investments in relatively few stocks, industries, or sectors, (3) have significantly greater trading activity and related costs, and (4) be significantly more or less volatile than the Indices.
ETF Risk: We may invest in exchange traded funds (“ETFs”) and some of our investment strategies are generally fully invested in ETFs. Like traditional mutual funds, ETFs charge asset-based fees, but they generally do not charge initial sales charges or redemption fees and investors typically pay only customary brokerage fees to buy and sell ETF shares. The fees and costs charged by ETFs held in client accounts will not be deducted from the compensation the client pays Navellier. ETF prices can fluctuate up or down, and a client account could lose money investing in an ETF if the prices of the securities owned by the ETF go down. ETFs are subject to additional risks:
- ETF shares may trade above or below their net asset value;
- An active trading market for an ETF’s shares may not develop or be maintained;
- The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track;
- The cost of owning shares of the ETF may exceed those a client would incur by directly investing in the underlying securities; and
- Trading of an ETF’s shares may be halted if the listing exchange’s officials deem it appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.
Grader Disclosures: Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. The sample portfolio and any accompanying charts are for informational purposes only and are not to be construed as a solicitation to buy or sell any financial instrument and should not be relied upon as the sole factor in an investment making decision. As a matter of normal and important disclosures to you, as a potential investor, please consider the following: The performance presented is not based on any actual securities trading, portfolio, or accounts, and the reported performance of the A, B, C, D, and F portfolios (collectively the “model portfolios”) should be considered mere “paper” or pro forma performance results based on Navellier’s research.
Investors evaluating any of Navellier & Associates, Inc.’s, (or its affiliates’) Investment Products must not use any information presented here, including the performance figures of the model portfolios, in their evaluation of any Navellier Investment Products. Navellier Investment Products include the firm’s mutual funds and managed accounts. The model portfolios, charts, and other information presented do not represent actual funded trades and are not actual funded portfolios. There are material differences between Navellier Investment Products’ portfolios and the model portfolios, research, and performance figures presented here. The model portfolios and the research results (1) may contain stocks or ETFs that are illiquid and difficult to trade; (2) may contain stock or ETF holdings materially different from actual funded Navellier Investment Product portfolios; (3) include the reinvestment of all dividends and other earnings, estimated trading costs, commissions, or management fees; and, (4) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. For these and other reasons, the reported performances of model portfolios do not reflect the performance results of Navellier’s actually funded and traded Investment Products. In most cases, Navellier’s Investment Products have materially lower performance results than the performances of the model portfolios presented.
This report contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of The U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “plan,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions, and projections, are not guarantees of future results or performance, and involve substantial risks and uncertainty as described in Form ADV Part 2A of our filing with the Securities and Exchange Commission (SEC), which is available at www.adviserinfo.sec.gov or by requesting a copy by emailing info@navellier.com. All of our forward-looking statements are as of the date of this report only. We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. You are urged to carefully consider all such factors.
FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.
IMPORTANT NEWSLETTER DISCLOSURE:The hypothetical performance results for investment newsletters that are authored or edited by Louis Navellier, including Louis Navellier’s Growth Investor, Louis Navellier’s Breakthrough Stocks, Louis Navellier’s Accelerated Profits, and Louis Navellier’s Platinum Club, are not based on any actual securities trading, portfolio, or accounts, and the newsletters’ reported hypothetical performances should be considered mere “paper” or proforma hypothetical performance results and are not actual performance of real world trades. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier Investment Products’ portfolios and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters contain hypothetical performance that do not include transaction costs, advisory fees, or other fees a client might incur if actual investments and trades were being made by an investor. As a result, newsletter performance should not be used to evaluate Navellier Investment services which are separate and different from the newsletters. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or hypothetical Newsletter performance claims, (which are calculated solely by Investor Place Media and not Navellier) should be referred to InvestorPlace Media, LLC at (800) 718-8289.
Please note that Navellier & Associates and the Navellier Private Client Group are managed completely independent of the newsletters owned and published by InvestorPlace Media, LLC and written and edited by Louis Navellier, and investment performance of the newsletters should in no way be considered indicative of potential future investment performance for any Navellier & Associates separately managed account portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product.
Navellier claims compliance with Global Investment Performance Standards (GIPS). To receive a complete list and descriptions of Navellier’s composites and/or a presentation that adheres to the GIPS standards, please contact Navellier or click here. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report.
FactSet Disclosure: Navellier does not independently calculate the statistical information included in the attached report. The calculation and the information are provided by FactSet, a company not related to Navellier. Although information contained in the report has been obtained from FactSet and is based on sources Navellier believes to be reliable, Navellier does not guarantee its accuracy, and it may be incomplete or condensed. The report and the related FactSet sourced information are provided on an “as is” basis. The user assumes the entire risk of any use made of this information. Investors should consider the report as only a single factor in making their investment decision. The report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. FactSet sourced information is the exclusive property of FactSet. Without prior written permission of FactSet, this information may not be reproduced, disseminated or used to create any financial products. All indices are unmanaged and performance of the indices include reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any particular investment and an investment cannot be made in any index. Past performance is no guarantee of future results.