by Jason Bodner
May 5, 2026
Let’s go back to our old high school chemistry class for a minute…
Neodymium is number 60 on the periodic table. Discovered in 1885, it is buried here in the bottom row:

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
Neodymium may be rare, but it forms the key-component in the world’s strongest permanent magnets (NdFeB), which can lift and hold firmly over 1,000-times its own weight.
Why does that matter? Because a single hyper-scale AI data-center uses roughly 10-tons of these magnets, just to keep cool. China controls roughly 90% of rare-earth refining and an even greater share of magnets, so every megawatt of AI capacity built in the U.S. deepens dependence on materials we don’t produce.
Last week, the market started to price the AI data-center demand more realistically.
The flow data tells us a more complete story. The AI infrastructure theme is still intact, but it isn’t confined to semiconductors and data centers. It’s spreading into commodities, energy, and materials. Capital is getting selective rather than broad. For the first time in this rally, dispersion between winners and losers is widening, and that’s where the signal lives. That selectivity also showed up in industrials.
Last Thursday alone, 23-stocks tied to the physical build-out of AI infrastructure saw fresh inflows:

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
This wasn’t a sweeping sector buy. It was a tight-cluster, a roll call of every company that builds, powers, cools, or moves the physical infrastructure of AI. Here are some samples of names in the field:
- Heavy equipment & machinery: Caterpillar (CAT), Cummins (CMI), Eaton (ETN)
- Build-out & construction: Quanta Services (PWR), MasTec (MTZ), Granite Construction (GVA), Primoris (PRIM)
- HVAC & cooling: Trane (TT), Carrier (CARR), Johnson Controls (JCI), nVent (NVT)
- Power & electrical: Powell Industries (POWL), Generac (GNRC), American Superconductor (AMSC)
- Logistics: FedEx (FDX), Ferguson (FERG), Saia (SAIA), Werner (WERN)
ETF flows reinforced the point. Funds tied to industrial build-out, infrastructure development, grid-modernization, and rare-earth materials all attracted capital:
- AIRR (American Industrial Renaissance ETF)
- PAVE (US Infrastructure Development)
- GRID (Smart Grid Infrastructure)
- REMX (Rare Earth and Strategic Metals)
When money starts moving through thematic ETFs, it signals more than stock picking. It signals positioning. What was once a narrative is now expressed as an allocation. Energy, meanwhile, reasserted itself into a distinct and powerful leg of the trade. Flows were over-whelmingly one-sided.

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
Inflows dominated across oil services, midstream operators, and refiners:
- Oilfield services: Seadrill (SDRL, three-days running), Liberty Energy (LBRT), ProPetro (PUMP), Newpark (NPKI), TechnipFMC (FTI), NOV, Weatherford (WFRD), Valaris (VAL), Tidewater (TDW)
- Midstream & pipelines: Energy Transfer (ET), Kinetik (KNTK), Williams (WMB), TC Energy (TRP), Plains (PAA), DT Midstream (DTM)
- Refiners: HF Sinclair (DINO), Imperial Oil (IMO), Par Pacific (PARR)
This isn’t just about powering data-centers anymore. Oil is sky high from geopolitical pressure (we all know about the Strait of Hormuz), AI-driven electricity demand is rising, and capital keeps rotating into names that still screen as value. Energy now sits at the intersection of three-simultaneous tailwinds.
ETF inflows confirmed it this week:
- OIH (Oil Services)
- IEZ (Oil Equipment & Services)
- AMLP (MLPs)
Meanwhile, the market is quietly repricing another part of the technology stack. Two-weeks ago, I flagged technology outflows concentrated in consulting and IT services names. This week, the same names showed up:
- EPAM Systems (EPAM)
- Cognizant (CTSH)
- Globant (GLOB), Concentrix (CNXC), Infosys (INFY)
- DXC Technology (DXC), CGI (GIB), Genpact Ltd (G), Calix (CALX)
And not a single chipmaker or AI hardware name sold-off.
A pattern which repeats two-weeks running is not a coincidence. The market is pricing AI as a hardware, power, and construction story. Companies selling humans working on laptop software are now disruption targets, not beneficiaries (ironic, as I write this on software on my laptop).
Healthcare provided a different signal. It looks chaotic on the surface, with a mid-week outflow spike:

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
Underneath, the rotation was clean. Medical devices, diagnostics, and labs were sold while managed care and insurers attracted capital:

ETF flows are the smoking gun. IHI (Medical Devices) hit the outflow list two-days running, while IHF (Healthcare Providers) hit the inflow list, so the market is selling devices and labs and buying insurers.
This rotation won’t show up in headlines, but it matters to anyone on the wrong side. The broader tape shows a healthy pause. Outflows spiked, then buyers returned in size, especially in industrials and energy.

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
The longer-term trend continued grinding higher, but the pace slowed from the prior week’s near-linear move. Wednesday produced 79-outflows, the most in two weeks. Thursday ripped, with 128-inflows vs. 33-outflows. The 25-day BMI climbed from 63.3% to 68.1%, but the daily pace decelerated meaningfully.

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
That’s healthy. Parabolic rallies run out of gas. Natural rallies that breathe last. Thursday’s pounce on industrial and energy tells you dip-buyers had shopping lists to buy the build-out.
One thing to watch: ETF flows showed simultaneous:
- Buying short-duration Treasuries – SGOV, SHV, BIL, STIP
- Selling long duration – EDV on the outflow list
- Loading up on equities – SPY at an all-time high ($718.66)
Translation: bullish but parking cash. Hedged risk-on. Exactly what you’d expect with the VIX falling.
Bottom Line, the AI infrastructure trade has matured. It’s now an American Industrial Renaissance trade with energy as a powerful second-leg. The market is picking winners and losers:
- Winners: chips, power, construction, oil services, managed care.
- Losers: IT services, medical devices, consumer staples.
In summary, watch ETF flows: Watch GRID, REMX, OIH, AIRR and PAVE, on the buy side and IHI on the sell side. The cleanest tells are in the data, because they show positioning, not just direction.
The Hormuz crisis bid up energy. The China-rare-earth dependency bid up REMX. The AI capex crisis put a bid under industrials. Every constraint is somebody’s tailwind. The flows are showing you who.
“In the midst of every crisis lies great opportunity.” – Albert Einstein
Navellier & Associates; own Eaton (ETN) Quanta Services (PWR), MasTec (MTZ), Primoris (PRIM), Carrier (CARR), nVent (NVT), Powell Industries (POWL), FedEx (FDX), Seadrill (SDRL), TechnipFMC (FTI), Energy Transfer (ET), DT Midstream (DTM), Par Pacific (PARR), Cognizant (CTSH), Centene (CNC), UnitedHealth (UNH), Elevance (ELV), Alignment Healthcare (ALHC), Becton Dickinson (BDX), and Boston Scientific (BSX), in managed accounts. We do not own Caterpillar (CAT), Cummins (CMI), Granite Construction (GVA), Trane (TT), Johnson Controls (JCI), Generac (GNRC), American Superconductor (AMSC), Ferguson (FERG), Saia (SAIA), Werner (WERN), Liberty Energy (LBRT), ProPetro (PUMP), Newpark (NPKI), NOV, Weatherford (WFRD), Valaris (VAL), Tidewater (TDW), Kinetik (KNTK), Williams (WMB), TC Energy (TRP), Plains (PAA), Sinclair (DINO), Imperial Oil (IMO), EPAM Systems (EPAM), Globant (GLOB), Concentrix (CNXC), Infosys (INFY), DXC Technology (DXC), CGI (GIB), Genpact Ltd (G), Calix (CALX), Humana (HUM), Molina (MOH), Labcorp (LH), Stryker (SYK), Cooper Companies (COO), Zimmer Biomet (ZBH), DexCom (DXCM), GE Healthcare (GEHC), Insulet (PODD), McKesson (MCK), or Medtronic (MDT). Jason Bodner does not personally own Eaton (ETN) Quanta Services (PWR), MasTec (MTZ), Primoris (PRIM), Carrier (CARR), nVent (NVT), Powell Industries (POWL), FedEx (FDX), Seadrill (SDRL), TechnipFMC (FTI), Energy Transfer (ET), DT Midstream (DTM), Par Pacific (PARR), Cognizant (CTSH), Centene (CNC), UnitedHealth (UNH), Elevance (ELV), Alignment Healthcare (ALHC), Becton Dickinson (BDX), and Boston Scientific (BSX), Caterpillar (CAT), Cummins (CMI), Granite Construction (GVA), Trane (TT), Johnson Controls (JCI), Generac (GNRC), American Superconductor (AMSC), Ferguson (FERG), Saia (SAIA), Werner (WERN), Liberty Energy (LBRT), ProPetro (PUMP), Newpark (NPKI), NOV, Weatherford (WFRD), Valaris (VAL), Tidewater (TDW), Kinetik (KNTK), Williams (WMB), TC Energy (TRP), Plains (PAA), Sinclair (DINO), Imperial Oil (IMO), EPAM Systems (EPAM), Globant (GLOB), Concentrix (CNXC), Infosys (INFY), DXC Technology (DXC), CGI (GIB), Genpact Ltd (G), Calix (CALX), Humana (HUM), Molina (MOH), Labcorp (LH), Stryker (SYK), Cooper Companies (COO), Zimmer Biomet (ZBH), DexCom (DXCM), GE Healthcare (GEHC), Insulet (PODD), McKesson (MCK), or Medtronic (MDT).
All content above represents the opinion of Jason Bodner of Navellier & Associates, Inc.
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Jason Bodner
MARKETMAIL EDITOR FOR SECTOR SPOTLIGHT
Jason Bodner writes Sector Spotlight in the weekly Marketmail publication and has authored several white papers for the company. He is also Co-Founder of Macro Analytics for Professionals which produces proprietary equity accumulation and distribution research for its clients. Previously, Mr. Bodner served as Director of European Equity Derivatives for Cantor Fitzgerald Europe in London, then moved to the role of Head of Equity Derivatives North America for the same company in New York. He also served as S.V.P. Equity Derivatives for Jefferies, LLC. He received a B.S. in business administration in 1996, with honors, from Skidmore College as a member of the Periclean Honors Society. All content of “Sector Spotlight” represents the opinion of Jason Bodner
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