by Louis Navellier
May 27, 2026
With Nvidia wrapping up the bulk of first-quarter earnings reports, we see from FactSet that 84% of the S&P 500 companies have beaten their earnings estimates and 81% beat their revenue estimates, the best record of positive surprises since the second-quarter of 2021. Overall, blended earnings grew by 28.4%, year-over-year, and net profit margins reached 14.8%, a record going back to 2009. The Magnificent 7 grew their earnings 63% and Nvidia, leading the Mag-7 pack (by market cap), boosted earnings by 85%.
Specifically, Nvidia announced its first quarter revenue surged 85% to $81.6-billion, compared to $44.1-billion in the same quarter a year ago. During the same period, the company’s operating earnings surged 139.7% to $45.5-billion, or $1.87 per share, compared to $19.1-billion or 78 cents per share. The analyst community was anticipating revenue of $78.9-billion and operating earnings of $1.75 per share, so Nvidia posted a 3.4% revenue surprise and a 6.9% earnings surprise. More importantly, the company raised its second quarter revenue guidance to $91-billion, above the analysts’ consensus estimate of $87.3-billion.
Nvidia’s quarterly results set the stage for an extended AI rally. As Nvidia CEO Jensen Huang said, “The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed.” Nvidia now represents almost 16% of U.S. GDP and may rise to over 20% as the AI-revolution continues. There are a lot of great technology monopolies that we can invest in, like Google or Nvidia, ensuring continued investment success. Believe it or not, due to surging order backlogs for my AI and data-center related companies, many now have three or more years of orders backlogged – and now, I have found five new Al related companies to buy to profit from the data-center boom.
Samsung is the largest manufacturer of memory chips. Its stock has surged due to robust profits. As the shortage of memory chips worsens, Samsung and its largest labor union have been in talks to avert a strike. A tentative agreement was reached last Thursday. Unlike many other large Korean conglomerates, Samsung operates with limited union influence, with management and labor representatives relatively inexperienced in handling large-scale collective bargaining. The South Korean government mediated negotiations, where labor leaders are demanding 15% of operating profits go toward employee bonuses.
Micron Technology is also poised to benefit from any production interruptions from Samsung, and quantum computing stocks are back in the news, because the U.S. Commerce Department last Thursday confirmed it planned to award $2-billion in grants to nine companies to foster the development of the domestic quantum industry. Both Rigetti (RGTI) and D-Wave (QBTS) have signed letters of intent with the government for $100-million in funding under the 2022 Chips and Science Act, which aims to spur research into emerging technologies. Under the terms of this pact, D-Wave will issue $100-million in common stock to the Commerce Department, so the government will have a vested interest in its success.
In other opportunities, NextEra Energy, a big utility in Northern Florida, is buying Dominion Energy, which provides electricity in Virginia. Due to the data-center boom in Virginia, NextEra Energy plans to steadily grow by selling electricity to data-centers. Interestingly, battery storage facilities are being increasingly added in Virginia, since they can be deployed faster than new natural gas-fired electric plants.
Since most new data-centers utilize direct natural gas lines to generate their own electricity via Bloom Energy’s fuel cells or GE Vernova’s turbines, it will be fascinating to see if NextEra Energy can effectively compete with data-centers in other states, which generate their own electricity via natural gas.
Why I’m Not About to Invest in the New SpaceX IPO
In last week’s Navellier Market Buzz, I said I would rather buy aerospace suppliers like Carpenter Technology (CRS) or Howmet Aerospace (HWM) than buy the new SpaceX IPO. The analogy I used was that during the California Gold Rush the suppliers to the gold miners, like Levi’s jeans, made more money than most gold miners. The Wall Street Journal said SpaceX’s revenue comes from three sources, namely Grok AI, Starlink internet and rocket launches. The Journal said SpaceX is essentially a “trucking business” that charged businesses and governments to haul satellites into orbit. In the upcoming years SpaceX’s Starlink business is expected to steadily grow and should reach over 10-million users this year.
As a result, SpaceX is expected to eventually make more money from Internet subscriptions than rocket launches or Grok AI. The good news for investors is all three divisions of SpaceX are growing, but it will be interesting to see if the Starlink Internet business becomes more dominant, as the WSJ article implied.
Another interesting article came from Barrons, titled “Carpenter Technology: This Stock Will Melt Up,” due to its pricing power and lack of competition. I would make the case aerospace suppliers might be an even better way to profit from the SpaceX IPO craze than a direct investment in SpaceX itself.
We are truly in a once in a lifetime moment to make a tremendous amount of money that can be life changing, so I want you to become (or remain) fully invested and enjoy the ride! The similarities between the early Internet boom and the AI boom are real and this year is unfolding just like 1999.
Major Shifts in the Global Power Struggle Are Emerging
–Mostly Due to the Iran War and Energy Crunch
On Truth Social, President Trump said he would “hold off” on a planned military attack on Iran at the request of Gulf leaders, mostly to make room for negotiations with Tehran over a prospective deal to end the war. Trump said “serious negotiations” were now taking place. Last week, Trump wrote:
“I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond.
“This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!
“Based on my respect for the above mentioned Leaders, I have instructed Secretary of War, Pete Hegseth, The Chairman of The Joint Chiefs of Staff, General Daniel Caine, and The United States Military, that we will NOT be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event an acceptable Deal is not reached. Thank you for your attention to this matter!”
Iran is caught in a bind. Many Iranian businesses have closed, so unemployment is rising and up to 10-million jobs may eventually be lost. The U.S. covertly sent thousands of Starlink satellite terminals into Iran after the regime’s crackdown on demonstrations earlier this year. Tens of thousands of Iranians use them to contact loved ones domestically and abroad or to share information outside the control of government firewalls and censors. However, owning a Starlink Internet system is illegal in Iran and authorities have searched homes and roofs hunting for Starlink receivers. Those caught could face several years in prison.
In other global conflicts, it looks like the U.S. is preparing to take over Cuba if they do not agree to make the fundamental changes the U.S. is demanding. There could even be a military extraction of Raul Castro, who has been charged with crimes by the Department of Justice. In the meantime, this short message recorded by Secretary of State Marco Rubio to the Cuban people is a good explanation of U.S. foreign policy there.
An example of how pathetic the British government has become comes from a Financial Times report saying the United Kingdom Treasury is pushing large supermarkets to introduce voluntary price caps on key groceries in exchange for lifting some regulations. Specifically, the British government said it would offer incentives to supermarkets, such as easing packaging polices and possibly delaying costly rule changes associated with healthy food. British food packaging regulations generate revenue for the U.K. Treasury, and is trying to bribe supermarkets into freezing grocery prices. Clearly, the folks in the U.K. Treasury have never taken Economics 101, and the British supermarkets are outraged over this latest proposal from the Treasury.
In the meantime, any Fed interest rate cuts will likely be postponed until the recent surge in energy inflation dissipates. Specifically, the Labor Department said the Producer Price Index (PPI) rose 1.4% in April and 6% in the past 12-months. The core PPI, excluding food, energy and trade services, rose 0.6% in April and 4.4% in the past 12-months, and wholesale energy costs surged 7.8%. This means our new Fed Chairman Kevin Warsh has his hands full and it will take some time to convince other members of the Federal Open Market Committee (FOMC) that key interest rates cuts might be necessary in the upcoming months.
I am not ruling out coordinated action by Treasury Secretary Scott Bessent and Kevin Warsh to push U.S. Treasury yields lower later this year. However, the best thing Bessent and Warsh can do is argue that AI productivity gains in the U.S. are naturally deflationary, so they should try to coax Treasury yields lower.
One other event that could cause Treasury yields to migrate lower would be any kind of a currency panic resulting from capital flight due to political and economic duress in Britain, China, Japan, or any other major countries. The bond vigilantes are currently demanding higher yields from Britain, France, Japan and some other countries with demographic problems (i.e., shrinking households) and budget problems.
The big difference between the U.S. and the rest of the world is our independence in energy and food production. We can also grow our way out of many problems and we have better demographics, are better able to assimilate immigrants and have 50 states competing with each other to promote local business growth.
Navellier & Associates; own Nvidia Corp (NVDA), Alphabet Inc. Class A (GOOGL), D-Wave Quantum Inc. (QBTS), Bloom Energy Corporation Class A (BE), GE Vernova Inc. (GEV), Rigetti Computing, Inc. (RGTI), Howmet Aerospace Inc. (HWM), Carpenter Technology Corporation (CRS), and Micron Technology, Inc. (MU), in managed accounts. Louis Navellier and his family own Nvidia Corp (NVDA), Alphabet Inc. Class A (GOOGL), D-Wave Quantum Inc. (QBTS), Bloom Energy Corporation Class A (BE), GE Vernova Inc. (GEV), Rigetti Computing, Inc. (RGTI), Howmet Aerospace Inc. (HWM), Carpenter Technology Corporation (CRS), and Micron Technology, Inc. (MU), via a Navellier managed account and Nvidia Corp (NVDA), in a personal account.
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
Nvidia’s Stunning Earnings Wrap Up Quarterly Earnings Season
Income Mail by Bryan Perry
One Big Beautiful Buying Opportunity in Gold
Growth Mail by Gary Alexander
Happy 130th Birthday, Dow Jones Index
Global Mail by Ivan Martchev
A Week of Giant IPOs and Chip and Memory Shortages
Sector Spotlight by Jason Bodner
The IPO That Tells You What Comes Next
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