by Louis Navellier
July 14, 2026
In the wake of America’s 250th birthday party, I certainly hope investors realize we are living in a truly wonderful time. While this summer is generating heat from “heat domes,” at least our regulators in America are not opposing installation of air conditioning, like the mayor of Paris has done. Furthermore, most of Europe’s electricity is too expensive to encourage data-centers – with Poland being a major exception. While much of Europe flounders when it gets hot, at least in America we are blessed with substantially cheaper electricity and continue to outpace the world in economic growth. In fact, many European World Cup fans have marveled at American prosperity and realize the U.S. is truly a special, entrepreneurial oasis, where literally anyone can succeed.
So, in a world where billionaires are increasingly being bashed, just for their outsized success, the truth is that America is the greatest haven for prosperity, and we can invest along with these billionaires and share their success! The fact that one American stock, Nvidia, is worth more than the French, German and Italian stock markets combined, says it all. Nvidia is also worth more than the entire British stock market. America celebrates its technology, while increasingly in Europe technology is merely being taxed heavily, as well as excessively regulated.
All the memory-related stocks – like SanDisk and Seagate Technology – improved last week, which tells me every dip is a buying opportunity in fundamentally superior stocks. The other reason memory stocks have firmed up is a South Korean memory company, SK Hynix, raised $28 billion in its IPO. SK Hynix sold 17.79 million ADR shares Wednesday and is now trading on NASDAQ. The institutional demand for this IPO exceeded the shares available, so the stock gapped-up when trading commenced on Friday.
The SK Hynix IPO was the second largest IPO ever (after SpaceX), even though Samsung shares fell by 10% on Tuesday, despite a stunning 19-fold earnings increase. This was the third straight quarter of record earnings for Samsung. So essentially, South Korea is the tail wagging the dog as far as memory stocks are concerned. In my opinion, all the memory stocks – led by Micron Technology – are great near-term buys!
Micron Technology announced it is accelerating its planned U.S. fab and technology investments and is increasing its expected spending forecast to more than $250 billion through 2035, driven by surging AI-related demand for memory. The company anticipates its increase in U.S. investments will support its long-term goal of producing 40% of its DRAM (dynamic random-access memory) in the U.S., while creating additional well-paying direct and indirect jobs. President Trump also likes Micron Technology for expanding its production in the U.S.
The other interesting development in technology stocks last week was SpaceX being added to the NASDAQ 100, but its weight will be restricted due to the fact the IPO only sold 5% of its outstanding shares. As SpaceX unlocks stocks for insiders, the number of shares outstanding will rise and its weight in the NASDAQ 100 should naturally increase. However, in the meantime, SpaceX’s percentage weight in the NASDAQ 100 is being restricted due to its relatively thin percentage of shares currently free to trade.
Last Week’s Economic Indicators Reinforce My Bullish Case
Last week, the Institute of Supply Management (ISM) announced its June non-manufacturing (service) index at 54.0. Since any reading over 50 signals an expansion, the service sector remains very healthy. The big news in the ISM service sector report is the “prices component,” which declined to 67.7 in June, down from 71.3 in May, is a sign of moderating prices. This tells us service inflation is apparently cooling. Also positive is the “backlog of orders” component, which rose to 54.9 in June, up from 51.3 in May. During June, 14 of the 18 service industries that ISM surveyed reported expanding last month.
Last Tuesday, the Commerce Department announced the trade deficit rose 42.2% in May to $77.6 billion, the largest monthly deficit in 14-months (since March 2025). Imports rose 3.3% to $395.3 billion in May, while exports declined 3.2% to $317.7 billion, due largely to lower gold exports, which were somewhat hindered by a stronger U.S. dollar. Economists now expect the trade deficit to subtract 1.7% from the second-quarter GDP, which is currently estimated at a 1.4% annual pace by the Atlanta Federal Reserve.
In comparison, the third (current) quarter is expected to be characterized by 5% annual GDP growth, which I predicted last December on Fox Business News. Between onshoring, increasing energy exports, strong retail sales growth and AI productivity gains, America cannot lose, so I expect 5% GDP growth to finally arrive this quarter. I also expect earnings growth to continue to accelerate. As a result, I maintain very high expectations for our fundamentally superior stocks and expect continued appreciation in them in the upcoming months.
We are in the midst of the strongest economic environment in decades, and that is generating robust corporate profits. The truth of the matter is we cannot stop the current technology train, so we must get on board the train, invest with the billionaires, or get left behind. Every dip in our fundamentally superior stocks remains a buying opportunity, so please do not worry about daily gyrations. Instead, buy on dips.
Finally, a word on the Fed, and then the ongoing war in Iran:
The new Fed Chairman Kevin Warsh has assembled a dozen external advisers to lead five task forces to re-examine how the central bank operates. These advisors consist of academics, former central bankers and business executives, including a former Nobel laureate and the former CEO of Wal-Mart. The most interesting panel pick is venture-capitalist Marc Andreessen, who will serve on an employment task force.
These task forces will focus on: (1) AI, productivity & jobs, (2) Fed communications, (3) the Fed’s balance sheet, (4) inflation, and (5) economic data. Wow! I think it is safe to say Fed Chairman Warsh is planning to turn the Fed inside out and then streamline it and make it operate more efficiently.
Also, crude oil prices firmed up after the Iranian Revolutionary Guard Corps (IRGC) fired on three commercial ships in the Strait of Hormuz, causing the U.S. to launch a series of air-strikes on IRGC facilities. The U.S. also blocked Iran’s ability to sell crude oil. According to a senior U.S. official, the air strikes targeted air defense, coastal surveillance, surface-to-air and anti-ship cruise-missile sites, as well as drone-launch sites and port facilities. These U.S. strikes were far more extensive than previous strikes.
President Trump has said the ceasefire with Iran is “over,” so more intense strikes to destabilize the IRGC may continue. Specifically, President Trump said, “I don’t want to deal with them anymore, they’re scum.” President Trump also accused Iranian officials of agreeing to a deal with their U.S. counterparts and then telling the press the two sides had not spoken, so he called them “liars.”
Kharg Island, which has a deep-water port and controls 90% of Iran’s crude oil shipments was targeted in the latest U.S. strikes, so speculation has risen the U.S. may seize Kharg Island, which would put tremendous economic pressure on Iran and the IRGC. In fact, President Trump on Wednesday said U.S. actions “don’t touch the oil” because “maybe we’ll take over Kharg Island.” Naturally, this would be a major escalation and indicative that the White House is increasingly in control of world energy markets.
Navellier & Associates; own Nvidia (NVDA), Micron Technology, Inc. (MU), Sandisk Corporation (SNDK) and Seagate Technology Holdings PLC (STX) in managed accounts. We do not own SK Hynix ADR (SKHYV) or Space Exploration Technology Corp (SPCX) in managed accounts. Louis Navellier and his family own Nvidia (NVDA), Micron Technology, Inc. (MU), Sandisk Corporation (SNDK) and Seagate Technology Holdings PLC (STX) via a Navellier managed account and Nvidia (NVDA) in a personal account. They do not own SK Hynix ADR (SKHYV) or Space Exploration Technology Corp (SPCX) personally.
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
America’s 250th Birthday Celebrates America’s Leadership
Income Mail by Bryan Perry
Q2 Earnings Season May Deliver a Major Market Tailwind
Growth Mail by Gary Alexander
Report from America’s Big Birthday Bash in Vegas
Global Mail by Ivan Martchev
What is Planet Earth Worth?
Sector Spotlight by Jason Bodner
Is the Stock Market “Cavitating” On Us?
View Full Archive
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Louis Navellier
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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.
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