These winners look like they will continue to deliver high returns.The tech sector has produced tremendous long-term returns that often outperform the broader market. For instance, the S&P 500 (^GSPC +0.81%) is up by 81% over the past five years, while the State Street Technology Select Sector SPDR ETF (XLK +1.92%) is up by 116% during the same stretch.That's why many of the millionaire-maker stocks are tech picks, including these three giants. All three are posting tremendous revenue growth amid artificial ...

For much of the last three years, artificial intelligence (AI) has been the hottest trend on Wall Street. Providing software and systems with the tools to make accurate, split-second decisions without human oversight is a game changer that's expected to create trillions of dollars in global economic value. Although a long list of publicly traded companies is benefiting from this artificial intelligence push, none exemplify this technological evolution quite like Nvidia (NASDAQ: NVDA). Since the end of 20 ...

Core Insights - The rise of artificial intelligence (AI) is seen as the next technological leap comparable to the internet revolution in the mid-1990s [1] Company Overview - Nvidia has significantly increased its market value by $3.9 trillion since the start of 2023, making it one of the most valuable public companies [2] - The company holds a dominant position in the AI hardware market, with its graphics processing units (GPUs) accounting for 90% or more of those deployed in AI-accelerated data centers [3] Competitive Advantages - Nvidia's GPUs are recognized for their superior compute capabilities, leading to exceptional pricing power and a gross margin in the mid-70% range [4] - The company is committed to innovation, with plans to release an advanced GPU annually, including the upcoming Vera Rubin chip [5] - The CUDA software platform enhances customer loyalty by maximizing the potential of Nvidia's GPUs, particularly in building and training large language models [6]

Summary of Key Points from the Conference Call Industry Overview - The conference focused on the AI/data center sector, electric vehicles (EVs), and autonomous vehicles (AVs), highlighting the rising power demand and innovations in these areas [1][2] Core Insights - **Reliability Imperative**: There is a strong emphasis on increasing investments in power, water, and broader infrastructure to meet rising demand and mitigate risks associated with aging infrastructure [1] - **AI Capital Expenditure**: The growth in AI capital expenditure (capex) is a significant topic, with expectations of continued strong demand for AI compute and data center power [5][6] - **Power Demand Growth**: Global power demand from data centers is projected to grow by 175% by 2030 compared to 2023 levels, which is equivalent to adding another top 10 power-consuming country [35] - **Investment Themes for 2026**: Key investment themes identified include Reliability (Power/Water Infrastructure, Critical Materials, Skilled Labor Scalers), Livelihood (Labor Reskillers, Affordability Solutions), and Quality (companies with favorable returns and operational sustainability) [10][9] Financial and Market Dynamics - **Investor Sentiment**: Investors are focused on the longevity of the AI capex cycle and scrutinizing financial flexibility and spending in the data center power supply chain [6][7] - **Supply Chain Concerns**: There is rising interest in redundancy of supply for critical parts and materials, particularly in rare-earth extraction and refining in the US [7] - **Labor Market Disruptions**: Ongoing AI deployment is expected to disrupt the labor market, with implications for productivity and workforce restructuring [8] Power and Energy Insights - **Power Sourcing Strategies**: An all-of-the-above approach to power sourcing is being adopted, with a focus on renewables, battery storage, and natural gas solutions [27] - **Nuclear Power Support**: There is continued support for nuclear power development, with significant announcements related to AI-related nuclear capacity [34] - **Chiller Deployment**: Despite advancements in energy efficiency, data centers are expected to continue deploying chillers to manage overheating risks [28] Future Projections - **Investment Tailwinds**: The report anticipates substantial investment tailwinds driven by the Reliability and Livelihood imperatives, with over $1 trillion of corporate spare capacity available for additional annual investment [9][15] - **Labor Demand**: An estimated 300,000 additional jobs will be needed in the US across manufacturing, construction, and operations to meet power demand by 2030 [45] Additional Considerations - **Regulatory and Policy Environment**: There are ongoing concerns regarding permitting and policy alignment among corporates, governments, and customers, which will be crucial for achieving greater grid flexibility and efficiency [31] - **Emerging Battery Technologies**: New battery technologies, including semi-solid and solid-state batteries, are on the verge of large-scale deployment, which could enhance the reliability and cost-effectiveness of energy storage solutions [55] This summary encapsulates the key points discussed during the conference call, providing insights into the current state and future outlook of the AI/data center and EV/AV industries.

Group 1 - The article emphasizes the investment strategy of buying and holding great companies rather than selling winning stocks to pursue new opportunities, citing Peter Lynch's philosophy [1] - It predicts that several large companies will continue to generate market-beating returns, with five stocks expected to join the $5 trillion club by 2026 [1] Group 2 - Nvidia has experienced significant growth, becoming a founding member of the $5 trillion club, driven by high demand for its GPUs essential for the AI revolution [3][4] - The company's new Vera Rubin chip is expected to reduce AI inference costs by 90% while using 75% fewer GPUs, indicating strong future growth potential [4] - Nvidia's current market cap is just below $4.6 trillion, needing only a 9% increase to surpass $5 trillion, with a Wall Street price target suggesting a potential 35% gain over the next year [5] Group 3 - Alphabet holds the No. 2 and No. 3 positions in the list due to its two share classes, with a market cap just under $4 trillion, positioning it to potentially surpass Nvidia [6] - The article suggests that major winners like Nvidia and Alphabet are well-positioned for continued growth, with Apple and Microsoft also having the potential to reach the $5 trillion mark [7]

Summary of Key Points from the Conference Call Industry Overview - The discussion centers around the HVAC (Heating, Ventilation, and Air Conditioning) industry and liquid cooling technologies, particularly in relation to NVIDIA's new Vera Rubin chip platform [1][2]. Core Insights 1. **Advancements in Liquid Cooling**: NVIDIA's CEO announced that the new Vera Rubin chips can be cooled using liquid cooling systems instead of traditional water chillers, which has implications for HVAC OEMs [1]. 2. **Market Reaction**: Following the announcement, HVAC OEMs such as Johnson Controls (JCI), Trane Technologies (TT), and Carrier Global (CARR) experienced a sell-off, while liquid cooling companies like nVent Electric (NVT) and Vertiv (VRT) saw modest gains [1]. 3. **Continued Need for Traditional Chillers**: Despite the advancements, traditional chillers remain essential for cooling data centers, especially during peak temperature days, indicating that the sell-off of HVAC OEMs may have been unwarranted [2]. 4. **Collaboration with Chip Manufacturers**: HVAC OEMs are actively collaborating with chip manufacturers on next-generation technology roadmaps, exemplified by TT's partnership with NVIDIA on a thermal management system for AI infrastructure [2]. 5. **Future of Liquid Cooling**: The need for advanced liquid cooling technologies is expected to grow as next-generation chips will have significantly higher compute capacities, necessitating continued innovation in cooling solutions [2]. 6. **Two-Phase Cooling Adoption**: The CES announcement may accelerate the adoption of two-phase cooling technologies, which are anticipated to be more energy-efficient than current single-phase systems [2]. 7. **Investment Activity**: JCI's investment of approximately $25 million in Accelsius, a leader in dual-phase cooling, highlights the industry's shift towards more advanced cooling solutions [2]. Additional Considerations 1. **Short-Term Market Volatility**: The industry has seen several short-term sell-offs due to new technology developments, which have historically provided "buy the dip" opportunities for investors [2][6]. 2. **Earnings Outlook**: The upcoming 4Q earnings reports are expected to address the resilience and growth potential of both HVAC OEMs and liquid cooling companies, which could influence market sentiment [2]. 3. **Valuation and Risks**: - nVent Electric (NVT) is rated as a Buy with a 12-month price target of $145, based on a multiple of 21.0x EBITDA [10]. - Vertiv (VRT) is also rated as a Buy with a price target of $204, based on a multiple of 23x EBITDA [11]. - Carrier Global (CARR) and Johnson Controls (JCI) are rated as Buy with price targets of $68 and $137, respectively, while Trane Technologies (TT) is rated Neutral with a price target of $458 [13][15][16]. Conclusion - The developments at CES 2026 signal a transformative period for the HVAC and liquid cooling industries, with significant implications for market dynamics and investment opportunities. The ongoing collaboration between HVAC OEMs and chip manufacturers, along with advancements in cooling technologies, will be critical in shaping the future landscape of the industry [2].

Core Insights - Navitas Semiconductor has struggled since its public debut in 2021, but a partnership with Nvidia presents potential for recovery [1][2][9] Performance Overview - Navitas went public via a SPAC in October 2021, with an initial investment of $10,000 now valued at approximately $4,650 [4] - The stock price peaked during the 2021 bull market and subsequently fell significantly, reaching an all-time low of $1.52 per share in May 2023 [6] Recent Developments - Following the announcement of a partnership with Nvidia, Navitas' stock has nearly quadrupled [7] - Starting in 2027, Navitas will support Nvidia's Kyber data center infrastructure, which is designed for the upcoming Vera Rubin chip [7] Financial Performance - In Q2 2025, Navitas reported revenue of $14.5 million, a 29% decline year-over-year [8] - The forecasted revenue for Q3 is between $9.5 million and $10.5 million, indicating a further sequential decline [8] Investment Outlook - The future of Navitas' stock remains uncertain, with potential for recovery linked to the Nvidia partnership, but recent share dilution and ongoing financial struggles present risks [9]

Group 1: Nvidia - Nvidia shares are near new highs following the U.S. government's approval to resume sales of its H20 chip in China, which could unlock billions in quarterly revenue [4] - Analysts expect Nvidia to report $200 billion in revenue for the year, a 53% increase over fiscal 2025, with the resumption of H20 sales likely raising near-term revenue and earnings estimates [5][6] - Nvidia's China business could significantly grow, with planned H20 orders of $8 billion in fiscal Q2 before restrictions [7] - Quarterly adjusted non-GAAP earnings growth is expected to accelerate to 47% year over year in fiscal Q2, with further growth anticipated in subsequent quarters [8] - Nvidia is positioned for high growth rates due to investments in AI infrastructure, with projected revenue growth of 21% annually, reaching $342 billion by fiscal 2030 [10][11] Group 2: Microsoft - Microsoft reported strong demand for AI services in its enterprise cloud business, contributing to its stock reaching new highs [13] - Azure, Microsoft's cloud platform, grew 33% year over year, with 16 percentage points of growth driven by AI services [14] - The company is expanding its data center capacity, opening 10 new data centers across 10 countries to support AI investments [15] - Microsoft Copilot, an AI-powered assistant, has seen a threefold increase in corporate customers, indicating strong market demand [16] - Analysts estimate Microsoft will report $279 billion for fiscal 2025, with an expected annualized growth rate of 13% over the next four years [18]

Core Viewpoint - Nvidia's CEO Jensen Huang projected that data center infrastructure capital expenditure (capex) will exceed $1 trillion by 2028, indicating significant growth potential for the company [1] Group 1: Data Center Infrastructure - The anticipated $1 trillion in data center infrastructure capex by 2028 represents a continued acceleration in spending, which is favorable for Nvidia [2] - Nvidia estimates that data center infrastructure spending will reach approximately $400 billion in 2024, capturing around 25% to 30% of this market [3] - If Nvidia maintains its current market share, it could generate between $250 billion to $300 billion in data center infrastructure revenue by 2028 [4] Group 2: Product Innovations - Nvidia introduced the Blackwell Ultra GPU, which is expected to be more powerful and beneficial for time-sensitive services, with revenue projections exceeding those from the previous Hopper architecture [4] - The company plans to launch the Vera Rubin chip, which combines a GPU with a custom-designed CPU, promising double the speed of previous models [5] - Nvidia also unveiled the open-source software system Nvidia Dynamo, aimed at enhancing inference throughput and reducing costs across thousands of GPUs [6] Group 3: Expansion into New Markets - Nvidia is entering the robotics and autonomous driving markets, introducing the Isaac GROOT N1, an open humanoid robot foundation model [7] - The company is collaborating with General Motors to develop autonomous driving systems, providing GPUs and custom AI systems for manufacturing [9] - This partnership follows a recent deal with Toyota to supply chips and software for advanced driver-assistance features [9] Group 4: Investment Potential - Nvidia continues to innovate and expand beyond data centers, positioning itself as a leader in AI infrastructure and inference [10] - The stock is currently attractively valued, trading at a forward P/E ratio of under 26 and a PEG below 0.5, indicating potential for long-term investment [11]