| By Andy Swan Keep an eye on this…
Source: Google Trends Deregulation is trending in searches and on X (formerly Twitter) as consumers and investors try to anticipate the sectors set to pop from new Trump policies.
Three segments are still ripe for growth and disruption: Cryptocurrency, Autonomous Driving, and Big Tech. This is great news for LikeFolio followers. Our MegaTrends subscribers in particular have open positions on several “deregulation trade” names that have logged massive gains over the last month alone, including: ✓ A monster crypto winner up more than +463% since last May (+70% in the last month) ✓ A tiny autonomous driving play that’s delivered a huge +83% profit since April ✓ And a “Magnificent 7” LikeFolio favorite that’s logged us +70% since February 2023 (and +56% in the last 30 days alone) (While these picks are reserved for our paid-up subscribers, you can join at any time to access all our current and future recommendations. Learn how here.) We see outsized opportunity in those established winners – and another that we’ll share with you here today… The “Deregulation Trade” of a Lifetime Donald Trump’s presidential election victory lit a fire under many “Big Tech” names. The market is anticipating supportive policies under a Trump administration that could foster innovation and expansion. Add the promise of growing chip manufacturing here in the U.S., and AI chipmaker Nvidia (NVDA) looks as lucrative as ever. After last week’s election boost, NVDA is yet again trading near all-time highs – up a mindboggling 2,800% over the last five years.
Source: TradingView Under the hood, NVDA is the AI poster child, powering tech from generative AI to autonomous driving. Here’s why we're betting on this winner to keep on winning… Unprecedented Demand for Blackwell GPUs Nvidia's latest Blackwell GPU processors have seen such high demand that the supply for the next 12 months is already sold out. Major tech companies like Amazon Web Services (AMZN), Google (GOOGL), Meta Platforms (META), Microsoft (MSFT), Oracle, and CoreWeave have secured all available units. The Blackwell platform is designed for massive-scale AI deployments, capable of handling large-language model inference while significantly reducing energy consumption. AI Spend Is Ramping Amazon, Microsoft, Alphabet, Meta Platforms, Apple (AAPL), and Oracle spent a combined $110.2 billion in capital expenditures (capex) in 2023, up from $104.2 billion in 2022. These companies are projected to spend $165.2 billion in capex in 2024, representing an almost 50% increase from 2023 levels.
Looking forward, capex spending by these tech giants is expected to approach $200 billion in 2025, driven by the need to expand data centers for AI applications. A large portion of this spending will be directed towards graphics processing units (GPUs) and other data center infrastructure. (Nvidia’s specialty.) Nvidia Is in the Pole Position Compared to competitors, Nvidia is well-positioned to benefit from this surge in capital spending by major tech companies. Take a look at the chart below, and you’ll see why:
Our data reveals NVDA web visits are rocketing 28% year over year, walloping Intel’s (INTC) +4% and Advanced Micro Devices’ (AMD) -5%. The Bottom Line In July 2023, we published a story called, “Why a Near-Term Nvidia Pullback Could Open a Lifetime Opportunity." The same thing I told you then holds true today: “Nvidia is a superb long-term investment opportunity. If anything, a pullback in NVDA’s stock price could be your gateway to investing in a leader in the AI revolution.” Over the long term, NVDA stock has gone one way – up. But keen investors have had plenty of opportunities to grab shares at a discount before they inevitably rocket higher. In early August, a perfect storm of geopolitical catalysts triggered a selloff for the history books, and we showed you why NVDA at $100 was a gift. It went on to gain nearly 50% in three months. A few weeks later, on August 28, Nvidia delivered a phenomenal earnings report: Revenue increased 122% year over year, data center revenue was up 154% year over year, and earnings surged 168% year over year. Shares traded lower on the report – and once again, we reminded you of the big picture in our August 30 issue of Derby City Daily: “Naysayers have doubted the company’s valuation for quarters now. Yet from a long-term perspective, NVDA has always managed to push higher.” The point is, near-term pullbacks are tremendous gifts for long-term investors who are keyed in to major macro themes. And just because you already have a winner, doesn't mean you can't strategically build your position. The “deregulation trade” tailwinds are just getting started – and NVDA looks like a surefire winner. Until next time, Andy Swan
Founder, LikeFolio P.S. NVDA won’t be the only AI stock to explode under Trump’s pro-tech policies. Growth-investing icon Louis Navellier has identified six specific AI stocks that stand to gain under the new administration – and you can explore his full list here. Discover More Free Insights from Derby City Daily Here’s what you may have missed from Derby City Daily this week… ✓ 3 Must-See TTD Charts for 2025 and Beyond ✓ Post-Election Cheat Sheet: Everything Investors Need to Know ✓ Two Energy Drink Plays Banking on an Earnings Jolt | 