A sudden 50% return for Louis Navellier’s free stock pick… why more gains are likely coming… Jonathan Rose’s subscribers lock in 500%+… do we have to fear trade deals?… new AI picks from Luke Lango
Well, that was fast…
Last night, legendary investor Louis Navellier held a special broadcast, highlighting an investment opportunity racing toward a pivotal catalyst date.
As part of the evening, he gave away for free the name and ticker of one of his favorite ways to play the set-up.
This morning, news broke that the Pentagon has become the largest shareholder in this company – and shares surged 50%.
But Louis says this is just the first wave of what’s coming. With enormous upside remaining, you haven’t missed the lion’s share of the opportunity.
Let’s back up to fill in some details.
For China, AI, automation, and robotics aren’t optional – they’re existential
The country faces two enormous challenges that are forcing a bet not just on innovation, but on survival through technology…
Economics and demographics.
Beginning with economics, here’s the online magazine Geographical:
Income disparity remains severe.
With a median per capita disposable income of just $2,411 annually, half of China’s population is effectively poor, while roughly 12 per cent live on less than $7 a day.
For years, President Xi has attempted to transition China away from exports, toward a more advanced economy based on domestic consumption. But he can’t because of the data above – the people simply can’t afford to spend more.
Demographically, the situation is equally challenging. Let’s go to Louis:
The country’s population is shrinking, and its workforce is aging. Meanwhile, China’s birthrate is hitting record lows.
More than 200 million people in China are already over 65. By 2050, that number will grow so fast that one in every three citizens will be elderly.
That’s a civilization-threatening crisis – and the government knows it.
So, what’s Beijing’s plan?
Salvation through technology.
China sees AI/robots/humanoids as the key to overcoming demographic and economic collapse.
Here’s the World Economic Forum (WEF):
One in every two industrial robots installed around the world is being put to work in China…
More than 90% [of Chinese employers] identify AI and 65% identify robots as key technologies to transform their organization…
The country is ahead of the global average on all of these trends, as well as on seeing the transformative potential of numerous other technologies, from new materials to semiconductors, biotechnology to quantum computing.
But there’s far more going on here…
Necessity may be fueling China’s AI ambitions, but those ambitions won’t stop at the factory floor
China’s leadership understands that whoever controls the future of AI controls far more than just industrial output. The race for AI dominance is more than just a technological competition, it’s a contest for global leadership.
So, the U.S. and China are pouring resources into AI development because the stakes couldn’t be higher…
Whoever leads in AI will shape the future of economic power, military capability, and cultural influence.
Let’s return to Louis:
Thankfully, the Trump administration understands this. That’s why they’ve been quietly putting together a national AI strategy.
And by July 22, I’m predicting that the administration will reveal its grand strategy to the public…
My research indicates President Donald Trump is preparing to go public with a plan to propel America to dominance across everything AI: software, robotics, self-driving cars, data centers and more.
Last night, Louis detailed his vision of Trump’s plan to reshape how America builds, powers, and deploys next-gen AI systems. And at the heart of it – and at the heart of China’s push for technological supremacy – is one thing…
Rare earth metals.
Rare earth elements (REEs) are a group of 17 elements that can be difficult to find and extract
These elements contain unique magnetic, heat-resistant, and phosphorescent properties that make them critical for, well, the next generation of just about everything:
- Tomorrow’s AI advancements: AI relies on powerful hardware components like GPUs and ASICs, which use rare earth elements like neodymium for magnets in cooling systems and motors, and gadolinium for heat resistance…
- Consumer products: They’re needed for all your favorite tech-products such as smart phones, computers, electric vehicles, LED lights, flat screen TVs, you name it…
- National defense: REEs are critical for wide range of defense applications, including aircraft, submarines, missiles, and radar/sonar systems. You’ll find them in everything from magnets that power electric motors and actuators in fighter jets, to lasers, to guidance systems in missiles…
- Quantum computing: REEs such as ytterbium and europium are being used to create more stable and efficient qubits, the fundamental units of quantum information.
Basically, all our next-gen technologies rely on REEs. The problem is that China controls 90% of the world’s refining capacity.
Unfortunately, we can’t just flip a switch and begin producing REEs. Any legitimate domestic production (at scale) will take time to get up and running – unless the world’s most powerful government throws its vast resources at the problem.
And that brings us to this morning’s headline…
“Pentagon to become largest shareholder in rare earth miner MP Materials”
That comes from CNBC.
MP Materials was the bonus stock that Louis gave away for free during last night’s broadcast. Here’s CNBC with more details on the Pentagon:
The Defense Department will become the largest shareholder in rare earth miner MP Materials after agreeing to buy $400 million of its preferred stock, the company said Thursday.
MP Materials owns the only operational rare earth mine in the U.S. at Mountain Pass, California, about 60 miles outside Las Vegas.
Proceeds from the Pentagon investment will be used to expand MP’s rare earths processing capacity and magnet production, the company said.
The stock surged 50% this morning.
Now, if you missed this, don’t worry. As I noted a moment ago, Louis believes it’s just the first wave of a coming tsunami of huge returns from leading rare earth plays.
Here he is explaining:
The robots aren’t going to build themselves. They’re not going to power themselves. And they’re definitely not going to mass-produce themselves.
That’s where a handful of small companies come in…
I’ve found five that I believe are best positioned to benefit from what’s coming.
They’re aligned with the Trump administration’s new AI directive. They’re critical to scaling physical AI. And they’re small enough to see explosive gains once capital starts pouring in.
To be clear, while a quick 50% pop is fantastic, Louis believes this trend has 500%, even 5,000% potential. As we’ve profiled in the Digest, he’s putting this opportunity on par with his still-live return in Nvidia, now approaching 4,000%.
For more on the overall investment opportunity here and how to play it, we’re making a free replay of last night’s event available for a limited time.
Bottom line: For investors, this is more than a macro/political story – it’s the axis around which entire industries will evolve over the next decade.
The rivalry between the U.S. and China in AI and automation will determine winners and losers across chips, software, defense, energy, and infrastructure, and far more.
So, if you’re not positioning around it now, you’ll be reacting to it later.
Louis has company in celebrating gains from MP Materials
This morning, subscribers to Jonathan Rose’s Advanced Notice service, who followed his advice, banked about 534% on one of their MP Materials call options.
For newer Digest readers, Jonathan is a veteran trader who earned his stripes at the Chicago Board Options Exchange, going toe-to-toe with some of the world’s most aggressive and successful moneymakers. He’s made more than $10 million over the course of his career, profiting from bull markets, bear markets, and everything in between.
Now, just as eye-opening as that 534% return is when subscribers opened this trade…
Only three days ago.
Jonathan still has part of the trade open in expectation of additional gains. For more, let’s go to his update this morning:
MP shares popped in the premarket after the Pentagon announced it will become the company’s largest shareholder, investing $400 million in preferred stock.
That kind of government backing is a big vote of confidence—and the market responded exactly how we hoped — shares jumped more than 60% before the bell this morning and now we’re locking in profits on the $34 calls…
Let’s take profits here, hold our $37 calls for now and see how far this ride will take us.
What a trade! We’ve nailed this stock on both sides of the action — this is what I mean when I say The Creative Traders Wins!
A much-deserved “congratulations” to all the Advanced Notice subscribers, as well as to Jonathan, who’s one of the best in the biz.
For more details on this trading approach – the same one that enabled him to spot this trade and make 500%+ in less than a week – click here.
Finally, though not a 500% return, I’ll add that we flagged MP Materials for you in our December 4thDigest. The stock is up 91% since then. But if Jonathan and Louis are right, more short-term trading and longer-term investing profits remain ahead.
Is this bull market in trouble now that President Trump has reignited the trade war?
As I write Thursday, President Trump has sent letters to at least 22 different nations, dictating new U.S. tariff rates. They range between 25% and 50%.
But whereas Trump’s Liberation Day tariffs resulted in a market meltdown, the market has mostly shrugged off this latest batch of levies.
For the explanation why and what comes next, let’s go to our hypergrowth expert Luke Lango. From his Innovation Investor Daily Notes:
Let’s call it what it is: political theater.
- The letters Trump is sending to world leaders about tariff rates? Posturing.
- The hard deadline? A negotiating tactic.
- The goal? Secure deals by August and put the tariff saga to bed.
This is classic Trump: create chaos, then claim victory. We’ve seen it before. We’ll see it again.
Luke’s base case is that trade deals will happen with the average U.S. tariff rate to land near 10%. While this is up substantially from ~2.5% in 2024, Luke says it’s still manageable:
Historically, a move to 10% would shave ~1% off GDP and add ~1% to inflation.
Modest damage, counterbalanced by tax cuts, strong spending, and the AI productivity boom.
However, there’s one thing that Luke suggests we keep an eye on – confidence.
He highlights the June NFIB Small Business Survey that shows confidence is stalling. Price-hike plans are rising. And while May looked like a recovery from April’s tariff shock, June reversed the trend.
So, the resilience of the consumer is back in the spotlight, which makes it all the more important that consumers avoid tariff-related sticker shock.
But Luke believes we will avoid such a shock. Here’s his bottom line:
We’re not betting on breakdown — we believe in EACO: Everyone Always Chickens Out.
Global economies are too connected to risk a meltdown. We expect trade deals to get done — and markets to rally hard once they do…
Our strategy: ignore the drama, buy the dips, and position for a second-half breakout.
So, what is Luke buying?
You already know – AI.
While Luke has already profiled many ways to invest in AI, his latest recommendations ties in with Louis and the China/AI race that opened today’s Digest.
Here’s Luke:
Capital is coming home. Infrastructure is being built.
AI is going domestic.
That’s rocket fuel for an American AI Boom. So, what’s the move?
You don’t need to chase every bounce or time every dip. Instead, what you should be doing is building your AI stock watchlist and looking for entry points as fear creates opportunity.
Focus on:
- Semiconductor leadersreshoring U.S. production (think NVDA, AMD, TSM partners).
- AI software companies(like PLTR, AXON, META, MSFT).
- Advanced manufacturing playsin packaging, testing, and thermal systems (such as SNPS, COHR, AMAT).
For investors watching AI stocks closely, this reshoring wave signals a potential multi-year uptrend.
(Disclosure: I own AMD, MSFT, SNPS, COHR.)
Luke is especially focused on humanoids right now. You can check out his latest free research video on the topic right here.
We’ll keep you updated on all these stories here in the Digest.
Have a good evening,
Jeff Remsburg
