The Stocks to Buy if We Want to Win the AI Competition With China
Competition can bring out the best in us.
It can push an athlete to keep working harder toward a record, or victory over an opponent. Competition can inspire artists to push their boundaries, refine their skills and think in different ways.
And it can motivate a startup to revolutionize an industry.
Competition can be how we grow stronger, faster, smarter. We’re all familiar with the levels we go through in life. As a kid, maybe you participated in the spelling bee at school, or try-outs for a team.
As adults, we compete for jobs against other applicants, and against co-workers for assignments and promotions or raises.
But as important as those competitions seem, the stakes are much higher when governments compete. During the Cold War between the United States and the Soviet Union, the stakes were so high many feared that global nuclear annihilation would result.
We’re facing a parallel competition now with China over who will produce the most dominant form of artificial intelligence.
This competition isn’t just about industrial leadership, but also military dominance and cultural influence throughout the world.
During the Cold War, defense contractors such as Lockheed Martin and Northrup Gruman benefitted from increased government spending and the need for more military firepower.
And just like in the Cold War, this new global standoff with China will create fortunes for the companies—and investors—who align with the winning side.
Today, we’ll highlight the companies that will push themselves, push the technology, and compete globally to help ensure the United States wins the competitions for AI dominance.
The Stakes Couldn’t Be Higher
According to Morgan Stanley, China has more than doubled its investment in AI recently and will spend up to $27 billion by 2026.
Facts like that are why one of President Donald Trump’s first acts when taking office was to sign an executive order that declared the need to “sustain and enhance America’s global AI dominance.”
But what does that mean, exactly?
Of course, there is the race to develop AGI, artificial general intelligence, that could learn to reason by itself and unlock new innovations in science, medicine and industrial growth.
But the military is also working hard to determine how AI can help develop the next weapon systems. And intelligence agencies want to develop the AI that will enable them to establish an edge on governments, friend and foe alike, around the world.
Economically, governments want their industries to own the supply chains and infrastructure needed to develop AI. Ideally, they want to own the standards used to develop AI around the world, to ensure every country must use its framework as they build out future AI systems.
Jensen Huang, CEO of the AI megatrend leader NVIDIA, has been pushing the idea of “sovereign AI” since 2023. The concept is that every nation’s knowledge, history, language and culture are different and so every nation needs its own AI. He also warns that nations that fail to control their own AI stacks risk becoming dependent on foreign systems that don’t share their values or priorities.
The biggest names in America are on board with President Trump’s plan.
Earlier this year, Trump announced Project Stargate – a $500 billion public-private initiative backed by OpenAI, Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN) and NVIDIA – all working to build out domestic AI infrastructure at a national scale.
Elon Musk, who has had a few public spats with Trump, is constructing what may become the largest AI data center in the U.S. as part of his xAI development.
Trump’s AI and cryptocurrency czar David Sacks is working to cut red tape and fast track AI buildouts. Sacks is a venture capital investor and the co-founder or PayPal.
The Stocks to Buy Today
While the government is pouring billions into AI, one man has been ahead of the curve from the start – Louis Navellier. Here at the Digest, we’ve tracked the success Louis has had investing in the AI megatrend. He first encouraged his readers to buy Nvidia in 2016! In 2019, long before anyone had heard of ChatGPT or Open AI, he ran editorial messages telling everyone, “Don’t Fear AI, Invest in it!”
So, of course, he was talking about Trump’s AI plans all along. Here is what he’s saying now.
I believe his administration is about to trigger a boom of biblical proportions in a tiny subsector of the market that’s critical for this AI revolution.
And I had to be here today because most investors have essentially forgotten about this corner of the market.
Technically, these companies are not really AI stocks.
Most people will be left out…
But I don’t want my readers to miss out on this second chance…
Because I believe it could be our last shot at big gains…
The kind of gains that could turn a modest stake into an entire nest egg.
The bottom line is…
It’s not too late…
But after July 22nd it could be…
Because this is truly an unprecedented move from the Trump administration.
And if you miss it, I don’t believe you’ll get a second chance.
The companies Louis is talking about aren’t building new AI models or robots but produce some of the key specialized supplies that are critical for AI to function.
America doesn’t just need software. It needs the physical building blocks: minerals, materials, and infrastructure. And that provides a huge opportunity in specialized suppliers.
For example, last week, in a special free presentation about what Louis refers to as Trump’s upcoming “AI Day,” Louis mentioned MP Materials (MP) as a stock to benefit from Trump’s plan.
MP Materials is the largest rare earth mining and processing facility in North America.
Then on Thursday, the Pentagon announced a $400 million investment into MP Materials, instantly positioning the company as a strategic national security play – and sending its stock soaring 48% before the market even opened.
In his Breakthrough Stocks service, Louis has identified five small cap stocks similarly positioned to take advantage of the Trump plan to win the AI competition with China.
Louis’ Breakthrough Stocks subscribers are sitting on open gains of other AI players such as Celestica (CLS) +174%, and Power Solutions Intl (PSIX) +60%.
This next batch of five small caps stocks could be the beginning of even bigger gains, as Trump’s AI Master Plan takes shape.
You can hear all about Louis’ approach to finding these stocks using his proprietary algorithm by clicking right here to see his free presentation.
The competition for AI dominance can bring out the best in these companies, and savvy investors will be there to profit.
Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace
