It’s Still All About These Five AI Chokepoints

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In This Issue: 

• Last chance to join Jeff Clark’s $1 million trading challenge 

• Put this AI chokepoint stock at the top of your shopping list 

• The next healthcare trend… and it’s bigger than GLP-1s 

Last call for Jeff’s 12 Trades to $1 Million Challenge… 

Last month, TradeSmith’s master options trader Jeff Clark launched something he’s never done before — a public attempt to turn a $5,000 stake into $1 million in no more than 12 options trades. 

He calls it the 12 Trades to $1 Million Challenge. 

And it’s off to a strong start. Jeff gave his followers the chance to close their first trade in just seven days for a 165% gain. 

Trade No. 2 is out the door. It’s a bullish idea on a little-covered communications stock.  

And a third trade recommendation is on the way. 

Whether Jeff reaches $1 million or not isn’t the point — he’s the first to admit that the odds are low. It’s about learning how to use options to augment your trading gains with someone who’s been trading them professionally for more than 40 years. 

This is your last chance to join Jeff before this enrollment window closes later today. To find out all about how the Challenge works and how you can participate, go here. 

The AI buildout is moving faster than companies can supply it… 

Every morning, I run a screen across the market for stocks with two things in common: a high Fundamental Quantum Score — meaning strong earnings, strong revenue, and expanding profit margins — and a one-month price high. 

I’ve found this allows me to find where the money is flowing before the headlines catch up. 

Yesterday, this screen lit up with semiconductor stocks from end to end. Memory chips, AI processors, silicon photonics, fabrication equipment.  

The entire supply chain – all stocks of supreme quality – hit a fresh 1-month high all at once. 

Today, it happened again. And this time, the companies are bigger. 

• Advanced Micro Devices (AMD) just hit a new 1-month high with a Fundamental Quantum Score of 79.2. The stock is up 44.7% over the past month.  

• Astera Labs (ALAB) — the company that makes the high-speed connectivity chips that let AI processors talk to each other without a bottleneck — is up 75.5% over the past month and carries a score of 83.4.  

• Rambus (RMBS), which licenses chip interface technology to every major semiconductor company, is up 49.0% — Fundamental Quantum Score 79.2. 

No matter where you look in this market, it’s still all about the AI datacenter buildout and the chokepoints the builders are running into.  

In short, AI infrastructure is far outpacing the speed of supply for the materials to build it. 

As our CEO, Keith Kaplan, laid out in these pages here and here, that gap creates five supply-chain chokepoints:  

1. High-bandwidth memory — specialized chips that move data fast enough to keep up with AI processors’ calculations. 

2. Silicon photonics — a new generation of chips that send data using light instead of electrical signals, dramatically speeding up how AI systems process information. 

3. Power conditioning — equipment that converts raw high-voltage electricity from the grid into the clean, stable power AI chips actually require. 

4. Liquid cooling — systems that pipe chilled water directly to AI chips to pull away the heat they generate under full load. 

5. Power grid construction — the physical buildout of substations, transformers, and transmission lines needed to connect new data centers to the grid in the first place. 

Every time one of these chokepoints appears to be priced in, new stocks push through to fresh highs. That brings me to Arista Networks (ANET). 

It’s part of the plumbing that holds AI infrastructure together… 

Arista builds the high-speed network switches that connect the servers and chips inside AI data centers.  

When a company like Microsoft or Google builds a cluster of Nvidia chips, they need those chips to talk to each other at blistering speeds — and that’s what Arista’s switches make possible.  

Think of it like the pipes in a house. The boiler is the power source, but without pipes running to every room, you don’t get heat or hot water. Arista’s switches are the pipes — moving the data between chips the way pipes move water between rooms. 

That makes Arista an AI chokepoint stock. Without the specialist component it makes, AI data centers can’t function.   

Sharp-eyed readers will know Arista has been on our radar for some time. In March, our data flagged Arista as one of the most tightly coiled setups in the system. It’s up 30% since then. 

And our Quantum Edge system still rates it as a buy.  

It has Fundamental Score 98.6, meaning it’s a great company. And it has a Technical Score of 96.7, meaning it has powerful momentum behind it. That gives us an overall Quantum Edge score of 97.5. Less than a handful of stocks in our system carry scores at that level. 

It’s also in a Short-Term Health Green Zone, confirming the bullish setup. 

If you’re looking for a way to play the AI boom without buying massively popular stocks like Nvidia and Google, Arista belongs on every watchlist.  

The Swans have spotted the next big consumer health shift — and it’s bigger than GLP-1s… 

Andy and Landon Swan built LikeFolio over 15 years ago to do something most Wall Street analysts don’t bother with. Instead of waiting for quarterly earnings reports, they track what millions of consumers are actually doing in real time — what they search, what they post, what they click on, and what they buy.  

They distill all of that into a single number called the Social Heat Score. Anything above 60 means real consumers are putting real money and attention behind a trend before it shows up in any company’s results. 

Right now, that score is lighting up across what they call the “longevity stack” — and the signal is broader and more surprising than most investors realize. 

Yes, GLP-1 weight-loss drugs like Ozempic are part of the story. Thirty million Americans are on them. But the Swans argue that’s just the door. What consumers are walking through it into is a much bigger shift in how they think about their bodies and their health. 

Here’s what the Swans’ data is actually showing: 

U.S. searches for “cost of peptide therapy” — treatments that tell your cells to repair tissue, burn fat, and optimize hormone levels — are up 300%. The peptide market hit $65 billion last year and is on track to more than double by 2030. 

Biological age testing — measuring how old your body actually is, not just how long you’ve been alive — is becoming as routine as a cholesterol check. Companies built entirely around this idea didn’t exist five years ago. Now they have millions of users. 

And longevity-focused workout concepts are trending hard in mainstream fitness. When your local gym starts using the word “longevity” in its class descriptions, the Swans say, the trend has arrived. 

And the most interesting investment opportunities aren’t the obvious names. They’re the picks-and-shovels players that most investors would never connect to the longevity trend — but whose revenues are already growing because of it. 

The Swans’ May report has a list of four companies they’re tracking.  MegaTrends subscribers can find the full report — including the Social Heat Score readings and what they need to see before pulling the trigger — here. 

And don’t worry if you’re not a subscriber. We’ll keep track of the latest from the Swans… and the other big themes we track at TradeSmith… in future updates. 

To building wealth beyond measure, 

Michael Salvatore 

Editor, TradeSmith Daily