AI Can’t Run Without This
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Every major tech revolution follows the same rhythm. And when you know that rhythm, you know where to look to build your wealth.
The headlines focus on the innovators – the Apples, the Teslas, the OpenAIs.
But the biggest fortunes often end up in the hands of the suppliers – the companies that provide the foundation that makes everything work.
During the rise of PCs, Intel (INTC) and Microsoft (MSFT) became giants supplying chips and software.
During the EV boom, battery makers and lithium suppliers saw their stocks soar.
And now, as AI enters its infrastructure phase, the same pattern is repeating itself.
The real money isn’t only in who builds AI. It’s in who AI runs on. So, we focused on pick-and-shovel plays – the infrastructure behind the infrastructure.
This year alone, America’s five largest cloud operators – Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Meta Platforms Inc. (META), and Microsoft – are on track to spend over $400 billion building AI infrastructure. That’s more than double what they spent just two years ago.
They’re not dabbling. They’re building the data centers, compute clusters, and storage systems that will power AI for decades to come.
The pattern is clear: When industries transform, foundational suppliers often capture the outsized gains.
Today, one of AI’s fastest-growing foundational layers is data storage. Every model, neural network, and inference engine needs capacity. As demand for high-capacity drives explodes, that bottleneck becomes a profit generator.
And that led us to one stock.
This quiet enabler of the AI revolution has become one of the sector’s biggest beneficiaries.
Since our original “Buy” in August 2024, it’s up about 150%… one of the top-performing stocks this year.
In today’s issue, we’ll identify the stock, why the storage supercycle is real, and how to potentially amplify those gains with a short-term strategy we’ll detail live at our upcoming Profit Surge Event.
Plus, I want to show you how to get two more “free picks” just as good as the one I’m about to share…
Big Tech’s $400 Billion AI Infrastructure Buildout
AI runs on chips, but it feeds on data. All that data has to be stored. Our featured company wins because it sells the high-capacity storage hyperscalers need. It isn’t on consumer labels, but it’s inside the buildout.
As generative AI scaled, hyperscalers rushed to store training data, model checkpoints, embeddings, logs, and newly generated content. The compute arms race created a new bottleneck: bulk storage.
Zooming out to Seagate Technology (STX):
- Big Tech has launched an unprecedented AI capex spree – about $400 billion across 2024–’25 – to stand up supercomputers and data centers.
- Modern AI data centers operate at exabyte scale (1 EB = 1,000 PB). OpenAI reportedly scoped multi-EB deployments, and Meta operates EB-scale infrastructure.
- Industry voices are calling it a “data storage supercycle.”
Yet the supply side of storage is essentially a duopoly: Seagate and its chief rival, Western Digital Corp. (WDC), together produce nearly 90% of the world’s hard drive storage capacity.
With AI’s appetite for data growing faster every quarter, these two companies find themselves with enormous pricing power.
The Data Storage Supercycle Has Begun
Modern AI training routinely operates at hundreds of terabytes to petabytes of data. Nvidia notes computer-vision training datasets can easily exceed 30 terabytes (TB). Open large language model (LLM) datasets such as RedPajama require around 270 TB. The Common Crawl corpus used in many LLMs spans multiple petabytes (PB). And Meta stores AI training data on exabyte-scale (EB) infrastructure.
Every new AI model – from ChatGPT to the next-generation image generators now popping up – requires an unprecedented surge in storage capacity. This is the unseen backbone of the AI economy, and it’s being built right now.
So, why Seagate?
Because when it comes to high-capacity storage, Seagate is it.
The company has a decades-long track record in hard disk drive (HDD) innovation and holds a 40%-plus share of the global HDD market.
More importantly, hard drives remain indispensable for AI infrastructure. Despite the rise of flash memory, about 90% of the exabytes stored in the world’s largest data centers reside on hard drives. That’s due to HDDs’ cost advantage for bulk storage.
For AI workloads that involve huge datasets where top speed isn’t the primary need (think storing training data, archives, backups, etc.), HDDs are the only economically feasible choice. In fact, roughly 90% of enterprise “EB-scale” tasks – like AI data retention and analytics – rely on hard drives.
We have a scenario where demand is skyrocketing, and the supply (hard drives) is controlled by just a couple of players who are already running near full tilt.
It’s Economics 101: surging demand + constrained supply = improving fundamentals for the suppliers.
That makes adding Seagate to your buy list a no-brainer.
However, identifying a stock in a great multiyear trend is just one way to win. There’s another approach that can take a stock like Seagate and boost its returns exponentially in the short term.
For that part of the story, let me introduce my colleague who specializes in squeezing the maximum profit from exactly these kinds of situations…
How to Multiply Your Gains: Two Strategies, One Setup
Introducing Jonathan Rose…
He’s a veteran Wall Street trader with a remarkable track record of navigating these same megatrends – but in a completely different way.
While I focus on long-term exponential growth stories – companies like Seagate that can multiply over the next decade – Jonathan has developed a trading approach designed to capture even bigger gains in those same trends in a matter of weeks.
He’s proven it time and again. This year alone, using this trading strategy, Jonathan has identified trades like 959% on Albemarle Corp. (ALB), 534% on MP Materials Corp. (MP), and 233% on Rigetti Computing Inc. (RGTI) – all tied to the same themes driving AI infrastructure and next-generation technology.
In short, we see the same opportunities. But where I spot the rockets, Jonathan sets up the boosters.
It’s not often that a stock shows up on both my radar and Jonathan’s at the same time. Typically, my focus is on the multiyear horizon – the fundamental trend – while Jonathan zeroes in on short-term momentum and money flows (he calls it “unusual Wall Street activity”). But when those two approaches converge on the same stock, it’s a special situation.
That’s why I’m so excited about Seagate – not just as a long-term AI infrastructure play but as a setup that Jonathan’s system could amplify.
I’m holding Seagate for the AI data supercycle: the multiyear wave of growth that will reshape how digital infrastructure is built. Jonathan, meanwhile, is trading the waves inside that cycle, leveraging his system to capture shorter bursts of opportunity within the same trend.
Same story. Different time frames.
To help investors execute this dual playbook, Jonathan and I are teaming up for The Profit Surge Event on Monday, November 10 at 1 p.m. Eastern Time. Here’s your official invitation to join us.
During this event, Jonathan will pull back the curtain on his trading system and show how he finds this unusual Wall Street activity early. And he’ll walk through how his strategy could amplify the returns on stocks like Seagate by 500% or more – showing you how to capture five times the upside from the same kinds of picks I recommend.
If Seagate’s 150% climb got your attention, imagine learning how to turn that into a 750% gain. That’s the power of combining my megatrend picks with Jonathan’s timely trade execution.
As a bonus, when you sign up for the Profit Surge Event, you won’t come away empty-handed. Just for attending, you’ll get access to three exclusive stock picks – top recommendations from myself, legendary growth investor Louis Navellier, and global macro expert Eric Fry.
Then, during our event, Jonathan will show you a smarter way to trade picks like these for potentially far bigger gains.
