Secondary Winners of the Innovation Cycle: $CRWD $PL $VRT $TSLA
It's the era of getting rich off "secondary winners".
Here's how to profit:
We hear all the sexy headlines...ai, space, robotics. But what about companies that win downstream? Stuff you don't immediately think about. Real picks & shovels.
Put two & two together...it's stupid how much money will be made from companies piggybacking off of the innovation cycle over the next decade+.
Here are the secondary themes I'm focused on:
1) Artificial Intelligence -> Cybersecurity.
- deepfakes and synthetic media represent a threat to the largest companies in the world...everyone is at risk. Huge capital will flow here. (great article below by @thenewmoney_tnm)
Top cybersecurity stocks: $CrowdStrike Holdings, Inc.(CRWD)$ $Palo Alto Networks(PANW)$ $Cloudflare, Inc.(NET)$ $Zscaler Inc.(ZS)$ $SentinelOne, Inc(S)$
2) Space -> Satellite data infrastructure + communication.
- rockets are cool headlines, but data + connectivity is the business model...earth observation, defense tracking, GPS augmentation, maritime/aviation connectivity, and global broadband.
Top space data + communication stocks: $Planet Labs Pbc(PL)$ $Rocket Lab USA, Inc.(RKLB)$ $AST SpaceMobile, Inc.(ASTS)$ $Globalstar(GSAT)$ $Viasat(VSAT)$ $EchoStar(SATS)$ $Iridium(IRDM)$
3) Data centers -> Cooling & power management.
- there are physical limits of electricity and heat, + ai racks already draw insane power density and next gen chips will double it...massive capex will flow into liquid cooling, heat exchangers, grid efficiency.
Top cooling/power stocks: $Vertiv Holdings LLC(VRT)$ $Eaton Corp PLC(ETN)$ $Modine Manufacturing(MOD)$ $nVent Electric plc(NVT)$ $Trane Technologies PLC(TT)$
4) Robotics & humanoids -> Precision motion.
- the robotics bottleneck isn’t just AI…it’s actuators, harmonic drives, servo motors, sensors, and high density power systems...humanoids require insane torque in tiny footprints, extreme reliability, and battery efficiency
Top precision motion stocks: $Tesla Motors(TSLA)$ $Rockwell Automation(ROK)$ $Teradyne(TER)$ $Cognex(CGNX)$
There are quite a few other secondary winners I'm watching, and remember to focus on the leaders...but the goal of this post was to get your brain thinking downstream.
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