Lumentum (LITE) is mentioned as one of the correlated bets on AI data center spending.
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Are Earnings Real This Quarter? 3 Hidden AI Stock Picks with Rob Spivey
Navellier Market Buzz with Louis NavellierMay 5, 2026
The discussion focuses on the reliability of current earnings reports and the underlying strength of corporate performance, particularly in the context of AI-driven investments. Experts highlight the importance of proprietary accounting frameworks to cut through noise and reveal true earnings growth. Key areas of discussion include the financing strategies of hyperscalers like Oracle versus Alphabet, Microsoft, and Amazon, the significance of order backlogs for companies like GE Vernova and Bloom Energy, and the critical role of natural gas and grid infrastructure in supporting the AI data center boom. Specific stock mentions include Nvidia, Micron, EQT, PLPC, and Vicor, with analysis on their business models and market positioning.
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Tickers discussed in this post
The speaker held Super Micro Computer (SMCI) previously due to its order backlogs, despite ignoring noise and controversy surrounding the stock.
Vicor (VICR) possesses leading technology for stepping down power voltage for data centers, with its licensing strategy causing uniform return on assets to explode, yet the market underestimates its profitability.
Preformed Line Products (PLPC) is a small-cap company with a monopoly on essential components for power line infrastructure, poised for significant growth due to grid investment needs.
EQT, as the largest natural gas producer in North America, is poised to benefit significantly from increased demand driven by data centers needing power solutions.
Micron's order book trend is valuable, but the absolute level is less reliable due to potential oversubscription by customers seeking chip allocation.
While Nvidia's order book trend is valuable, the absolute level is less reliable due to potential oversubscription; however, current financing practices are not a red flag like Cisco in 1999.
Bloom Energy is experiencing rapid growth, with significant new deals and a 10x increase in power capacity production, driven by demand for its natural gas fuel cells for data centers.
GE Vernova has a significant and reliable order backlog extending to 2030, driven by demand for its natural gas turbines to power data centers.
Amazon's cloud business model, focused on value-added services, contributes to strong and stable returns on assets.
Microsoft's cloud business model, which emphasizes value-added services on top of data centers, demonstrates strong and stable returns on assets.
Alphabet's cloud provider business model, which includes value-added services on top of data centers, is highly profitable with stable high returns on assets.
Oracle's strategy of financing AI build-out with debt by selling a 'dumb shell' data center is viewed as a low-return business model, unlike its hyperscaler peers.
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