Brace, brace, BRACE!

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

Brace yourselves, we’re going down!
Are we though?
Busters & Busters (again)

If that’s enough to get the Black Monday trading, read on…

AI Collision 💥

I wrote to you on Friday about three beaten down bangers that could turn into long term gems for the next decade. These three, Constellation Energy (CEG), Micron (MU) and Dell Technologies (DELL), all profitable, all trading at deep discounts from their 52-week highs, all at attractive earnings-multiples.

Well, they’re all about to get a lot cheaper…as is the rest of the market.

It will be hard to keep score, but I envisage today and tonight you’re going to see a lot of the term, “Black Monday” around the mainstream media.

And yes, I’ll be honest, at the time of writing, things look bleak, and the markets are going to fall, hard.

It’s not going to be fun for anyone.

As a mate of mine messaged in our WhatsApp group replied today after I posted,

How many times you reckon you’ll see Black Monday appear tonight?

He said,

I’m hopeful that the media will really catch on to this liberation thematic.

To which I replied,

Liberating everyone from their wealth.

And then another mate replied,

Liberated me from an earlier retirement.

So, yes, it’s going to be a bad time to be invested in the market today.

But you do also need a strategy here. The right strategy, and you will find a position that for decades to come you’ll be thankful for.

There’s no doubt you’ll hold stocks today that will be in the red. But what you want to avoid at all costs is making rash decisions, and knee-jerk reactions to a situation like selling it all. I don’t believe that’s the right course of action.

What you do need to do is to ask, is it going to be like this for a long time and/or worse?

I don’t think it gets radically worse.

Short term, the market may shake some stocks lower. And we’re going to see a big chunk of that play out today.

And it will probably be another “Black Monday”. And we’ll see some record breaking falls in the market today.

But I come back to what I wrote to you about on Friday. I don’t see how this plays out over a long period for the companies building out the next industrial revolution in AI.

The infrastructure that’s being laid now is not grinding to a COVID19-style halt. Nvidia isn’t suddenly going to tell us all they’ve got excess supply they can’t ship and sell.

Micron isn’t going to stop building and developing memory, Constellation isn’t going to shut off electricity supply to Americans, Apple isn’t going to stop selling more expensive phones (if that was going to happen, they’d have gone out of business around 2015), and people aren’t all of a sudden going to stop advertising through Google and Meta.

There are more examples I could give…

People won’t stop buying Coca-Cola products, eating at McDonalds, watching Netflix and streaming Spotify.

If anything, if the economy goes down the toilet a bit more people eat McDonalds, more stream Netflix and more listen to Spotify.

And I’ll tell what all of those companies are needing and going to need more of in the near- and long-term future? Data, AI-cloud, and more “intelligent” systems.

McDonalds already uses AI, and how big do you think Netflix’s datacentres are? I’ll tell you…not big at all, they have their entire system running on AWS AI-cloud…so Amazon isn’t going anywhere either.

Point being, yes Trump is a wildcard. His tariff strategy could send the US economy back to where it was pre-pandemic. But even that’s not really that bad.

No, we’re not heading to 1920’s style depression times.

Seriously, that’s just not going to happen. The stock market is cheaper, US debt will get cheaper, they’ll refinance, Trump saves the bond market, QE pumps the market, he looks good again, people will say, geez I wish I’d bought more stocks in April 2025.

Do not fear the fear and uncertainty. Chaos breeds opportunity.

Chaos is here. As is the opportunity. Value is the name of the game today, and there’s plenty of it.

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Busters & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

man in black suit jacket and black pants figurine

Bust 📉

Micron (NASDAQ:MU) down 26%
Western Digital (NASDAQ:WDC) down 25%
Vertiv (NYSE:VRT) down 20%

Bust 📉

Hewlett Packard (NYSE:HPE) down 19%
Arm (NASDAQ:ARM) down 18%
AMD (NASDAQ:AMD) down 17%

From the hive mind 🧠

AI content and who owns the copyright to what information online is shaping up to be a huge issue of the modern AI infused world. And the government isn’t that bothered about finding the answers until much later on.
CoPilot for gaming is another big opportunity for Microsoft, that I’ve covered before. Here’s another look at how they get there with a much-loved game from the 90s.
Liberation Day or a Price to pay. This is quite something else!