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THE BRRR’s BOTTOM LINE
Sorry for the delay, but I’ve been in deep research mode. Good news for readers.
This morning, the inflation doomers got a reality check. March CPI dropped this morning, and contrary to the panic, both core and headline inflation came in significantly lower than expected. The "higher for longer" crowd insisted the Iran War and energy crisis would send prices to the stratosphere and trigger a stagflationary doom loop.
So far, they are wrong.
The real story isn't just falling yields, it's where the money is flowing. While the bureaucrats draw lines on inflation charts, the speculators in the room are aggressively bidding up the AI infrastructure stack.
You can't build the AI future without power, cooling, optics, and testing—which is exactly why infrastructure names like Vertiv (VRT), Bloom Energy (BE), Lumentum (LITE), and Applied Optoelectronics (AAOI) are ripping.
The bottlenecks to superintelligence are clear, and the stocks associated with these bottlenecks want to go much much higher.
If you want to learn more, check out our Best Bets to 5x, Double, and +35% over the coming 12 months.
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The list, and detailed breakdowns of the individual picks make for our most comprehensive coverage of the stocks set to define the next wave of the AI infrastructure buildout.
We launched the lists on April 1st, and 9 of the 12 stocks on our “Most Likely To Double” list are up at least 10%. One is already up 57% in 10 days. Would love for you to take it for a spin and let me know what you think.
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MACRO
Synopsis: CPI inflation shocks to the downside, disproving the energy-driven inflation doom narrative and forcing a rapid dovish repricing across markets.
SPX: 5,120 (+1.25%) | DXY: 104.20 (-0.85%) | 10Y: 4.250% (-0.15%) |
CPI Shocks to the Downside: March CPI came in significantly lower than expected. The narrative that Iran's Strait of Hormuz bottleneck would automatically trigger runaway 1970s-style inflation just hit a brick wall. The energy shock is real, but it's not dragging the entire economy into a price spiral.
Dovish Pivot Engaged: 10-year yields dove 15 basis points as traders aggressively repriced rate cut expectations. The bond market knows the Fed can't cure supply shocks with rate hikes, and with core inflation actually cooling, the pressure for perpetual tightening just evaporated.
Dollar Deflation: The DXY dropped sharply as the "higher for longer" premium was violently unwound. Markets are realizing that while geopolitical conflicts may disrupt energy, the underlying disinflationary trends driven by the private sector remain firmly intact.
TECH
Synopsis: Amazon's massive AI revenue reveal isn't just an AMZN story—it's a massive catalyst for the entire AI infrastructure stack. The market is aggressively bidding up Nvidia, power, cooling, and photonics as tech deflation proves it's the real macro driver.
AMZN: (+5.6%) | NVDA: (+2.4%) | VRT: (+4.2%) | BE: (+6.1%) | AAOI: (+7.4%) | CRWV: (+8.8%) | AEHR: (+5.2%) | NBIS: (+4.1%)
Cloud & Silicon Validation (CRWV, NVDA, AMZN): Amazon's jaw-dropping $20 billion internal chip business and $15 billion AI revenue run-rate proves the massive capex is translating to real top-line growth.
But the biggest infrastructure news is CoreWeave (CRWV) ripping +8.8% on the announcement of massive new cloud deals with Meta and Anthropic, cementing them as the premier pure-play GPU cloud.
Nvidia (NVDA) remains the anchor, catching a solid bid because the overall compute pie is expanding exponentially—it's not a zero-sum game between custom silicon and GPUs.
The Power & Liquid Cooling Bottleneck (VRT, BE): You can't run next-gen Blackwell clusters or AWS custom racks without melting the data center. Vertiv (VRT) is surging on massive liquid cooling capacity expansions and direct-to-chip mega-contracts.
Meanwhile, Bloom Energy (BE) is up 6.1% as hyperscalers turn to their off-grid fuel cells because they simply cannot wait years for utility grid connections to power these new facilities.
The 1.6T Photonics Supercycle (LITE, AAOI): Moving data is the new bottleneck. Lumentum (LITE) and Applied Optoelectronics (AAOI) are catching massive bids on supply chain checks showing a parabolic acceleration in 1.6T optical transceiver orders.
As hyperscalers scale up, they have to build these physical, light-speed pipes to make data transfer cheaper. This is the plumbing of tech deflation.
Testing and System Integration (AEHR, NBIS, SEI, SNDK): Aehr Test Systems (AEHR) is catching a bid on securing new photonics testing contracts—ensuring these high-speed optical chips actually work at scale.
Nebius (NBIS), SEI, and SNDK round out the ecosystem with next-gen high-bandwidth memory and integration. The smart money isn't just blindly buying "AI"—they are buying the specific companies solving the networking, power, and testing bottlenecks.
CRYPTO
Synopsis: Major institutional and regulatory moves hit the tape over the last 24 hours, driving privacy coin surges and cementing stablecoin infrastructure.
BTC: $72,975 (+1.59%) | ETH: $2,241 (+2.30%) | SOL: $85.42 (+2.39%) | F&G: 8
The Privacy Coin Surge (ZEC): Zcash went parabolic over the last 3 days, surging over 50% on the news that Grayscale is actively accumulating $46 million in shielded ZEC. While retail obsesses over meme coins, institutional money is quietly hedging into privacy-preserving layers.
Japan's Massive Shift: In a massive regulatory move, Japan is moving to formally classify cryptocurrencies as financial products, completely banning insider trading and enforcing strict annual disclosures. The legitimization of the space is accelerating, underscored by Japan's Metaplanet simultaneously announcing a massive $137M capital raise through a third-party allotment.
The FDIC Steps In: The FDIC just dropped a 191-page regulation proposal specifically targeting stablecoin holders. This isn't a crackdown—it's the establishment of the rules of the road. Bringing stablecoins under banking purview paves the way for trillions of dollars in traditional deposits to safely migrate on-chain.
GEOPOLITICS
Synopsis: The Middle East ceasefire proves fragile but is holding, while JD Vance prepares to step in and lead the peace talks.
WTI Crude: $84.50 (-2.10%) | Brent: $88.20 (-1.90%)
A Fragile Peace: The highly touted ceasefire in the Middle East is on shaky ground. It has already been breached by Israeli strikes into Lebanon, which remains the critical point of contention.
Despite the localized skirmishes and headline noise, the ceasefire is broadly remaining in place and preventing a full-scale regional escalation.
Vance Steps In: With the truce proving fragile, JD Vance is now slated to lead the upcoming peace talks. The goal is to enforce the terms, mediate the Lebanon border dispute, and solidify the diplomatic framework before the scattered breaches trigger a broader collapse. The market is taking the news well, keeping oil prices muted.
ECONOMIC CALENDAR
Mon Apr 13: Existing Home Sales (10:00 AM)
Tue Apr 14: Producer Price Index / Core PPI (8:30 AM)
Wed Apr 15: Empire State Manufacturing (8:30 AM) | Fed Beige Book (2:00 PM)
Thu Apr 16: Initial Jobless Claims (8:30 AM) | Philly Fed Mfg (8:30 AM) | Industrial Production (9:15 AM)
Fri Apr 17: Housing Starts (8:30 AM) | Building Permits (8:30 AM)
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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.
