One Stock to Cut Through the AI Noise
Don’t Let This Common Mistake Hurt Your Portfolio
The data seemed clear – but that doesn’t mean the conclusions were.
During World War II, U.S. military analysts examined bombers that had safely returned from missions over Europe. They mapped every bullet hole across the aircraft and quickly found that patterns emerged. The wings and fuselage were riddled with damage.
The conclusion felt obvious. Reinforce the areas where the planes were taking the most fire.
Credit: rancho_runner
It was a perfectly rational response, but completely wrong.
Statistician Abraham Wald saw what everyone else had missed. The planes they were studying were the ones that survived.
The data showed where planes could take a hit and still make it home. The truly dangerous spots, the fatal ones, were invisible because those planes never returned.
In other words, the military wasn’t about to act on bad data. They were about to act on a bad lesson.
And that distinction – between what happens and what we think it means – may be one of the most important and most overlooked forces shaping how we understand the world, and the stock market.
Is AI in a Bubble?
OpenAI news sparked a tech selloff this week when The Wall Street Journal reported that the company behind ChatGPT missed on revenue and other key targets in 2025. The report noted that the firm fell short of its goals for new user growth and for hitting 1 billion weekly active users by the end of the year.
In the wake of the report, Advanced Micro Devices (AMD), Intel (INTC) and Qualcomm (QCOM) each fell at least 3%. The VanEck Semiconductor ETF (SMH) also fell about 4%.
OpenAI denied the report and called it “ridiculous.”
But that didn’t stop the AI bears from again speculating that it is all just a bubble.
From Financial Review:
From Medium:
Then the AI hyperscalers reported earnings….
Let’s start with Alphabet (GOOGL).
Google Cloud revenue surged 63% year-over-year to $20.02 billion – well ahead of the $18.05 billion Wall Street expected. Total revenue came in at $109.9 billion versus the $107.2 billion consensus, with net income up 81% from a year ago.
Microsoft (MSFT) revenue came in at $82.89 billion, versus the $81.39 billion expected, with adjusted EPS of $4.27, versus the $4.06 estimate. Azure and other cloud services grew 40% – ahead of the 38.8% to 39.3% analyst range.
Meta (META) beat on revenue – $56.31 billion versus $55.45 billion expected, up 33% from a year earlier and the fastest quarterly growth since 2021. Plus, adjusted EPS of $7.31 topped the $6.79 estimate.
Finally, Amazon (AMZN) had the best report of the group.Amazon Web Services (AWS) grew 28% to $37.59 billion – the fastest pace in 15 quarters, up from 24% last quarter. Total revenue of $181.52 billion crushed the $177.3 billion consensus, and EPS of $2.78 obliterated the $1.64 expectation.
The investment in the buildout has continued to make investors nervous, but the growth, order backlogs, and margin levels should help ease some concerns.
Even if OpenAI is struggling, which they vehemently deny, the rest of the big AI players are still “all in” for the AI trade.
Earnings Cut Through the Noise
But this is exactly how investors get into trouble.
They don’t just react to the data – they react to what they think the data means.
One negative headline becomes “the AI boom is over.”
One selloff becomes “the bubble is bursting.”
But just like those World War II analysts… they’re drawing conclusions from what’s visible but missing what matters.
And in today’s market, that difference can mean the gap between chasing noise and identifying the real winners early.
That’s why market pros like investing legend Louis Navellier don’t rely on headlines or speculation. Instead, they focus on the hard data that actually drives stock prices — earnings, growth, and institutional demand.
And right now, that data is telling a very different story about AI.
Louis positioned his Growth Investor subscribers in the AI trend early, and he continues to find winners today by focusing on companies that can inevitably benefit from hyperscaler spending.
For instance, one key to the AI megatrend is power.
Global data center power demand will climb 50% by 2027 and as much as 165% by the end of the decade, according to analysts at Goldman Sachs. J.P. Morgan analysts forecast that global power demand will grow at a 3.6% compound annual rate from 2026 to 2030, a pace 50% higher than the previous decade.
And while the earnings from the hyperscalers on Wednesday got all the attention, a much smaller player, Quanta Services (PWR),also reported earnings and delivered extraordinary results.
Here is Louis’ summary he sent to Growth Investor subscribers.
The company reported first-quarter adjusted earnings of $2.68 per share and revenue of $7.87 billion, which represented 50.6% year-over-year earnings growth and 26.3% year-over-year revenue growth. The analyst community expected earnings of $2.03 per share on $6.99 billion in revenue, so Quanta Services posted a 32% earnings surprise and a 12.6% revenue surprise.
Quanta Services also noted that it ended the first quarter with a record backlog of $48.5 billion. And thanks to the “exceptional first quarter,” the company increased its outlook for 2026.
For fiscal year 2026, Quanta Services now expects total revenue between $34.7 billion and $35.2 billion and adjusted earnings per share between $13.55 and $14.25. The revised outlook is nicely higher than analysts’ current top- and bottom-line estimates.
The stock surged on Thursday, and is now up 125% in the last 12 months, far outpacing the broader market’s 30% gain.
Louis initially recommended Quanta in 2021, so his subscribers are up more than 660%.
More recently, Louis has been researching a new government project being developed in a hidden government lab in Tennessee, where 40,000 scientists are finishing work on an AI computer 283 trillion times more powerful than today’s data centers – spanning more than 700 miles and built to speed up AI breakthroughs by 36,000%.
When the “Golden Dawn” project launches, it could instantly leapfrog ChatGPT, Gemini, and Grok – and trigger a $100 trillion reset of the AI markets.
Louis reveals the one stock at the center of it in his latest presentation, which you can watch right here.
The Lesson from Those World War II Bombers is Simple but Often Forgotten
Too many headlines focus on missed targets… short-term volatility… and whether the boom has gone “too far.”
But underneath the surface, the biggest companies in the world are still spending billions. Infrastructure is still being built. Demand is still accelerating.
The real opportunity isn’t in reacting to the noise.
It’s in understanding what the noise is distracting you from.
That’s exactly where Louis Navellier is focused right now.
And with breakthrough projects like “Golden Dawn” on the horizon, the next wave of AI winners may already be taking shape — long before most investors even realize it.
Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace
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