Editor's Note: Marc Chaikin made one of Wall Street's most popular indicators... found on every Bloomberg and Reuters terminal in the world. Now he's pounding the table on Silicon Valley's most popular startup, a breakthrough AI lab that recently surged 80X in a single quarter. Click here for the full details, or read below to learn more...
Dear Reader,
This AI lab planned for 10X growth in 2026.
Instead, its revenue soared 80-fold in one quarter.
In fact, it's on track to outsell OpenAI and SpaceX put together.
And – to top it all off – it's on the verge of achieving its first profitable quarter – a milestone it didn't expect to celebrate until 2028.
This company didn't exist a few years ago. Now it's the front-runner in the AI race.
I've been investing for 60 years, and I've never seen a growth story like this.
Last week, this red-hot startup finally filed to go public. It's expected to make its big debut this fall.
But on June 16, I believe it's going to make an announcement that could make its already enormous $965 billion valuation climb sharply higher.
Leaked source code refer to this plan as Project Tengu, and I expect it to spark a 42-fold investment boom – not to mention a $500 trillion wealth transfer.
Nvidia CEO Jensen Huang calls this technology "incredible."
And a senior Google engineer said it recreated a year's worth of work in one hour.
When I showed one of my colleagues a short, 30-second demonstration of Tengu, it left her stunned.
She said, "This makes ChatGPT look like a simple parlor trick."
I believe Tengu could turn this startup into the most valuable company in the world by the end of the decade.
Best part?
You don't have to wait until its IPO to get a piece of the action.
I've discovered a $40 "backdoor" into this company that anyone with an internet connection can take advantage of.
Click here for the full details (must read before June 16).
Regards,
Marc Chaikin
Founder, Chaikin Analytics
P.S. U.S. businesses are now adopting this firm's software at a faster rate than OpenAI. In fact, it's become a trusted AI powerhouse for over 300,000 companies worldwide. But this is just the beginning. Click here to find out what I anticipate for June 16.
Navitas: NVIDIA’s AI Power Broker?
Author: Jeffrey Neal Johnson. Originally Published: 6/5/2026.
Key Points
- Navitas Semiconductor's integration into NVIDIA's MGX ecosystem, featuring 97.5% efficiency and elimination of the 48V conversion stage, positions it as an AI data center power supplier.
- AI infrastructure revenue rose 50% quarter over quarter in Q1 2026, though the company posted a GAAP EPS loss of 15 cents, missing the consensus estimate by 10 cents.
- Analysts at Morgan Stanley urge caution, citing lengthy 800V adoption timelines, while an 18% short float and CEO insider sales add further uncertainty to the recent rally.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
Navitas Semiconductor's (NASDAQ: NVTS) direct integration into NVIDIA's (NASDAQ: NVDA) MGX ecosystem bypasses the legacy 48V conversion stage, addressing the thermal bottlenecks that are limiting next-generation AI server racks. A 50% quarter-over-quarter surge in AI infrastructure revenue and an active short-squeeze setup are helping power the stock, as this transition from consumer electronics to gigawatt-scale data center power management transforms a niche semiconductor manufacturer into a high-leverage infrastructure play.
For investors, the question is whether this high-velocity rally is a temporary, catalyst-driven spike or the market repricing a business that has become a critical gatekeeper for AI's power-hungry future.
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Dylan Jovine has identified a small company in Musk's supply chain that builds the power infrastructure Colossus can't run without - and it's still trading at a fraction of its value.
Skip the IPO trap and get the backdoor ticker for freeThe core challenge facing hyperscalers isn't just securing next-generation silicon; it's delivering clean, efficient, high-density power without overheating server racks. As AI models grow more complex, the power required by GPUs like NVIDIA's Blackwell series creates immense thermal and spatial pressure.
Navitas appears poised to address that challenge with a direct assault on legacy power architecture.
How Navitas Is Redefining Power Delivery
At COMPUTEX 2026 in Taipei, Navitas debuted an 800V-to-6V DC-DC power delivery board designed for NVIDIA's AI Factory MGX Ecosystem. For investors, this is far more than an incremental upgrade; it represents a foundational shift. The board's architecture completely eliminates the traditional 48V intermediate bus converter (IBC) stage. That legacy step introduces power conversion losses, generates excess heat, and consumes valuable physical space within the server tray.
By using proprietary GaNFast FETs operating at a 1 MHz switching frequency, Navitas achieves 97.5% peak efficiency. More importantly, the company enables a power density of 2,100 watts per cubic inch (W/in³). The hardware is so compact, roughly 20% thinner than a mobile phone, that it can be placed directly adjacent to the GPU.
This proximity is key to maximizing transient performance, ensuring the GPU receives stable power during intense computational loads. The result is a shift in power management from an afterthought to a co-packaged, performance-enabling component.
Financial Realities and Segment Velocity
Navitas Semiconductor's strategic pivot away from low-margin consumer electronics is clear in its recent financial reports. While the headline numbers from Q1 2026 present a mixed picture, the underlying segment data validates the new focus.
Navitas reported Q1 revenue of $8.6 million, beating analyst forecasts of $8.18 million. However, the company posted a GAAP earnings per share (EPS) loss of 15 cents, missing the consensus estimate of a 5-cent loss. This deeper-than-expected cash burn reflects the aggressive capital expenditure required to scale for enterprise and data center clients. While GAAP gross margins remain negative at -9.3%, the non-GAAP figure of 39.0% suggests the underlying product economics are sound before accounting for the costs of this strategic transition.
The most compelling data lies in the segment growth. Revenue from high-power markets, including data centers, renewable energy, and industrial applications, expanded 35% year over year. The AI infrastructure sub-segment showed the most momentum, rising 50% quarter over quarter. That is tangible evidence that the pivot is not just a narrative, but one that is translating into commercial adoption.
Insider Sales and Analyst Doubts
The sharp rally in Navitas Semiconductor shares, which saw the stock climb over 60% in May 2026 alone, has created a battleground between bullish institutions and entrenched short-sellers. Approximately 18% of the public float remains sold short, representing a significant bet against Navitas Semiconductor's valuation and its ability to execute.
With a days-to-cover ratio hovering near 1.0, the stock is highly susceptible to short squeezes, in which rising prices force bearish investors to cover their positions and further fuel the rally. The recent volume spike to more than 97 million shares suggests such a squeeze played a partial role in its single-day surge of almost 20% on June 3, following the COMPUTEX 2026 announcement.
However, not all market participants are convinced. A Morgan Stanley analyst recently issued a note of caution, stating it is "too early to conclude that Navitas will emerge as a significant beneficiary." The note highlights that the gallium nitride (GaN) opportunity depends heavily on prolonged adoption timelines for 800V architectures and the complex, lengthy qualification processes required by hyperscale customers.
Adding another layer of complexity is recent insider activity. SEC filings from May 27, 2026, show President and CEO Chris Allexandre sold 13,323 shares on the open market at an average price of $31.81. While insider sales can occur for many reasons, the timing near the peak of the rally is a data point investors may want to consider.
Why the NVIDIA Deal Is Just the Beginning
While the NVIDIA partnership is the primary catalyst, it is not an isolated event. It is part of a broader strategy to establish a defensible moat in the high-power GaN and silicon carbide (SiC) markets. The market has assigned Navitas Semiconductor a market capitalization approaching $6 billion, a significant premium for a business with its current revenue profile. This valuation is a forward-looking bet that its strategic pivot will succeed. It prices in the thesis that, as next-generation silicon becomes useless without next-generation power management, Navitas will transition from a niche component supplier into a mandatory infrastructure component for the AI revolution.
Investors tracking the AI infrastructure build-out may want to keep Navitas on their watchlist. Key metrics to monitor going forward will be the pace of 800V architecture adoption across major cloud providers and Navitas Semiconductor's progress in converting its design wins into sustained, high-volume revenue. Continued improvement in gross margins as enterprise operations scale will be the ultimate indicator of whether Navitas can grow into its current valuation.
IREN's 800MW Bet Flips the AI Power Switch
Author: Jeffrey Neal Johnson. Originally Published: 6/6/2026.
Key Points
- The strategic acquisition of grid-connected real estate empowers IREN Limited to supply massive electrical capacity to hyperscale cloud providers.
- Securing investment-grade financing from top-tier institutions validates the underlying strength and predictable cash flows of the new business model.
- Exponential growth in the artificial intelligence cloud services segment demonstrates tremendous market demand and solidifies a premium valuation.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
The global scramble for artificial intelligence (AI) dominance has created an unforeseen bottleneck, one of the most important constraints on AI infrastructure growth, alongside chip availability, data center capacity, and deployment timelines.
Hyperscale cloud providers and AI leaders are no longer just fighting for GPUs; they are in a desperate worldwide hunt for raw, permitted electrical capacity. This frantic search for grid-connected real estate is revealing a new class of kingmakers: legacy Bitcoin miners that have spent years quietly accumulating a valuable and increasingly scarce asset for AI data centers — grid-connected power.
More Than a Data Center, It's a Strategic Power Moat
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Goldman Sachs and Morgan Stanley are reportedly already building positions in one of these names. Another is a resource miner that Elon Musk's broader empire - including Tesla - relies on. Lance Ippolito has detailed all five inside his free SpaceX Investing Blackbook.
Download the free SpaceX Investing Blackbook before these names go mainstreamIREN Limited (NASDAQ: IREN) is aggressively capitalizing on this structural shift, executing a pivot from a volatile crypto miner into a vertically integrated AI cloud infrastructure provider.
The latest move, a landmark transmission connection agreement for a planned 800MW data center campus in Bundey, South Australia, perfectly illustrates this strategy.
Announced on June 3, 2026, the deal is less about building another data center and more about monetizing a scarce resource.
The agreement secures four 330kV feeder exits directly from the local utility's substation, a critical advantage that enables the full 800MW capacity without requiring costly, time-consuming network upgrades. Situated near major submarine fiber routes connecting to key Asia-Pacific demand centers like Singapore and Japan, and located in a region targeting 100% net renewable energy by 2027, the Bundey campus is a strategically important expansion for IREN’s AI infrastructure platform. It provides a clear path to energization by 2028, offering hyperscalers a solution to their most pressing challenge: finding massive, stable power in geopolitically friendly regions.
Microsoft's Backing Unlocks an Ultra-Efficient Capital Stack
Executing a pivot of this magnitude requires a sophisticated and robust capital structure.
IREN has demonstrated its ability to secure institutional backing, not as a Bitcoin miner, but as a critical infrastructure partner for Big Tech.
On June 1, 2026, IREN closed a $3.65 billion investment-grade GPU financing facility to support its AI Cloud contract with Microsoft (NASDAQ: MSFT).
The facility's A and A(low) ratings from Fitch and DBRS, respectively, are anchored by Microsoft's offtake agreement, signaling that credit markets are underwriting IREN based on the quality of its contracted cash flows, not the price of Bitcoin.
The structure is exceptionally efficient. While the blended cost of debt is 6%, the deal includes significant customer prepayments from Microsoft, which act as a zero-interest funding source. This lowers the all-in average financing cost for the required $5.81 billion in GPU capital expenditure to an impressively low 3.31%.
Further bolstering its balance sheet, IREN recently secured a $3.0 billion convertible note offering due in 2033. This move provides a long-term runway to fund its massive capex pipeline, while a concurrent capped call hedge helps mitigate immediate equity dilution for existing shareholders. This is the type of disciplined financial engineering that signals a management team focused on long-term value creation through a period of intense capital deployment.
Trading a Crypto Multiple for a Utility Premium
The market is rapidly re-rating IREN, recognizing the valuation arbitrage underway. This isn't just a narrative shift; it's a fundamental repricing of the business. Bitcoin miners historically trade at low multiples due to the volatility of their underlying asset, whereas stable infrastructure providers command premium valuations for their predictable, long-term cash flows. IREN is actively pushing the market to trade the former for the latter.
While the Q3 2026 earnings report showed a top- and bottom-line miss driven by the legacy mining operations, this headline figure obscures the growth in the business segment that matters. AI Cloud Services revenue for IREN rose 142% quarter-over-quarter, growing from $7 million to $17 million. This provides the definitive proof of concept for the AI infrastructure pivot, demonstrating real demand and a clear path to the targeted $4.4 billion in annualized run-rate revenue, which IREN says is not fully contracted and depends on assumptions around GPU delivery, commissioning, utilization, and pricing.
Institutional money is taking notice and voting with capital. Recent filings show multiple institutional investors increasing their positions, all citing the AI infrastructure buildout as the chief reason. This accumulation is putting immense pressure on short-sellers who have bet against the transition.
Exchange data reveals that a significant short capitulation is already in progress, with short interest declining from a peak of 58.36 million shares to 50.94 million. That represents nearly 7.5 million shares covered as bears are forced to reconsider a thesis predicated on a business model that is rapidly becoming legacy.
A New Power Broker Emerges
IREN is no longer a simple proxy for the volatile crypto cycle. It is a hyperscale landlord hoarding the AI economy's most critical asset.
The strategic land grab in Australia, backed by billions in investment-grade financing and validated by exponential growth in its AI Cloud segment, signals a fundamental transformation.
Investors focused on the structural buildout of the AI economy may find the transition from hashrate to hyperscale a compelling case study in strategic asset monetization.
The execution risk associated with such a large-scale capital deployment remains a key factor to monitor, but for those with a long-term view, IREN appears poised to become a key power broker in the new AI economy.
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