Money Morning

Palantir is poised for significant upside, termed a "perfect bullish storm," driven by strong market seasonality, a recently triggered bullish volatility surge, and positive pre- and post-earnings historical performance. The broader market typically sees strong returns from October through December, with Palantir specifically showing a substantial average gain of 45.9% in November. A volatility surge on October 27th indicates a potential 10-20% price increase in the short term. Furthermore, Palantir's consistent earnings beats and positive outlooks, fueled by growing government contracts and private sector AI demand, historically lead to upward price movements post-earnings. Wall Street analysts, despite previous skepticism, are expected to initiate upgrades, which will further boost retail investor interest. The speaker projects a year-end target of $225, with a stretch to $250, and a 12-month target of $300, advocating for leveraging this trend through long-dated options.

The host is strongly bullish on Gold (GLD), asserting that its recent significant run (up 11% in September) is far from over. He attributes this bullish trend to several macroeconomic factors, including the potential for the Federal Reserve to lose its independence, growing national debt and tariffs leading to recession fears, the quiet breakdown of the U.S. dollar, historic international demand for gold, countries repatriating their gold reserves, and growing geopolitical concerns. Technically, GLD is in a long-term bull market, supported by upward-trending 50-day, 200-day, and 20-month moving averages. He anticipates a short-term consolidation in October, presenting a buying opportunity, before the upward trend continues, targeting GLD shares at $400 (equivalent to $4,000 for physical gold). He recommends leveraging this bull run with long-dated call options, which offer significantly higher percentage returns compared to holding shares directly, citing personal successful trades as evidence. The host emphasizes that the underlying drivers for gold's upward trajectory remain firmly in place.

The host expresses a bullish outlook on Alphabet (Google) due to their significant development in quantum computing, specifically mentioning their "Willow chip." He considers it an "in-the-money call" within his personal portfolio, indicating confidence in its growth prospects within the evolving quantum computing space.

IBM receives a bullish assessment from the host, who highlights its strategic importance in the quantum computing sector. He notes IBM's active development of its own quantum chips and its strong presence in AI services, suggesting it's a company not to be underestimated in the long run and is part of his diversified portfolio.

Nvidia is viewed bullishly, with the host referencing CEO Jensen Huang's rapid shift in outlook on quantum computing from a distant future to an immediate priority, culminating in Nvidia hosting a 'Quantum Day' and developing quantum-enabled chips. He emphasizes Nvidia's role as the 'motor' driving the AI machine, which is seen as directly linked to quantum advancements, making it a strong portfolio holding.

IonQ is considered a bullish 'moonshot' pick in the quantum computing sector. The host includes it in his diversified portfolio, noting its status as one of the 'new kids on the block' experiencing substantial one-year returns, driven by sector-wide excitement and recent contract announcements in the quantum space.

Rigetti Computing is presented as a bullish 'moonshot' investment, primarily due to a significant 18% stock surge following a defense department contract announcement. The host includes it in his diversified quantum computing portfolio, signaling confidence in its potential as a leading innovator in the sector.

D-Wave Quantum is identified as a bullish 'moonshot' within the quantum computing sector and is included in the host's diversified portfolio. It's considered one of the promising 'new kids on the block' benefiting from the industry's rapid advancements and increasing commercialization.

The host previously held Quantum Computing Inc. (QUBT) but indicates he 'got stopped out' with profits. While he acknowledges it as part of the broader quantum computing sector, his current position is neutral, as it is no longer an active holding in his portfolio, despite its involvement in the space.

Oklo Inc. is presented as a significant investment opportunity within the nuclear AI sector. The company is highlighted for its innovative approach to reclaiming and recycling nuclear fuel pellets, signaling a forward-looking strategy in energy production. The discussion emphasizes Oklo's high growth potential, positioning it as a 'moon shot' stock. The host recommends leveraging this potential through long-dated call options (LEAPs) with specific strike prices and expirations, illustrating how options can provide amplified returns compared to direct stock ownership due to inherent leverage. Hypothetical examples demonstrate substantial gains even before option expiration, reinforcing a strong bullish outlook for the company's stock price, potentially reaching $200-$250.

The VanEck Uranium+Nuclear Energy ETF (NLR) is recommended as the foundational component of a balanced and diversified investment approach in the nuclear AI industry. With a suggested 35% allocation in a sample portfolio, NLR provides broad exposure to the sector's growth potential fueled by increasing AI demand for energy.

Constellation Energy Corp (CEG) is positioned as a key player in the nuclear energy sector, offering a more stable investment for generating 'alpha' within a diversified portfolio. It is identified as a 'slower mover' that provides dividends, appealing to investors who prioritize cash flow alongside growth, with a suggested 15% allocation in the sample portfolio.

Duke Energy Corporation (DUK) is presented as a stable, dividend-paying utility within the broader energy sector that stands to benefit from the increased demand for electricity driven by AI data centers. It is recommended for inclusion in a diversified nuclear AI portfolio, with a suggested 10% allocation, catering to investors seeking consistent cash flow and less volatility.

GE Vernova Inc. (GEV) is highlighted as a significant and larger-cap company within the nuclear AI sector, suitable for generating 'alpha' in a diversified portfolio. It is included in the 'moon shot' category of stocks, with a 10% allocation, indicating expectations for higher returns due to its position in the rapidly expanding energy and technology intersection.

NuScale Power Corporation, represented by the ticker SMR, is recognized as a leading company in the small modular reactor (SMR) space. The discussion emphasizes its progress toward commercialization, indicating a strong growth trajectory. It is positioned as a 'moon shot' stock within a diversified nuclear AI portfolio, with a 10% allocation, due to its innovative technology and potential for substantial future returns.

Nano Nuclear Energy Inc. (NNE) is identified as a high-growth 'moon shot' stock in the nuclear AI energy sector. The host expresses a positive historical relationship with the company's founders and recommends a 10% allocation within a diversified portfolio, suggesting strong potential for significant returns driven by advancements in nuclear technology.

The host maintains a long-term bullish stance on Archer Aviation, reiterating his 'buy the dip' strategy at the $8 level, citing strong put open interest and expected return of speculative money towards the end of the year. He notes that while the stock broke through its 50-day and 200-day moving averages, it presents an opportunity. The long-term outlook remains positive with a price target of $20, driven by future catalysts such as licensing and potential Department of Defense contracts in 2026. Options data indicates a 'glass ceiling' at $13 for October, but overall market mechanics are expected to drive the price higher as short positions are covered.

Lennar Corporation, a major homebuilder, was downgraded, reflecting the broader downturn in the housing market. The sector's reliance on affordable credit and its strong link to the employment picture make it highly sensitive to interest rate movements. The current economic outlook and potential for continued hawkish Fed policy create a challenging environment for homebuilders, despite overall market gains.

Palantir (PLTR) presents a compelling contrarian investment opportunity. The company exhibits strong positive fundamental growth, actively expanding its core businesses and securing significant contracts internationally, indicating it is an early-stage growth company. Technically, PLTR's performance is robust, standing out among its peers in the Nasdaq 100 and AI Services sector, with a bullish trend supported by key moving averages and short-term buying opportunities on dips. Despite these strengths, Wall Street sentiment remains largely pessimistic, with a high percentage of analysts maintaining 'hold' ratings and an unusually high put-call ratio in the options market. This widespread skepticism, combined with positive underlying fundamentals and technical strength, positions Palantir as a 'perfect' contrarian trade. The host anticipates that Wall Street analysts will be compelled to upgrade their ratings as earnings continue to outperform, driving the stock well above current levels. The host maintains a long position in PLTR shares and utilizes long-term LEAP options to leverage this outlook, projecting a year-end target of $225 and a 12-month target of $300.