Google, Microsoft, Tesla, and the entire Magnificent Seven are all pursuing a new “Dark Energy” technology.
Joel Litman promises to reveal what it is along with a few under-the-radar stocks that hold the key to it in this teaser.
The Teaser
“A new way to power our world” is how one energy industry expert describes this new tech.
Joel Litman is introduced to us as professor, seeing as he teaches at Hult International Business School.
He is also a certified public accountant and the big boss of Valens Research, which owns Altimetry, the outfit behind this newsletter teaser. We have previously reviewed Joel's “Steve Jobs' Final Prophecy” and Alpha Profit Code presentations.
If nothing else, this teaser is timely.
The thing holding back the largest infrastructure buildout in human history like an umpire during a bench-clearing baseball brawl is not money, technology or expertise, it's energy.
This is well-known, as many reputable publications and even the President have said as much.
However, the projections of energy shortfalls are now becoming a harsh reality.
Power demand has simply out stripped the 7-10 year cycle needed to permit and build new transmission lines. As a result, electricity costs are spiking.
This is all before the largest energy supply shock ever.
But don't worry, because things could get worse before they get any better, with one study showing that AI's computing power demand is doubling every 100 days!
So, what is the solution?
There aren't many tangible options. We could fire up more old-school fuel plants, but most of these have already been shut down and replaced.
Wind and solar? A non-starter, as 98% of such capacity drops during peak hours.
We could modernize the existing energy grid and make it more efficient, which is already happening via grid enhancing technologies (GET), but full-scale modernization will likely take the better part of two decades, or longer.
According to Joel, the last option is the best option, tap into “Dark Energy“, which is a clean, reliable power source that doesn't require a single drop of oil to run.
The Pitch
The names of the companies behind it are revealed in an easy-to-read report called Dark Energy: Stocks That Could Soar as AI Goes Off the Grid.
To get the report, we'll need to try out Altimetry's monthly newsletter, Hidden Alpha.
One year of Hidden Alpha normally retails for $499 per year, but it's on sale for a limited time, costing $79 if we join now.
What in the World is “Dark Energy”?
We already know what so-called “Dark Energy” is not.
It isn't nuclear power, fusion energy, solar, wind, geothermal, hydropower, or anything we've heard about before. It's also not theoretical or unproven, as Elon Musk is already using it at his xAI data center in Tennessee.
Based on the last sentence, we know Joel is talking about natural gas powered electricity turbines.
These are giant mobile home-sized units operating on a physics principle known as electromagnetic induction.
In plain English, they have wheels inside them that spin really fast.
How fast?
About 400x faster than a typical windmill and you don't have to burn coal, rely on the sun, or be dependent on oil.
Joel believes this tech can “save AI from stalling out” and likens it to Corning's glass by product which was packaged into long-range cables in the 90s and made the internet as we know it today possible.
As a result, Corning's stock soared by as much as 2,605%.
This is enough to turn every $10,000 into $270,000 and the same opportunity is presenting itself today.
Most who are in the know concur that turbines are, at the very least, a stop-gap solution to the energy bottleneck.
xAI is currently using them to entirely bypass the grid and generate power onsite at its data center, Applied Digital has done the same, and turbine orders are already backlogged until 2032.
Joel is definitely onto something here, so let's find out the few publicly-traded companies that are building and supplying “Dark Energy.”
Revealing Joel Litman's “Dark Energy” Stocks
Joel believes “these are the stocks that could become the next AMDs, Microns, TSMCs, and even the next Nvidias.”
All are supplier stocks that hold the key to the natural gas turbine boom.
However, not a single word is said about any of them in the teaser or on the order form page.
Still, given the small size of the industry, we can, and will, infer some picks.
Starting at the base level, there are a few large-scale natural gas producers:
- Cheniere Energy (NYSE: LNG)
- EQT Corp. (NYSE: EQT)
- Kinder Morgan (NYSE: KMI)
I would also add The Williams Companies (NYSE: WMB) as a nat gas infrastructure provider.
At the turbine manufacturing level, three businesses absolutely dominate the market:
- GE Vernova (NYSE: GEV)
- Siemens Energy (OTC: SMERY)
- Mitsubishi Heavy Industries (Tokyo: 7011)
This oligopoly controls more than 70% of the market and one, if not all, are bound to be among Joel's picks.
If we move up chain, companies like Howmet Aerospace (NYSE: HWM) manufacture specialized components for turbine engines.
These are gas turbine essentials, but do they have the kind of breakout potential that Joel teases?
A $10 Trillion Technology?
By most estimates the global market for gas turbines is somewhere around $20-30 billion in size.
It is growing by 5-7% annually, so $25 billion is in sight by 2030.
This is a far cry from the $10 trillion figure Joel cites in his teaser.
Perphaps copywriters just mistakenly placed a T where there should have been a B, but that's not it.
His explanation is that “the smartest tech investors in the world are pouring money into Dark Energy”, therefore it must become huge.
Irrational exuberance aside, there are potential profits to be made with turbines.
It is a legitimate emerging power source along with small modular nuclear reactors (SMRs), and it's development is being encouraged at the federal level.
The base of the turbine stack, natural gas producers, are still the best price/value bets.
For example, Cheniere Energy and EQT both trade for less than 12x current earnings and they pay small dividends to boot.
The higher up the value chain you go, the higher the valuations, with GE Vernova selling for more than 30x current earnings and a components supplier like Howmet going for 65x earnings.
I like the base layer as it's what everything flows out from and it's also a bet on energy prices, which are going to continue going up over the long-term.
The baseless projection and lack of clues are a put off, but Joel's teaser does bring attention to the most important component of artificial intelligence growth, energy.
Quick Recap & Conclusion
- Professor Joel Litman is teasing a new “Dark Energy” technology that holds the key to AI's growth.
- This isn't nuclear power, fusion energy, solar, wind, geothermal, hydropower, but rather natural gas powered electricity turbines.
- The names of the companies behind it are only revealed in a new report called Dark Energy: Stocks That Could Soar as AI Goes Off the Grid. To get the report, we'll need to try out Altimetry's monthly newsletter, Hidden Alpha, which costs $79 for the first year for a limited time (normally $499).
- Joel went completely dark went it came to providing clues about his picks, but we did provide 8 possibilities above.
- Due to a lack of tangible alternatives, gas-fired power is on the rise and valuations are still attractive at the bottom of the value chain.
Will turbines and SMRs be enough to make up the AI energy shortfall? Leave your thoughts in the comments.