Hello, Reader.
When Bruce Springsteen sang “I was born in the U.S.A.” in the catchy chorus of his 1984 hit song, he probably didn’t think that the sentiment would relate to tech companies… or semiconductor chips… or manufacturing processes.
But these days, it does.
Take this morning’s news from International Business Machines Corp. (IBM): The company announced that it will invest $150 billion in the U.S. over the next five years.
IBM’s plan includes spending more than $30 billion in research and development to “advance and continue” making mainframe and quantum computers on American soil.
“We have been focused on American jobs and manufacturing since our founding 114 years ago,” IBM CEO Arvind Krishna said. “And with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world’s most advanced computing and AI capabilities.”
As I mentioned, IBM is the latest in a line of companies reshoring their operations. As we talked about here at Smart Money earlier this month, Nvidia Corp. (NVDA) announced that it is planning to entirely produce its AI supercomputers in the U.S.
However, an underdog that I have been championing for a while has already been doing what these big tech companies are now just attempting to do.
And that is the unloved Intel Corp. (INTC).
As I’ve said previously…
Intel represents exactly what both political parties claim to want – an American company designing and building cutting-edge technology on American soil. Yet the market’s enthusiasm hasn’t followed political rhetoric.
Intel’s stock can’t seem to get out of its own way. Despite being America’s original semiconductor pioneer, most investors assume the company is a has-been. But when Intel finally begins producing chips from the multibillion-dollar fabs it has in the U.S., the company’s earnings could lurch to the upside. Based on those prospective future earnings, the stock is trading for 16 times 2026 earnings and just 10 times the estimate 2027 result. That valuation is far below the S&P 500’s.
Investing in companies with modest valuations typically offers greater downside protection than their high-flying counterparts. This is why my approach to investing prioritizes companies with solid fundamentals trading at attractive valuations.
And there is a more powerful way to capitalize on this investing approach – one that multiplies your returns.
It’s by using long-term equity anticipation securities (LEAPS), which are long-dated options contracts with expiration dates one to three years away. (Options may sound scary, but they don’t have to be. You can learn more about trading options in my free special broadcast, here.)
Although LEAPS are long-term options, you don’t need to hold them until expiration. I’ve recommended closing out many of my best trades after just a month or two, delivering substantial gains while minimizing risk.
Every option is identified with a specific stock. And we’ve had major success with LEAPS options on Intel in the past.
For instance, I recommended a LEAPS option on INTC to my Leverage subscribers in February 2023. The call had an expiration date of January 17, 2025.
We sold one-fourth of that position on December 14, 2023, for a 71% gain… and sold another one-fourth position less than two weeks later for a 95% gain.
Now, this strategy works across industries… and in the face of the Trump’s trade war. In fact, I recommended a LEAPS call option on a foreign stock early this month.
It’s a company that possesses a competitive advantage in the U.S. against all the sportwear brands may will soon face massive tariffs on the products they manufacture in China or Southeast Asia and export to the U.S.
Since then, the recommendation is up close to 50%.
To learn more about this strategy, I’ve created a free special presentation that explains how anyone can take advantage of LEAPS. In the broadcast, you’ll also learn how to access a special report that lays out three LEAPS trades with the potential to double your money in just a few months.
Click here to learn how to join Leverage and take advantage of this powerful options strategy.
Now, let’s look at what we covered here at Smart Money this past week…
Smart Money Roundup
Like the NFL Draft, Our New Stock-Picking System Is All About Finding Winners
April 23, 2025
An-E is an AI tool from TradeSmith that scans thousands of data points to forecast stock movements over the next 30 days. Drawing parallels between the NFL draft and investing success, TradeSmith CEO Keith Kaplan explains how An-E, built with machine learning and trained on over 50,000 back-tests, helps investors pick potential winners and avoid losers in their portfolio.
‘Unprecedented’: What History Tells Us About the Word Taking Over Wall Street
April 24, 2025
In Thursday’s issue, Tom Yeung looks at how the word “unprecedented” keeps popping up throughout history – from America’s war with Great Britain to today’s financial reports and Trump’s economic moves. While U.S. investors might think these sudden tariffs and market swings are totally new, Tom points out that similar patterns have happened before. He also breaks down how to profit from this roller coaster.
Why You Should Look Beyond the U.S. Markets for Big Profit Opportunities
April 26, 2025
When one investment door closes, smart investors find an open window elsewhere. For example, back in the dot-com crash, while tech stocks collapsed, overlooked non-tech companies with low valuations won big. In this issue, I reveal two undervalued foreign markets where investment windows are opening while the crowd is still banging on the wrong door.
Looking Ahead
As big tech companies make plans to manufacture in America, a question arises…
Who is going to do the work?
According to my InvestorPlace colleague Luke Lango, the answer to that question is machines.
Luke believes that physical AI – like robots, automation, and machine vision – is the only way this made-in-America industrial revival can realistically take shape.
And that’s why he is participating The 2025 Summer Panic Summit on Thursday, May 1, at 7 p.m. Eastern (sign up here).
During this free broadcast event, Luke will introduce a new set of seven small-cap U.S.-based AI stocks, which he calls the “MAGA 7” (Make AI Great in America), as the key to building a “nest egg” in this new bull market.
To reserve your spot for his special event, click here.
And stay tuned – Luke is joining us later this week to talk more about the catalyst that could cause this next phase of the AI boom to explode… and how you can learn more about the seven stocks that could go parabolic.
Regards,
Eric Fry
