LikeFolio Weekly Roundup: Our Infinite Holds vs. the AI Selloff

The midterm election sent AI stocks on a wild ride this week.

On Wednesday, the Nasdaq rallied as investors cheered the results. By Thursday, it had plunged as much as 5%.

The big fear? New restrictions on data centers could put the brakes on America's AI boom.

But take a closer look at what's happening inside some of our favorite companies.

Amazon's (AMZN) cloud business just grew 39%. Google (GOOGL) is already testing AI chips in space. And even as Tesla (TSLA) shares plunged 15%, visits to its website climbed 44% from a year ago.

Those are some pretty strong signs that the trends we're investing in have plenty of room to run.

This week, we're looking at what the election means for two of our long-term AI holdings – and why Tesla's selloff has us paying even closer attention.

Let's get into it.

Amazon (AMZN): Why This Week’s AI Selloff Could Work in Its Favor

The market’s latest AI scare has created an interesting divide.

Investors are selling companies that need to raise billions to build new data centers. But they’re buying companies that already own the computing power everyone wants.

Amazon is firmly in that second camp.

According to JPMorgan’s trading desk, investors have been favoring cash-rich tech giants like Amazon, Microsoft (MSFT), and Google over companies that rely on outside funding to expand.

And Amazon has a major advantage: It already owns a vast network of data centers, with the cash to keep building.

That existing capacity could become even more valuable if new data center projects face delays.

Demand certainly isn’t slowing.

Amazon Web Services (AWS), the company’s cloud business, just reported 39% sales growth – its fifth straight quarter of faster growth.

Amazon expects that growth to top 40% in both 2027 and 2028.

And consider how quickly AI use is growing. Americans visited ChatGPT 39 million times a day in October – more than double the level from late 2024.

All that activity needs computing power. Amazon gets paid to provide it.

The bottom line: Amazon shares were up about 5% from Monday’s close as of Thursday afternoon, even as investors dumped other AI stocks.

We’ve held AMZN in our Infinite Hold portfolio since April 2020, and the position is up roughly 173%.

We’re holding. And this week gave us another reason to like its long-term prospects.

Google (GOOGL): The Race to Put AI Data Centers in Space

Amazon already owns the computing power that AI companies desperately need.

But what happens when there's no room to build more data centers?

Google is exploring a surprising solution: Put them in space.

On Oct. 30, Google sent a prompt to a satellite orbiting Earth. An AI chip on board processed the request, wrote a haiku, and sent it back to the ground in Svalbard, Norway.

It was a small test with big implications.

The experiment is part of Project Suncatcher, Google's effort to find out whether it can someday run AI data centers in orbit, powered by sunlight.

Here on Earth, data centers consume enormous amounts of electricity. Their powerful chips also generate tremendous heat, requiring expensive cooling systems.

Google wants to see whether space could offer another option.

And it's already making progress.

The satellite that completed last week's test was built and operated by Planet Labs (PL), a company we've featured before in our Space Race research.

Google's prototype launched Oct. 1 with four AI chips on board. Planet got the satellite up and running before Google switched on the chips.

Next up: Google plans to launch two linked satellites in 2027.

Running a full-scale AI data center in orbit is a much bigger challenge than getting one chip to write a poem.

But Google has now shown that its AI hardware can operate in space.

The bottom line: Google is already building its own AI chips and expanding its cloud business here on Earth. Now it's exploring how to take that computing power into orbit.

It's another reason we're excited about Google's long-term potential – and why we're keeping GOOGL in our Infinite Hold portfolio.

Tesla (TSLA): Shares Drop as Consumer Demand Surges

Tesla got caught in this week’s selloff, with shares falling about 15% from Monday’s close as of Thursday afternoon.

But our consumer data tells a much more encouraging story.

Visits to Tesla’s website – where customers can order vehicles – are up 44% from a year ago.

Even more impressive, mentions of consumers switching to Tesla from competing brands have jumped 144% year over year.

And Tesla’s self-driving technology is gaining traction.

More than three out of four new Tesla buyers in North America now pay for Full Self-Driving (FSD).

That’s a powerful sign of demand for a feature we believe could change the auto industry.

Even insurance companies are starting to recognize its value.

Lemonade (LMND) now charges Tesla owners roughly half its usual per-mile insurance rate for miles driven using FSD.

Think about what that means. Tesla’s software is becoming valuable enough that an insurer is willing to offer a steep discount when customers use it.

And the more drivers adopt FSD, the more important that software could become to Tesla’s business.

We flagged TSLA as an Infinite Hold back in April 2018. It’s up more than 1,700% since – and we’re not letting go.

The stock took a beating this week. But with website visits climbing 44% and more consumers switching to Tesla, we see plenty of reasons to stay bullish.

We’re holding our shares and watching this pullback for a chance to add.

For MegaTrends Members: We took a much deeper look at this week's market turmoil in our new special report, Midterm Election Selloff Watchlist.

Inside, we break down what's driving the selloff, why history gives us reason to be optimistic, and the stocks we're watching for buying opportunities – including several positions already in our portfolio.

Grab the full Midterm Election Selloff Watchlist here