The stock market is still being led by AI and – as I said in the opening of my podcast last Wednesday – “everybody’s looking for the next AI plays.” One surprising AI-related play is Ford Motor Co. (F), which announced a new energy storage subsidiary, namely Ford Energy, writes Louis Navellier, founder and chairman of Navellier & Associates.
The division is using batteries for energy storage systems for AI data centers, utilities, and large industrial customers. Ford has forged an alliance with China’s CATL, so it is using iron phosphate (LFP) batteries for energy storage.
Ford Motor Co. (F)
Ever since the tragic battery fire at PG&E’s Moss Landing facility, there has been a big push to replace lithium phosphate energy storage batteries with LFP batteries, which are much less likely to catch fire. So essentially, Ford Energy is now competing with Tesla Inc. (TSLA) for LFP battery storage.
Meanwhile, our new Federal Reserve Chairman Kevin Warsh is a big proponent of AI productivity growth. He is expected to strive to convince other members of the Federal Open Market Committee (FOMC) about how AI-related productivity gains are not inflationary. Energy prices are expected to decline this fall, since worldwide seasonal demand for crude oil drops then and the war in Iran may be resolved.
In conclusion, let’s celebrate! We are in the best investment environment for growth stocks since the Internet boom of the late 1990s. The current AI boom looks even stronger since it will take at least three years to fulfill the current order backlogs.
Disclosure: Some Navellier & Associates accounts own Tesla per client request.
