3 AI Infrastructure Stocks to Buy Before the Next AI Wave

When technology gets easier, margins compress.

Complexity loses its premium, and adoption explodes. Profit pools shift. And that’s when money flows toward simplicity.

AI is bringing simplicity online in a big way. It’s what I like to call AI’s “Wallpaper” Phase.

You see, investors love the wiring phase: chip demand, GPU orders, data center build-outs, billions in capex.

But users don’t care how AI is wired. They care about convenience. Businesses care about productivity. Markets care about margins.

That intersection is where durability lives. And that’s where the next big opportunity to gain exposure to the AI wave is taking shape.

AI’s Everything Plug: Model Context Protocol

MCP—Model Context Protocol—is the underlying layer that connects AI to websites across the internet.

And I want to make one thing very clear. The only stocks that will thrive during AI’s next phase are the ones that go all-in on MCPs. The evidence is right in front of us.

AI assistants—ChatGPT, Claude, and others—are becoming the way people shop and interact online.

They need to connect to real businesses to work—stores, banks, software platforms. MCP is the new universal connection layer that allows AI assistants to do exactly that.

Google. Microsoft. Amazon. OpenAI. They’re all adopting it. And the emerging use cases for MCP tell us why.

Just imagine this:

You tell your AI assistant, “Find me a blue cashmere sweater under $200, size large, and buy it.”

The AI searches thousands of stores—but only those connected via MCP.

It selects three options. Your saved payment method is used. The item shows up at your door.

No website visited. No app opened. Not even a Google search. Just a seamless experience that users barely notice.

Growing Opportunity: New Wave. New Winners.

I’m using this example to make one point extremely clear.

If a company isn’t connected to AI infrastructure, it won’t even be in the conversation.

This is bigger than crypto. I haven’t felt this strongly about a technology since 2019. That’s back when I started talking about Ethereum early and positioned accordingly.

By 2030, this market could exceed $385 billion—larger than the entire U.S. online grocery market today.

Not all of the major players in AI will be winners. But the ones that will survive – and thrive – should certainly be on your radar.

With all that said, the AI boom is a magnet for volatility. The last few months alone have been marked by sector-wide market shocks that are seriously weighing down AI stocks.

And while my thesis hasn’t shifted, the next wave of profits in AI will come to those who manage their risk early – and understand the true stalwarts of the next AI infrastructure phase.

The Tech Sell-Off Isn’t What You Think

Tech stocks are having their “Black Monday” moment right now.

Major software companies from Salesforce (CRM) to Adobe (ADBE) have registered deep losses over the last few weeks. Why?

It all comes down to fears around AI and the future of work.

The market is pricing in a scenario where artificial intelligence could replace 50% or more of software roles.

Now consider that over 80% of major software stocks are owned by institutional investors (pension funds, index funds, hedge funds). The selloff happened because they always move in herds.

So when a company reports disappointing earnings or negative sentiment hits the sector, institutional investors who are overweight tech are essentially forced to dump positions. That creates massive selling pressure – regardless of long-term fundamentals.

All this indiscriminate volatility in tech looks familiar. It really suggests another quick, DeepSeek-like selloff. And just like we saw with that sell-off last year, markets recovered quickly despite fears around AI dominance.

The Logic is Simple

The players I mentioned above are so deeply embedded in enterprise infrastructure that they’re “too big to ignore.” Institutions absolutely must own them regardless of short-term AI concerns.

After the initial panic subsides, the same institutions that sold must eventually buy back in to maintain their sector allocations. And that creates predictable buying pressure we can act on right now.

These panic selloffs typically create 10-15% single-day discounts in otherwise healthy companies.

That’s exactly where we swoop in.

We’ve leveraged these pricing gaps with previous winners like C3.ai and even bearish plays on stocks like Asana that likely won’t survive AI’s next wave.

Each one trades on the same basic strategy.

This isn’t about believing AI won’t disrupt software—it’s about exploiting the gap between long-term uncertainty and short-term institutional behavior patterns that create predictable price movements. That volatility is where we live.

And just like last year’s panic selling, volatility is handing us serious opportunities – if we look in the right corners of the stock market.

I’d like to show you a better way to trade on every volatile market swing with The Masters in Trading Challenge.

It’s a seven-day intensive designed to show you how to take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment.

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Now, let me show you where I’m finding the strongest signals around AI right now…

IGV: The “Everything AI” ETF Play

The iShares Expanded Tech-Software Sector ETF (IGV) is a basket of roughly 100 software companies — and it’s widely used by institutions and retail investors for broad exposure to the AI boom.

IGV has been falling as all these SaaS names get absolutely crushed. The ETF is down sharply in 2026. Roughly a trillion dollars in market cap has been wiped from the space.

SaaS names like CrowdStrike are double digits And many more are still in free fall.

But here’s the problem with ETF selling…

When investors panic and sell the ETF, market makers must liquidate the entire basket.

It doesn’t matter if the company is fundamentally strong or on a shaky foundation. Like I mentioned above, herd mentality always drives institutions to sell.

That means quality stocks always get punished alongside companies that truly deserve it.

But this recent panic is even more overblown than the headlines suggest.

Since late February, IGV has been holding above $80. That’s a key level for us – our new “Line in the Sand.” Any slight dips could mean another pullback from here – but I’m fundamentally bullish on AI in the long-term.

We just need to find the AI survivors not only enduring this next wave – they’re building it all as I write to you.

3 AI Stocks Wall Street Isn’t Watching

Not all tech companies are equal in the AI world.

Some businesses like Asana and Docusign are directly threatened by AI automation. If AI can replicate the function cheaply and instantly, those names are vulnerable.

But other giants in the space – Microsoft, Apple, Google, to name a few – stand to benefit massively.

Now, those companies represent the top layer of the AI build-out. They’re building data centers, spending billions on software, and generally guiding the industry forward.

But for every big name like Microsoft, there are a handful of players positioned for the same shift that fly way under the radar.

Make no mistake – they’re just as big and important as the headline stocks I highlighted above. I recently went live to discuss three of these names  with the Masters in Trading community. And I’ve only gotten more bullish on these stocks since then.

1. Shopify (SHOP)

Shopify has been beaten down because investors are treating it like a traditional SaaS company. But it’s not.

Shopify is deeply embedded in AI commerce infrastructure. It partnered with Google to help build the standard language AI agents use for shopping. Walmart, Target, Visa, and Mastercard have all signed on.

Revenue is $11.6 billion—and growing. Shopify is set to become one of the most essential payment rails for AI-driven commerce.

2. Cloudflare (NET)

Cloudflare has been dragged down with SaaS names. But Cloudflare is hosting the AI servers that facilitate our access to software.

If Shopify is the payment rail, Cloudflare is the infrastructure backbone. It is critical to how AI agents connect and operate.

3. Twilio (TWLO)

Twilio plays a crucial role in AI communication. It’s how AI agents communicate—messaging, verification, transactional interaction.

The AI Trader’s Playbook

AI is making the services these companies provide even more indispensable.

That’s the transition I’m focused on right now.

Not speculative moonshots. Not headline AI hype.

Just large-scale distribution platforms where AI gets layered onto recurring revenue streams and seamlessly serves millions of users.

Here’s what traders need to know right now…

You don’t need to be the builder. Follow the money, not the headlines.

Watch hedge funds, and endowments. Watch insider buying and selling. Look for margin expansion.

And don’t chase flashy AI startups. Many winners will be boring. But this is all about allocation, not speculation.

If you’re interested in learning more about the opportunities I’m tracking in this space…

The Masters in Trading Options Challenge is right here to help you in your journey.

The Challenge is where we take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment.

Just click here to check out what the Masters in Trading Options Challenge has in store for you.

Remember, the creative trader wins.