Editor’s Note: If you want to know which chipmaker could be the next NVIDIA, just ask Jeff Brown.

He knows more about AI chips than practically anyone on the planet — Thanks to his senior executive roles at Qualcomm, Juniper Networks, and NXP Semiconductors…

And Jeff just uncovered that one tiny chipmaker — 148 times smaller than NVIDIA — is set to provide Musk 5 billion chips in the next two years alone.

Click here for the full story or read more below.

Dear Reader,

Elon Musk just declared war on every AI company on earth.

SpaceX and xAI carried out a $1.25 trillion mega-merger…

And almost nobody understands the significance.

Musk's next move means he no longer needs data centers from Microsoft, Amazon, or Google.

And it's about to completely rewrite the rules of AI.

Make no mistake:

This isn't about competing with OpenAI on chatbots.

It's about controlling the backbone of the entire AI economy…

And when it's done, the top of the tech leaderboard could look completely different.

Today's trillion-dollar giants could be yesterday's news.

And one tiny company almost nobody has heard of could be the next NVIDIA.

Renowned tech expert and angel investor Jeff Brown has tracked it down…

A Musk supplier 148 times smaller than NVIDIA itself, set to ship him 5 billion chips over the next two years.

He explains everything in this urgent briefing.

Click here to watch it before we take it down.

Regards,

Lindsey Hough
Managing Director, Brownstone Research

AutoZone's Pullback Sets Up a Long-Term Buying Opportunity

Authored by Thomas Hughes. Originally Published: 5/26/2026.

AutoZone (NYSE: AZO) is a buy-and-hold quality stock nearly beyond compare. The company’s management, strategy, market position, industry trends, operational quality, cash flow, and capital returns are a recipe for steadily increasing value, as reflected in the long-term price action. AZO’s stock price advanced approximately 500% from the pandemic low to the 2025 peak, and additional highs are still likely in 2026.

The takeaway in 2026 is that the AZO market is experiencing a much-needed price correction and setting up a buying opportunity of generational proportions. It may take some time for AZO’s market to regain traction and resume its uptrend, but it will. When it does, the gains could be explosive. Catalysts include international expansion, market share gains, business optimization, and aggressive share buybacks.

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The company is expanding aggressively in Latin America, specifically in Mexico and Brazil, where middle-class growth is strongest. At the same time, the company continues to focus on capturing the fragmented commercial auto parts market and improving supply chain efficiency through digitization. The critical factors are earnings growth, cash flow, and aggressive share buybacks. The company is well regarded as an efficient steward of capital, reducing its share count significantly on both a quarterly and annual basis. Q1 activity amounted to $586 million, about 92% of operating profits, reducing the count by an average of 2% on a trailing 12-month (TTM) basis.

Mixed Results Favor AutoZone Investors

AutoZone reported a mixed quarter, with revenue for its fiscal Q3 2026 falling short of the consensus estimate. However, the $20 million miss was modest and easily overlooked in light of 8.5% growth and margin strength. Revenue growth was supported by increases in store count in the U.S., Mexico, and Brazil, along with a 3.9% systemwide comp. Comps rose 4.1% domestically and 1.6% internationally, below expectations but still healthy gains.

Margin news was also mixed and was central to the stock’s decline. Even so, the gross margin reduction and overall impact were less severe than feared, leaving operating profit up approximately 6.5% year over year and GAAP earnings per share well ahead of the consensus forecast. At $38.07, GAAP earnings were nearly $2 above expectations and 5.5% better than expected, sufficient to sustain operations and capital returns while supporting strategy execution.

AutoZone’s balance sheet shows no red flags. The company’s cash balance held relatively steady despite increased investment and robust capital returns. Other highlights include higher inventory and total assets, as well as a reduction in deficit. While normally a concern, the shareholder deficit results from share buybacks and is likely to persist over time. AutoZone has returned more than $12.5 billion to investors over the past decade, approximately 25% of its late-May market cap.

AutoZone Market Overreacts to Results: Deepens Value Opportunity

Analyst trends have contributed to AutoZone’s 2026 stock price weakness, as some price targets were reduced early in the year. The caveat is that the market overreacted to the adjustments, compounding the move in late May after the fiscal Q3 release.

Trading near $3,000, AZO stock is 20% below the lowest price target tracked, while analyst consensus forecasts more than 40% upside. The likely result is that AZO reaches a bottom sometime in late Q2 or early Q3 and begins to regain traction later in the year.

Institutional trends are among the reasons why the AZO stock price is nearing its bottom. Institutional investors own approximately 93% of the shares and have accumulated on a TTM basis.

Price action in late May has entered the range where institutional buying was strongest, suggesting a robust response from this group may be forthcoming. If not, AZO’s stock price could enter a sustained downtrend, but that is not indicated by the results, analysts' trends, or chart price action.

The chart price action reveals a mid-term downtrend, with an increasingly strong chance of a rebound. While price action moves lower, the MACD is diverging, and the stochastic is deeply oversold, suggesting bears have lost control and all bulls need is a trigger to start buying. That could be as simple as the valuation, which suggests a 50% discount to the five-year outlook, but it may require more tangible news, which may not be revealed until the company's fiscal Q4 earnings results are released.

The biggest risk for AutoZone this year is margin compression. While the impacts of aggressive expansion are manageable, and will likely moderate over time, rising costs are more of a concern and may continue eroding results. The question is whether efficiencies gained from the “Mega Hub” strategy will be enough to support margin recovery over time.

RTX Is Set to Revolutionize Munitions Manufacturing

Authored by Jeffrey Neal Johnson. Originally Published: 5/28/2026.

Modern warfare consumes munitions at a pace that has left the Western defense industrial base struggling to keep up. At the center of this challenge is a critical production bottleneck: the slow, inflexible, and costly manufacturing of traditional single-use solid rocket motors (SRMs).

RTX Corp. (NYSE: RTX), through its Raytheon division, now appears poised to help solve this structural deficit. Following a Phase 2 contract award from the Defense Advanced Research Projects Agency (DARPA), RTX is helping pioneer a new era of adaptable, composable rocket motors.

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Investors should view this initiative as more than an incremental upgrade; it represents a foundational shift in how the United States and its allies may produce and deploy advanced missile systems for years to come.

Building a Production Moat With Modular Propulsion

The core objective of the DARPA Burn n' Go program is to create a future where missile propulsion is no longer a fixed, one-size-fits-all component. Instead of designing and building unique motors for every weapon system, RTX Corp. and its key strategic partner, Northrop Grumman (NYSE: NOC), are engineering a modular system. This cutting-edge technology allows a common set of pre-manufactured components to be rapidly assembled into multiple configurations. The new protocol enables on-demand thrust adjustments to meet diverse and evolving mission requirements in the field.

This strategic shift from a rigid to a highly flexible production model directly addresses the most severe supply chain vulnerabilities exposed by recent global conflicts. The ability to rapidly scale and adapt munitions production is a powerful strategic advantage that translates directly into battlefield superiority.

By spearheading this technological disruption, RTX is building a durable competitive moat. The firm is not just fulfilling a contract; it is positioning itself as a leading architect for the next generation of munitions manufacturing. This deep integration into the defense infrastructure could create a powerful, long-term revenue stream that competitors will find difficult to replicate. The collaboration with Northrop Grumman's Allegany Ballistic Laboratory, a world leader in SRM design, further de-risks the ambitious project and combines the industrial strength of two sector titans to solve one of the Pentagon's most expensive problems.

Firepower: A Record $271 Billion Backlog

A visionary technological catalyst requires substantial financial backing to become a market-moving reality. RTX Corp.'s recent performance demonstrates that it has the fundamental strength and operational discipline needed to execute its ambitious long-term strategy.

The Q1 2026 earnings report from RTX Corp. decisively beat Wall Street expectations, showcasing significant and accelerating momentum across its business segments. Adjusted earnings per share (EPS) for the quarter came in at an impressive $1.78, a 21% year-over-year increase that comfortably surpassed the consensus analyst estimate of $1.53. This bottom-line outperformance was driven by strong top-line growth, with quarterly revenue rising to $22.1 billion.

This financial firepower provides the capital needed to fund intensive research and development for transformative projects like the composable SRM without sacrificing shareholder returns or taking on unnecessary debt.

The record-breaking backlog at RTX Corp., which now stands at an incredible $271 billion, provides exceptional long-term visibility into future revenue. Within that total, the defense segment alone accounts for a formidable $109 billion, underscoring the sustained and rising global demand for RTX Corp.'s products and services. Executive leadership's confidence is reflected in the decision to raise full-year 2026 revenue guidance to a new range of $92.5 billion to $93.5 billion. This financial strength suggests RTX Corp. is exceptionally well-capitalized to lead and profit from the impending global rearmament supercycle.

A Premium Valuation Backed by Institutional Conviction

With a trailing price-to-earnings (P/E) ratio of approximately 34, RTX Corp. shares trade at a premium to some of its aerospace sector and defense peers, such as Lockheed Martin (NYSE: LMT) and General Dynamics (NYSE: GD). Skeptical investors might also point to recent insider sales as a potential reason for near-term caution. Over the last six months, executive insiders at RTX Corp. have sold shares on the open market without making any corresponding open-market purchases.

However, a closer look at ownership trends tells a more compelling story. While insiders may sell stock for a variety of personal financial reasons unrelated to the company's outlook, institutional smart money is steadily flowing into the stock.

Major asset managers like Vanguard Group and Oppenheimer Asset Management have recently increased their positions in RTX Corp., signaling strong institutional conviction in the company's long-term strategic trajectory. This pattern of institutional accumulation suggests that the market's most sophisticated investors view the current valuation not as excessive, but as a justified premium for a company with a clear technological lead and a massive, locked-in revenue stream. The reliable 1.6% dividend yield from RTX Corp. further strengthens the investment case, providing a steady income stream while investors wait for long-term catalysts, such as the composable rocket motor, to fully mature and affect the bottom line.

For investors building a long-term portfolio, the central question is whether RTX Corp.'s technological leadership justifies its premium valuation. The DARPA contract is powerful evidence that it does. By solving a critical production bottleneck, RTX is not only securing its own financial future but also making itself an indispensable partner in Western national security.

Cautious investors may prefer to wait for a market pullback before initiating a position. Those with a higher risk tolerance, however, might see the current landscape as a rare opportunity to invest in a best-in-class company that is actively building the future of the global defense industrial base.