Wall Street Is Chasing SpaceX... Smart Money Is Buying These 4 Stocks

Stocks are soaring on the back of the SpaceX IPO, which is already up 50% in just the first two and a half trading sessions. The Dow Jones Industrial Index just made a new all-time high, and leadership is becoming clear. While Wall Street chases SpaceX, these smart money stock picks are where the real opportunity lies.

The SpaceX rally has the markets ripping higher. But you need to know exactly where to look next.

Right now, two big themes are playing out: the physical infrastructure behind data centers, and a specific angle on the oil market that almost nobody is talking about. The real opportunities are in the backdoor plays.

Smart Money Stock Picks: Stop Chasing the SpaceX Pop

A 50% move in two and a half sessions is spectacular. The markets are ripping higher and indices are hitting new highs.

But chasing a 50% pop is not how you build consistent returns. You need to look at the secondary themes, the stocks providing the foundation for these massive technological leaps. These are the smart money stock picks with fundamental tailwinds ripping up the side of the chart.

What Are the Best Picks and Shovels Plays for AI Infrastructure?

The best way into AI right now isn't through software companies. It's through the companies building the physical infrastructure of these data centers. Heavy civil transportation firms. Site development companies. Electrical equipment designers.

These are the companies doing the heavy lifting. They handle the site grading. They build the switch gear. They're the materials and infrastructure companies powering the buildout.

And they're quietly ripping up the side of the chart with fundamental tailwinds behind them.

Sterling Infrastructure (STRL)

The data center foundation play

Sterling Infrastructure, ticker STRL, has been soaring. Members were alerted to this stock back in August, and it has almost tripled since then. But this thing could be just getting going.

Sterling is an infrastructure services company focused on site development and heavy civil transportation work. Their e-infrastructure segment handles large-scale site grading and foundations for data centers and warehouses. A direct pick-and-shovel play on the AI data center boom.

The chart shows a huge move up in April and May. Instead of rolling over, the stock just tightened and consolidated. It got a little ahead of itself earlier this month and pulled back, but it's setting up nicely now.

Powell Industries (POWL)

Powering the AI grid expansion

Powell Industries, ticker POWL, designs and builds electrical equipment. Switch gear, integrated power control rooms, all the systems needed to distribute and manage electricity. As the grid expands for AI, POWL is a clear play on that move.

The price action is textbook. Nice big momentum move higher, then a consolidation that shallows out and absorbs supply. Another run. Another consolidation. Another run. Right now, one final tight consolidation is setting up on the daily chart.

Which Sub-$100 Stocks Offer Exposure to Copper and Energy Shipping?

The backdoor trades smart money is already positioning in

Those first two stocks are fairly pricey. If you prefer sub-$100 names, here are two specific picks.

Freeport-McMoRan (FCX)

If you've been following this analysis for a while, you likely own shares of Freeport-McMoRan and you're up handsomely. Freeport-McMoRan is the largest copper miner in the country. Copper is used extensively in AI data centers. In fact, it's used in pretty much anything you give power to.

Pull up the FCX chart in logarithmic scale and you'll see a very clean consolidation pattern. The stock has obvious resistance around $70 a share. Each time it has reached that level over the last four months, we see absorption. Supply is getting swallowed. Price is compressing and moving into strong hands, ready for the next run.

For the last year and a half to two years, every breakout in FCX has worked beautifully.

The Oil Trade Everyone Is Missing

The second big theme right now is oil, but not in the way you think.

The focus here is marine transportation and crude tankers. The top pick is Frontline, ticker FRO.

Frontline is one of the world's largest oil tanker shipping companies. They've got a big fleet of crude oil carriers, transporting crude and refined products globally.

What we learned from the Iran war is how fragile the supply chain is, specifically through the 20-mile wide Strait of Hormuz. The disruption in supply was very tough, very difficult for Europe and Asia to handle.

Because of this, orders that typically would have come from those Arab states through the Gulf are now moving to South America and the United States. That's why US oil prices went so high. Europe and Asia were ordering all of our crude oil, spiking demand while supply shrank.

These new orders require longer routes. Ships going down around the Horn of Africa and up into Europe and Asia. Those longer routes mean more profits for tanker shipping companies like Frontline.

Finding the Right Buy Point

1. Sector-Wide Patterns

The entire shipping sector is setting up in an almost identical pattern. A perfect shallowing breakout base, very similar to what the sector did at the end of 2025.

2. The Coiling Action

You'll see this pattern over and over. Price comes in, coils tight, then makes a big burst. The shipping sector is setting up for a move higher right now.

3. Wait for the Clear Breakout

Frontline has massive resistance. The stock cannot get above $40 a share. It comes in and consolidates. There was a little weakening with a flare-up and a run, then it went right back up to that resistance level. Huge demand.

Positioning for the Next Leg With Smart Money Stock Picks

The market is showing clear leadership. You just have to know where to look.

Two high-priced plays: Sterling Infrastructure and Powell Industries, building the physical infrastructure and electrical equipment for the data center boom.

Two sub-$100 plays: Freeport-McMoRan and Frontline, giving you direct exposure to the copper needed for infrastructure buildouts and the long-term shipping routes driving the energy sector.

Don't chase the obvious headlines. Focus on the fundamental tailwinds and the clean consolidation patterns. Wait for the breakouts, manage your risk with strict stops, and let the momentum work for you. These smart money stock picks are where the real action is.