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3 Market Themes Driving Stocks Right Now: AI, Alt Energy and Commodities
Rather than trading in completely random patterns markets often move in rotations. Capital is constantly flowing across sectors, geographies, and asset classes, concentrating in areas where growth, narrative, and momentum align. The challenge for investors isn’t just identifying good businesses, but understanding where that capital is going next. Right now, those flows are becoming increasingly concentrated, and a few dominant themes have clearly separated themselves from the rest of the market.
One way to follow these global flows is to measure trailing returns and momentum. I look at 100+ thematic, factor, country, and any other index or ETF I can get my hands on to find what is leading in both the near-term and long-term. By measuring both short and long-term momentum, I can get an idea of what may be a more transient trend and what may have legs. When both the short and long-term momentum measures align, it is usually a good sign of a strong trend.
The AI infrastructure buildout remains the dominant secular trend in global equities. What's notable in the momentum data is that this isn't just a US story anymore. The AI supply chain is pulling in the Asian semiconductor economies with real force.
Image Source: Zacks Investment Research
South Korea's market has surged in 2026, with EWY jumping roughly 80%, driven almost entirely by AI-driven demand for memory chips. Samsung Electronics, which just joined the $1 trillion market cap club, and SK Hynix together make up about 45% of EWY's weighting, and tight supply conditions across high-bandwidth memory and traditional DRAM are fueling the move. Meanwhile, EWT has returned about 50% this year, with Taiwan Semiconductor representing over 22% of the fund and information technology making up 66% of the portfolio.
The key insight from a momentum perspective is that EWY and EWT are not just following SMH and QQQ, but are confirming the AI trend from a different angle. When you see the US chip designers, the Korean memory manufacturers, and the Taiwanese foundries all showing strong momentum, it tells you the demand signal is broad-based and structural.
Capital expenditure from the five largest technology companies surged past $400 billion in 2025 and is set to increase by a further 75% this year. That kind of spend doesn't reverse on a dime. This is a multi-year capex cycle, and the semiconductors powering it remain at the center of the trade.
This is the theme that might surprise people. Alternative energy ETFs were left for dead after the 2022-2024 drawdown driven by rising rates, expiring incentives, and policy uncertainty. Now they're back with a vengeance, and the momentum signals are strong across the board.
LIT gained 137% over the past year. ICLN is up about 26% year-to-date and roughly 70% over the past 12 months. URA has a 31% YTD return, and REMX has delivered 44% YTD.
Image Source: Zacks Investment Research
Two structural forces are converging to drive this strong performance, and frankly, it seems that the whole theme has been underfollowed considering how well they have done.
First, AI itself. The irony is that the biggest growth story in technology is creating enormous demand for exactly the kind of firm, clean baseload power that nuclear, solar, and battery storage provide. The pipeline of offtake agreements between data center operators and small modular reactor projects has grown from 25 GW at the end of 2024 to 45 GW today. Data center electricity consumption could approach 1,050 TWh by the end of 2026 , which is enough to make data centers the fifth-largest energy consumer in the world if they were a country. Tech companies are signing long-duration contracts for carbon-free power at a scale the prior renewable cycle never had to absorb.
Second, the Hormuz crisis has reframed energy security as a first-order geopolitical concern. WTI crude has been hovering in the mid-90s to low-100s as the conflict persists. As higher gas prices cut into household budgets and energy prices lower business margins, the consideration for EVs and alternative energy sources again become viable. Countries that were ambivalent about nuclear are now accelerating timelines, while battery storage is being revalued as grid insurance.
The momentum alignment across uranium, lithium, solar, rare earths, and broad clean energy tells me this isn't a one-off sentiment trade. These are structurally connected themes feeding off each other.
The commodity complex is lit up, and the Strait of Hormuz crisis has been an accelerant. The strait normally facilitates the transit of around 20 million barrels of oil per day, representing roughly 20% of global seaborne oil trade. Brent crude surpassed $100 per barrel on March 8 for the first time in four years, rising to $126 per barrel at its peak, with the largest-ever monthly increase in oil prices occurring in March 2026.
As of this week, Brent and crude hover around $100 per barrel and Exxon's CEO warned that the market hasn't absorbed the full impact of the supply disruption yet, noting there is "more to come if the strait remains closed."
But the commodity momentum isn't just about oil. Copper prices vaulted to new records in the first weeks of 2026, while gold and silver have made significant gains over the last year and continue to hold up. Commodity producing country ETFs like EWZ and EPU are putting up big numbers as well.
The Broad Commodity Tracker GSG rose 25% in March alone, lifting YTD performance to nearly 50%. The breadth here matters, as energy, precious metals, industrial metals, and agricultural commodities are all showing momentum, which is a sign of a genuine commodity cycle and possibly some inflationary pressures, rather than a single supply shock.
Image Source: Zacks Investment Research
Both copper and aluminum are projected to encounter further supply shortages that may push prices higher, as the global transition to clean energy and electrification continues to drive structural demand. This connects directly back to the alternative energy theme as you can't build the clean energy transition without copper, lithium, rare earths, and the physical commodities that go into every solar panel, battery cell, and reactor.
The Takeaway: Three Themes, One Interconnected Cycle
What makes this moment interesting from a momentum perspective is how tightly connected these three themes are. AI demand is driving semiconductor momentum and creating massive new demand for clean energy. The Hormuz crisis is pushing commodity prices higher and accelerating the case for energy independence through renewables and nuclear. The clean energy buildout requires the very commodities that are rallying.
When you see momentum alignment across this many ETFs, spanning geographies, sectors, and asset classes, and the themes are fundamentally reinforcing each other, that's a signal worth paying attention to. These are the themes investors should be focused on today.
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3 Market Themes Driving Stocks Right Now: AI, Alt Energy and Commodities
Rather than trading in completely random patterns markets often move in rotations. Capital is constantly flowing across sectors, geographies, and asset classes, concentrating in areas where growth, narrative, and momentum align. The challenge for investors isn’t just identifying good businesses, but understanding where that capital is going next. Right now, those flows are becoming increasingly concentrated, and a few dominant themes have clearly separated themselves from the rest of the market.
One way to follow these global flows is to measure trailing returns and momentum. I look at 100+ thematic, factor, country, and any other index or ETF I can get my hands on to find what is leading in both the near-term and long-term. By measuring both short and long-term momentum, I can get an idea of what may be a more transient trend and what may have legs. When both the short and long-term momentum measures align, it is usually a good sign of a strong trend.
Three clear themes jump out to me right now.
Theme 1: AI & Semiconductors
ETFs: South Korea ((EWY - Free Report) ), Taiwan ((EWT - Free Report) ), Semiconductors ((SMH - Free Report) ), Nasdaq 100 ((QQQ - Free Report) )
The AI infrastructure buildout remains the dominant secular trend in global equities. What's notable in the momentum data is that this isn't just a US story anymore. The AI supply chain is pulling in the Asian semiconductor economies with real force.
Image Source: Zacks Investment Research
South Korea's market has surged in 2026, with EWY jumping roughly 80%, driven almost entirely by AI-driven demand for memory chips. Samsung Electronics, which just joined the $1 trillion market cap club, and SK Hynix together make up about 45% of EWY's weighting, and tight supply conditions across high-bandwidth memory and traditional DRAM are fueling the move. Meanwhile, EWT has returned about 50% this year, with Taiwan Semiconductor representing over 22% of the fund and information technology making up 66% of the portfolio.
The key insight from a momentum perspective is that EWY and EWT are not just following SMH and QQQ, but are confirming the AI trend from a different angle. When you see the US chip designers, the Korean memory manufacturers, and the Taiwanese foundries all showing strong momentum, it tells you the demand signal is broad-based and structural.
Capital expenditure from the five largest technology companies surged past $400 billion in 2025 and is set to increase by a further 75% this year. That kind of spend doesn't reverse on a dime. This is a multi-year capex cycle, and the semiconductors powering it remain at the center of the trade.
Theme 2: Alternative Energy
ETFs: Lithium & Battery Tech ((LIT - Free Report) ), Solar ((TAN - Free Report) ), Rare Earth and Strategic Metals (REMX), Uranium (URA), Global Clean Energy ((ICLN - Free Report) )
This is the theme that might surprise people. Alternative energy ETFs were left for dead after the 2022-2024 drawdown driven by rising rates, expiring incentives, and policy uncertainty. Now they're back with a vengeance, and the momentum signals are strong across the board.
LIT gained 137% over the past year. ICLN is up about 26% year-to-date and roughly 70% over the past 12 months. URA has a 31% YTD return, and REMX has delivered 44% YTD.
Image Source: Zacks Investment Research
Two structural forces are converging to drive this strong performance, and frankly, it seems that the whole theme has been underfollowed considering how well they have done.
First, AI itself. The irony is that the biggest growth story in technology is creating enormous demand for exactly the kind of firm, clean baseload power that nuclear, solar, and battery storage provide. The pipeline of offtake agreements between data center operators and small modular reactor projects has grown from 25 GW at the end of 2024 to 45 GW today. Data center electricity consumption could approach 1,050 TWh by the end of 2026 , which is enough to make data centers the fifth-largest energy consumer in the world if they were a country. Tech companies are signing long-duration contracts for carbon-free power at a scale the prior renewable cycle never had to absorb.
Second, the Hormuz crisis has reframed energy security as a first-order geopolitical concern. WTI crude has been hovering in the mid-90s to low-100s as the conflict persists. As higher gas prices cut into household budgets and energy prices lower business margins, the consideration for EVs and alternative energy sources again become viable. Countries that were ambivalent about nuclear are now accelerating timelines, while battery storage is being revalued as grid insurance.
The momentum alignment across uranium, lithium, solar, rare earths, and broad clean energy tells me this isn't a one-off sentiment trade. These are structurally connected themes feeding off each other.
Theme 3: Commodities (Ags, Oil, Metals)
ETFs: Commodity (GSG), Oil ((USO - Free Report) ), Metals and Mining ((XME - Free Report) ), Copper (COPX), Agriculture (DBA), Gold Miners ((GDX - Free Report) ), Peru ((EPU - Free Report) ), Brazil ((EWZ - Free Report) )
The commodity complex is lit up, and the Strait of Hormuz crisis has been an accelerant. The strait normally facilitates the transit of around 20 million barrels of oil per day, representing roughly 20% of global seaborne oil trade. Brent crude surpassed $100 per barrel on March 8 for the first time in four years, rising to $126 per barrel at its peak, with the largest-ever monthly increase in oil prices occurring in March 2026.
As of this week, Brent and crude hover around $100 per barrel and Exxon's CEO warned that the market hasn't absorbed the full impact of the supply disruption yet, noting there is "more to come if the strait remains closed."
But the commodity momentum isn't just about oil. Copper prices vaulted to new records in the first weeks of 2026, while gold and silver have made significant gains over the last year and continue to hold up. Commodity producing country ETFs like EWZ and EPU are putting up big numbers as well.
The Broad Commodity Tracker GSG rose 25% in March alone, lifting YTD performance to nearly 50%. The breadth here matters, as energy, precious metals, industrial metals, and agricultural commodities are all showing momentum, which is a sign of a genuine commodity cycle and possibly some inflationary pressures, rather than a single supply shock.
Image Source: Zacks Investment Research
Both copper and aluminum are projected to encounter further supply shortages that may push prices higher, as the global transition to clean energy and electrification continues to drive structural demand. This connects directly back to the alternative energy theme as you can't build the clean energy transition without copper, lithium, rare earths, and the physical commodities that go into every solar panel, battery cell, and reactor.
The Takeaway: Three Themes, One Interconnected Cycle
What makes this moment interesting from a momentum perspective is how tightly connected these three themes are. AI demand is driving semiconductor momentum and creating massive new demand for clean energy. The Hormuz crisis is pushing commodity prices higher and accelerating the case for energy independence through renewables and nuclear. The clean energy buildout requires the very commodities that are rallying.
When you see momentum alignment across this many ETFs, spanning geographies, sectors, and asset classes, and the themes are fundamentally reinforcing each other, that's a signal worth paying attention to. These are the themes investors should be focused on today.