Q2 25 earnings summary: Update on every company & trend and what to buy
Your one-stop shop to navigating structural trends, building conviction, and investing like a professional in the next era of opportunity
Welcome to the most comprehensive update yet for Crack The Market, a milestone recap of every insight, megatrend, and company I’ve dissected since launching. With over 40 in-depth articles and 30+ company deep dives, no matter if you are a free or paying subscriber, this article is a great starting point into the world of Crack The Market! This write up dives into some of the highest quality businesses in the market and my thinking around the megatrends shaping our world and which will deliver long term wealth creation.
My objective is to help you create wealth by bringing institutional level research helping you own equities that you understand.
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In a year defined by volatility and seismic shifts, a historical AI data center arms race, electricity demand boom and a grid investment supercycle, the rise of ingredients, reshoring of critical technologies, resilient businesses and the realities of tariffs & deglobalization, this post condenses it all:
What happened? An update on the most important megatrends shaping the world and all the companies I have covered post-Q2 2025 results.
How are my calls shaping up? Tracing the evolution of portfolio ideas and thesis.
What’s next? My favorite stocks and actionable themes for long-term wealth under today’s new world order.
Whether you’re discovering Crack The Market for the first time or returning to catch up, this is your one-stop map to navigating structural trends, building conviction, and investing like an owner in the next era of opportunity. The right calls matter more than ever, let’s chart them together.
With over 40 deep dives (on >30 companies) published in the first 4 months of Crack The Market, I thought it would be worth taking some time post Q2 earnings to revisit the megatrends I cover, how are my investment cases going, what happened during the last months and what are my favorite stocks to invest in going forward.
Every investment deep dive is likely the most comprehensive analysis of these companies. My aim: to offer both long-time readers and newcomers a bold starting point for navigating markets, uncovering emerging megatrends, and broadening perspectives.
Stay tuned as over the next few weeks and months I plan on covering the existing and many more megatrends in the semiconductor sectors, automotive sectors, continue to explore the AI data center value chain, Electricity value chain, winners of deglobalization, the rise of China, defense, water, healthcare, vertical software and automation, the German stimulus plan, building materials and many other megatrends and sectors etc with hundreds of high quality investment cases on some of the best and most exciting opportunities in the market to build long term wealth.
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PM Summary
What happened to the megatrends?
Resilience: This is a theme on which I have been investing in for years. In this category I would put companies that have local for local and defensive business models. Think about water and waste management businesses, ingredient companies, pharma or basic needs or companies with pricing power and margin resilience. Resilient businesses remain some of my top ideas but many are facing temporary weaker end demand (linked to the macro environment), policy uncertainty or timing issues, creating historical opportunities to buy some of the best businesses on the planet (and this despite markets hitting all time highs).
Reshoring & Sovereignty: Another megatrend that has quickly emerged is sovereignty and reshoring. Despite the fact that these words have been thrown around for years and trillions pledged to do just this, practically none of it has really happened. But the historic uncertainty that we are experiencing is going to turbocharge investments into local production capabilities and the infrastructure around it. With tariffs reshaping global commerce and deglobalization accelerating all over the world, reshoring of key technologies and investments to shore up sovereignty are becoming a top priority everywhere. The Big Beautiful Bill (on which I will soon write), coupled with escalating tariffs, further accelerates this thanks to faster depreciation schedules and many incentives to invest in the US. Companies enabling this trend or with significant manufacturing activities in the US will be big beneficiaries. Think about companies exposed to electricity networks and energy infrastructure, energy efficiency, reshoring of manufacturing, critical resources, defense.
China: Is China turning a corner? China has been a weak geography called out by manu companies for years since the pandemic. if China’s economy recovers, it will be a boost to many companies. More critically for you as investors, China is becoming more important and you should pay attention to its emerging strengths in key sectors: The decoupling of the US with the rest of the world is creating a long term winner (even though China will suffer a shock in the short term given the fast escalating trade war with the US), China, which is becoming more important on the world stage by the day and could see its trade relations with nations worldwide improve in this geopolitical climate. China is consistently investing in innovation, manufacturing capabilities and people to dominate the value chains of the future. Some of the winners are in the new value chains that China dominates like the semiconductor and automotive value chains.
AI & Data Centers: Since I published this deep dive into the AI infra ecosystem and the companies exposed to the rising investments in data centers, the AI data center supercycle has continued to gain further momentum with hyperscaler capex (investments) into AI data centers reaching $380bn in 2025 and set to rise further in 2026. But it is not too late to find opportunities within this space as many hyperscaler report being supply constrained.
Ingredients: Post Q2 25 results, the ingredient sector is now at a 10 year low in terms of valuations (12x EBITDA, 20% below 5 year average and the lowest since 2016) and I think it is a perfect time to look at this defensive and quality growth segment with a long and sustainable growth runway.
Electrification & Grids: Electricity demand is surging after 2 decades of decline (linked to data centers, electrification of everything) and this is kickstarting an investment supercycle into grids (which have been neglected for a long time), which will create trillions of dollars of wealth. We are talking about trillions of dollars of investments. The IEA’s Net Zero scenario calls for $800 billion per year in grid investments by 2030, more than 2.5x today’s level. Without that, the clean energy transition stalls. With AI data center capex accelerating, power and grids remain one of the, if not the principal bottleneck, expect investments to accelerate further.
