May 4: This Week's Thematic Reads
If you missed out on this week's signals, we've got you covered
Aging Population
According to a new research report by SNS Insider, the global Prostate Cancer Diagnostics Market, valued at USD 8.57 billion in 2023, is projected to reach USD 15.09 billion by 2032, growing at a CAGR of 6.5% during the forecast period 2024-2032. The rising prevalence of prostate cancer globally, coupled with increased awareness of early diagnosis, is significantly fuelling the market. A growing geriatric population, alterations in lifestyle, and growing incidences of cancer-induced morbidity are additionally contributing to the demand for precise and efficient diagnostic methods. Read more here
Artificial Intelligence
OpenAI reportedly expects its revenue to reach $125 billion in 2029 and $174 billion in 2030 as it adds new products. The company expects its artificial intelligence (AI) agents and other new products to generate more sales than its ChatGTP chatbot by that time, The Information reported Wednesday (April 23), citing information OpenAI shared with potential and current investors. Read more here
Scaling generative AI solutions and tools across a business is often viewed as an IT-led undertaking, but organizations should ignore HR at their peril in such projects. Bain & Company’s latest research, conducted among 800 IT executives in the US, Europe, and Australia, found that nearly all organizations surveyed are testing generative AI, but only 40% have scaled it across the entire organization. Those organizations that have successfully scaled Gen AI at an organizational level have common characteristics – a fully engaged and involved HR department. Among surveyed organizations, 38% said HR were ‘very involved’ and 33% said ‘somewhat involved’ on Gen AI-related decision making. However, just 13% said HR were ‘fully involved or leading’. Read more here
… findings from its 2025 Key Issues Study, revealing that 89% of executives are advancing Gen AI initiatives – up from just 16% a year ago. Gen AI has moved from exploration to acceleration, and the study finds that finance leaders will increasingly be looked upon for transformation leadership. In fact, 65% of finance executives described their organization as a “valued business partner” – a significant jump from 41% last year – signaling that the finance function is evolving into a more strategic role within the enterprise. Yet, AI adoption within the finance function is still in its early stages and expected to grow 20% this year. Read more here
Thomson Reuters today released its 2025 Generative AI in Professional Services Report, and it reveals that legal professionals have become increasingly optimistic about generative AI, with adoption rates nearly doubling over the past year and a growing belief that the technology should be incorporated into legal work. According to the report, 26% of legal organizations are now actively using gen AI, up from 14% in 2024. While only 15% of law firm respondents say gen AI is currently central to their workflow, a striking 78% believe it will become central within the next five years. Read more here
… the latest PYMNTS Intelligence data from the April 2025 edition of the CAIO Report, a collaboration with Coupa, revealing that over 80% of U.S. chief financial officers (CFOs) at large enterprises are either utilizing AI in their accounts payable (AP) processes or are considering its adoption. Specifically, the report found that CFOs are demanding tools that can offer real-time visibility into expenditures, sharpen vendor negotiations and guide more strategic budget optimization. Read more here
Indian IT outsourcing companies, which employ millions, are tapping artificial intelligence to boost efficiency and reduce the need for more workers to grow their business. HCL Technologies Ltd. and LTIMindtree Ltd. are among companies saying they need fewer new staff to keep revenue increasing. The firms, which make their profits from non-core business processes and IT outsourcing projects from corporations in the US and Europe, have integrated AI tools and are already reaping the benefits of greater efficiency. Read more here
Cash-Strapped Consumer
It’s no secret that prices for everyday expenses are higher than most people are comfortable with, but those higher everyday costs seem to also be impacting once-every-so-often plans. In fact, only 46 percent of U.S. adults are planning to travel this summer, and many of those not planning to do so cite affordability as the factor keeping them at home (65 percent), according to Bankrate’s 2025 Summer Travel Survey. Read more here
According to the National Restaurant Association’s 2025 Off-Premises report, customers across drive-thru, takeout, and delivery channels make restaurant purchasing decisions based on their fiscal capability and the availability of deals and discounts. Although value offerings ranked third in the list of off-premises customer demands (behind speed and customer service), 82% of delivery customers seek value offers, and prioritize that over access to loyalty programs and ease of technology usage. Read more here
A new survey released today from global accounting firm KPMG finds that American consumers are expected to spend 7% less each month at restaurants compared to last summer. Respondents said they are more likely to cook breakfast at home compared to lunch or dinner, but the percentage is high across dayparts: 75% plan to cook breakfast at home this summer, while 67% and 68% plan to do the same for lunch and dinner, respectively. Nearly 50% of consumers said they are eating at home far more often, while 20% said they are eating at home slightly more often. Just 3% are dining out slightly more often and 1% are dining out far more often. An overwhelming majority — 85% — said they are eating at home more to save money due to budget constraints. Read more here
Cybersecurity
Yale New Haven Health (YNHHS) is warning that threat actors stole the personal data of 5.5 million patients in a cyberattack earlier this month. YNHHS is a nonprofit healthcare network in Connecticut, the largest in the state, providing comprehensive care across five hospitals and 360 outpatient locations. It employs 30,000 health professionals and has an annual revenue of over $5.6 billion. Read more here
A ransomware attack in January at Frederick Health Medical Group, a major healthcare provider in Maryland, has led to a data breach affecting nearly one million patients… Depending on the affected individuals, the attackers stole a combination of sensitive personal information, including patient names, addresses, dates of birth, Social Security numbers, and driver's license numbers. They also exfiltrated personal health information, such as medical record numbers, health insurance information, and/or clinical information related to patients' care. Read more here
In a recent espionage campaign, the infamous North Korean threat group Lazarus targeted multiple organizations in the software, IT, finance, and telecommunications sectors in South Korea. The threat actor combined a watering hole attack strategy with an exploit for a vulnerability in a file transfer client that is required in South Korea to complete certain financial and administrative tasks. Read more here
Iconic British retailer Marks & Spencer (M&S) is scrambling to restore services impacted by a cybersecurity incident that occurred over the Easter holiday. While the company’s online services remained operational, the incident impacted certain store operations, causing delays and frustration among customers. Read more here
Despite efforts by the FBI to make it increasingly more difficult for cybercriminals to scam victims, malicious actors managed to walk away with a record $16.6 billion from Internet-related crime in 2024. The figure is a 33% increase over cybercrime losses reported to the Internet Crime Complaint Center (IC3) in 2023, when US citizens reported a total of $12.5 billion in losses related to Internet crime, according to the annual "FBI Internet Crime Report 2024" published this week. Read more here
Businesses now are increasingly concerned about cyberattacks, and governments have moved to a war footing, according to a report this month by NCC Group, a British cybersecurity firm. “The geopolitical dust is still settling,” said Verona Johnstone-Hulse, a London-based expert on government cybersecurity polices and the report’s co-author. “What the new normal looks like is still not yet set.” Many in the U.S. are already calling for a more muscular approach to protecting the digital frontier. Read more here
Digital Infrastructure
Amazon and Nvidia executives said Thursday that the construction of artificial intelligence data centers is not slowing down, as recession fears have some investors questioning whether tech companies will pull back on some of their plans. Read more here
As reported by IBJ and others, real estate firm Surge Development is proposing to develop a data center campus in Hancock County, Indiana. The 775-acre Hancock County MegaSite Planned Unit Development District would be a large-scale data center/industrial campus. Although the number or scope of planned data centers has not been shared and “may vary” depending on the end-user, a site plan suggests the first phase could see five buildings and a substation developed. Read more here
First reported by the Big Bend Sentinel, energy firm Open Origin is in the early planning stages for a data center campus in Presidio County, Texas. The publication reports that the energy company is in discussions with officials from Presidio County and the City of Marfa about developing an 80,000-acre campus southeast of Marfa on land containing the MacGuire and Antelope Springs ranches. Read more here
Digital Lifestyle
YouTube ad revenue climbed 10% to $8.9 billion. The video giant has been gaining as cord-cutting erodes traditional linear networks. With its YouTube TV service now one of the top pay-TV operators in the U.S. and increasing numbers of podcasts and other programming being viewed on TV sets instead of mobile, YouTube is throwing significant weight around as an ad seller. The company will convene its annual Brandcast event for advertisers on May 14 in New York, having graduated a few years ago from the digital NewFronts arena to the front-line broadcast/streaming upfronts. Read more here
Homebuilding & Materials
Sales of existing homes fell in March to a six-month low as spooked buyers pulled out of the market in the face of uncertainty about the economy and jobs. Existing-home sales fell broadly by 5.9% in March, from February, to a 4.02 million pace. That’s the number of homes that would be sold over an entire year if sales took place at the same rate every month as they did in March. Read more here
“Overall mortgage application activity declined last week, as rates increased to their highest level in two months. The 30-year fixed rate rose for the second straight week to 6.9 percent, an almost 30-basis-point increase over two weeks,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “These higher rates drove a 20 percent drop in refinance applications, especially for higher balance loans, with the average loan size falling substantially. The refinance share of applications at 37.3 percent was the lowest since January. Similar to the previous week, economic uncertainty and rate volatility impacted prospective homebuyers as we saw a 7 percent decline in purchase applications. Read more here
Housing construction in Los Angeles plunged during the first quarter of 2025, according to a new report, a drop-off that could ultimately worsen the city’s affordability crisis… In the report released Tuesday, research firm Hilgard Analytics blamed the sharp decline on a variety of factors that have made it more difficult for developers to turn a profit, including high interest rates, tariffs and economic uncertainty, as well as a property-transfer tax known as Measure ULA. Read more here
Safety & Security
Lockheed Martin plans to fold technologies it developed in its unsuccessful bid for the Air Force’s Next Generation Air Dominance platform into the F-35 and F-22 Raptor to create a “supercharged” fifth-generation fighter, company executives said. Read more here
U.S. Marines will test one of the service’s newest counter-drone defense systems during this year’s Balikatan military exercise in collaboration with the Philippine military, according to the Marine Corps. Marines with the 3rd Littoral Anti-Air Battalion’s Ground-Based Air Defense Battery will conduct live-fire training with the ground-based Marine Air Defense Integrated System, or MADIS, a short-range, surface-to-air system that specializes in the detection and destruction of unmanned aircraft systems, at the annual joint drills currently underway in the Philippines. Read more here
The FAA recently announced an update to the regulatory process for Drone as First Responder (DFR) operations that is set to be far more streamlined and attainable. What was previously the COA needed for DFR to fly is now a simplified Certificate of Waiver (COW). The COW process is handled solely through the FAA Flight Standards. Read more here
Starting this summer, the Everett Police Department will put drones in the air as first responders. The program will become the second of its kind in the state, behind the Redmond Police Department. "Technology continues to advance and it's really the job of law enforcement to keep up," said Captain Robert Goetz with the police department. Read more here
The Oceanside Police Department is seeking approval for a new drone program that would make this technology the first to arrive on scenes in the downtown area… The department believes the drone program could cut their average response time from around 5 minutes down to just 60 to 90 seconds. Read more here
The Strategies Behind Our Thematic Models
Aging of the Population - Capturing the demographic wave of the aging population and the changing demands it brings with it.
Artificial Intelligence – Software, chips, and related companies that facilitate the collection and analysis of large data sets and autonomous generation of solutions given non-machine language prompts.
Cash Strapped Consumers - Companies poised to benefit as consumers stretch the disposable spending dollars they do have.
CHIPs Act – Capturing the reshoring of the US semiconductor industry and the $52.7 billion poised to be spent on semiconductor manufacturing.
Cloud Computing – Companies that provide hardware and services that enhance the cloud computing experience for users, such as co-location, security, and edge computing.
Core Holdings – Companies that reflect economic activity and are large enough to not get pushed around by day-to-day market trends. Low-beta, large-cap names able to better withstand economic turmoil.
Cybersecurity - Companies that focus on protecting against the penetration of digital networks and the theft, ransom, corruption, or destruction of data.
Digital Infrastructure & Connectivity - Companies that are integral to the development and the buildout of the infrastructure that supports our increasingly connected world.
Digital Lifestyle - The companies behind our increasingly connected lives.
Data Privacy & Digital Identity - Companies providing the tools and services that verify authorized users and safeguard personal data privacy.
EPS Diplomats - Profitable large capitalization companies proven to produce above-average EPS growth and provide investors with the benefit of multiple expansion.
EV Transition - Capturing the transition to EVs and related infrastructure from combustion engine vehicles.
Guilty Pleasure – Companies that produce/provide food and drink products that consumers tend to enjoy regardless of the economic environment and potential long-term health hazards associated with excessive consumption.
Homebuilding & Materials – Ranging from homebuilders to key building product companies that serve the housing market, this model looks to capture the rising demand for housing, one that should benefit as the Fed returns monetary policy to more normalized levels.
Market Hedge Model – This basket of daily reset swap-based broad market inverse ETFs protects in the face of market pullbacks, overbought market technicals, and other drivers of market volatility.
Nuclear Energy & Uranium – Companies that either build and maintain nuclear power plants or are involved in the production of uranium.
Luxury Buying Boom - Tapping into aspirational buying and affluent buyers amid rising global wealth.
Rebuilding America - Turning the focused spending on rebuilding US infrastructure into revenue and profits.
Safety & Security – Targeted exposure to companies that provide goods and services primarily to the Defense and security sectors of the economy.
Space Economy – Companies that focus on the launch and operation of satellite networks.
The Strategies Behind Our Dividend Income Models
Monthly Dividend Model – Pretty much what the name indicates – this model invests in companies that pay monthly dividends to shareholders.
ETF Dividend Model – High-yielding ETFs that provide a range of exposures from domestic equities, international equities, emerging market equities, MLPS, and REITs.
ETF Enhanced Dividend Model – A group of high-yielding ETFs that utilize options to enhance yield through collecting option income.
Don’t be a stranger
Thanks for reading and if you have a suggestion for an article or book we should read, or a stream we should catch, email us at info@tematicaresearch.com. The same email works if you want to know more about our thematic and targeted exposure models listed above.