There’s a monster wave of money flowing into one area of the market. If you’re only watching major indices, you’re missing out.
Today I’ll show you how to find A.I. stocks to buy, using data.
The most hated rally in recent memory continues to highlight the narrow leadership in stocks. As the S&P 500 clocks a month-to-date return of -1.12%, select outlier stocks are screaming higher – up double digits in the same span.
How to Find A.I. Stocks to Buy
Many of the up-moves are justified given the latest A.I. goldrush. For some companies, the forward growth in earnings is set to explode higher. Which means, many are currently undervalued. As I’ll highlight, our data has been all over this move for months.
One of the biggest rallies in recent memory is happening right now.
But before we take a victory lap, let’s peak into the Big Money landscape. Most stocks aren’t participating in the A.I. fueled boom.
The Big Money Index (BMI) Is Falling
The markets ebb and flow like waves in the ocean. Currently, the undercurrent is signaling outflows in stocks.
A beautiful way to visualize this is with the Big Money Index (BMI). It plots the moving average of buys and sells in stocks. In the month of May, it’s fallen 14 percentage points to 46%:
To the untrained eye, this can appear as a sell signal for stocks. Afterall, when the BMI is falling, it suggests there’s weakness under the surface. There is.
Zooming in on the daily action, we see why the market has been choppy for months. There’s a lack of trend in money flows. Buying has been thinning as the green bars below indicate:
Does this mean there’s no opportunity in stocks right now? HARDLY! When you split out all the buys YTD by sector, one outlier group shines bright.
25% of all buys in our data in 2023 have been in the Technology space. That’s massive. The below pie graph displays it clearly: Money is chasing select Tech names:
Taking it a step further, our process ranks each stock with a MAP Score every week. Stocks under accumulation tend to have high fundamental grades. This makes sense given institutions are constantly betting on the next growth areas of the market.
This is where semiconductors have taken the top spot all year. And it’s not just any semiconductors, either. Companies that are beating and raising guidance in the Artificial Intelligence space have attracted the most inflows all year.
The latest NVIDIA Corp. (NVDA) earnings blowout is revealing what’s at stake. Their Q2 guidance shattered expectations with the company expecting $11B in revenue vs. street estimates of $7.17B. This news has the stock surging this morning, and other adjacent beneficiaries in the A.I. race are too.
While headlines will cheer the latest earnings as new information, the trend of money has been well underway in the shares for months. Below shows the daily unusual buy signals detected in the stock over the past 6 months.
December marks when the latest uptrend started in our data. It hasn’t slowed down:
Which now brings me to the all-important message: How to find A.I. stocks to buy like NVIDIA. Follow the Big Money and use data!
Each week our system culls all stocks getting bought and ranks the Top 20 names likely to keep attracting capital. Here’s an example from March 28th.
I’ve highlighted NVDA’s appearance. More importantly, there’s a handful of other names fighting in the A.I. race also attracting institutional footprints:
This is our stock-picking machine. Focusing on where the money is flowing is how you’ll uncover the next winning area of the market. Unusual money flows can do the research for you!
If you’re researching A.I. stocks to buy now, adding institutional flow data will only help.
Let’s wrap up.
Here’s the bottom line: Don’t let the rangebound market keep you on the sidelines. As I said previously, Sell in May and buy outlier stocks – I mean that. A handful of stocks are in the midst of major uptrends that are likely here to stay for years.
MAPsignals brings those stocks to you each week.
The hunt for the next A.I. winners is here.
If you manage money, our algos are a great resource for cutting out the noise and zeroing in on alpha generation.