2 More Stocks to Buy for the AI Convergence

Tom Yeung here with your Sunday Digest. In the days following its IPO, Space Exploration Technologies Corp. (SPCX) surged 25%, rewarding early investors and turning its owner, Elon Musk, into a trillionaire. The following week the stock sank below $160, sending most investors into the red and forcing Musk back into the “lowly” hundreds-billionaire class. SpaceX isn’t alone in its volatility. That same week, shares of Micron Technology Inc. (MU) gapped down 15% on a broader tech selloff before shooting straight back up on blowout earnings. As InvestorPlace Senior Analyst Louis Navellier noted in a recent Market 360 issue, the AI market has been all over the place lately. Now, this sometimes happens during late-stage rallies. Traders know that certain stocks are overbought, so they sell out at the first sign of trouble. A tiny dip can trigger a panic. But as I mentioned in last Sunday’s Digest, this volatility is also a byproduct of artificial intelligence. Millions of trading algorithms, advisors, and investors are increasingly relying on the same AI-powered tools. And it’s creating a new kind of “trading convergence” that causes people to jump in and out of stocks at the same time. It can lead to massive losses of wealth when trades go wrong. That’s why Louis rarely chases the crowd. Instead, he’s looking for signs that typically happen before AI systems catch wind, with the help of his system called Precursor Intelligence (P.I.). It helps him find companies with improving fundamentals and accelerating money flow before every AI tool jumps on board. You can click here to hear him talk more about it. Last week, I showcased three of these top picks: Texas Instruments Inc. (TXN), Monolithic Power Systems Inc. (MPWR), and Oncology Institute Inc. (TOI). This week, I’d like to add two more.