AI is a sector I’ve been watching for a while now. This isn’t the first time I’ve talked about them and it won’t be the last.
The technology isn’t going anywhere and it’s only getting bigger and bigger…
In fact, it’s eating up so much energy, we’re now facing power supply issues, which is why nuclear energy is another sector I love.
You can read more about that in my blog post.
But I bring up AI today because all tickers related to it are currently on a run and if you’re smart, you’ll tune in and take note.
First, I have to pat myself on the back…
Applovin Corp (NASDAQ: APP) was a large-cap AI stock that I called back at the end of 2023.
The name might be funny but this stock is no joke…
Take a look at the chart between then and now.
APP 2-Year, Weekly Candles Chart; SteadyTrade
I waited a long time but I knew APP would eventually come through.
The stock has returned 1,400%* since I started watching it. The latest big run was just last week.
Today, let’s talk about why AI is here to stay and look at a few tickers I’ve shared with my Daily Income Trader and StocksToTrade Advisory members.
Table of Contents
The AI Revolution Is Here
It’s not just about ChatGPT or some fancy automated assistants—AI is revolutionizing everything.
We’re talking about industries like healthcare, finance, cybersecurity, and even manufacturing getting completely reshaped by artificial intelligence.
Smart investors are putting their money in any company that knows how to effectively harness the power of AI.
The Nvidia Effect – AI’s Powerhouse
You can’t talk about AI stocks without mentioning Nvidia Corp (NASDAQ: NVDA).
This company has basically become the backbone of AI computing with its high-performance GPUs.
Every major AI project out there needs massive computing power, and Nvidia’s chips are the gold standard.
Oh, and anyone who thought the DeepSeek news would permanently derail NVDA was sorely mistaken. I knew it would be a short-term pullback and I was right.
NVDA 1-Month, 1-Hour Candles Chart; SteadyTrade
The best part is that Nvidia’s success creates a halo effect across the entire AI sector.
This is great for us as day traders and those who can’t afford the expensive names like NVDA because smaller AI-related companies are seeing increased attention, too.
3. Big Tech Is All-In on AI
It’s not just Nvidia…
Companies like Microsoft, Google, and Meta are all doubling down on AI.
Microsoft has integrated AI into nearly every aspect of its business, from cloud computing to office software. Google is pushing AI-powered search, and Meta is using AI for ad targeting and content creation.
These trillion-dollar companies are making massive AI bets because they see the long-term potential.
And when the biggest names in tech are making moves, traders need to take notice.
AI Stocks Are Riding the Hype Cycle
Remember the dot-com boom? The crypto runs? EV stocks in 2020?
The technology is real, the money is flowing in, and Wall Street is starting to recognize that AI is not just a trend.
That’s why AI stocks are seeing massive breakouts on news, earnings, and even minor updates.
And as I said earlier, anything related to AI is on fire right now, even the crappy penny stocks.
Here are a few examples of what I saw last week…
Safe Pro Group Inc. (NASDAQ: SPAI):
SPAI 2-Day, 5-Minute Candles Chart; SteadyTrade
Jet.AI Inc. (NASDAQ: JTAI):
JTAI 2-Day, 5-Minute Candles Chart; SteadyTrade
By the way, our Oracle system caught JTAI’s big spike on Friday too.
To learn more about our algorithmic tool that I couldn’t trade without, tune in to one of our FREE live webinars to see Oracle in action.
ScanTech AI Systems Inc. (NASDAQ: STAI):
STAI 2-Day, 5-Minute Candles Chart; SteadyTrade
All of these have taken a breather but these names and others like them still have a lot of juice left.
How to Trade AI Stocks Smartly
I love momentum, but I also love discipline.
If you want to trade AI stocks, you need to follow a strategy, not just FOMO into every name with “AI” in the ticker.
Here’s what I recommend:
Focus on leaders:
Nvidia, Microsoft, and Google are still the kings, but there are smaller, high-growth companies benefiting from AI, too. Look at AI software firms, cloud computing plays, and semiconductor stocks.
Watch earnings reactions:
Strong earnings and raised guidance are signs of real demand, not just hype. Stocks that gap up and hold after earnings often continue higher.
Look for sympathy plays:
When Nvidia runs, other AI chip stocks tend to follow. When Microsoft talks about AI, smaller cloud stocks can see a boost like we saw last week.
Trade the momentum, but don’t chase:
AI stocks have been explosive, but they also pull back. Always wait for the solid, high-probability setups.
Use the right tools:
At a minimum, you need a robust trading platform to track these movers and spot the promising patterns.
It should feature real-time data, charting, technical indicators, and more.
My top pick, and the one I use every day, is StocksToTrade.
It features everything mentioned above…PLUS, right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17!
My Final Thoughts…
AI stocks are hot because AI is real, and it’s changing the world.
As with any hot sector, you need to be strategic. Ride the momentum, but be smart about your entries and exits.
The AI boom is just getting started, and if you play it right, it could be one of the best trading opportunities of the decade.
To see all the other AI stocks I’m watching, subscribe to my StocksToTrade Advisory service today.
You’ll also get a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade