We’re in the middle of summer and it’s not just the temperatures that are hot right now…
AI stocks are on fire!
I’ve been talking a lot about this sector recently during my Premarket Prep, my Daily Double Down, and my other daily webinars. All of these webinars are a part of my Daily Income Trader service.
And AI technology isn’t just a buzzword anymore. It’s real and it’s here to stay, whether you like the idea or not.
In today’s fast-paced, tech-driven world, AI is promising to revolutionize industries and extend the boundaries of what’s possible.
This is a technological paradigm shift that’s transforming everything from healthcare to finance, and transportation to entertainment…
I usually don’t like to use big words like “paradigm,” but it is the only word that applies here. AI is fundamentally changing the way we think about doing things.
The ability of machines to learn, adapt, and perform traditional human tasks opens up massive new opportunities for efficiency and innovation.
Think about the early days of the internet or when Steve Jobs introduced the very first iPhone.
Remember that day…
Investors who understood the scope of the revolution and got in early on these ideas profited in a huge way.
We’re back in that era again, but with AI…
And you can profit too if you know which stocks to buy…And you don’t need to have a big account to do it!
Today, the key players in the field are companies we all know well.
NVIDIA Corporation (NASDAQ: NVDA) has become a powerhouse in AI. Its GPUs are essential for training and deploying AI models. It’s the leading player in the AI hardware market.
Alphabet Inc. (NASDAQ: GOOGL) is a leader in AI research and applications. Its initiatives like TensorFlow and its advancements in natural language processing make it a dominant force in this space.
Microsoft Corporation (NASDAQ: MSFT): With Azure AI, Microsoft offers a suite of AI services and tools. The company’s strategic investments and partnerships in AI startups also position it as a major contender.
Tesla, Inc’s (NASDAQ: TSLA) advancements in self-driving vehicles are pushing the envelope of what’s possible in AI-driven transportation.
Amazon.com, Inc. (NASDAQ: AMZN) is integrating AI into its ecosystem and driving innovation across e-commerce, cloud computing, and logistics. Examples include its voice assistant Alexa and AWS AI services.
Those are great companies to invest in but aren’t so affordable for everyone…especially for people with small accounts or for day traders, like me, who don’t want to wait weeks or months for a great return on their money.
Fortunately, I have my own list of AI stocks that are small, accessible to everyone, and can generate big returns.
There are two that have had some great action recently and they were a big part of my Market Update webinar on Monday.
By the way, Market Minutes is just one of three webinars I do every week for my StockstoTrade Advisory subscribers.
Learn more about StockstoTrade Advisory here.
First was Serve Robotics Inc. (NASDAQ: SERV). SERV develops AI-powered, autonomous low-emissions sidewalk delivery robots for companies like Uber Eats and 7-Eleven.
Kinda funny looking, right?
In fact, it’s no laughing matter since NVIDIA owns a 10% stake.
And when the investment became public on July 19th, the stock took off.
Fortunately for DIT subscribers, Oracle alerted us with a green buy signal so we could go along for the ride…a ride of over 100%*!
SERV Oracle Chart 7/2/19/24; StockstoTrade
If you don’t know about Oracle, you should!
It’s my secret weapon and I couldn’t trade without it…
Oracle scans the entire market every morning and applies its algorithm to stock price trends and patterns.
Once done, it produces a list of 20 stocks it believes will be winners for that day, along with an entry price and a green (long) signal or a red (short) signal.
We get winners like SERV from Oracle almost every day.
But it wasn’t over for SERV…This thing has legs!
And I knew it was ready for a short squeeze. In fact, I chose it for my Weekly Short Squeeze Report last Thursday.
If you’re unfamiliar with short squeezes, they’re a great way to make big returns, fast!
Read my article to learn how short squeezes work.
My prediction for SERV was right on…
On Friday, the day after the report went out, the stock hit my suggested entry price of $14 and quickly spiked to a high of $16.60. That’s a return of 18.57%* in about half an hour!
SERV short squeeze chart; Five-Day, Five-Minute Candles; SteadyTrade
And SERV keeps going. Just yesterday, Oracle gave us a green entry price at $12.61 per share. After hitting that, it topped out at $16.80 for a gain of 31.64%*.
I see SERV as a multi-leg runner. It will spike and pull back, maybe for a day or more, but I think it still has some more juice left in it.
And now to my other recent small-cap AI play…
Beamr Imaging Ltd. (NASDAQ: BMR) is a company that produces video optimization technology.
It’s not a pure-play AI stock but it is AI-adjacent. I like to think of it as an AI sympathy play.
It dropped news premarket Monday morning with both Oracle Corporation (NYSE: ORCL) and NVIDIA in the headline…
As expected, the stock took off and ran up about 25%.
BMR 5-Day Chart; five-minute candles; SteadyTrade
Again, this gain came before the market opened. Premarket trading is not for new traders or those that are risk-averse.
Read my article here to learn more about trading premarket.
I think BMR is going to act like SERV and have a multi-day run with a few pullbacks here and there…Stay tuned.
My final thoughts…
The AI revolution is more than a trend…it’s a seismic shift that promises to reshape our world and we need to embrace it.
I have other AI stocks, pure and sympathy plays, on my radar, and they’re suitable for traders with small accounts.
Become a subscriber to my DailyIncomeTrader system and find out how else you can get in on the AI game!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Earnings season is upon us, so learning how to interpret and trade on that information is more important now than ever.
Lucky for you, my friend and veteran trader Ben Sturgill has been working on an algorithm that he uses to predict earnings winners. . . He’s been testing it for the last 18 months and the success rate is pretty unbelievable.