AI Stock-Picking Strategy Reports Significant Gains on Earnings Winners

An artificial intelligence-powered stock selection tool has successfully highlighted several technology companies, including Nvidia and Super Micro Computer, prior to their significant post-earnings rallies, according to a report from Investing.com. The platform's AI models aim to identify stocks with the potential to outperform the broader market, with a focus on strong fundamentals and favorable valuations.

AI Strategy Touts Major Wins

The report cites several key examples of stocks flagged by its "ProPicks" AI strategies that went on to deliver substantial returns. These selections underscore the growing use of quantitative models in investment analysis, particularly around corporate earnings season.

Key examples provided include:

• Nvidia (NVDA): Added to one of the platform's strategies in November 2022, the chipmaker's stock has since gained over 600%.
• Super Micro Computer (SMCI): The AI identified the server manufacturer in November 2023, after which its stock surged more than 250%.

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More recently, the AI also pointed to strong prospects for Salesforce (CRM) and CrowdStrike (CRWD), both of which saw their stocks climb after reporting better-than-expected financial results.

Performance and Methodology

Investing.com's flagship AI strategy, named "Beat the S&P 500," reportedly boasts a total return of +1,220.3% since its inception in 2013. According to the platform, this represents an outperformance of +778.3% compared to the S&P 500 index over the same period.

The strategy functions by analyzing all components of the S&P 500 to select a portfolio of 20 stocks each month that it determines have the highest probability of outperforming the benchmark. The model also calculates a "fair value" for stocks, identifying those it deems undervalued with significant upside potential. The figures in the source's headline (e.g., +54%, +52%) refer to this calculated upside potential to fair value, not historical performance.