Investing.com's AI Stock Strategy Reports 212% Gain Since 2023 Launch

Investing.com has released the October update for its artificial intelligence-driven stock-picking strategies, reporting that one of its tech-focused lists has generated a cumulative return of +212.26% since its inception in November 2023. According to the company, this performance represents a +131.62% outperformance compared to the S&P 500 over the same period.

Performance and Key Holdings

The financial platform attributed the strategy's gains to its positioning in high-momentum semiconductor and infrastructure stocks. Investing.com reported that in September alone, its AI selections included nearly twenty double-digit winners.

Notable performers for September cited by the company include:

• Intel (INTC): +35.14%
• AMD (AMD): +33.1%
• Natera Inc (NTRA): +28.85%
• Hewlett Packard (HPE): +25.92%
• Marvell (MRVL): +25.58%

Other significant holdings since the strategy's launch include Delek US Energy (DK), which reportedly gained +90.29%, and Everforth (EFOR), with a reported gain of +87.36% since being selected.

AI Selection Methodology

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According to Investing.com, its proprietary AI system evaluates thousands of global stocks each month. The model processes over 15 years of financial data using more than 150 different quantitative models to analyze historical performance, valuation metrics, and forward-looking growth indicators.

The system identifies up to 20 stocks for each strategy based on their projected upside potential. These lists undergo a rebalancing process at the beginning of each month, where new stocks are added and existing holdings that no longer meet the criteria are removed. Performance is tracked using an equal-weighting methodology for all selected stocks.

A Case Study in Rebalancing

To illustrate its process, Investing.com provided an example involving ProFrac Holding Corp. (ACDC). The AI model added the stock on March 1 at $4.95, citing accelerating price momentum and a favorable valuation. The position was closed on May 1 at $7.32, securing a 47.9% gain after the company reported a significant revenue beat.

The model's rationale for removing the stock included its valuation surpassing analyst estimates, an S&P credit downgrade to 'CCC' due to debt obligations, and a lack of analyst 'buy' ratings. Investing.com noted that since the model exited the position, the stock has declined over 40%. This monthly re-evaluation is designed to manage risk and reallocate capital to opportunities with a stronger risk-reward profile, according to the company.