This Under-the-Radar AI Stock is a Gem

I’ve been getting calls from family and friends asking for stock tips for as long as I’ve been involved in investing.

Only one of these calls – and the tip I gave – is memorable.

It was 2017. My father called me up, saying he had $5,650 to invest and wanted to know where.

I fired up my Quantum Edge system, and within moments, the data and analysis on one stock jumped out at me.

There was a lot of buying activity – Big Money buying – in the previous months leading up to my dad’s call. That, along with other quant analysis, told me this stock was primed for massive institutional demand.

The system helped me find a then-obscure hardware stock called Nvidia (NVDA).

I’m happy to say my father took my advice and is now sitting on nearly 7,000% gains over the last nine years or so. I’ve watched his $5,650 turn into almost $400,000.

What was so memorable about this was not just how well it worked or how much it benefited my father.

It’s that back in 2017, Nvidia was considered a company that made graphics cards for video games. It was at a $63 billion market cap – 1/70th its current size.

The idea that its graphics processors would become the central nervous system of the artificial intelligence revolution wasn’t on any everyday investor’s radar.

But it happened. And now NVDA is the world’s most valuable company.

So we have to ask – what did the Big Money see that very few other investors could?

And as cliché as it may sound… what NVDAs are lurking out in the market today?

Using the same data today that I did back then – along with some special insider knowledge – I think I have some good answers.

And while you’re here, let me show you what exactly we mean by a “Secret AI” stock…

The Secret Sauce of a Secret AI Stock
Secret AI stocks are defined by two simple-but-powerful qualities.

First, the company must be essential to AI’s continued development. It may supply the energy, the technology, the materials, or the infrastructure that AI runs on.

And second, the market hasn’t made that connection yet. Investors view these companies through outdated lenses. They are considered industrial, a semiconductor equipment maker, a specialty metals supplier… something boring.

That oversight is our opportunity.

Palantir (PLTR) is a great example. For years, PLTR traded sideways. There were rumors about what this secretive data analytics company did, but nobody really knew. Investors didn’t know how to price it.

My Quantum Edge system flagged PLTR in May 2023 – right before it became a household name – and it went on to surge as much as 1,921%.

It is now seen as the AI operating system for the world’s biggest companies and the federal government.

This is one of many stocks following the same pattern:

• The market sleeps on stock.
• Big Money quietly starts buying.
• My system detects the signals.
• The broader market discovers the company’s true identity as an AI play.

Most investors focus on the big names – Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), etc. These are the “hyperscalers” spending hundreds of billions of dollars on AI.

And yes, those stocks have made investors a lot of money.

But the Magnificent Seven aren’t cheap anymore. The market knows their AI involvement. Their upside from here isn’t what it was.

That’s why many of these secret AI stocks are smaller, lesser-known gems.

Small- and mid-cap stocks are secret AI stocks almost by definition. If you’ve never heard of a company, chances are the market doesn’t fully appreciate what it does.

Smaller stocks are on the move this year, though. And this creates a remarkable setup.

You have companies that are critical to the AI buildout, still flying under the radar, trading at reasonable valuations, and now starting to benefit from a big shift in institutional money flows.

In fact, the stock I gave away in our Secret AI Stock webinar is one such company.

Let me tell you more about it now. I think it’s a perfect example of the opportunity in front of us.

A “Secret” AI Chip Stock
If you look up Camtek (CAMT), you’ll probably see it described as a “semiconductor equipment” company.

Okay. Fine. Doesn’t exactly get the juices flowing.

But if you look a little deeper, the picture changes.

Camtek makes high-end inspection and metrology systems. These are the tools that make sure AI chips don’t have defects.

As AI chips get denser, faster, and more complex, precision inspection becomes more critical. You can’t build trillion-dollar AI infrastructure on faulty chips, and Camtek is one of the key companies standing guard over chip quality.

Its newest platform – called the Hawk – is a breakthrough system designed for the most demanding packaging applications, including High Bandwidth Memory (HBM). HBM is the memory powering Nvidia’s most advanced AI chips.

This is a company that’s not on most people’s AI stock lists, simply because it’s not labeled as an AI stock. But it’s right at the heart of the AI chip buildout, and Big Money has been buying shares.

Let me give you a sneak peek inside my Quantum Edge system so you can see for yourself. The green bars on the chart below are trading days in which unusual buying was taking place. These signals are generated by my proprietary algorithms that detect institutional money flows.

You can see a cluster of buy signals last fall, with shares getting caught up in the November selling. Notice, though, that there are no red bars on there – meaning there were no Big Money sell signals.

CAMT recovered nicely, and Big Money has just recently stepped in again with three buy signals in February – including two just last week.

History and the company’s key role in AI tell us to expect more Big Money buy signals – and higher share prices – in the future.

The key is identifying these stocks before the rest of the market.

Sincerely,

Jason Bodner

Source: TradeSmith