The old “sell in May and go away” adage couldn’t have been more wrong this year. As many investors focused on higher energy prices and fears of overvaluation in mega-cap names, the market rewarded what may be the biggest shift since the start of the AI cycle: the broadening of the AI trade.
On the back of a strong earnings season across the entire tech infrastructure, it was continuously rising AI capex projections that reshaped the sector at a fundamental level, pushing AI infrastructure demand, and thus the forward PEs of the industry’s companies, to levels that simply screamed buy.
Take Micron as an example; even after an eye-popping 930%+ 1-year rally, its FW PE remains at a low 9, with a projected 1-year EPS growth of 689%.
But Micron is far from being the sole exception in this market.
As a matter of fact, the tech sector’s EPS growth (excluding the Mag-7) hit an unseen 51%+ YoY in Q126, according to Barclays data, with forward projections pointing even higher.
These numbers show where AI-driven growth has been concentrating. Finding those names early is exactly what the model is built for.
For less than $9 a month, Investing.com’s premium members have been doing just that ALL YEAR LONG.
Powered by machine-learning investor-grade financial modeling, they have been riding the AI bull market with a monthly-updated list of tech picks that has returned +202.63% since launch in November 2023. That’s a +124.24% outperformance over the S&P 500.
Just in May, they received more than TEN 20%+ winners in the tech infrastructure space ALONE.
Just to name a few:
That follows even better picks since the start of the year:
source https://www.investing.com/news/investment-ideas/201-gains-since-launch-in-november-2023-a-new-list-of-aipicked-stocks-for-june-4724990
