There’s a very specific kind of stock I’m watching right now …
These tickers can offer HUGE profit opportunities.
But it’s important to have eyes on them before the price goes supernova. Because currently, share prices are still cheap.
Especially compared to some of the other AI stocks in the industry. Take a look at Super Micro Computer Inc. (NASDAQ: SMCI) in 2024 …
The company provides high-performance data services for cloud computing companies.
It’s an AI-adjacent stock. But even before the spike this year, prices were well over $100 dollars per share.
Due to the infancy of the AI sector, we’re still likely to find companies trading at a lower price that are only now showing signs of success thanks to AI and the tech sector surge.
We have to be careful when choosing which AI stock to play. But I’ve got a framework that helps.
SMCI is too expensive for my taste. But there’s a clue hidden in SMCI’s spike that can help us find the next low-priced runner.
And I already have eyes on one of the most recent spikers.
AXT Inc. (NASDAQ: AXTI)
AXTI announced earnings in the afternoon on Thursday, February 22. It already spiked 110% …
Shares started to move during after hours. Sometimes that can be a sketchy sign.
Here’s why: We like crappy stocks that announce news in the morning because it’s well timed to spike during intraday hours. If a crappy stock spikes during after hours, it can be difficult for the price action to stay bullish through the afternoon, through all of premaket, and intraday trading.
But AXTI surged the whole day on February 23. That’s when I knew this stock was different …
When AXTI consolidated into the close, I took a position on Friday and held shares into Monday’s open. It was a textbook weekend trade.
My trade notes are below:
I got too greedy and missed the better exit. But I’m still glad to be out with some green.
Plus, I was able to build a new position intraday on Monday, February 26 and I snagged almost $1,000, with a starting stake of $19,547.
Here’s the trade overlaid on a chart:
You don’t need to be in these plays long!
Pay attention when it counts.
The Next AI Spiker
I’m still watching AXTI, and here’s why:
The company announced positive earnings related to AI.
This is a direct excerpt from the earnings call on Thursday, February 22:
“Sales grew 10% in the quarter with early signs of recovery in the power market and brand new demand related to artificial intelligence.”
– Dr. Morris Young, Chief Executive Officer of AXTI
The AI sector is the strongest in the market right now. You already saw a chart of SMCI spiking in 2024.
Well guess what: SMCI also announced positive earnings before its historic run past $1,000 this year.
I posted the news story below, followed by the SMCI chart.
I’m not saying AXTI will definitely continue its run, like SMCI did.
But I’m definitely watching it because it could!
And on that note:
I’m watching for any other low-priced AI plays that spike with positive earnings.
The AI sector is still in its infancy. Some of these companies are only realizing profits a year after the AI boom started in early 2023 …
Be one the first to find the next AI spiker with solid financials: We’re covering these plays LIVE.
Cheers.
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