I’m proud to say that I recommended the hottest AI stock of the year to my readers.
My Quantum Edge Pro subscribers booked profits of 203% in a little over five months… and that was on two-thirds of the original shares. They are still sitting on big gains today with the remaining shares.
They already locked in a double on the full position, and are playing with house money. They are effectively getting paid to own this stock.
But let’s back up for a moment.
AI is the buzz word of the decade. It really took off with the creation of ChatGPT in November of 2022. Everyone suddenly knew of and was using artificial intelligence themselves.
You likely already know about the cutting-edge chipmaker Nvidia (NVDA), but there is one AI stock that has crushed its performance in a few short months. It’s a company that is right in the thick of this AI boom by offering high-efficiency servers for AI applications. Those servers often powered by chips from none other than Nvidia.
Though this transformational technology is everywhere (now over 67,000 AI companies worldwide), profiting from it has been reserved for a select few.
But I was able to recommend it to my subscribers before most even heard about it. Knowing how that happened can make you a better investor.
Here’s How I Did It
Super Micro Computer (SMCI) wasn’t a well-known stock last year. But in late August, it appeared on my radar – or rather in my data. It flashed all the signals I need when looking for a superior and investible stock:
- Big money was flowing in
- It had strong technicals with a rising price on rising volume
- The company showed strong fundamentals like growing sales, earnings, and profits
At the time, SMCI had a great Quantum Score of 75.9, right in our targeted buy zone between 70 and 85. Its fundamentals scored 87.5, putting it among the elite stocks not only in my Quantum Edge system but also in the market: the top 0.5%!
That high score came from phenomenal sales growth of 37% and 30% over the last one and three years, and equally outstanding earnings growth of 28% and 101% over those same one and three years.
My system’s analysis indicated growth would almost certainly continue, with sales estimated to increase 28% in the next year and earnings following along for a nice 24% bump.
I also liked that SMCI carried very little debt, which is even more important than usual during times of high interest rates. Debt stood at 14.7% of equity, which is great compared to the average of over 4,000 stocks carrying 160% debt.
Even more impressively, the company had nearly $450 million in cash, far exceeding its $170 million in debt.
Super Micro’s technicals rated 67.6. At first glance, that might seem low, but it was exactly what I wanted to see. I had been waiting for the stock to pull back after a monster run.
Source: MAPsignals.com
And then I got it. You can see the bright green bars on the chart above. Those are Big Money buy signals, and they had been piling up for a while. That indicated to me that demand for the stock was increasing.
So when I saw a pause in buy signals and a pullback in both the price and those technicals, I knew I needed to jump.
The Incredible Result
On Sept. 6 I recommended SMCI at $276.21.
Then a few months later I gave readers news they always love to hear: “Let’s book some serious profits.”
The stock had risen 149% in just five months. But I only recommended selling one-third the position: 1/3 sold 2/7/24 = $688.01
Then SMCI vaulted immensely in just one week. So, I recommended selling another one-third. This time for a 258% gain: 1/3 sold 2/15/24 = $990.04
The net effect was this: readers who invested $10,000 into SMCI when I recommended it had the opportunity to close two-thirds of the position, get back every dime of that initial $10,000, and walk away with another $3,566.67.
And we still hold the last third with unrealized gains of over 220%. In other words, if that were closed today, readers would get their original $10,000 back plus an additional profit of $11,200.
But we’re not closing yet. My Quantum Edge Pro subscribers are getting paid to hold the #1 AI stock of the year.
This is the power of using my Quantum Edge system to track a company’s fundamentals, technicals, and Big Money inflows. When you can identify big inflows of money moving into the best quality stocks, you’re able to get into a winner before everyone else.
Super Micro Computer isn’t the only one. My Quantum Edge Pro portfolio is full of big winners – nearly 75% of the portfolio.
Will you own the next SMCI? Click here to learn more about putting the odds in your favor.
Talk soon,
Jason Bodner
Editor, Jason Bodner’s Power Trends
