Where can you find more important recommendations…
Over the past year, you’ve seen me speak A a lot About AI-powered investing. These systems can process massive amounts of data and detect patterns that no human being can see.
For example, when I was a young commodities trader I learned to end limit quotes at either “0.01” or “0.06”. This seemingly trivial strategy allowed our company to get a one-point lead over the most common bids ending in “0.00” and “0.05.” Our orders were always first in line.
You succeeded. For years, our counterparts could never figure out how we were able to accept our low orders. For a one-cent fee, our fill prices were often at daily lows, or even 52-week lows.
Today, artificial intelligence can recognize these types of patterns faster, and on a scale that no human has ever been able to achieve. This is exactly what these systems are designed to do: analyze huge data sets and predict what comes next.
And now our colleagues in Want Smith The same idea has been applied to the stock market.
They’ve built an advanced stock-picking system that combines multiple quantitative strategies — the same types of methods used by major hedge funds — into a single portfolio called Main signals portfolio.
This is a rotating list of the three to five picks with the highest conviction at any given time, selected using a combination that includes, among others:
- Seasonal influences…
- Predictive AI…
- Portfolio Optimization…
Only the best of the best make the cut.
on April 22 at 10 a.m. ETCEO of TradeSmith Keith Kaplan Reveals how their AI signals system identifies these high-probability trades before they happen.
But you don’t have to wait. For a limited time, you can preview AI trade signals Free tool and see the current top picks for yourself.
I’ll feature three of these top stocks in today’s update. And if you want to see the full list, be sure to check it out Click here -And don’t miss Keith’s full show on April 22…
Stock to Buy #1: Anti-AI website.
On Wednesday, Major Signals Wallet introduced one of the most interesting names I’ve seen in a long time:
Reddit Company (RDT)
On a basic level, Reddit is a fascinating beast. The community-driven platform centers around shared interest groups, called subreddits, and includes everything from stock picking (r/WallStreetBets) to lawn care tips (r/LawnCare). This contrasts sharply with sites like Facebook and Snapchat that focus on personal networking.
The result is a buzzy platform that has withstood the competitive pressures of other social media giants. After all, those seeking gardening advice can ask their neighbors for help on Facebook and get a judgmental response… or try ChatGPT and get an answer that’s maybe right or maybe wrong. Neither is a particularly attractive option.
Therefore, many are turning to Reddit for help. Web traffic to the social media site has increased another 12% since September 2025, according to website tracking firm SEMRush. The number of daily active users rose 19% last quarter.
“What’s your dog’s name?”
Meanwhile, the ride for Reddit’s stock price is getting wilder. The stock went public in March 2024 at just $34 per share and rose to $283 by September 2025 as the company’s financial position stabilized. Then the stock collapsed 55% on competition concerns from AI-powered search and reliance on referral traffic from Google. Despite the recent rise, they are still well below their highs.
This type of trading patterns is exactly what AI is designed to capture. Reddit’s fundamental numbers have never been better, and analysts now expect the company to earn $4.12 per share in 2026 — an 80% upward revision since this time last year. The app has also proven its flexibility in handling AI-powered answers, as evidenced by steadily increasing traffic numbers on the site. Stocks should eventually recover.
Furthermore, Reddit is rapidly improving its ad targeting capabilities, something Alphabet Inc. is doing. (Google) and Meta Platforms Inc. (dead) have spent decades perfecting. Analysts expect advertising revenues to rise 42% this year and 32% in 2027, allowing net income to jump 62% and 47%, respectively. This is much faster than expected user growth.
More importantly, we are now entering an election year that could break records for midterm ad spending. Advertising intelligence firm AdImpact expects a 21% increase from 2022 levels to $10.8 billion, or roughly $11.1 billion spent during 2024. Presidential turn. The California governor’s race alone has already seen $100 million in ad spending…and we haven’t even gotten to the primaries yet.
These enormous sums will act as a tailwind for all advertisers – even those with no obvious political connections. Election spending will drive up cable TV ad prices, forcing non-political advertisers to use other platforms like Reddit. (As a reminder, Alphabet shares rose 36% during the last election cycle while Meta shares rose 66%).
So, although Reddit is a riskier name than most, there are solid fundamental reasons as to how the company ended up among TradeSmith’s top picks.
Stock to Buy #2: AI CPU
On the same day, Signals Master Wallet pointed to another compelling company:
ARM Holdings PLC (arm)
For decades, Arm has been a chip engineer. It creates energy-efficient designs based on its proprietary Arm Architecture and licenses them to royalty-paying customers.
The model was extraordinarily successful. The company has a 99% market share in smartphones (where every milliamp of battery power counts), and its data center business is booming. Data center fees have nearly doubled in the past year.
Then on March 24, the British chip designer said it would do something it had never done before in its 35-year history: it would start selling its own chips.
On that day, the company unveiled its AGI CPU, a 136-core data center processor specifically designed for AI inference workloads. Meta has signed on as the first customer, along with OpenAI and Cloudflare Inc. (network), and SAP SE (Sub) close behind.
While the announcement itself wasn’t a surprise, the product details certainly were.
From what we know, the AGI CPU will be an incredibly capable chip. It will provide double the performance per rack compared to Intel Corp.’s X86 architecture. (Intech) and do so with much better energy efficiency. The AGI CPU is designed to keep accelerators “fed” with data – the most common bottleneck for AI inference sets.
according to RecordArm is also stripping accelerator-style features from rivals such as Advanced Micro Devices Inc. (AMD) They try to pay. The AGI CPU is a “doing the CPU’s job very well” concept that avoids competing with GPUs or the type of custom “TPUs” that Google and others are developing in-house.
The result is that Arm expects its CPU AGI revenue to reach $15 billion by 2031, making up 60% of total revenue. If gross margins reach 50% as I expect, 44% of Arm’s profits could come from a product that doesn’t exist yet.
Arm stock has been trading sideways since 2024. If the AGI CPU and TradeSmith signals are any indication, the stock is now ready to go higher.
Stock to Buy #3: The Military Moonshot
Finally, AI Trade Signals presented an attractive opportunity this week:
Aerofirm (opening)
The Northern Virginia-based defense contractor builds autonomous, counter-drone and space-based systems. Its loitering munitions system, known as Switchblade, is popular with the US military, and its Puma and Jump 20 unmanned aerial systems are used globally. For example, the Puma 3AE can be launched with a bungee cord or simply thrown over the side of the ship. It can then fly for up to three hours while providing surveillance video or targeting data.
The case for AeroVironment is clear and straightforward: the US military is rearming itself for 21st-century conflicts, and AVAV is manufacturing the kind of drones and quadcopters needed for this transformation. Revenue for fiscal 2026 (ending April) is expected to rise 130% (partially from acquisitions), and overall growth is expected to remain in the 15% range after that.
This is the same dynamic we saw with Ondas Inc. for the drone industry (ONDS) When I The stock was reported last August. Then the stock price doubled. Except here, AeroVironment is a more established company with a longer history of profitable operations. It has had positive net profits in all but two years since 2004.
AeroVironment’s backlog is also growing faster than analysts estimate. In its most recent quarter, the defense company added another $370 million in bookings to its backlog, bringing its funded backlog to $1.1 billion and its total backlog (including unfunded commitments) to $4.1 billion. That’s more than two years of revenue. Even with its new manufacturing facility in Salt Lake City and another 85,000 square feet of production space from its acquisition of Empirical Systems Aerospace in March, AeroVironment is still struggling to meet production demand.
Of course, there are risks with companies like AVAV. Shares are down 50% since their peak in January as drone mania subsides. Senior management is widely criticized by ordinary workers for “awful” and “dictatorial” leadership on public job boards. The company was paying exorbitant prices for all the stock acquisitions; Earnings per share decreased over the past 12 months due to the huge number of new shares issued.
However, AeroVironment finds itself on the receiving end of more and more military spending. One-way drones and loitering munitions have proven highly effective in Ukraine, Venezuela, Iran, and elsewhere. As the United States enters the process of restocking its multi-generational military equipment, investors should expect AVAV to rebound.
Choose from the best strategies
I mentioned previously how I was trained to use bid numbers ending in “0.01” or “0.06”.
Now imagine adding millions of algorithms and high-speed traders to the mix. Each one follows his own strategy and goals. Then add a dose of AI-powered trading.
this What modern stock markets look like these days. By some measures, more than half of trading decisions are made by an algorithm.
However, machines can also leave “clues” of their own. Many look for medium-yield trades, which helps markets bounce back after sell-offs. Others follow the behavior of the volume weighted average price (VWAP), exaggerating the large buys seen at the market open and close. More recently, we have seen the emergence of momentum-boosting algorithms that cause breakouts far beyond fundamentals.
These patterns can be detected through powerful artificial intelligence – the type of stock picking systems developed by TradeSmith.
You can see this for yourself. Next week, the TradeSmith team will do a preview Main signals portfolio Choose, completely free. And if you like what you see, be sure to listen to a special presentation on April 22 at 10 a.m. ETwhere Keith Kaplan, CEO of TradeSmith, will show you how to use the system to find his highest potential trades.
Get your access and save your place here.
Until next week,
Thomas Young, CFA
market analyst, Investor location
