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Why is human judgment still important in markets?
For years, we’ve all been warned that AI will replace translators, proofreaders, data entry clerks, and customer service agents… to start. But many jobs can be eliminated.
We’ve heard that AI can read radiology images better than radiologists. It can develop software faster and with higher quality. Artificial intelligence will also take on tasks in law firms that were previously handled by expensive lawyers.
Eventually, AI could replace stock pickers, portfolio managers, and perhaps even entire hedge funds.
After all, what could a human compete with a machine that can analyze millions of data points in seconds… scan every earnings report from every company… and monitor global markets 24 hours a day without needing a vacation… ever.
Credit: İlkersilik
A long time ago digest Readers know how optimistic we are about AI Megatrend. We’ve tried hard to keep our readers on lucrative trades involving semiconductors, AI power needs, AI infrastructure needs, and everything in between.
But even we would be the first to say that there are some things that AI can’t outperform humans, at least for now.
Apparently…investing is one of them.
this week, Bloomberg It was reported that many of the latest AI-powered trading bots being tested on Wall Street are suffering badly.
According to the article, some AI bots make irrational trades, while others are vulnerable to volatility. Many of them have failed to outperform even basic market benchmarks.
To be clear, AI will create some of the biggest fortunes in the next decade.
But there is a big difference between investing in Artificial Intelligence and allowing AI to invest to You.
Where AI fails – and why
Regardless of its computational power, AI still suffers from one trait that the stock market requires above all else:
Judgment.
Profitable investment is not only about data access and speed.
History shows the importance of governance, especially during major technological shifts.
Think back to the early days of the Internet when the market environment wasn’t all that different than it is today. The greatest fortunes aren’t made by owning every technology stock under the sun.
The biggest gains went to those who were able to identify a small handful of transformative winners early on… and had the discipline and conviction to stick with them while the rest of the market struggled to understand what was happening.
It is very difficult to do this in real time. And it’s not something that AI can recreate.
That’s why so many investors rely on Louis Navellier – and have done so for decades.
Before long nvidia (NVDA) It became the poster child for the AI boom…and Lewis recommended the stock to his readers.
Long before Wall Street fully understood the scale of the Internet revolution… Lewis’ quantitative system was identifying companies like Cisco, AOL, and other huge winners during the early stages of the dot-com era.
Huge gains in less than two years
In July 2024, Lewis recommended celestica (CLS) for him Stock breakout Subscribers. At the time, very few people associated Celestica with the AI boom.
Still, most know it more as a North American supply chain solutions provider. The company has experience and expertise in every aspect of product development, from initial product idealization to large-scale production and after-sales services.
But Lewis saw something these investors missed. He pointed out that it was created to take advantage of the artificial intelligence boom. This is his analysis from almost two years ago:
Celestica is also poised to capitalize on the AI Boom. The company created Photonic Fabric, a fabric solution for optical computing and memory that can help augment AI infrastructure. It has the potential to create, scale, and sustain future AI models.
Since Lewis recommended the stock, shares have risen more than 560%.
Lewis believes this stock still has room to run. It is currently trading below the buy limit price of $413.
The point here isn’t just that Lewis has found another winner. It is Still We may find it while we may still be in the early stages of the AI investment boom – yet many investors are missing it.
The companies that dominate the headlines today may not end up achieving the biggest gains.
Historically, the greatest fortunes are made in the second and third waves of the technological revolution… when capital begins to flow to smaller, less well-known companies that are positioned to benefit from explosive growth.
Now, Lewis believes we may be entering another rare market window… one that could create a whole new generation of big stock winners over the next several years.
In fact, next week, Lewis will hold a special online briefing where he plans to explain:
- Why he believes the market is entering a major new phase
- Why could some AI-related penny stocks outperform so dramatically from here?
- And how individual investors might have a unique advantage over the big players on Wall Street during this next phase of the AI boom
If you’re optimistic about AI… but skeptical about a chatbot’s ability to successfully manage your investment portfolio…
You will want to pay close attention to what Louis has to say.
Currently, our St. Louis quantitative stock selection system has identified 53 smaller stocks that are showing early signs of rapid growth – strong fundamentals, high institutional buying pressure, and consistent top ratings in… stock grader, Month after month.
He calls him Exclusion list. Most of them are names you probably haven’t looked at before, and Wall Street can’t touch them due to their small size.
It’s not about being smarter than the big boxes. But it’s all about something they simply can’t do – no matter how much money they have. Lewis will explain why during his stay Event May 13, 1 p.m. ET.
During the presentation, Lewis will explain what he is calling One of the biggest opportunities he’s seen in decades (Register for this event here) – and he will share his most convincing picks from this list.
When you register, you will immediately receive the full stock of 53 shares Exclusion list. During this event, Lewis will share one stock that he believes is well-positioned for the next phase of the market.
Artificial intelligence is creating wealth… but humans still determine the winners.
Enjoy your weekend,
Luis Hernandez
Editor-in-Chief, InvestorPlace
