3 Stocks to Buy Immediately, According to AI
Over the past year, you’ve seen me talk a lot about AI-powered investing. These systems can churn through enormous amounts of data and detect patterns that no human could possibly see.
For instance, I was taught as a young commodities trader to end limit bids in either “0.01” or “0.06.” That seemingly trivial strategy allowed our firm to be one tick ahead of the more typical bids ending in “0.00” and “0.05.” Our orders were always first in the queue.
It worked. For years, our counterparties could never figure out how we managed to get our lowball orders accepted. For a 1 cent fee, our fill prices were often the daily lows, or even the 52-week low.
Today, artificial intelligence can identify those kinds of patterns faster — and at a scale no human ever could. That’s exactly what these systems are built to do: analyze massive datasets and predict what comes next.
And now, our colleagues at TradeSmith have applied that same idea to the stock market.
They’ve built an advanced stock-selection system that combines multiple quantitative strategies — the same kinds of approaches used by top hedge funds — into a single portfolio called the Signals Master Portfolio.
This is a rotating list of their three to five highest-conviction picks at any given time, selected using a blend that includes, among others:
- Seasonal effects…
- Predictive AI…
- Portfolio optimization…
Only the best-of-the-best make the cut.
On April 22 at 10 a.m. Eastern, TradeSmith CEO Keith Kaplan is revealing 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 the AI Trade Signals tool for free and see the current top picks for yourself.
I’ll be featuring three of these top stocks in today’s update. And if you want to see the full list, be sure to click here — and don’t miss Keith’s full presentation on April 22…
Stock to Buy No. 1: The “Anti AI” Site
On Wednesday, the Signals Master Portfolio offered one of the most interesting names I’ve seen in a long while:
Reddit Inc. (RDDT)
On a fundamental level, Reddit is a fascinating beast. The community-driven platform is centered around shared interest groups, called subreddits, and it includes everything from stock-picking (r/WallStreetBets) to lawn care tips (r/LawnCare). That stands in sharp contrast to sites like Facebook and Snapchat that focus on personal networks.
The result is a raucous platform that has withstood the competitive pressures of other social media giants. After all, those seeking gardening advice could ask their neighbors on Facebook for help and get a judgmental response… or try ChatGPT and get a maybe-right/maybe-wrong answer. Neither is a particularly attractive option.
So, many turn to Reddit for help. Web traffic to the social media site has increased another 12% since September 2025, according to website tracking firm SEMRush. Daily active users have risen 19% in the most recent quarter.
“What’s your dog’s name?”
Meanwhile, Reddit’s share-price ride is even wilder. The stock IPO’ed in March 2024 at just $34 per share and surged to $283 by September 2025 as the company’s finances stabilized. The stock then collapsed 55% on fears of competition from AI-powered search and dependence on Google’s referral traffic. Despite a recent rally, they remain well below their peaks.
That kind of trading pattern is exactly what AI is designed to catch. Reddit’s fundamental numbers have never been better, and analysts now expect the firm to earn $4.12 per share in 2026 – an 80% upward revision since this time last year. The app is also proving resilient to AI-powered answers, as shown by the site’s steadily increasing traffic numbers. Shares should eventually recover.
Furthermore, Reddit is quickly improving its ad targeting abilities – something Alphabet Inc. (GOOG) and Meta Platforms Inc. (META) have spent decades perfecting. Analysts project advertising revenues to rise 42% this year and 32% in 2027, allowing net income to jump 62% and 47%, respectively. That’s far faster than projected user growth.
Most importantly, we are now entering an election year that will smash records for midterm ad spending. Advertising intelligence firm AdImpact anticipates a 21% increase from 2022 levels to $10.8 billion, or almost as much as the $11.1 billion spent during the 2024 presidential cycle. The California governor’s race alone has already seen $100 million in disclosed ad spending… and we’re not even through the primaries yet.
These vast sums will act as a major tailwind for all advertisers – even those without obvious political connections. Election spending will drive cable TV ad prices higher, forcing nonpolitical advertisers onto other platforms like Reddit. (As a reminder, Alphabet’s shares rose 36% during the last election cycle while Meta’s ballooned 66%.)
So, even though Reddit is a riskier name than most, there are strong fundamental reasons that explain how the firm ended up among TradeSmith’s top picks.
Stock to Buy No. 2: The AI CPU
That same day, the Signals Master Portfolio flagged another compelling company:
Arm Holdings Plc (ARM)
For decades, Arm was an architect of chips. It created power-efficient designs based on its proprietary Arm Architecture and licensed them out to royalty-paying customers.
The model was extraordinarily successful. The company holds a 99% market share in smartphones (where every milliamp of battery power is important), and its data center business is booming. Data center royalties roughly doubled last year.
Then on March 24, the British chip designer said it will do something it had never done in its 35-year history: It will begin selling its own chips.
That day, the company unveiled its AGI CPU, a 136-core data center processor that’s built specifically for AI inference workloads. Meta signed on as the debut customer, with OpenAI, Cloudflare Inc. (NET), and SAP SE (SAP) close behind.
While the announcement itself wasn’t a surprise, the details of the product certainly were.
From what we know, the AGI CPU will be an incredibly capable chip. It will provide 2X performance per rack relative to X86 architecture from Intel Corp. (INTC) and do so with far better power efficiency. The AGI CPU is designed to keep accelerators “fed” with data – the most common bottleneck of AI inference clusters.
According to The Register, Arm is also deliberately stripping out the accelerator-style features that rivals like Advanced Micro Devices Inc. (AMD) are trying to push. The AGI CPU is a “do the CPU job extremely well” concept that avoids competing with GPUs or the kind of custom “TPUs” that Google and others are developing in-house.
The result is that Arm expects revenues from its AGI CPU to hit $15 billion by 2031, making up 60% of total revenues. If gross margins hit 50% as I anticipate, then 44% of Arm’s profits may come from a product that doesn’t yet exist.
Arm’s stock has traded sideways since 2024. If the AGI CPU and TradeSmith’s signals are any indication, the stock is now primed for a bull run.
Stock to Buy No. 3: The Military Moonshot
Finally, AI Trade Signals offered a tempting moonshot this week:
AeroVironment Inc. (AVAV)
The Northern Virginia-based defense contractor builds autonomous systems, counter-drone systems, and space systems. Its loitering munitions system, known as Switchblade, is popular with the U.S. Army, and its Puma and Jump 20 uncrewed flying systems are used globally. The Puma 3AE model, for instance, can be launched with a bungee cord or simply thrown off the side of a ship. It can then fly up to three hours while providing surveillance video or targeting data.
The bull case for AeroVironment is straightforward: The U.S. military is rearming itself for 21st-century conflicts, and AVAV creates the type of drones and quadcopters needed for this shift. Fiscal 2026 revenues (ending in April) are forecast to surge 130% (partially from acquisitions), and topline growth is projected to remain in the 15% range thereafter.
This is the same dynamic we saw with drone maker Ondas Inc. (ONDS) when I flagged the stock last August. Shares then doubled in price. Except here, AeroVironment is an even more established firm with a longer history of profitable operations. It has generated positive net profits in all but two years since 2004.
AeroVironment’s backlog is also growing faster than analysts appreciate. In its most recent quarter, the defense firm added another $370 million in bookings to its backlog, bringing its funded backlog to $1.1 billion and total backlog (including unfunded commitments) to $4.1 billion. That’s more than two years of revenues. Even with its new manufacturing facility in Salt Lake City and another 85,000 square feet of production space from its Empirical Systems Aerospace acquisition in March, AeroVironment is still struggling to meet production demand.
Of course, there are risks with firms like AVAV. Shares have fallen 50% since their January peak as drone mania subsides. Upper management is widely criticized by rank-and-file workers for “terrible” and “dictatorial” leadership on public job boards. And the company has been paying nosebleed prices for its all-stock acquisitions; earnings per share declined in the past 12 months due to the sheer number of new shares issued.
Still, AeroVironment is finding itself on the receiving end of more and more military spending. One-way drones and loitering munitions have proved highly effective in Ukraine, Venezuela, Iran, and more. And as the U.S. enters a generational restocking of its military gear, investors should expect AVAV to rebound.
Choosing From the Best of the Best Strategies
Earlier, I mentioned 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 that mix. Each one following its own strategy and goals. And then add in a dose of AI-powered trading.
That’s what modern stock markets look like these days. By some measures, more than half of all trading decisions are made by algorithm.
Yet, machines can also leave “clues” of their own. Many seek out mean-reverting trades, helping markets bounce back after selloffs. Others follow Volume-Weighted Average Price (VWAP) behavior, exaggerating the heavy buying seen at the market’s open and close. More recently, we’ve seen the rise of momentum-reinforcement algorithms that cause breakouts that wildly overshoot the fundamentals.
These patterns are detectable by powerful AIs – the kind of stock-selecting systems TradeSmith has developed.
You can see this for yourself. For the next week, the TradeSmith team will preview their Signals Master Portfolio picks, entirely for free. And if you love what you see, be sure to tune in to a special presentation on April 22 at 10 a.m. Eastern, where TradeSmith CEO Keith Kaplan will show you exactly how to use the system to find his highest-probability trades.
Grab your access and save your spot here.
Until next week,
Thomas Yeung, CFA
Market Analyst, InvestorPlace
Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
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