AI Stock Picker

Screening Filters

1. Monthly average dollar volume > $1,000,000

   • Purpose: Ensures the stocks are sufficiently liquid.
   • Rationale: An “AI stock picker” usually implies you want names that can actually be bought and sold efficiently. This filter helps exclude thinly traded stocks with wide bid-ask spreads and poor execution quality.

2. Price above the 20-day moving average

   • Purpose: Identifies stocks with short-term positive momentum.
   • Rationale: AI-related stocks can be volatile. Trading above the 20-day moving average suggests recent strength and helps focus on stocks that are currently being bid up by the market.

3. Price above the 200-day moving average

   • Purpose: Filters for stocks with longer-term uptrends.
   • Rationale: This helps avoid names that are only experiencing a short-lived bounce. For an AI stock picker, combining short- and long-term trend filters improves the chance of finding leaders with sustained momentum.

4. Themes: AI Beneficiary, Cloud Computing, Software as a Service, Big Data, The Internet of Things, Technology, Semiconductor Equipment & Materials

   • Purpose: Narrows the universe to companies most likely to be tied to AI adoption and infrastructure.
   • Rationale: AI “stock picking” usually means finding companies that are either directly involved in AI or likely to benefit from it. These themes capture:
     • AI Beneficiary: direct or indirect AI exposure
     • Cloud Computing / SaaS / Big Data: common AI deployment and data platforms
     • IoT / Technology: areas where AI can improve products and operations
     • Semiconductor Equipment & Materials: critical infrastructure for AI chips and compute supply chains

5. Quarterly revenue YoY growth > 20%

   • Purpose: Selects companies with strong top-line growth.
   • Rationale: AI winners often show rapid revenue expansion as adoption accelerates. This filter helps find businesses that are not just AI-themed, but also growing meaningfully.

6. Quarterly EPS YoY growth > 20%

   • Purpose: Selects companies with strong earnings growth.
   • Rationale: This adds a profitability/earnings quality check. Many stocks claim AI exposure, but strong EPS growth suggests the company is converting that opportunity into bottom-line performance.

Why Results Match:

• The filters together target liquid, technically strong, fundamentally growing companies with meaningful exposure to AI-related themes.
• This combination is well suited to an AI stock picker because it doesn’t just look for companies mentioning AI; it looks for stocks that are:
  • in relevant AI-adjacent sectors,
  • showing price strength,
  • and producing real revenue and earnings growth.
• In other words, the screen is designed to find high-quality AI-related stocks with momentum and business traction, which is exactly what most users mean by “AI stock picker.”