The old market adage to "sell in May and go away" did not hold this year as equity investors redirected focus toward AI spending and the infrastructure that supports it. Strong results across tech infrastructure and sustained upward revisions to AI capital expenditure expectations underpinned a widening AI trade, lifting forward valuations and investor interest across a broader set of companies.
One striking example cited by the strategy is Micron. Despite a 930%+ one-year rally, Micron’s forward price-to-earnings ratio remains a low 9, while the company’s projected one-year EPS growth sits at 689% - figures that the model identifies as compelling from a value-and-growth perspective.
More broadly, Barclays data referenced by the strategy shows the tech sector’s earnings-per-share growth, excluding the Mag-7, reached an unusual 51%+ year-on-year in Q126, with forward estimates pointing still higher. Those topline numbers form the backdrop for the machine-learning model’s monthly selection process.
Performance since launch
The machine-learning driven list of monthly picks has produced a cumulative return of +202.63% since its launch in November 2023, equating to a +124.24% outperformance relative to the S&P 500 over the same period. The strategy is offered to InvestingPro subscribers for less than $9 a month.
In May alone, the model delivered multiple double-digit winners within the tech infrastructure space. The list of May winners provided by the model includes:
- Iridium Communications (NASDAQGS: IRDM): +31.29% in May
- HEICO Corporation (NYSE: HEI): +29.75% in May; +35.71% since the model first picked it
- IBM (NYSE: IBM): +29.20% in May
- Consensus Cloud Solutions (NASDAQGS: CCSI): +25.09% in May; +60.81% since picked
- Teradata (NYSE: TDC): +21.78% in May
- Fair Isaac (NYSE: FICO): +20.77% in May
- Alexandria Real Estate Equities (NYSE: ARE): +20.03% in May
- Applied Materials (NASDAQGS: AMAT): +15.72% in May; +39.63% since picked
And across the year-to-date window the model highlights several names that have risen substantially after being added to the roster earlier in the year:
- Consensus Cloud Solutions (NASDAQGS: CCSI): +60.81% after being picked
- Nucor (NYSE: NUE): +55.57% after being picked
- Texas Instruments (NASDAQGS: TXN): +44.11% after being picked
- Applied Materials (NASDAQGS: AMAT): +39.63% after being picked
- Teradata (NYSE: TDC): +29.22% after being picked
- Molina Healthcare (NYSE: MOH): +27.82% after being picked
June list now live
Subscribers to InvestingPro can access the newly refreshed list of AI-picked stocks for June. The service updates each strategy at the start of the month and provides the rationale behind each inclusion or removal, allowing members to review the signals the model used when making its choices.
For non-members, the article reiterates the subscription options for app and web users so they can obtain the full June list.
How the model selects and explains picks
The machine-learning engine supporting these monthly strategies combines over 150 established financial models trained on more than 15 years of global financial data. Each month the algorithm evaluates a candidate universe and refreshes each strategy with up to 20 names - adding some stocks, retaining others, and removing those that no longer meet its medium-term growth and value criteria.
To make performance transparent, each strategy uses equal weighting across selected stocks as a benchmark for tracking. While investors are not required to replicate those weights exactly, equal weighting offers a consistent measure of how the model performs across its selections.
One of the platform’s features is that the model provides members with the rationale for both additions and removals. The reporting highlights the specific signals driving selections, which can include momentum, valuation gaps relative to fair value estimates, earnings guidance, and cash-flow projections among other criteria.
Iridium example - momentum, resilience and upside potential
Iridium Communications is given as an illustrative selection that remained on the list for June despite a strong May performance. The model cited three primary signals for Iridium’s continued inclusion: market momentum, price resilience following recent volatility, and valuation characteristics that suggest further upside.
Key facts the model used in Iridium’s case include:
- Year-to-date share gains in excess of 125% in the satellite communications space
- After a post-earnings dip, the shares traded around 88% of their 52-week high
- InvestingPro’s fair value estimate for the company sits at approximately $44, which the model characterizes as notably above current market prices
- Full-year 2026 EBITDA guidance was reaffirmed at $480–$490 million, with projected free cash flow of about $318 million
- Subscriber growth of 5% year-over-year to over 2.5 million, and new IoT products plus major telecom partnerships (Vodafone, Deutsche Telekom) expected to support further growth
- An annual dividend growth rate targeted at roughly 7% was also cited as an income component paired with price momentum
The model applies comparable transparency to each name it selects or drops, permitting members to weigh the same signals and metrics when making their decisions.
Illustration of the model’s rotation discipline - the SMCI case
The model’s monthly ranking and rotation methodology is shown in the experience with Super Micro Computer. The system added SMCI at $28.43 in January 2024, and over the next six months the stock climbed 185.77% as AI server demand accelerated. Rather than maintain the position indefinitely, the model removed SMCI in July at $81.23.
Following that removal, SMCI’s share price fell by more than three-quarters and eventually dropped below the initial entry price. The removal was described as a function of the monthly ranking process - not a categorical negative judgment on the company - reflecting that other stocks had moved higher in the model’s rankings.
That same monthly rebalance mechanism now governs each ProPicks AI portfolio refresh.
Access and considerations
The June roster of AI-selected stocks is available to InvestingPro members, and the article reiterates the subscription options for app and web users. Members receive the list and the model’s explanatory notes as part of the product offering.
Disclaimers and limitations
The article includes standard reminders that subscription prices cited are accurate at the time of publication and may vary by region, and that past performance does not guarantee future results.
Finally, the piece notes a related chart-analysis feature for Applied Materials (AMAT). The platform’s Vision AI reportedly identifies entry, stop-loss and profit-target levels from chart patterns in under 60 seconds to help traders turn signal recognition into execution plans.
As AI spending expectations continue to evolve, the monthly machine-learning process aims to identify names that exhibit a blend of momentum, earnings potential and valuation opportunity - while also emphasizing the need to rotate away from stocks that no longer meet the model’s medium-term criteria.