Forget Nvidia – The Real AI Money Is Flowing HERE VIEW IN BROWSER | By Jason Bodner
Editor, TradeSmith AlphaSignals |
On May 2, 2011, two Black Hawk helicopters touched down inside a walled compound in Abbottabad, Pakistan. Twenty-five Navy SEALs dropped into the darkness wearing night-vision goggles. Thirty-eight minutes later, Osama bin Laden lay dead in his bedroom, with bullet holes through the head and chest. It was the end of the longest manhunt in modern history. For nearly a decade, U.S. intelligence agencies had been sifting through a vast tangle of data – intercepted phone calls, satellite imagery, courier networks, detainee interrogations – trying to trace a single thread back to the world's most wanted man. The raid made headlines everywhere. But much of the intelligence work behind it – the part that stitched raw data into the lead that pinpointed the compound – stayed in the shadows. In the years that followed, one name kept surfacing in connection to that work: Palantir Technologies (PLTR), a secretive data analytics firm co-founded by Peter Thiel and backed by the CIA's venture capital arm. Its software was built to do exactly what the bin Laden hunt required – pull together fragmented intelligence from dozens of sources and find patterns no human analyst could spot alone. But Wall Street didn't care. After Palantir went public in September 2020, the stock drifted sideways for nearly three years. To most investors, it was a niche government contractor with an opaque business model and no obvious path to growth. Then in May 2023, a quantitative system I built flashed a buy signal on Palantir – one that was invisible to Main Street investors. Since then, Palantir has soared more than 1,600%, turning every $1,000 stake into roughly $17,000. Today, it's one of the most celebrated AI stocks in the market. Some analysts even call it a better AI play than Nvidia. What triggered that signal? And how did it help me spot one of the market's most powerful profit opportunities before the rest of the market caught on? That's what I want to show you today. Because the same system is now flashing urgent buy signals on a small group of stocks most investors have never connected to AI. Not Your Typical AI Stocks Most folks think they know what an “AI stock” looks like. The textbook case is Nvidia (NVDA). It makes the advanced chips that power AI models like ChatGPT. Two other obvious names are Microsoft (MSFT) and Google parent Alphabet (GOOGL). Microsoft's partnership with OpenAI and its Copilot AI assistant – now woven into its Office software – have made it a leading player in the AI race. And Google has its own AI assistant, Gemini, along with one of the world's largest AI cloud computing platforms, Google Cloud. But some of the best AI stocks aren't as obvious. And they're outperforming marquee AI stocks like NVDA, MSFT, and GOOGL. These companies may not advertise themselves as AI plays, and they don't fit the popular narrative. But AI is deeply embedded in their products, operations, and long-term growth prospects. I call these companies "secret AI stocks." And whether you know they're AI stocks or not, Wall Street's biggest institutions absolutely do... and they're buying hand over fist. Big Money Moves the Market That's where my quantitative system comes in. As some readers may know, I spent nearly two decades working on Wall Street before joining TradeSmith. I was a partner and head of equity derivatives at Cantor Fitzgerald. My job was executing trades for the firm's institutional clients – trades often valued in hundreds of millions, and sometimes billions, of dollars. After handling some of the biggest stock purchases on the planet, I learned a lot about how these Big Money investors move markets. Most folks know that stocks can move higher for fundamental reasons. Maybe a company has growing earnings. Maybe it hired a hotshot CEO. Maybe it launched an exciting product. But these are not the only reasons why stocks spike. Remember, I was executing massive orders for some of the world's richest investors. What I started to notice is that the stocks they were buying would move higher as the money flooded in. It's simple supply and demand. Day to day, the number of shares in a company stays the same. But when you inject hundreds of millions – or even billions – of dollars of new demand, the prices of those shares have only one direction to go: up. My "Apple Falling on Head" Moment This was my "apple falling on head" moment. These big money flows literally move the market. Institutional trading makes up between 70% and 90% of daily trading volume in the U.S. In a very real sense, these flows are the market. If you don't see what those flows are doing, you're flying blind. So after I left Wall Street and struck out on my own, I used that experience to develop a system to track where this big money is going. I wrote a series of algorithms to scan all the stock data and identify the same kinds of giant orders I was facilitating during my time on Wall Street. Then I layered on something else. I didn't just want to find big buying. I wanted to find big buying on great stocks – the ones with growing sales, earnings, and profits, with unique businesses and strong competitive positions. I distilled the fundamentals and technicals down to a single number I call the Quantum Score. It runs from 0 to 99 and tells you at a glance whether a stock has the combination of strong fundamentals and strong technicals that precedes big moves. I run these algorithms on more than 6,000 stocks every day. When the Quantum Score lights up, I layer on one more filter – the money flows. And when all three line up, that's when I pay attention. Between 2012 and 2020, more than 70% of the stocks my system flagged were winners, with an average gain of about 60%. More than 100 of those trades returned between 100% and 600%. And my system doesn't just allow me to spot individual stocks Big Money investors are chasing. It allows me to spot entire investment themes that are on the receiving end of these massive inflows. "Secret AI stocks" are one of those themes. An AI Stock in Disguise You probably haven't heard of a company called Carpenter Technology (CRS). And even if you have, you almost certainly don't associate it with AI. Carpenter was founded in 1889 in Reading, Pennsylvania. For most of its 136-year history, it's been known as a steelmaker – one of those old-line American manufacturers that makes the kind of metals you don't think about until you need them. For instance, during the 1980s restoration of the Statue of Liberty, it supplied the stainless steel used to replace the corroding iron armature that holds Lady Liberty’s copper skin in place. So what does a 136-year-old steelmaker have to do with AI? More than you'd think. AI is increasingly embedded deep inside defense and aerospace systems. That includes advanced sensors, radar, autonomous platforms, propulsion systems, and next-generation aircraft. These AI-enabled systems operate in extreme environments – under enormous heat, stress, and vibration – with virtually zero tolerance for failure. That creates a critical need for specialty materials that can perform where ordinary metals can't. That's where Carpenter comes in. The company makes specialty alloys – titanium, superalloys, stainless steels, and metal powders – that make this AI-enabled hardware possible. This company isn't a headline grabber like Nvidia. But its share price has more than doubled over the past year as Big Money has poured in. 
See those green bars on the chart above? They show days of unusually large Big Money flows into Carpenter. You can see a flurry of green bars from early May to early July, then another stretch of steady buying that began in October. And as AI moves deeper into the physical world – into defense, aerospace, energy, and advanced manufacturing – the need for materials like Carpenter's only increases. I'm bullish on Carpenter Technology. So go ahead and buy it if you're looking for a different spin on the AI theme. And I'm even more bullish on other secret AI stocks my system is flagging right now. That's why I’m teaming up with AI expert Jeff Brown of Brownstone Research for our Secret AI Stocks Summit on Wednesday, Feb. 25 at 8 p.m. ET. Click here to reserve your free seat now. On the surface, these plays don’t look like AI stocks at all. But they’re perfectly positioned to become the next trillion-dollar AI mega caps. And we’ll reveal a system for spotting these plays. It’s already pinpointed moves as high as 601%, 1,921%, 1,940%, and more during testing. Reserve your seat now – it's completely free. Sincerely, 
Jason Bodner
Editor, TradeSmith AlphaSignals In Case You Missed It 
On the surface, these plays don’t look like AI stocks at all. But they’re perfectly positioned to become the next trillion-dollar AI mega caps. Jeff Brown and Jason Bodner have used “hidden” plays like these to deliver gains as high as 172%, 258%, 1,077%, and even 32,012%... Now they’re revealing a system for spotting them BEFORE they become household names. Register here. | 
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