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Why Human Judgment Still Matters in the ÃÛÌÒ´«Ã½s
For years, we’ve all been warned that AI would replace translators, proofreaders, data entry clerks and customer service agents … to start. But many more jobs could be eliminated.
We’ve heard that AI can read scans better than radiologists. It can develop software faster and with higher quality. And that AI will even take on tasks at law firms that were previously handled by high-priced attorneys.
Eventually, AI could even replace stock pickers, portfolio managers… maybe even entire hedge funds.
After all, what human could possibly 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 time off … ever.
Credit: ilkercelik
Longtime Digest readers know how bullish we are on the AI Megatrend. We’ve tried hard to keep our readers in profitable trades involving semiconductors, AI power needs, AI infrastructure needs and everything in between.
But even we will be the first to say that – at least for now – there are some things where AI can’t outperform humans.
Apparently… investing is one of them.
This week, Bloomberg reported that many of the newest AI-powered trading bots being tested on Wall Street are struggling badly.
According to the article, some AI bots make irrational trades, while others are getting whipsawed by volatility. Several have failed to outperform even basic market benchmarks.
To be clear, AI will create some of the biggest fortunes of the next decade.
But there’s a big difference between investing in AI and letting AI invest for you.
Where AI Is Failing – and Why
Regardless of all its computational power, AI still struggles with one trait the stock market demands above all else:
Judgment.
Profitable investing isn’t just about access to data and speed.
History shows judgment matters, especially during major technological shifts.
Think back to the early days of the internet when the market environment wasn’t all that different from today. The biggest fortunes weren’t made by owning every tech stock under the sun.
The biggest gains went to those who could identify a small handful of transformational winners early… and had the discipline and conviction to stay with them while the rest of the market struggled to understand what was happening.
That’s incredibly difficult to do in real time. And not something AI can recreate.
Which is why so many investors depend on Louis Navellier – and have done so for decades.
Long before Nvidia (NVDA) became the poster child for the AI boom… Louis had recommended the stock to his readers.
Long before Wall Street fully understood the scale of the internet revolution… Louis’ quantitative system was identifying companies like Cisco, AOL, and other massive winners during the early stages of the dot-com era.
A Huge Gain in Under Two Years
In July 2024, Louis recommended Celestica (CLS) to his Breakthrough Stocks subscribers. At the time, very few people associated Celestica with the AI boom.
Most still knew it more as a North American supply chain solutions provider. The company has experience and expertise in every aspect of product development, from the initial product idealization to full-scale production and after-market services.
But Louis saw something these investors missed. He noted it was set up to benefit from the AI boom. Here is his analysis from almost two years ago:
Celestica is also poised to benefit from the AI Boom. The company created Photonic Fabric, an optical compute and memory fabric solution that can help boost AI infrastructure. It has the ability to create, scale and sustain future AI models.
Since Louis recommended the stocks, shares have surged more than 560%.
Louis believes this stock still has room to run. It’s currently trading below his buy limit price of $413.
The important point here isn’t just that Louis found another winner. It’s that he’s still finding them as we may still be in the early innings of the AI investment boom – and yet many investors are missing them.
The companies dominating headlines today may not ultimately produce the biggest gains.
Historically, the largest fortunes are made in the second and third waves of a technological revolution… when capital begins flowing into smaller, lesser-known companies positioned to benefit from explosive growth.
And now, Louis believes we may be entering another rare market window… one that could create an entirely new generation of outsized stock winners over the next several years.
In fact, next week, Louis is holding a special online briefing where he plans to explain:
- Why he believes the market is entering a major new phase
- Why certain smaller AI-linked stocks could dramatically outperform from here
- And how individual investors may have a unique advantage over the big Wall Street players during this next stage of the AI boom
If you’re bullish on AI… but skeptical that a chatbot can successfully manage your portfolio…
You’ll want to pay close attention to what Louis has to say.
Right now, Louis’ quantitative stock picking system has flagged 53 smaller stocks showing early signals of rapid growth – strong fundamentals, elevated institutional buying pressure, and consistent top rankings in Stock Grader, month after month.
He calls it the Exclusion List. Most are names you’ve probably never even looked at before, and Wall Street can’t touch due to their smaller size.
It’s not about being smarter than the big funds. But it does have everything to do with something they simply cannot do – no matter how much money they have. Louis will explain why during his May 13 event, at 1 p.m. Eastern.
During the presentation, Louis will walk through what he is calling one of the biggest opportunities he’s seen in decades () – and he will share his highest-conviction picks from this list.
. During the event, Louis will share one stock he believes is well-positioned for the next phase of the market.
AI is creating fortunes … but humans are still the ones identifying the winners.
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Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace
