The Best Stock to Play AI

Normally, I wouldn’t do this…

But today I’m going to give away a stock from my premium trading service, Secret Stock Files.

This is serious, because people pay a lot of money for this information. 

However, we currently have 12 stocks in the Secret Stock Files portfolio and there are more to come. 

On top of that, I don’t feel too bad about giving this information away because:

1. It really exemplifies what my premium trading service is all about 
2. It’s an AI company, and I know how badly everybody wants to get in on the AI craze. And…
3. I have several other (less well-known) AI stocks in my portfolio.

So today, against my better judgment, I’m going to tell you about C3.ai (NYSE: AI).

First, C3.ai is a really trendy AI stock. If you’ve done some research, read some listicles, or have even seen this video from the always delightful Sara Crooks, then you’ve probably seen it mentioned.

Still, you might not be entirely sure what it is or what it does. 

Well, to put it simply, C3.ai makes a software platform that enables the creation of AI apps. 

For example, C3.ai first came onto my radar because the Air Force has been using its software to conduct preventative maintenance on its fleet of fighter jets and bombers.

Working alongside the Air Force, C3.ai aggregated a decade’s worth of data regarding airplane maintenance — which parts break down and when.

It then used that data to predict subsystem failures and identify necessary spare parts before they become a problem.

This is a huge deal because the military needs its fighters and bombers ready to go at a moment’s notice. And we can’t risk the lives of our pilots by sending them into the sky with an aircraft destined to malfunction.

This solution keeps the fleet ready, cuts down on aircraft downtime, and generally improves efficiency across the board.

It does this for the F-16 Fighting Falcon and the F-35 Joint Strike Fighter, as well as the Army’s Black Hawk and Apache helicopters. And soon it’s going to be applied across all branches of the military to streamline maintenance for all of our ground vehicles and maritime vessels.

The end result: optimized fleet maintenance, increased aircraft availability, and less aircraft downtime.

We know this because the company signed a five-year, $500 million contract with the Department of Defense in December to scale up its AI-powered applications.

DOD agencies can now acquire C3’s software and services until the $500 million limit is reached, and the limit can be renewed if needed. 

Furthermore, C3.ai solutions are also being used in other government capacities, like vetting for security clearance, analyzing insider threats, and most importantly, modeling missile trajectories.

But that’s not all. 

C3.ai has a robust commercial business, too. 

It has partnerships with Baker Hughes, Shell, and Koch Industries to optimize production and maintenance for oil rigs, and partnerships with Google, Amazon, Microsoft, and HP related to cloud computing. 

This is what I mean when I say C3.ai is a quintessential Secret Stock Files stock.

I work really hard to find companies that develop cutting-edge technology for the military, because sooner or later, that technology goes mainstream — often with extremely profitable results. 

In the case of C3,ai, I first recommended the stock last summer when it was trading for less than $15 per share. 

We sold it for a 139% gain when it topped out at $33 per share in April, and then bought back in when it fell back below $20 per share a few weeks later.

Now we’re sitting on a 68% gain in our portfolio as a result.

Generally speaking, I’d try to buy in under $25 per share if you can and below $20 per share in a best-case scenario.

The challenging macroeconomic environment and the buzz around AI technology make that possible, because they’ve greatly increased volatility.

And that’s just one of the AI stocks I’ve helped my subscribers profit from.

As I said, there are plenty more where that came from.

I’ve been ahead of this trend for a while and it’s just now getting started.

For example, I recently released another report on a company that doesn’t make AI software itself, but instead makes AI possible by manufacturing ruggedized supercomputers that the military uses for edge computing. 

Make no mistake, all the AI software in the world is absolutely useless if you don’t have a computer that can run it efficiently or in challenging environments. 

So if you want to get the details on that, as well as my full complement of AI stocks, then sign up for my premium investment service Secret Stock Files.

It’s got all of the information you need, plus monthly videos detailing all the latest and greatest investment opportunities.

Fight on,

Jason Simpkins

@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

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