AI investment models seem to be a bit patient. The iFi AI model, powered by IBM’s Watsonx, was predicting big upside potential for bitcoin miner Marathon Digital as of Friday morning. The stock was also near the top of iFi AI’s 30-day return forecast on screen in early June. The stock has fallen 0.3% so far this month. The AI model uses a variety of inputs, including fundamental data, technical analysis and company news, to make its predictions. It’s also possible that the iFi AI program sees an imminent catalyst for Marathon that hasn’t happened yet. The model predicts the stock will return more than 54% over the next 30 days, the biggest return among stocks in IFi AI’s highest confidence category with a market capitalization of more than $1 billion. Below are some of the biggest upside potential predicted by the model after a week in which inflation data trended downward and Treasury yields fell. Following Marathon, two volatile auto-related stocks make the list. Electric vehicle maker Lucid Group has seen its stock price steadily decline since last summer, and is now below $3 per share. But its market capitalization is still over $5 billion, and it reported more than $2 billion in cash and cash equivalents at the end of the first quarter. Carvana is also a holdover from the recent iFi AI screen, which may indicate that last week’s economic data didn’t cause any major changes to the model. The online car dealer’s shares are up 3.1% for the month and about 95% for the year. Rounding out the top five are homebuilder Meritage Homes and cybersecurity company Palo Alto Networks. While Palo Alto’s 29% gain is lagging the rest, as of Friday morning the stock is actually iFi AI’s top pick. The company’s shares are up about 8% year to date. CNBC senior analyst and commentator Ron Insana is CEO of iFi AI, which was founded in March.
These stocks were among the biggest gainers picked by the AI model following a week of muted economic data.
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