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3 AI Stocks to Buy Regardless

AI stocks - 3 AI Stocks to Buy Regardless

Source: Phonlamai Photo / Shutterstock.com

If Wall Street hates uncertainty, it has a funny way of showing it. Still, looking past recent challenges, I think we can all agree on one thing — regardless of one’s politics, the trend for artificial intelligence looks great. And right now, three AI stocks are looking like decisive winners on their price charts.

A much-awaited presidential election has come and gone. Well … not entirely. Final results are being eagerly awaited by Republicans, Democrats and Jo Jorgenson voters alike. But the idea that Wall Street prefers clarity when it reaches into its pockets is looking highly overrated here.

Following Tuesday’s solid gains on an expected Joe Biden win, the S&P 500 and other major indices are at it again. Gains of around 1.75% have been improved upon into Thursday. And mind you, that’s despite a White House race where officially the only thing known is it’s too close to call.

Ultimately, today’s enthusiasm could turn out poorly for some investors. The fact is more than a few individual stocks’ future fortunes or setbacks may be strongly dictated by who’s sitting in the Oval Office and Congress. UnitedHealth (NYSE:UNH), SolarEdge (NASDAQ:SEDG), Northrop Grumman (NYSE:NOC) or Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)? They’re leaders in every way within their industries. Yet, in one way or another, each has a lot riding on the political landscape to come.

So, what’s a stock investor to do? One idea is to consider a non-partisan winner within the area of artificial intelligence or AI. It’s a bullish trend which will continue to flourish regardless of the political environment. What’s more, today the following three AI stocks are also looking smartly positioned to prosper in the near and longer term.

  • Alteryx (NYSE:AYX)
  • Twilio (NYSE:TWLO)
  • Advanced Micro Devices (NASDAQ:AMD)

AI Stocks to Buy: Alteryx (AYX)

Alteryx (AYX) monthly uptrend building nicely
Source: Charts by TradingView

The first of our AI stocks to buy is data science and analytics outfit Alteryx. This higher-priced mid-capitalization company has witnessed its share of both bullishness and volatile stock swings this year. Most recently, one month ago, shares jumped more than 25% in a single session.

Behind the bullish reaction, prior decelerating sales concerns were upended after AYX’s management surprised Wall Street by lifting its revenue forecast to a range of 22% to 24% growth and announced a new CEO.

Technically and after a bit of consolidation, shares are moving higher again. Even more attractive, the monthly chart reveals a well-supported pivot low has formed the past couple months within an improved uptrend. In conjunction with an oversold bullish stochastics crossover backing the price action and earnings on tap, this AI stock to buy is well-positioned short-term and beyond.

Favored Strategy: Long Dec $145/$155 call spread

Twilio (TWLO)

Twilio (TWLO) second attempt 2nd stage base breakout
Source: Charts by TradingView

The next pick among our AI stocks to buy is Twilio. The cloud-based software-as-a-service (SaaS) play allows people and businesses to connect digitally and seamlessly in today’s digital world. A recent earnings report delivered stronger-than-forecasted earnings and revenue. However, investors reacted by taking profits amid lighter guidance tied to investments.

Technically, Wednesday’s strong bid had shares reclaiming their prior highs from August out of an extended pullback. This also sets up a second attempt breakout from TWLO’s second-stage base built over August and September. It’s promising price action in this AI stock that’s reinforced by the daily chart’s stochastics positioning.

Favored Strategy: Long Jan $320/$340 call spread

Advanced Micro Devices (AMD)

Advanced Micro Devices (AMD) weekly double bottom base forming
Source: Charts by TradingView

The last of our AI stocks to buy is Advanced Micro Devices. The chipmaker has consistently defied the skeptics the past few years under the stewardship of its CEO Lisa Su. AI hasn’t been a priority with AMD, but that may be changing as the company has indicated its intentions to push forward. And given today’s massively successful semiconductor products, as well as the company’s existing toehold in deep learning, I wouldn’t bet against AMD stock also being an AI stock to buy.

Technically and as the well-illustrated weekly chart details, AMD is in the process of putting together a bullish high-level double-bottom pattern. The base has formed on top of prior channel line resistance and appears to be building a second pivot low this week. At the same time stochastics is just entering oversold territory. It’s far from perfect, but I like what I’m seeing and expect an eventually breakout to new highs.

Favored Strategy: Jan $75/$95 collar

On the date of publication, Chris Tyler holds, directly or indirectly, positions in Advanced Micro Devices (AMD) but no other securities mentioned in this article.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100%  the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.


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