This AI Stock Was a “Secret” Before it Ran 32,000% VIEW IN BROWSER By Michael Salvatore, Editor, TradeSmith Daily In This Digest: - Two earnings reports and two violent reversals – and why the data matters more than either
- How to make a fortune on hidden AI stocks
- Get our CEO’s top investing ideas for free
Last night, two earnings reports told the story (so far) of 2026… Nvidia (NVDA) reported a blowout quarter after the bell yesterday. Revenue came in at $68.1 billion – well ahead of the $66.2 billion Wall Street expected. Adjusted earnings were $1.62 per share against a $1.53 estimate. Data center revenue, the growth engine of the whole operation, grew 75% year over year. The stock jumped 3% in after-hours trading. Nvidia has made a habit of impressing during quarterly earnings reports. But what’s more interesting this time is how investors reacted to another, related earnings report. Salesforce (CRM) also reported earnings after the close yesterday. It beat on earnings – $3.81 adjusted EPS against a $3.05 estimate, a 25% upside surprise that far outpaces NVDA’s outperformance. And revenue came in on target at $11.2 billion. By every conventional measure, it was a solid quarter. But this time, the stock dropped 5%. Why? Because Salesforce’s full-year revenue guidance for 2027 came in at $46 billion – just a hair below what analysts were looking for. That tracks with the familiar theme of 2026 so far. Hardware wins, and software gets punished. But then came today’s reversal… NVDA fell as much as 5% in early Thursday trading. Salesforce, by contrast, was up more than 7% from the previous night’s close. Does this mark the bottom of the software slaughter? We can’t say for sure. But we do know our data isn’t flinching at one day’s price action. These reports reinforce a theme we've been covering for weeks… Physical infrastructure for the AI buildout – chips, servers, high-speed networking gear, cooling equipment – is where the money is flowing fastest right now. That’s why investors scrambled into NVDA after its earnings report. Software-as-a-Service companies like Salesforce, meanwhile, carry the constant overhang that AI might eat their lunch. For all the noise in this market, that idea has been remarkably consistent. And it’s exactly what TradeSmith’s data has been flagging for weeks. Remember: Nvidia is the only stock in the Magnificent Seven group of giant tech stocks that’s in a Short-Term Health Green Zone and has a bullish Quantum Score. It’s the stock-ranking system built by former Cantor Fitzgerald trader Jason Bodner that spots when institutional investors are piling into high-quality stocks. 
Short-Term Health measures a stock’s price action against its own historical volatility – how far and how fast it tends to move. It’s not reacting to one quarter’s results. It’s tracking the sustained momentum driving lasting trends. While the rest of the Mag 7 has stumbled, our data pointed to Nvidia as the outlier. That’s because it’s the only pure-play semiconductor company in the group. By contrast, CRM’s Short-Term Health has been in the Red for more than a month. And its Quantum Score is at a paltry 49. It may be tempting to declare today the end of the nasty downtrend in software stocks and the dominance in hardware. But our data doesn’t yet support it.
And even so, investors must reckon with an uncomfortable truth… Nvidia may still be a comfortable leader right now. But at its current scale, it just isn’t the opportunity it once was. Consider what’s more likely: - That NVDA will grow from just under $5 trillion to $10 trillion over the next year, handing an investor buying today a 100% gain.
- Or that dozens of smaller stocks, already in even stronger uptrends than NVDA, will post those kinds of returns.
The real opportunity is in the companies that are smaller than NVDA today, but that are just as important for AI’s future. Think back to 2016. Nvidia wasn’t known as an AI company. It was a gaming chipmaker that began the year with a $16 billion market cap. (Its GPU chips were built for rendering computer game graphics.) But the investors who saw through that label and understood that those same GPUs would also be essential for the coming AI revolution have made as much as 32,000% on the stock since then. That pattern is playing out again today – only this time in a new crop of up-and-coming companies. That’s why Jason has teamed up with technologist, angel investor, and former Silicon Valley exec Jeff Brown to identify a group of stocks they call “Secret AI Stocks.” On the surface, these stocks don’t look like AI plays. They’re labeled as industrial manufacturers, specialty metals companies, and energy providers. They sound like the kinds of stocks you’d never buy when you’re looking for a tech story. But dig deeper, and you find that each one is critical to the infrastructure AI will need to grow. Last night, Jason and Jeff held an online event – the Secret AI Stocks Summit – where they revealed how they track down these stocks… why now is the right moment to make your move… and the exact factors they look for to gain an edge for their subscribers. The two free secret AI stock recommendations from Jason and Jeff alone are worth your time. But more important, the replay explains exactly why this moment right now is the best window to get into stocks like these… while most of the market is fixated on Nvidia’s numbers. Catch the Secret AI Stocks Summit replay here while it’s still online. Gold miners are flashing one of the strongest buy signals of the year… Gold prices, after flatlining in the aftermath of Trump’s appointment of new Fed Chair Kevin Warsh, are back on the rise. You could point at a new 10% blanket tariff on global imports stoking inflation fears. Or you could point out that the Fed has signaled it’s in no rush to cut rates. But for us here at TradeSmith, the price action is the real signal. And right now, our AI-powered stock forecasting system is calling for a big move in gold miners. Predictive Alpha is TradeSmith’s AI-powered stock forecasting engine. Think of it as a large numbers model. In the same way large language models like ChatGPT predict the next word in a sequence, Predictive Alpha predicts the next price move for a stock or other asset. It forecasts where the price of a stock or ETF is likely to land up to 21 trading days out. And it flags the optimal holding time based on the historical accuracy of its forecasts. Gold miners – the companies that pull the metal out of the ground – tend to amplify the price moves of gold. When gold rises, their margins expand faster than the commodity itself, because their costs are relatively fixed. That setup is reflected in what Predictive Alpha is showing us right now on the VanEck Gold Miners ETF (GDX): 
Right now, Predictive Alpha is forecasting that GDX will rise 8.2% to nearly $120 per share by March 23. And forecasts like this one have been accurate 86.7% of the time in the past. If you’re looking for a trade idea that has nothing to do with AI disruption, then gold miners deserve a close look. Our CEO is watching something big – and you should be, too… One of the most underused resources available to TradeSmith readers is a direct line to our CEO, Keith Kaplan. Keith posts regularly on X (@KeithTradeSmith) – and what he shares there is different from anything you’ll find in our newsletters. It’s unfiltered market analysis, sneak peeks at tools we’re building, and the kind of forward-looking perspective that comes from running an investing software company whose sole focus is helping investors win with data. Two of his recent posts are worth your attention right now. First: A robotics ETF just hit an all-time high… Keith flagged last week that $ROBO – the ROBO Global Robotics and Automation Index ETF – reached a record high, up more than 31% over the past year. Keith realizes that robotics isn’t just one trend. It’s a convergence of factory automation, autonomous vehicles, humanoid worker robots, and a huge U.S. manufacturing buildout. Amazon’s robotics workforce, Keith notes, is on track to surpass its human workforce. If you don’t want to pick individual robotics winners, Keith sees $ROBO as solid broad exposure. The ETF holds a diversified mix of machine sensory companies, industrial robot manufacturers, and robot component makers. After taking a hit during last year’s tariff turbulence, it has surged back on strong institutional inflows. The key insight from Keith: What matters isn’t any single forecast about robotics. It’s what the market thinks of those forecasts. And right now, the market is voting heavily in favor. Second: A major new TradeSmith tool is almost here… Keith also shared a preview of something we’ve been building for months – a new trading signals engine that uses machine learning to scan the entire market and surface high-probability trade setups automatically. The example Keith highlighted was GE Vernova ($GEV), the energy technology company that spun off from GE in April 2024. The setup: A “Bullish Sprint Signal” just fired on $GEV. Here’s what the historical data shows across the 24 times this exact pattern has triggered on the stock: - Win rate: 95.8%
- Average gain across all trades, wins and losses: +15.5%
- Average hold time: 31 days
- Best winning trade: +34.3%. Worst losing trade: -0.3%
Keith noted that $GEV has less than two years of independent trading history, so keep that context in mind. Regardless, this is just one example from a system that’s scanning the entire S&P 500 every day, surfacing setups like this one automatically. It’s one of the most significant tools we’ve ever built, and it’s getting closer to launch. Follow Keith on X at @KeithTradeSmith to get insights like these as soon as he posts them – direct from the CEO. To building wealth beyond measure, 
Michael Salvatore
Editor, TradeSmith Daily | 
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