TradeSmith Snippets for February 13 Happy Monday — we're glad you're here to start the week with us in a new issue of TradeSmith Snippets. With the constant bombardment of news, many investors are facing decision fatigue, not knowing how to act on what they are hearing. In TradeSmith Snippets, we're here to tell you what really matters and help you overcome that analysis paralysis. We run these ideas through our proprietary trading tools as well as our experts' proprietary tools to give you actionable information, spotlighting places to make money and the potholes that can wipe out that money. All while doing it in a format that maximizes your time. There's a lot to go over, so let's jump right in. Snippet No. 1: Keep This in Mind During AI Mania Overview Prices for artificial intelligence (AI) stocks in 2023 are soaring: C3.ai Inc. (AI): 113% SoundHound AI Inc. (SOUN): 217% BigBear.ai Holdings Inc. (BBAI) 578% The Breakdown The launching of ChatGPT, an AI platform that can do everything from write a 300-word report about George Washington to fix errors in lines of computer code, has quickly captured everyone's collective imagination. Chatbots and AI aren't anything new, but the more humanlike responses from ChatGPT show how quickly the technology is advancing. Companies with “AI” in their names are benefiting from this renewed interest. The TradeSmith Takeaway Quantum Edge Pro Editor Jason Bodner puts his own computers to work every day at 2 a.m., retrieving the latest data so that his algorithms can start their number-crunching — and generate his proprietary Quantum Scores for more than 6,000 stocks. The Quantum Score “sweet spot” is typically in the 80s. C3.ai Quantum Score: 65.5. Not bad on its face — but Jason's analysis shows us that there's a cause for some caution here. C3.ai is clearly the best of the three tiny ventures in terms of Jason's Quantum Score. But the Quantum Score is made up of two other metrics — one based on fundamentals (the company's finances) and the other on technicals (the strength of the stock). And a low Fundamental Score of 45.8 (thanks to poor earnings growth, low profit margins, and other factors) gives Jason real pause. C3.ai is not yet a profitable company. SoundHound AI Quantum Score: 39.7. SOUN has been public less than a year, so we don't even have four quarterly reports of data yet. The stock nearly doubled to $15 after it debuted last April, but it quickly lost two-thirds of its value and has remained under $5 since last summer. BigBear.ai Quantum Score: 46.6. This stock has popped the most lately, but it was literally a penny stock (trading under $1) until a month ago. Its Fundamental Score is a paltry 12.5. BigBear is still losing money, and its four quarterly reports as a public company have disappointed Wall Street. These AI stocks may be red-hot right now, but the mania that has sprung up around them also means investors have a higher chance of getting burned. While Jason isn't recommending these particular stocks to his Quantum Edge Pro members, that doesn't mean he thinks AI investments should be avoided altogether. He believes that at this early stage of the new AI boom, the companies worth investing in are the deep-pocketed ones that can develop the technology and incorporate it into their products quickly. One of those companies is Microsoft Inc. (MSFT), which he likes for the long haul — a lot. If you want to invest in AI, MSFT is on the top of his list. RECOMMENDED LINK Open This Envelope and See How to Collect Instant Income? This envelope contains just a single sheet of paper. But once you read what's on this sheet — you could start collecting hundreds of dollars in just a few minutes. I know that may seem hard to believe. That's why I've arranged for a short demo with ordinary people who have no idea what's inside... So you can see for yourself just how straightforward collecting such income can be. After you watch this, you'll never fear a bear market again... Click here to watch it before I take it down Snippet No. 2: A U.S.-Based Semiconductor Supply Partnership Overview General Motors Co. (GM) and Globalfoundries Inc. (GFS) inked a deal for GFS to supply GM with semiconductors manufactured in New York. The Breakdown GM has dealt with supply-chain issues and semiconductor shortages for over two years. Even though those problems may be in the rearview mirror for the most part, GM is wisely making sure it won't have issues getting the parts it needs in the future. It's also a move that will help GM keep up with the growing demand for electric vehicles (EVs). The TradeSmith Takeaway The United States is on a mission to become the global hub of semiconductor production, which we've shared is a long-term trend to watch. Having a manufacturing center in New York allows GM to get the parts it needs faster and more reliably while allowing GFS to add a car-manufacturing juggernaut to its client list. But when it comes to which company may be worth an investment, according to TradeSmith's Health Indicator, only one makes the cut. GM is in our Red Zone, making it a stock to stay away from. But GFS is sitting in our Green Zone, meaning it is in a healthy state and considered to be a “buy.” Semiconductors are such a vital component of the electronics that we purchase that the industry is expected to grow in value from $573.44 billion in 2022 to $1.38 trillion by 2029. And with GFS, you can tap into that growth. It has a diversified revenue source, supplying customers in a range of markets, including the automotive, communications infrastructure, and personal computing markets. This means that if there is a slowdown in any particular segment, GFS still has plenty of other segments that could offset those losses. The company grew its revenue by 22% in Q3 2022, and it also reported record gross, operating, and net profits. Source: Globalfoundries RECOMMENDED LINK A Gold Surge Is Coming! Some of the richest men in the world are jumping in right now... because evidence suggests we could see MUCH HIGHER gold prices before the end of this year. But if you're not taking advantage of a little-known way to invest for less than $10, you're missing out. Click here for full details Snippet No. 3: Crowning Dividend Aristocrats Overview J.M. Smucker Co. (SJM), C.H. Robinson Worldwide (CHRW), and Nordson Corp. (NDSN) are the newest members of the Dividend Aristocrats. The Breakdown If regular dividend stocks offer a feeling of security, Dividend Aristocrats offer that feeling on overdrive. To earn the title of “Dividend Aristocrat,” a company must: Be part of the S&P 500 — a symbol of prestige because investors use the S&P 500 as a benchmark for the health of the overall stock market. Pay and raise its dividend for 25 straight years — a sign of commitment from the company as well as financial health. Have a minimum market cap of $3 billion — a sign that a company has an established business with a long operating history. Have average daily trading volumes of at least $5 million — ensuring that there are people who would want to buy your shares if a time comes when you'd want to sell them. The TradeSmith Takeaway Even with the market off to a hot start this year and tech laggards from 2022 starting to show signs of life, Senior Analyst Mike Burnick reminds us that we can't rely on market upturns alone to generate income from our investments. Mike says, “The stock market moves in volatile and unexpected ways. That means you simply cannot count on rising stock prices alone to bail you out. You have to find ways to make the market pay you, and collecting dividends is a great way to do that.” Of course, not all dividend stocks are created equally, especially if you run them through our proprietary investment tools. Mike can walk you through the risk of investing in SJM, CHRW, and NDSN, as well as which companies our Health Indicator says are considered buys, by clicking here. Take care, Team TradeSmith P.S. TradeSmith Snippets is designed to filter through the red-herring headlines and deliver you the most valuable stories you need to know as an investor. But what if you could take that one step further? Imagine a service that could filter through the duds in the market and highlight the top opportunities… With our “Market Payday” service, you don't have to imagine. Each week, our sophisticated computer algorithm scans the market for the trades with the highest probability of profit and return on investment, then sends the top opportunity straight to your inbox. You could earn hundreds of dollars of extra income every month — all by signing up for a single weekly email. And right now, you can get access for less than the cost of a yearly Netflix membership. More Investable Information at Your Fingertips TradeSmith's 2023 Guide to Beating Inflation Bitcoin Is Far from Dead (Here's Proof) This Could Be the Amazon of Gene-Editing Stocks Electric Vehicles Passed This 5% Tipping Point – Here Are 2 Investments to Make Customer Support: 866.385.2076 |  support@tradesmith.com Mailbag Questions ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. 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