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The 5 Top Performing AI Stocks in the Past Week

Posted: 30 Apr 2020 04:30 AM PDT

The term artificial intelligence or AI is thrown around a lot and more companies than you may think are working to develop this type of technology. For example, would you consider Caterpillar Inc (CAT) an AI company? You likely would have never considered them and yet, they're working to develop this type of technology for their machinery.

The issue in compiling a list like this is what to include. While the list includes the names that you'll read about below, it also includes names like CAT, Oracle (ORCL), Netflix (NFLX), Microsoft (MSFT), Palo Alto Networks (PANW), Intuitive Surgical (ISRG), Tencent Holdings (TCEHY), Twilio (TWLO) and many others.

The following list of 5 stocks are the best-performing names over the past five trading sessions listed in order of performance.

AI Stock #1: QuickLogic Corp (QUIK)

QUIK is a semiconductor company that develops semiconductor platforms and intellectual property solutions for smartphones, wearable and hearable devices, tablets, and the Internet-of-Things (IoT). QUIK has their QuikAI platform for endpoint artificial intelligence and they acquired acquired the software company SensiML in early 2019, which was providing platform-independent software solutions for platforms like QuickAI.

QUICk is up around 40% on the week and was able to breakthrough its $3.25 resistance last Thursday. The company has earnings on May 6 but has potential to retest its January high of $9.

AI Stock #2: Snap Inc (SNAP)

SNAP offers Snapchat, a camera application that helps people to communicate through short videos and images. The company acquired a Ukrainian company Looksery in 2015 that was instrumental in providing the technology for animating selfies. In 2020, they also acquired AI Factory, which has worked with SNAP to create their new Cameos animated selfie-based video feature.

SNAP is up over 30% on the week following a huge move following its earnings announcement. A close above $17 would give a near-term target of $20 with a potential trend target of $28.

AI Stock #3: NXP Semiconductors (NXPI)

NXPI is a semiconductor company whose product portfolio includes microcontrollers, application processors, communication processors, wireless connectivity solutions using near field communications, ultra-wideband, Bluetooth low-energy, and others. Their focus as a company is providing embedded systems such as automotive and IoT.

NXP is up around 20% on the week and announced earnings on Monday. The stock gapped up and faded from the high despite missing estimates. If the price holds it's $97 support, the near-term target is $110 with a potential trend target of $140.

AI Stock #4: Rockwell Automation Inc (ROK)

ROK is an industrial automation and digital transformation solutions. It operates in two segments, Architecture & Software, and Control Products & Solutions. The company has its LogixAI platform that it couples with its FactoryTalk Analytics platform. The company describes the integration on its site:

"This embedded analytics module empowers customers to easily apply machine learning concepts without having to develop, validate or sustain home-grown machine learning algorithms (and without needing a data scientist).  Applying analytics within the controller application is a new fundamental approach to achieving process improvement. "

ROK is up nearly 20% on the week and gapped higher on Wednesday following its earnings announcement on substantial volume. The candle formation was a spinning top, which is a neutral formation as sellers looked to take profits. There is a significant resistance near $208 but has potential to run to $230 in the coming weeks.

AI Stock #5: Emerson Electric Co (EMR)

EMR is a technology and engineering company, provides solutions to industrial, commercial, and consumer markets worldwide. The company operates through Automation Solutions and Commercial & Residential Solutions segments. In March of this year, EMR announced a partnership with Quantum Reservoir Impact to develop next-generation applications for AI-based analytics and decision-making tools for the oil and gas exploration and production industry.

EMR is up over 13% for the past week and is testing the high of the gap day on Wednesday. They announced earnings that beat expectations on April 21. The near-term target for EMR is $63 with a potential trend target of $75 in the coming weeks.

Option Traders Appear to LUV this Stock After Its Earnings Beat

Posted: 30 Apr 2020 04:30 AM PDT

For the airlines industry, it's clear that it will take some time to not just see policy restrictions ease but to see customers come back. The new normal of air travel is less than optimal from an earnings perspective and a traveler's perspective.

That being said, the immediate future for company's like Southwest Airlines Co (LUV) isn't about the bigger picture of earnings and growth, but the delta or change. In this case, it's their earnings report that came out on Tuesday that beat expectations. Despite the revenue miss, the company was able to hold its support over the past month and then begin to rally on Thursday.

Another key change is the $4 billion the company raised through selling shares and convertible notes. While it dilutes shareholders, it provided needed funding that will help keep the company running in difficult times.

As traders, it's a matter of capitalizing on these near-term opportunities and many option traders began to do just that on Wednesday. The call volume was over six times the average on Wednesday with 35% getting filled at the ask. Over 20% of the daily volume occurred on the 1 MAY 20 $31 and $32 strike prices. Nearly 20,000 contracts against 2,849 on the $31 strike and over 15,000 contracts against 2,284 on the $32. There was a significant amount of buying, particularly early in the session.

Action to Take: The near-term target is to retest the prior high near $37 in the coming weeks.

Speculators may want to consider buying the 19 JUN 20 30/32.50 long call vertical for around $1.25. The max gain or $125 per contract or 100% ROR is achieved if the price closes above $32.50 by expiration. Consider selling the vertical early for $2 or more.

Insider Increased Their Holdings by 20% in Company Developing Pan-Coronavirus Vaccine

Posted: 30 Apr 2020 04:30 AM PDT

VBI Vaccines Inc (VBIV) is a Cambridge, MA biopharmaceutical company that develops treatments for infectious diseases and immuno-oncology. On March 31, they announced a collaboration with the National Research Council of Canada (NRC) to develop a pan-coronavirus vaccine targeting COVID-19, but can help with SARS and MERS as well. Roman Szumski, Vice President, Life Sciences at the NRC discussed the collaboration:

"We are working hard to be part of the solution in this time of increasing uncertainty by providing key Canadian expertise and facilities to help address the real and potential global impacts of COVID-19."

The collaboration will combine VBI's viral vaccine expertise, technology and antigens with the NRC's COVID-19 antigens and development capabilities.

As with other vaccine companies scrambling to come up with a vaccine that governments may require people to take, it is a huge opportunity financially.

On April 24, 2020 Perceptive Advisors increased their position in VBIV by nearly 20%. The more than 10% owner of the company purchased over 9 million shares at $1.10. That purchase increased their holdings from around 46 million shares to over 55 million shares.

Action to Take: VBIV is clearly a volatile stock and recently surged to $2 for the second time this year and recently pulled back toward $1. The timing of the purchase by Perceptive is intended to bring VBIV into focus as an opportunity today and the potential for finding support near $1. The near-term expectation is a retest $2, but the development of a promising vaccine candidate obviously has much more upside.
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