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Let me tell you what I did this weekend.
I sat down with the full AI2 universe — all 337 stocks — and I started pulling apart a group of companies that have been bugging me. Not because they’re bad. Because they don’t fit neatly into the categories I’d already built.
These aren’t the infrastructure plays. They’re not the supply chain names. They’re not the AI-powered software companies that are already generating revenue and showing up on earnings calendars. These are something else.
These are the companies building what AI is going to become. Not what it is today — what it’s going to be in 3 to 5 years. Maybe longer.
I’m calling this new segment the AI Frontier. And I think it might be the most important thing we track.
Why This Matters Now
Here’s the thing about the first wave of AI investing. It rewarded the obvious stuff. Nvidia, the chip makers, the hyperscalers spending billions on data centers. And that was right — those were the right bets. We’ve been riding that wave. Micron’s still sitting on an 88% return since November in our portfolio. Coherent and Siena both hit 10% gains last week alone.
But the obvious phase doesn’t last forever. It never does.
What comes next is the part most investors miss — or more accurately, the part they show up late to. The companies that are building the applications, the edge cases, the consumer-facing products, the entirely new industries that AI makes possible. These names don’t show up on CNBC. They’re not in the S&P 500. Half of them aren’t even profitable yet.
And that’s exactly why I want to be early.
What’s Inside the AI Frontier
I’ve assigned 39 stocks to this segment so far. Here’s how the landscape breaks down.
Autonomous vehicles and operations. Tesla’s the obvious one, but there are multiple companies building out in this space that are flying under the radar. The self-driving story is bigger than any single company, and the infrastructure behind it — sensors, software, mapping, fleet management — is where I see real opportunity.
Robotics and drones. This is what I call consumer creep — AI moving from the data center into the physical world. Companies like Symbotic, which we’ve been tracking since October. The logistics, warehouse automation, and last-mile delivery space is just getting started.
Quantum computing. I’ll be straight with you — these are streaky. IonQ, Rigetti, a few others. They make massive runs and then fall back hard. Excellent for short-term trading, even day trading if that’s your thing. But as a long-term trend, quantum is still very young. I wouldn’t bet the farm here, but I want exposure.
AI sensors and edge. This is the one I’m most intrigued by and the one I know the least about — yet. It’s an entirely new sector within AI, and I’ll be working through it more deeply in upcoming briefings. These are the companies building the connective tissue between AI in the cloud and AI in the real world.
Of those 39 companies, 12 are already profitable. Twenty-seven are in the pre-profitable stage.
I know. Negative earnings sounds like a red flag. And in a lot of cases, it is. But here’s what I’ve learned over decades of doing this — when you can buy a company before its earnings turn profitable, and that turn starts to build on itself, that’s where you find the stocks that don’t just go up 20 or 30%. That’s where you find the doubles. The triples. The ones people look back on and say “I wish I’d bought that.”
The key is the rate of change. Not where the earnings are today. Where they’re headed and how fast they’re getting there.
Think of it this way: buying into the AI Frontier right now is like buying your airline ticket a year before you decide to take the trip. You’re getting positioned before the destination becomes popular.
Want to Go Deeper on This? Come to Dallas.
We’re hosting the AI Wealth Conference — live trading all day Friday, full learning sessions on Saturday. I’ll be walking through the AI Frontier segment, the full AI2 Index, and how I’m positioning across all five segments in real time. Not slides and theory. Live trades, live analysis, live Q&A.
If you can’t make it to Texas, we’ve got virtual seats too. Space is limited on the Zoom side — 100 max — and we’re not close yet, but we will be. Reserve Your Seat — In-Person or Virtual →
One Stock Worth Your Attention
I want to put a specific name on your radar: Silicon Motion Technology, ticker SIMO.
This is a company that most investors don’t pay attention to, and I think that’s a mistake.
They’re a leader in solid-state devices — the storage controllers that go inside the drives that go inside the data centers that power everything we’re talking about here. Revenue is growing over 24% annually. EPS is growing north of 40%. That’s a large-cap company with serious supply chain power in a segment where demand still cannot be met.
And I want to emphasize that last part. We’re not talking about a company that’s competing for a share of a saturated market. Data centers still have backlogs. Build-outs are still behind schedule. We’re seeing companies plan for data centers in space — that’s how much demand is outrunning supply right now. Memory and storage remain two of the strongest-performing areas inside our entire AI universe because the need is structural, not cyclical.
SIMO is a foreign company, which is probably part of why it stays off most people’s screens. But the chart is clean, the fundamentals are strong, and the growth rate speaks for itself.
This is a stock I want in your Rolodex. We’ll be digging deeper into it this week.
What Comes Next
The AI2 Index now has five full segments: AI Core infrastructure, AI Supply Chain, AI-Powered Industries, AI Solutions, and now AI Frontier. That’s our complete framework for understanding where the money is flowing, where the growth is happening, and — maybe most importantly — where it’s going next.
Most people are still fighting over the same handful of mega-cap AI names. And those are fine stocks. I own some of them.
But if you want to be positioned for where this is really going — not the next earnings cycle but the next era — the Frontier is where you need to be looking.
That’s what we do inside AI2 Insiders. We track all 337 stocks. We segment them. We watch the fundamentals, the rate of change, the earnings trajectories. And we get in before the crowd shows up.
We’re up over 15% in 6 weeks. Not because we’re guessing. Because we built a system and we follow it.
If you want access to the full AI2 Index — including all 39 AI Frontier stocks, real-time portfolio tracking, and daily briefings like this one — AI2 Insiders is where it happens.
Disclosure: AI2 Insiders holds positions in stocks mentioned in this article. Past performance does not guarantee future results. All investments carry risk.
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