Marc Chaikin | August 4th, 2023

Chaikin's AI Power Picks

Wow, I (Marc Chaikin) don't remember a topic this hot since "crypto-mania"...

I'm seeing and hearing about artificial intelligence ("AI") everywhere these days. And I bet you're experiencing
something similar.

Old friends are calling and e-mailing me out of the blue. They want my take on the situation. Heck, my wife,
Sandy, and I were in Italy not long ago – and they're even talking about it over there!

All the excitement has spilled into the stock market...

In late April, Barron's reported that AI-themed investments had already added $1.4 trillion in stock market
value in 2023. And that figure is likely much higher nowadays.

Even more shocking...

Just six AI-related companies were responsible for 53% of all the gains in the benchmark S&P 500 Index at that
point. They're the names everyone likely expects to see, too...

Microsoft (MSFT)
Alphabet (GOOGL)
Amazon (AMZN)
Meta Platforms (META)
Nvidia (NVDA)
Salesforce (CRM)

Now, Fox Business recently asked me to share my thoughts on AI. And I kept it simple during that TV
appearance...
AI changed the equation.

By that, I mean the technology itself is here to stay. The biggest, most well-established tech companies of the
past 20 years are already buying in. That's enough proof for me.

Fortunately, I believe there's still plenty of money to be made from this opportunity in the coming months and
years. We're only in the early stages of this boom.

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But with 50-plus years of investing experience to my name... I know we need to be careful.

I realize that AI can be exciting. But it's also scary – particularly for many of my retired friends and family
members. So I understand if you're a little apprehensive about AI.

However, as a student of history, I know this type of emotional push-and-pull happens with every major
technological breakthrough...

Do you know the first message ever sent using Morse code?

It was four words long. And it was sent from Washington, D.C. to Baltimore in May 1844. In that message,
Samuel Morse simply wrote...
What hath God wrought?

The quote comes from the Book of Numbers in the Bible. And it essentially means, "What has God done?" I'm
sure a lot of folks feel that same way about AI right now...

What are we doing? Why are we doing it? Is it really a good move?

But the thing is, we asked the same types of questions around the dawn of the Internet. You might even
remember some of the Time magazine covers in the 1990s...

And Time wasn't the only thing confusing people about the role the Internet would soon play in our lives...

Do you remember the "Y2K" scare? It feels like a silly, distant memory, right?

But at the time, even the U.S. State Department was issuing scary warnings about it.

The bottom line is simple...

It's OK to be apprehensive about new technology and still make money off it.

Skepticism is a good (and increasingly rare) trait. If you feel that way about AI, good for you. You're not a

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clueless dinosaur just because you have concerns about what comes next.

And yet, at the same time, you can't ignore the data...

The top five stocks from 1990 through 2020 were all tech-related companies. Together, they were responsible
for creating more than $7.8 trillion in new American wealth.

No matter where you stand on tech, it's clearly an incredible investment opportunity. Tech investments have
likely made the average retail consumer more money than anything else.

So in the end, you want to be skeptical and strategic...

That way, you have a great chance of finding the historic winners – the Amazons and the Microsofts. And you'll
also hopefully avoid the historic losers – like Pets.com and eToys.

I believe Scottish anthropologist and novelist Charles MacKay said it best in 1841...
"Men... think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."

In other words, we can't just blindly follow the herd into any AI stock. That could lead us down a dangerous
path as investors. Instead, we need to focus on the right AI stocks.

If we can do that, we could potentially see huge returns in the coming months and years.

That's why we're here...

In this report, I've worked with analyst Briton Hill to put together the top five AI stocks you need in your portfolio
today. They're all the right stocks to own during this long-term boom.

Let's get right into it...

AI Power Pick No. 1: Alphabet (Nasdaq: GOOGL)

I bet you've already used one of our first AI Power Pick's products today...

Tech behemoth Alphabet (Nasdaq: GOOGL) is one of the world's largest companies. And over the past 25
years, it has transformed our daily lives with several different products.

The company's search engine was the biggest game-changer when it launched in 1998. It uses different
algorithms to rank websites.

Today, that process seems mundane. But in the Internet's early days, it was revolutionary...

Before long, the company dominated the search market. And "Google it" quickly became a common phrase for
millions upon millions of folks worldwide.

Next, Alphabet unleashed more businesses that led the company to its world domination...

Google AdWords (which is now known simply as Google Ads) launched in 2000. It changed digital advertising
forever. Businesses can now reach millions of folks with targeted ads.

Then, Google News debuted in 2002. This tool gathers news from all types of different sources. It gives users a
comprehensive overview of what's happening in the world.

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This product was so successful that European regulators are still trying to reign it in.

In 2004, Alphabet launched Gmail. The company initially offered a free gigabyte of storage with the service.
That was unprecedented. It far exceeded competitors' offerings.

Gmail also introduced a powerful search function for e-mails. Once again, this product soon grew to dominate
its category.

A year after Gmail's debut, Google Maps revolutionized the way we get from place to place. The company made
maps interactive and user-friendly. It created "street view" and satellite images as well.

Do you remember those quirky little GPS devices that many of us had in our cars?

And of course, Alphabet's YouTube (which it acquired in 2006) changed the way many folks consume media.
Nowadays, nearly everyone uses the online-video app on a daily basis.

That's exactly my point...

By now, it should be clear that Alphabet changes the world when it sets its sights – and money – on something.
That's why we're taking the tech giant's AI claims so seriously...

Google founded its autonomous car project in 2009. It's now known as Waymo. And in short, it aims to
revolutionize the way we get around in a different way from Google Maps...

It's actually doing the driving for us.

Through Waymo, Alphabet is taking a bold leap toward driverless cars. But perhaps more importantly, it's a
massive "machine learning" project...

Alphabet's advancements in AI and machine learning are noteworthy. The company developed an entire
machine-learning library known as TensorFlow. And today, that library powers many AI applications.

Alphabet's DeepMind has been pushing the limits of AI as well. It developed AlphaGo, a computer program that
defeated the world champion in the board game Go in 2016.

If you're not familiar, that's the game with the little black and white chips. Nearly everyone thought it was too
complicated for a computer to win.

But Alphabet's DeepMind cracked the code. It was a remarkable achievement for AI.

As such a large tech innovator, Alphabet's role in our AI future shouldn't be surprising...

The company launched Google.ai in 2017. This initiative focuses on AI research. And it aims to make AI
accessible to everyone.

Google.ai has three major components...

1. Research
2. Tools
3. Applied AI

Research is the backbone of Google.ai. In this segment, the company conducts cutting-edge AI research. It
covers fields like health care, climate change, and more.

The goal is to solve complex problems. It also aims to improve people's lives.

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Tools are integral to Google.ai. The company provides a suite of tools for developers. These tools allow others to
create and implement AI. TensorFlow is an example of this component. In short, these tools make AI technology
user-friendly.

Applied AI is where Alphabet showcases its AI achievements. The company's services like Search, Maps, and
Assistant benefit from AI. Applied AI demonstrates practical AI uses. It aims to make everyday tasks easier.

Bard is part of Google's AI research. This language model rivals OpenAI's popular ChatGPT platform. Ultimately,
it aims to generate human-like text...

Bard's output can be coherent, detailed, and specific. It's designed to understand and generate text across all
sorts of topics.

Bard is an AI tool for content creation. Both individuals and businesses find it useful.

The tool can assist users with tasks like drafting e-mails. It can also generate creative-writing samples or
provide suggestions. It's a significant advancement in "natural language processing." And that means it's a step
closer to more intelligent, interactive AI systems.

Alphabet has massive amounts of data. And AI algorithms require data to learn. In the end, the company can
use all this data to fuel its AI advancements.

Alphabet also invests heavily in AI research. Google.ai is a testament to this commitment. This research leads to
breakthroughs in AI technology.

And of course, Alphabet employs some of the world's top AI experts. They drive innovation in the field. And their
knowledge is shaping the company's AI advancements.

By investing in Alphabet, we're getting behind the company's AI leadership.

Plus the company brings immense resources to the space. In fact, some market observers estimate that it has
spent more than $200 billion on AI investments over the past decade.

In the end, Alphabet is clearly in a great spot to profit during the AI boom.

And even better... the Power Gauge sees an incredible opportunity as well.

Alphabet currently earns a "very bullish" overall rating in our system. And it's about as good as it gets in the
four different categories. Take a look...

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We'll start our analysis with the "bullish" grade in the Financials category...

The ratio of Alphabet's long-term debt to equity is only 0.1 today. So for every dollar of equity, the company
only has 10 cents of debt. That's incredible for such a huge company...

Many analysts consider anything below 2 to be a great debt-to-equity ratio. And Alphabet is far below that mark
right now. That suggests its stock is undervalued and poised to rally.

Alphabet receives a second "bullish" grade in the Earnings category...

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Alphabet delivers consistent earnings. In 2018, the company's earnings per share came in at $2.37. That figure
more than doubled by 2022 – hitting $4.56 per share.

The company's revenue is also through the roof. And it has increased steadily over the past five years, rising
every year along the way.

Alphabet has demonstrated resilience even in the worst markets as well...

In 2020, its revenue increased an astounding 12.8% in the middle of the COVID-19 pandemic. It climbed about
41.2% in 2021. And then, in 2022, it rose around 9.8%.

The next category is Technicals. And Alphabet receives yet another "bullish" overall rating...

The Chaikin Money Flow indicator is one of our favorite factors in the Power Gauge.

In short, it tells us what the so-called "smart money" is doing...

The smart money is a term for the market's biggest power players – like Wall Street institutions. Our Chaikin
Money Flow indicator measures their buying patterns. And smart-money accumulation behind a stock is a

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strong sign that it's ready to make a big bull run.

Based on the "bullish" rating for this factor, it's clear that the smart money expects Alphabet's value to rise in
the coming weeks and months.

You can bet a lot of this excitement is due to the company's AI growth potential. And as investors, it's refreshing
to be on the right side of such a powerful trend.

Finally, we turn to Experts. Alphabet earns a "very bullish" rating in this category...

The "very bullish" rating for short interest supports what we saw with the Chaikin Money Flow indicator. The
biggest institutional investors don't want to bet against this company.

In the end, Alphabet presents one of the best opportunities to capitalize on the developing AI boom. And after
everything we've discussed in this report, the stock is a screaming buy...

ACTION TO TAKE

Buy Alphabet (Nasdaq: GOOGL) today. We'll protect our downside

with a 30% trailing stop loss.

AI Power Pick No. 2: IBM (NYSE: IBM)

Believe it or not, IBM's (NYSE: IBM) history with AI started way back in the 1950s...

More specifically, IBM employee Arthur Samuel wrote the first AI program in 1956.

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Samuel was a legend in the early days of computers...

In 1928, he joined Bell Laboratories. He got his hands dirty working on vacuum tubes. And he was the brain
behind a unique gas-discharge switch that let the same antenna transmit and receive signals.

By the end of the 1940s, Samuel joined IBM in Poughkeepsie, New York. While working at the computer giant,
he popularized the term "machine learning." And he once said...
I became so intrigued with this general problem of writing a program that would appear to exhibit intelligence that it was to occupy my thoughts during almost every free moment for the entire duration of my employment by IBM and indeed for some years beyond.

Today, Samuel's work at IBM is legendary...

He came up with one of the earliest software hash tables and played a huge role in early transistor research. He
also programmed the first checkers game for the IBM 701 – the company's first commercial computer.

The checkers game was transformational...

For one, Samuel developed a way to estimate a player's odds of succeeding in a game given the present
position. This function factored in various elements – such as the remaining pieces on either side, the tally of
kings, and how close pieces were to becoming kings.

This primitive program was an early example of machine learning. But IBM didn't stop there. Today, the
company operates one of the world's most powerful AI programs...

Watson.

At its core, Watson is a data-analytics processor. But unlike ChatGPT, its focus is on producing correct answers –
not just natural language responses.

In 2011, Watson made a very public debut. It defeated two of the record-winning contestants on the hit game
show Jeopardy! That performance proved that Watson could respond to natural language – and produce
correct answers – in real time.

Watson isn't a singular system. Rather, it's a collection of programming interfaces and services. Businesses can
use them individually or together to build complex AI solutions.

These services include language understanding, visual recognition, and machine learning. And IBM has
continuously updated and expanded Watson's capabilities over the years to make it more useful for businesses
and developers.

Businesses and developers use Watson in a variety of ways...

For example, in health care, Watson can help doctors diagnose diseases by analyzing medical literature and
patient data. In finance, it can provide insights for investment decisions by analyzing market trends and
financial data. And in customer service, it can handle customers' inquiries and provide assistance via chatbots.

In May, the company introduced its next-generation AI and data platform – "Watsonx." The company describes
the service as "enterprise ready."

In other words, IBM is focusing on large-scale AI applications. Big corporations buy or license these types of
services for their employees, And they can streamline employee processes or "virtual" assistants.

So that's where IBM fits into the AI boom. And when we look to the Power Gauge, the opportunity is clear...

We need to add IBM to our model portfolio to capitalize.

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As you can see, the Power Gauge is "bullish" overall on IBM. Take a look...

It's great to see a positive overall rating. But as you can see, the four categories are all over the place. The
grades range from "very bearish" in Earnings to "very bullish" in Experts.

So before we put any money to work, let's get the full story. We'll start with Financials...

IBM earns a "bullish" rating in this category. And return on equity is a strong driver of that grade...

The company's one-year return on equity is roughly 9.4%. That's good enough for a "very bullish" rating.

The next category is Earnings. And as I said a moment ago, IBM earns a "very bearish" rating in this category
today. Take a look...

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Now, I realize that a "very bearish" rating doesn't scream buy. But we need to understand something about
IBM's earnings...

This category pulls data from the past five years. And the COVID-19 pandemic really hit IBM's bottom line...

Remember, the company makes computers for businesses. And many businesses closed the doors of their
offices for the better part of two years.

So IBM took a hit...

The company's earnings have been inconsistent. And its revenue has struggled for a few years.

IBM's revenue fell about 4.6% year over year in 2020. Then, as the pandemic raged on, it dropped another
22.1% year over year in 2021.

But in 2022, IBM saw signs of recovery. The company's revenue grew about 5.5%.

We can expect much stronger earnings as the global economy continues to recover. As that happens, demand
for IBM's products will pick up again.

And an AI boom will push more profits to the company's bottom line...

When it comes to computers, IBM has shown a strong level of success for decades. And Watson's propensity for
correct answers over spewing language will put it in high demand.

Put simply, we can expect IBM's earnings to be more consistent in the coming years. And in turn, this category's
rating will improve. So we're not concerned about the grade right now.

Next, let's move on to Technicals. IBM receives a "neutral" grade in this category...

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In the Technicals category, it's worth noting that the relative strength and price strength factors both recently
moved to "bullish." That's an encouraging sign for us as investors.

Let's keep moving to the company's "very bullish" grade in the Experts category...

Notices that the earnings estimate trend is "very bullish"...

That means Wall Street analysts are currently optimistic on IBM. They're increasing their earnings projections.
And they believe the future is bright for the company.

The "bullish" grade for insider activity tells us that these folks are also buying today. And the analyst rating
trend is "very bullish" as well.

Folks, after looking at the full Power Gauge report, our takeaway is clear...

IBM has always been one of the largest players in the computer world. It's an AI pioneer as well. And best of all,
the company plans to keep innovating far into the future.

So with that in mind, we want to add IBM to our model portfolio immediately...

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 ACTION TO TAKE

Buy IBM (NYSE: IBM) today. We'll protect our downside with a 30%
trailing stop loss.

AI Power Pick No. 3: CrowdStrike (Nasdaq: CRWD)

One of the biggest concerns with AI is security...

Is it really safe to use?

ChatGPT reached more than 100 million subscribers in just three months. And as more folks get involved in AI,
the risk increases for things like identity theft, "deepfake" digital manipulations, and data breaches.

It's no secret that cybersecurity needs to evolve to safely handle AI. And that means tremendous opportunity
for cybersecurity leaders like CrowdStrike (Nasdaq: CRWD).

Importantly, the company is fighting fire with fire...

CrowdStrike's platform uses AI machine learning to fight malicious AI threats.

More specifically, it uses AI to analyze patterns and detect anomalies in vast amounts of data. We're talking
about things like suspicious IP addresses, unusual network traffic, or abnormal user behavior.

Using machine-learning algorithms, CrowdStrike can predict potential threats before they happen. These
algorithms learn from past incidents, understand patterns, and forecast potential risks. And over time, that
makes the platform better at identifying threats.

This whole idea gets really wild when CrowdStrike goes on the offensive...

The company uses AI to automate the threat-hunting process. The system autonomously searches through
networks to detect and isolate advanced threats that evade existing security solutions.

It uses AI algorithms to understand the normal behavior of users and systems within a network. And if the AI
system identifies a behavior that significantly deviates from this "normal" activity, it could suggest a potential
security threat.

When it detects a threat, the AI system can automate the response. That could involve isolating infected
systems, blocking malicious IPs, or even initiating system repairs.

Today, CrowdStrike's AI system monitors a staggering 2 trillion events per day (and counting). So as you can
see, the company is already poised to be a leader in the space.

The Power Gauge validates our stance. It's "bullish" overall on the company today...

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That's a great overall rating. It's almost as good as it gets. But as you can see, the full report starts off with a
"very bearish" grade in the Financials category...

The biggest problem comes from CrowdStrike's valuation. As you can see, the ratio of its price to book value
(P/B) and price to sales (P/S) both receive "very bearish" grades.

Let's focus on the P/B ratio...

This ratio tells us the price of a company compared to the assets on its balance sheet.

But the thing is, CrowdStrike is a tech company. And its assets are primarily intellectual property instead of
hold-in-your-hand tangibles. That's hard to quantify on a balance sheet.

As a result, this factor's rating is skewed negatively. For a company like CrowdStrike, it's better to focus on debt
levels instead of looking at the assets on its balance sheet...

The ratio of its long-term debt to equity is only about 0.5 today. This means the company only has around 50
cents of debt for every dollar of equity.

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Remember, as I said earlier, anything below 2 is considered good. So when you look at it that way, CrowdStrike
is in a lot better shape financially than it appears at first.

The next category is Earnings. And as you can see, CrowdStrike receives a "very bullish" rating in this
category...

CrowdStrike's revenue growth has been incredible over the past five years...

From 2019 to 2022, it experienced year-over-year growth ranging between 66% and more than 110%. Its
smallest year-over-year growth actually happened this year (roughly 54%).

That type of growth is amazing. And as demand for CrowdStrike's AI-related cybersecurity services continues to
rise, its year-over-year growth will likely remain high.

Next, we'll cover Technicals. CrowdStrike receives a "bearish" rating in this category...

Put simply, we're not concerned about this category's "bearish" grade.

The company's price strength has been strong. And it has also outperformed the S&P 500 over the past six
months. You can see that both factors are graded as "very bullish" today.

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The final category is Experts. And CrowdStrike earns another "very bullish" rating...

CrowdStrike is a part of the software industry. And the "very bullish" grade for industry relative strength proves
that these types of companies are thriving in the current market.

The company also receives a "very bullish" rating for insider activity. That's another great sign. And to us, it's
clear that these folks know the importance of cybersecurity...

Cybersecurity won't go out of style any time soon – especially with all the new AI-related threats. And
CrowdStrike is a proven leader in the space. So don't waste any more time...

ACTION TO TAKE

Buy CrowdStrike (Nasdaq: CRWD) today. We'll protect our downside

with a 30% trailing stop loss.

AI Power Pick No. 4: Box (NYSE: BOX)

Box (NYSE: BOX) is a content-management and file-sharing service for businesses.

The company's main goal is to provide a secure platform where files can be stored, shared, and accessed from
any device in the world. And to do that, it relies on the "cloud."

Box supports a variety of file formats. And its features include "version control" of files, the ability to lock
documents, user management, activity logs, and user permissions. It also provides programming tools for
developers to create applications and integrations.

Importantly, Box integrates with other popular business applications like Microsoft Office and Google
Workspace. That allows users to work directly with files stored in Box.

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Here's where the story takes an AI turn...

You see, with the help of OpenAI, Box is building AI tools directly into its platform.

We mentioned OpenAI earlier in this report. But we haven't talked about what it does...

In short, OpenAI has produced several iterations of large language models – including GPT-1, GPT-2, GPT-3, and
GPT-4. You likely know them by their more popular name of ChatGPT.

In other words, Box is working to unify its industry-leading document-sharing capabilities with the power of AI
built right into it. That combination could potentially be very "sticky" for consumers. And we believe it will likely
keep users on the platform for years to come.

The Power Gauge sees an incredible opportunity as well. As you can see, Box currently earns a "very bullish"
overall rating. And all four main categories are "bullish" or better...

Once again, we'll start with Financials. Box is currently rated as "bullish" in this category...

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Simply put, Box is in great shape financially.

The company's free cash flow and the P/S ratio are strong drivers of this category's grade. As you can see, the
Power Gauge rates both factors as "bullish" right now.

Moving on, the company receives a "very bullish" grade in the Earnings category...

In short, Box's revenue growth has been consistent over the past five years. The company is growing its sales
by at least a double-digit percentage every year.

And that growth is making its way down to the company's earnings as well. That's a big reason why Box
receives "bullish" or better grades in all five factors in this category.

The third category is Technicals. And Box receives another "bullish" rating...

In this case, the key is our Chaikin Money Flow indicator...

Again, this powerful indicator tells us what the smart money is doing at any given time. And because of the

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"bullish" grade, we know that the smart money is buying into Box today.

Even better, the smart money usually jumps in for the long haul. So we expect the recent buying spree to
continue for a while. That will likely push the stock even higher.

Finally, we turn to Experts. In this category, Box earns yet another "bullish" rating...

Notice that Box gets a "bullish" grade for insider activity. That means company insiders are buying this stock.
And it supports the smart-money angle that we just mentioned.

Also, industry relative strength is "very bullish" today. Like CrowdStrike, Box falls into the software industry. And
these types of stocks are crushing the market as a whole in 2023.

As Box further incorporates AI tools into its platform, it will create a more "sticky" user experience. And over the
long run, that will mean a lot more business for the company...

ACTION TO TAKE

Buy Box (NYSE: BOX) today. We'll protect our downside with a 30%
trailing stop loss.

AI Power Pick No. 5: Adobe (Nasdaq: ADBE)

Our final Power Pick is Adobe (Nasdaq: ADBE)...

Yes, that Adobe. It's the company behind Adobe Acrobat, the PDF reader and editor. You might not realize it, but
Adobe created that entire file format back in the early 1990s.

Former Xerox (XRX) employees John Warnock and Charles Geschke founded Adobe in 1982. And within a year,

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the company got the attention of another young tech entrepreneur...

Apple (AAPL) founder Steve Jobs offered Warnock and Geschke $5 million for Adobe. That's roughly $15 million
in today's money. However, the two founders refused the offer.

Still, the company's early founders wanted Jobs in on the action. So eventually, Warnock and Geschke allowed
him to buy around 19% of the company years before it went public.

Now, you probably know Adobe because of PDFs. But the company is much more than that. It's a titan in the
world of creative professional tools...

That trend started with the release of computer-drawing tool Illustrator in the mid-1980s. The software's
success and Adobe's then-pioneering printer tools led the company to its initial public offering in 1986.

Just three years later, Adobe released another flagship product – Photoshop. And over time, this software
became the dominating force in photo and digital-art manipulation.

About a decade ago, Adobe shifted into the Software as a Service space. Today, in exchange for a monthly fee,
the company offers a collection of software tools that it describes as the "Creative Cloud."

For roughly $55 per month, a subscription to the Creative Cloud provides professionals and amateurs alike with
instant access to an impressive set of tools. Adobe's offerings include...

Photoshop
Acrobat Pro
Illustrator
Premiere Pro – professional-quality video and film editing
InDesign – page design and layout for print and digital media
After Effects – motion graphics and visual effects for TV and websites
Dreamweaver – modern and responsive website design

That's only scratching the surface. And even more important to our discussion today...

The company is now a leader in AI-enhanced image generation and manipulation.

Adobe uses AI extensively in its products through Adobe Sensei. This technology powers so-called "intelligent"
features across all Adobe products...

By that, we're talking about features like Content-Aware Fill in Photoshop and Auto Reframe in Premiere Pro.
With Adobe Sensei, these features seamlessly work the way they should.

These features use AI to understand the context of an image or video. Then, it can remove unwanted objects
from photos, suggest edits, identify and tag objects and themes in photos, and automatically format videos for
different platforms.

On the design side, Adobe also uses AI to simplify many tasks...

For example, Adobe Illustrator uses AI to recognize and suggest similar fonts, align and distribute objects, and
more. And Adobe XD uses AI for voice prototyping, auto-animation, and responsive resizing.

In Adobe Acrobat, the company harnesses AI to automatically recognize and create editable text from scanned
documents. And it can even suggest potential fields for forms.

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Adobe's Aero app even allows users to create augmented-reality experiences...

In this app, AI can understand and interpret the physical world. In turn, augmented-reality developers can
integrate digital objects within that space.

We realize that might sound like science fiction. But the AI tools that Adobe provides for its users are very real.
It's shocking to see a computer change someone into a new outfit.

The Power Gauge recognizes this opportunity. It's "very bullish" overall on the company...

Starting off, you can see that Adobe receives a "neutral" grade in the Financials category...

The company has a low ratio of long-term debt to equity and a high return on equity. Notice that these factors
are currently rated as "bullish" and "very bullish," respectively.

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But the category's overall grade is dragged down by the "very bearish" grade for its P/S ratio, as well as the
"bearish" grades for its P/B ratio and free cash flow.

Next up is Earnings. Adobe currently receives a "bullish" grade in this category...

Earnings growth and earnings consistency both receive a "very bullish" grade.

The company has experienced positive earnings growth over the past five years. That's exactly what we want to
see with a booming-yet-slightly-expensive company like Adobe.

Moving on, Adobe gets a "neutral" grade for Technicals...

Adobe has outperformed the broad market in a big way. From last October through this August, it gained an
incredible 78%. Meanwhile, the S&P 500 is only up about 19%.

The "very bullish" grade for this relative strength is important. It tells us that the trend is in our favor with
Adobe. And as investors, we're hoping to ride the momentum even higher.

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Finally, Adobe receives a "very bullish" grade for the Experts category...

Analysts have been raising their earnings estimates for Adobe. And not many short sellers are betting against
the company's stock. Both factors are rated as "very bullish" today.

When we put it all together, it's clear that Adobe is another leading AI company to own...

ACTION TO TAKE

Buy Adobe (Nasdaq: ADBE) today. We'll protect our downside with a
30% trailing stop loss.

Wrapping Up
The Power Gauge is our guiding light...

Our one-of-a-kind system ranks thousands of stocks using 20 different factors. It divides those factors into four
categories – Financials, Earnings, Technicals, and Experts.

Then, it pulls together all the data to produce a single, actionable rating.

That's how we find the best opportunities in the market. And importantly, our system gives us a big advantage
in the ongoing AI boom...

In this report, we've covered five new recommendations for our model portfolio. We're going to track Alphabet,
IBM, CrowdStrike, Box, and Adobe in a separate category in the portfolio.

These five stocks are our Power Picks. They're the right stocks to own as AI takes over the world. And they
cover a wide range of uses – from cybersecurity to data storage and more.

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The Power Gauge helps us see that all five of these companies have incredibly optimistic outlooks. When we
look at the full report for each company... we see big upside potential.

That's the real value of the Power Gauge. It allows us to find the "hidden" similarities in companies. And those
similarities are what will power our profits in the months ahead.

Make sure you own all five of these companies right now. We'll track them in a special section within our model
portfolio. And we'll keep holding them as the AI boom unfolds.

Good investing,

Marc Chaikin with Briton Hill

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