Is It Safe To Get Back Into AI Stocks?
AI Demand Is Turning Into Orders
Alphabet just gave the AI-infrastructure bears a difficult set of numbers. Second-quarter revenue rose 24%, Google Cloud revenue jumped 82% to $24.8 billion, and the company spent $44.9 billion on property and equipment—about twice as much as it did a year earlier.
Nokia supplied the next layer of evidence Thursday morning. Its AI & Cloud sales rose 105%, order intake reached €2.8 billion, and management expects about half of those orders to convert to revenue over the next 12 months. Its chief constraint remains supply. Texas Instruments added a broader confirmation: revenue rose 23%, with growth led by industrial, data center and automotive demand.
The operating evidence says the AI buildout is continuing. The harder question is where to enter after the correction in memory and other AI-adjacent stocks. On Monday, we laid out our re-entry framework: business evidence identifies companies with runway, while price action tells us when the decline is losing force.
🤖 When To Get Back In Memory Stocks 🤖
— Portfolio Armor (@PortfolioArmor) July 20, 2026
That depends less on the depth of the correction in $MU, $WDC, and $SNDK than how far they are from peak earnings. https://t.co/I3n85o8JOG
The AI Profitable Recovery Screen
For profitable AI-stack names, these are the components of our AI Profitable Recovery Screen:
U.S. listing and listed options.
ChartMill Setup Rating of at least 5 (a 0-to-10 measure of entry and exit quality).
ChartMill Relative Strength (CRS) of at least 50 (performance versus the rest of the market).
A price above the 5-day moving average and a rising 200-day moving average.
A rising 14-day RSI (Relative Strength Index) between 30 and 50.
A ChartMill Health Rating of at least 5.
A next-fiscal-year revenue estimate that is unchanged or higher over the previous month.
Unlike our Trend & Consolidation Screen, this one doesn’t include an overall technical rating. A sharply corrected leader can rebound before rebuilding every part of its chart. The other requirements demand stabilization, relative strength, long-term trend support, financial health and improving revenue expectations.
One of our system’s current Top Names also passed the AI Profitable Recovery Screen last night. It's a profitable supplier to the semiconductor companies behind the buildout. We have a defined-risk bullish trade teed up for today, structured to let the options market pay us to take exposure. We also have two biotech trades teed up along side it.
Two Biotech Catalysts, Opposite Directions
The other two trades came from the same Multibaggers source, but they point in opposite directions. One is a bullish trade ahead of a September courtroom catalyst where a favorable settlement or verdict could force a rerating. The other is a bearish trade ahead of a Phase 3 leukemia readout where the trial design may leave little statistical cushion if the control arm outlives the original assumption.
Today’s alert pairs each thesis with a defined-risk options structure and a disciplined entry price: one trade benefits from sustained AI investment, one from a favorable legal outcome and one from a clinical failure.
We’ve enabled free subscribers to unlock today’s trade alert. If you aren’t subscribed yet, use the widget below. You’ll get a heads-up when the alert—with all three names, structures, maximum entry prices and exit plans—goes out later today.
And if you're worried about market risk here (understandably so), you can hedged with the Portfolio Armor website or iPhone app.
