Editor's note: The AI rally is heating up again. A handful of semiconductor stocks have already delivered triple-digit gains in less than a year. And according to Ethan Goldman of our corporate affiliate Chaikin Analytics, one market indicator spotted those explosive rallies long before Wall Street fully caught on...
The AI boom is still minting investors tons of money...
This month alone, three large-cap, AI-related stocks have posted massive gains – soaring more than 30% each.
But that's not the only exciting thing...
You see, as of early May, every one of these stocks had more than doubled since the start of 2026. And the Power Gauge – a tool we use at Chaikin Analytics to rate stocks by several metrics – remains "very bullish" on all of them.
Put simply, it feels like the unbridled enthusiasm over the AI megatrend is back in full swing.
However, this doesn't mean you should blindly throw money into these stocks right now...
After all, the past few months have shown us firsthand just how volatile the markets can be.
In times like these, the Power Gauge can show us where to put our money to work...
You see, I noticed a critical similarity between these three stocks. The Power Gauge flagged the same positive signal for each stock last fall... before they all went on to surge more than 200% in less than a year.
Let me show you what I mean...
The Power Gauge Sees 'Under the Hood'
I'm talking about Advanced Micro Devices (AMD), Micron Technology (MU), and Intel (INTC).
As I said, from the start of the year to early May, all three more than doubled. Each is up 30%-plus this month alone.
Meanwhile, the State Street SPDR S&P 500 Fund (SPY) – a stand-in for the overall market – is up only 4% this month. And since the beginning of the year, it's up about 10%.
Take a look at the chart below...
Folks, that's broad outperformance by any measure.
Intel's gain is particularly eye-popping...
Back on September 26, I speculated that Nvidia's (NVDA) $5 billion investment in Intel could save the company. I didn't need to wait long to see that happen...
On October 23, the Power Gauge flipped Intel's rating to "bullish" after a long stretch in "neutral" territory.
Fast-forward to today, and Intel's stock has soared since that "bullish" flip – about 225%.
This isn't an isolated case, folks...
To gauge this, I found the last time these stocks got a pure "neutral" rating. Since a "neutral+" rating happens when a "bullish" or better stock is seeing temporary weakness, I didn't pay attention to that grade.
Then, I noted the closing price of each stock on the day of its "bullish" flip.
The Power Gauge turned bullish on AMD and Micron last June, before each soared more than 200%.
Take a look at the returns...
You'll see that Intel's 224% gain is actually the smallest return of the three after each "flip" signal. AMD surged 299% after its "bullish" rating change. And Micron spiked by a massive 611%.
Of course, we know the Power Gauge's rating change didn't cause the share prices to surge. And of course, the Power Gauge won't always accurately predict a huge rally ahead for a stock.
Our system simply detected that something "under the hood" of each stock had changed.
That's the benefit of a tool that looks at multiple indicators at once... combining factors like financials, technicals, and "smart money" activity into a single rating.
Now, you would be sitting on some incredible gains if you bought each stock when its Power Gauge rating turned positive after a pure "neutral" grade...
But as I said, this doesn't mean you should blindly throw money into these stocks if you haven't already.
The AI boom is real... These three chipmakers show that. But make sure you have a system, and do your homework. Big gains can also mean high volatility... which is why we use the Power Gauge as our guide.
Good investing,
Ethan Goldman
Editor's note: Consumer sentiment is near historic lows... volatility is surging... and a handful of stocks now dominate the entire market. According to Marc Chaikin, founder of Chaikin Analytics, today's market is moving too fast for traditional strategies alone. That's why he's unveiling a new "Smart Money Super-Signal" with trader Jonathan Rose that was built specifically for today's volatile market conditions.
Further Reading
Investors are waiting for bad news to finally break this rally. So far, it hasn’t happened. Despite geopolitical turmoil and economic worries, stocks just posted one of their strongest monthly surges in decades... And this rare signal has historically pointed to further upside.
Gold bounced back after its big fall earlier this year. But even though prices pushed higher, institutional investors had already had enough. Now, the smart money is rotating away from "safety" trades like gold... and back toward sectors with stronger momentum and growth potential.