The AIIP Methodology

Our methodology is a rules-based system used to evaluate and rank AI stocks, drawing on growth/fundamental strength and market momentum.

The system is titled the AIIP Algorithm Methodology and is designed to identify breakout AI stocks using structured, rules-based financial data. Its goal is to uncover stocks exhibiting accelerating fundamentals, strong cash flow, and reasonable pricing, before they achieve widespread popularity.

All proprietary scores are calculated using data supplied by Finbox, which aggregates institutional-quality fundamentals from providers such as S&P Global Intelligence.

The overall stock evaluation is driven by two main components: the Fundamental Score (measuring growth/fundamentals) and the Relative Strength (RS) Score (measuring momentum).

This Week’s Top AI Stocks

If you’d like access to this week’s top AI stock identified by our AIIP methodology, the full breakdown is available exclusively in this week’s premium report.

1. The Total Score (Growth/Fundamentals)

The Total Score is calculated out of 100 and combines three weighted categories to assess overall business strength. The model is growth-weighted by design.

Growth (65%) – We focus primarily on revenue and earnings-per-share (EPS) growth, both actual and forecast. This captures the companies delivering consistent expansion and future potential.

Financial Quality (25%) – We assess balance-sheet strength, profitability, and debt levels to identify firms with solid financial foundations.

Valuation (10%) – Finally, we consider how attractively each company is priced relative to its growth prospects, using measures such as the PEG ratio.

2. Relative Strength (RS) Score

The Relative Strength (RS) Score measures a stock’s price performance relative to the AI universe, which includes over 170 AI-focused public companies. This score ranges from 0 to 100.

3. Ranking Status (Criteria for Inclusion)

A stock's Ranking Status is assigned based on combining the Total Score and the Relative Strength (RS) Score. To qualify for the Watchlist, a stock must meet high thresholds in both categories.

Each stock is classified into one of four categories based on its Fundamental Score and Relative Strength (RS) Score, both measured on a 0–100 scale.

✔️ Watchlist – Stocks that score 70 or above on fundamentals and 80 or above on momentum. These are the strongest names that qualify for our Watchlist.

📊 Fundamental – Stocks with a Fundamental Score of 70 or higher but an RS Score below 80. They show solid underlying quality but limited recent price momentum.

📈 Momentum – Stocks with a Fundamental Score below 70 but an RS Score of 80 or higher. These are technically strong movers that may still lack fundamental confirmation.

🚫 No Signal – Stocks scoring below 70 on fundamentals and below 80 on momentum. These names currently fail to meet our criteria for inclusion.

This Week’s Top AI Stocks

If you’d like access to this week’s top AI stock identified by our AIIP methodology, the full breakdown is available exclusively in this week’s premium report.

Disclaimer - The information contained on this site does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice.