40%+ in May, these stocks are out of our AI-picks for June - See what’s in

Investing.com – The stock market just wrapped up a historic May, with the Dow shattering the 51,000 threshold and the Nasdaq logging its strongest month of 2026.

However, riding a record-setting rally comes with its own set of risks. When momentum stalls and sectors rotate, the stocks that led the charge can reverse course just as quickly.

Knowing when to walk away with your profits is what separates average returns from market-beating performance. But pulling the trigger and selling a high-performing stock is notoriously difficult for many investors.

For less than $9 a month, premium members using our AI-powered ProPicks are doing just that—banking massive wins on high-flying stocks and seamlessly moving that cash into the market’s next fresh opportunities.

As we enter June, ProPicks AI just executed a massive portfolio rotation. Among the changes are two tech winners that surged over 40%, swiftly shifting that capital into new high-conviction picks, including a deeply undervalued infrastructure play and a debt-free value stock that’s well-prepared for the next leg of the AI boom.

Here is a look at why our model decided to lock in these major tech gains, followed by some of the new picks added this month:

Asana (NYSE:ASAN): Banking a 43.3% Win

The models added Asana at $6.33 and exited at $9.07 ahead of June’s rebalance, capturing a 43.3% gain. However, after the rally, the company no longer ranked among the strategy’s strongest opportunities.

Here is what changed:

Asana’s core business still shows signs of strength, including stellar 88% gross margins, an impressive 43% beat on Q1 earnings, and accelerating adoption of its AI tools. However, the rotation is a tactical move to lock in a massive double-digit win and move that cash where it can work harder.

Applied Materials (NASDAQ:AMAT): Cashing In on a 42.5% Tech Run

Applied Materials was another major winner. The models added the stock at $322.32 and exited at $459.30, capturing a 42.5% gain as enthusiasm around AI infrastructure and semiconductor spending continued building. But after this strong performance, the upside looked far more limited.

Here is why the models moved on:

Applied Materials remains a global chip powerhouse, backed by record Q2 revenue of $7.91 billion, strong guidance, and a core partnership with TSMC. Stepping aside isn’t a knock on the company’s long-term dominance; it’s a strict valuation-based rotation away from a premium multiple and into more convincing opportunities.

The June Additions: Where the Capital is Moving Now

ProPicks AI doesn’t just sit on cash after a major exit. The gains from last month’s tech rallies have already been redeployed into fresh positions.

For June, the models rotated into companies offering a more attractive balance between valuation, profitability, and growth.

Here are just two of the compelling additions joining our high-conviction list this month:

Energy Transfer (NYSE: ET): The Back-End AI Play with a 7% Yield

While the market remains hyper-focused on big tech, our model flagged Energy Transfer as a highly undervalued infrastructure play that is benefiting from the massive power demands of the AI boom.

The stock is up roughly 20% year-to-date but still trades near $19—well below analyst targets of $23 to $24. A generous 7% dividend yield sweetens the deal for income-focused investors.

But the real draw is the accelerating growth. Energy Transfer’s first-quarter earnings for 2026 delivered a massive 32% year-over-year revenue surge to $27.8 billion, beating Wall Street forecasts, while EBITDA climbed 20% to $4.9 billion. That performance prompted management to raise full-year EBITDA guidance by $750 million.

Relentless data center demand is driving this expansion. The company just locked in over 6 billion cubic feet per day (Bcf/d) of long-term pipeline contracts, expected to generate over $25 billion in stable fee revenue. With both Jefferies and Barclays recently naming ET a top buy, the data points to an infrastructure giant trading at a deep discount just as its growth kicks into high gear.

Photronics (NASDAQ: PLAB): Deep Value with a Bulletproof Balance Sheet

Our AI models also identified a rare combination of deep value, strong historical returns, and an incredibly clean balance sheet in semiconductor player Photronics.

Following a sharp pullback, the stock now sits at roughly 58% of its 52-week high, offering an attractive entry window. Despite the recent dip, PLAB has still delivered a 94% return over the past year.

The stock is remarkably cheap relative to its growth, trading at a P/E ratio of just 12x and a PEG ratio of 0.29.

But what really sets Photronics apart is its balance sheet: the company holds approximately $638 million in cash with virtually zero debt.

That financial flexibility is funding its next phase of expansion. Photronics is building new facilities in Texas and South Korea, set to go live and add fresh revenue by late 2026.

Analysts are also backing the recovery story, maintaining buy ratings with targets around $42 to $43—implying a 30% upside from today’s price.

Several other names identified by ProPicks AI strategies ended May on a high with +20% gains for the month alone, while many extended already strong gains since being chosen:

Alongside many more double-digit rallies throughout the month.

Backed by professional-grade financial intelligence, our monthly-updated list of tech picks has absolutely crushed the broader market, posting a +216.00% return since launching in November 2023. That is an incredible +136.86% outperformance over the benchmark S&P 500.

*These are real-world numbers, recorded since the official launch of our AI models in November 2023.

That is the power of moving out of overextended names and finding fresh value before the crowd does. The work for May is done, and the next cycle has already begun.

A New List of AI-Picked Stocks for June IS NOW LIVE

With ProPicks, subscribers don’t just receive a list of tickers. They gain access to the precise rationale behind every single addition and removal across our strategies, helping investors make informed, data-backed decisions before the broader market reacts.

Do not miss the opportunity to review the full list of May picks and see exactly where the smart money is moving next.

How the AI Stock Picker Works

At the beginning of each month, our proprietary AI system evaluates thousands of global equities using a complex blend of historical data, valuation signals, and forward-looking growth metrics.

By processing more than 15 years of financial data across more than 150 quantitative models, the engine identifies up to 20 high-conviction stocks per strategy based on their projected medium-term upside potential.

Every month, these strategies undergo a strict rebalancing process. New opportunities are added, strong performers are retained, and stocks that no longer meet the criteria are removed.

To consistently track performance, each strategy utilizes equal weighting across all selected stocks. While investors are free to adjust their own allocations, this structure provides a transparent benchmark for evaluating overall model performance.

The objective is to systematically reposition capital toward the strongest opportunities as market conditions evolve.

Disclaimer: Subscription prices mentioned in articles are accurate at the time of publication. We regularly test different offers for our members, which may vary by region.

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