Three AI-powered strategies pull ahead of the S&P 500 in September

Investing.com's AI-powered Strategies engine, accessible to subscribers via ProPicks AI, has unveiled three U.S.-focused portfolios that are outperforming the S&P 500 by more than two percentage points just ten days into September. The top performer is the Tech Titans model, which stays ahead with an algorithmically-selected portfolio of 15 top tech stocks each month.

Its holdings have seen a 3.92% increase since the September 1 rebalance, compared to a 0.52% decline in the S&P 500, giving it a 4.44-point edge as the best U.S. strategy this month. Notable gains include Intel up 12.76%, AMD up 9.57%, and Oracle up 8.22%. The only real underperformer in this group is ON Semiconductor, which dropped 3.41%.

The second-best performer, Quality Compounders, is up 2.04% (a 2.57-point edge over the S&P 500) due to Qualcomm's 6.74% monthly gain, driven by its partnership with Amazon for custom-silicon and optical-networking technology. Both Quality Compounders and the 20-stock sibling strategy, Beat the S&P 500, have outperformed the index by 2.04% and 1.81% respectively.

Two positions were cashed out at last week's monthly rebalance, with Haemonetics showing an 88.98% total return and Molina Healthcare up 46.35%. However, not all U.S. strategies are having a good month. Financial Fortresses, the 15-stock financials picker, is trailing at a 2.69% decrease compared to a 0.61% dip in the S&P 500 Financials index, widening its shortfall to 2.08 points.

Despite trailing the overall market, the dominant theme driving these outperformers is AI infrastructure spending, with AI-related stocks in chipmakers and cloud backlogs continuing to reward the concentrated investments in these stocks, even as the broader index fluctuates on oil and rate uncertainty.