Overview
In its June investor update, ProPicks AI describes a marked structural shift in market leadership since the conclusion of the Q2 earnings season. Instead of directing capital toward firms delivering AI applications directly to end users, investors have concentrated gains in companies that supply the infrastructure enabling AI: connectivity, power, microchips, custom silicon, and optical networking. ProPicks AI characterizes these firms as the 'shovels' of an AI gold rush - companies positioned to profit irrespective of which consumer-facing names ultimately dominate.
Strategy spotlight - Tech Titans
The letter highlights the Tech Titans strategy and its performance metrics since launch. Key topline numbers presented include a total return since launch of +206.16%, outperforming the S&P 500 by +132.09 percentage points, and a year-to-date win rate of 73%.
ProPicks AI reports that since the end of Q2 earnings, the model rotated June allocations toward infrastructural compounders. New positions added include Marvell Technology (NASDAQ:MRVL) and Allegro MicroSystems (NASDAQ:ALGM). Marvell is identified as a custom AI silicon and optical networking compounder participating in the hyperscale buildout, while Allegro is described as a power and magnetic-sensing semiconductor maker whose data center infrastructure sales have quadrupled year over year. The letter frames both as classic shovel plays.
Two recent winners, Asana (NYSE:ASAN) and Applied Materials (NASDAQ:AMAT), were removed from the portfolio after returns exceeding 29% during their holdings. The model cited valuation stretch and slower relative growth as reasons for reallocating capital.
Strategy performance snapshot (as at June 5 close)
- Tech Titans - 1Y return +68.5%, outperformance vs S&P 500 +40.1pp, 15 picks since Nov 23
- Dominate the Dow - 1Y return +24.3%, outperformance vs DJIA +3.2pp, 10 picks since Nov 23
- Mid-Cap Movers - 1Y return +57.5%, outperformance vs S&P Midcap 400 +33.6pp, 20 picks since Nov 23
- Top Value Stocks - 1Y return +23.7%, -1.6pp vs S&P 500 Pure Value, 20 picks since Nov 23
- Best of Buffett - 1Y return +9.9%, -15.3pp vs S&P 500 Pure Value, 15 picks since Nov 23
- Healthcare Heroes - 10M return +24.6%, +10.2pp vs S&P 500 Health Care, 15 picks since Aug 25
- Energy Elite - 10M return +38.7%, +6.4pp vs S&P 500 Energy, 15 picks since Aug 25
- Financial Fortresses - 10M return -15.3%, -15.9pp vs S&P 500 Financials, 15 picks since Aug 25
- Small-Cap Sprinters - 10M return +53.2%, +32.6pp vs Russell 1000, 20 picks since Aug 25
- Quality Compounders - 1Y return +21.9%, -6.5pp vs S&P 500, 15 picks since Jan 25
- Korean Market Leaders - 1Y return +108.8%, -117.1pp vs KOSPI, 20 picks since Jan 25
- Taiwan Chip Champions - 10M return +100.8%, +8.1pp vs TAIEX, 15 picks since Aug 25
The update also displays intraday and daily index movements and a list of tickers included in the AI-picked strategies. Market snapshots shown include US500 -2.64%, DJI -1.35% and individual mover callouts such as QCOM -10.98%, AMAT -9.71%, MRVL -16.74%, TXN -6.65%, ASAN -2.85%, ALGM -13.48% among others.
Tech Titans - May performance and monthly highlights
For May 2026, the Tech Titans strategy returned +10.0%, which the letter notes as +4.7 percentage points of outperformance versus the S&P 500. The update calls out a spotlight exit delivering +31.7% (TDC - exited) and a maximum drawdown of -13.2% with KD held.
Spotlight - Exits this month
- ASAN - Asana - Held 61 days, total return since picked +43.3%. The model rotated this position out via systematic reallocation. Although gross margins are strong at approximately 89% and AI product adoption is ahead of targets, the model cited deep trailing market underperformance, persistent GAAP unprofitability, and a stretched 13x price-to-book multiple relative to modest growth as reasons to redeploy capital into higher-conviction setups.
- AMAT - Applied Materials - Semiconductors - Held 61 days, total return since picked +29.7%. The model executed systematic profit-taking near peak valuation after a 190% run over the past year. The letter states that multiples had stretched to a 42x P/E and that rising regulatory headwinds, export restrictions, and near-term margin pressures reduced the remaining margin of safety.
New picks - June rebalance
- MRVL - Marvell Technology - New in June; listed as Semiconductors. The update notes a YTD return of +203.8% for the strategy position and assigns a health rating 'Great 4/5'. Key details: the data center segment comprises 76% of revenue and is driving top-line expansion with record Q1 revenue up 28% year over year. The update reports a PEG ratio of 0.12, highlights a landmark $2B investment from NVIDIA, and refers to Google partnership talks. It also mentions a forward outlook upgrade roughly targeting $16.5B for FY28.
- TXN - Texas Instruments - New in June; listed as Semiconductors. YTD position return shown as +62.9% and a health rating 'Good 3/5'. The letter cites data center growth of +90% year over year, eight consecutive quarters of sequential growth, and a Q1 earnings beat ($1.68 vs. $1.36 forecast). Additional notes include $555M in federal grants, an expensive multi-year capex cycle nearing its conclusion, and the strategic integration of Silicon Labs securing an extended runway into 2030.
Full Tech Titans active positions
The published excerpt reveals 4 of 15 active positions visible without subscription. Those visible positions include MRVL (new, +20.8% return in June, +203.8% YTD), QCOM (holding, -5.35% return in June, +24.25% YTD), TXN (new, -2.78% return in June, +62.9% YTD) and ALGM (holding, -1.57% return in June, +71.8% YTD). The note advertises that ProPicks AI subscribers receive the full list across all 88 strategies, including fair value scores and live rebalances.
Membership and access
The investor letter includes standard subscription marketing language and calls to action for readers to access the full June 2026 picks list and to subscribe for live rebalance alerts and AI signals. The update reiterates that performance is net of rebalance events and contains a customary reminder that past performance does not guarantee future results, noting the material is for informational purposes only.
Concluding note
ProPicks AI frames the current market environment as favoring infrastructural exposure within the AI cycle. By reallocating from consumer-facing AI names to suppliers of silicon, power, connectivity, and optics, the model seeks to capture compounding revenue growth that is less dependent on which firms win at the application layer.