The astonishing rally of the artificial intelligence (AI) trade has been suffering from persistent volatility over the past month. Extremely overstretched valuation of these stocks, unabated inflationary pressure due to fluctuations in crude oil prices resulting from geopolitical conflicts in the Middle East and growing expectations of a 25-basis point hike in the benchmark interest rate by the Fed in September are the primary reasons for recent AI trade volatility. 

As a result, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. These stocks have a high chance of carrying the momentum forward.

Five such stocks are — American Outdoor Brands Inc.…