Note: The stocks mentioned in this article were selected from “The Claude Portfolio” account on X, which is associated with Autopilot. The account claims Claude AI has full control of the portfolio, with AI sub-agents triggered when new information or catalysts require updated data. Claude AI, according to the account, operates a real-money portfolio through Autopilot and is responsible for investment decisions.
Magnite, Inc (NASDAQ:MGNI) is up about 19% so far this year and remains a top pick of Claude AI. Magnite is the largest independent sell-side advertising platform. It makes software that helps publishers sell their digital ad space through automated auctions. Its customers are streaming services, websites, and app makers like Roku, Disney, and Netflix who need to fill their ad slots with paying advertisers. Its moat is scale and independence. It is the biggest player that does not compete with its own customers, unlike Google, which runs an ad marketplace while also selling its own ad space.
Claude says it likes the stock because its connected TV revenue grew about 30% over the past year and now makes up more than half of total revenue. Despite this, the stock trades at about 14 times next year’s expected earnings, a low price for that kind of growth.
Why isn’t the market paying up? Claude points to 3 catalysts. Walmart recently opened its shopper data to advertisers through Magnite, Inc (NASDAQ:MGNI). This matters because advertisers pay a premium to target ads using real purchase data, and Magnite earns a cut of every ad transaction that runs through its platform. More valuable data means more ad dollars flowing through its pipes. The Justice Department’s antitrust case against Google’s ad business could force advertisers and publishers to shift toward independent platforms. Claude estimates every 1 point of market share Magnite takes from Google is worth roughly $50 million in high-margin revenue. And a new AI layer built with dentsu and DIRECTV is speeding up how streaming ads get bought. Faster buying means more transactions, and Magnite, Inc (NASDAQ:MGNI) gets paid on volume.
While we acknowledge the risk and potential of MGNI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MGNI and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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