AI Disclosure Growth
In plain terms
When a company suddenly starts mentioning AI, machine learning, and related terms much more in its annual report than the prior year, that often anticipates revenue and margin gains the market hasn't priced in yet. Long the stock for the next year.
How it works
Firms with rapidly increasing AI / ML language in their 10-K filings (between consecutive annual reports) earn positive abnormal returns over the subsequent 12 months. The signal captures emerging-technology adoption that the market under-prices relative to its earnings impact.
Data dependencies
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
- SEC 10k sections
A data feed this strategy reads, refreshed on its normal schedule.
Expected edge
- Reported return
- +5-8% over 252d
- Tested over
- filing+45d to filing+297d
Eisfeldt-Schubert-Zhang 2023; ~5-8% over 252d on top-decile AI-language growth.
Example tickers where this is likely to fire
Illustrative only, the signal fires based on the live data, not a fixed list.
Related families
Counts uncertainty/risk words ('may', 'could', 'challenging') in 10-K Item 1 (Business) YoY. A spike means management is privately more worried — bearish.
Read each year's 10-K through a finance-specific positive/negative word filter. Companies whose tone got more positive year-over-year tend to outperform after the filing date; those whose tone got more negative tend to lag.
If a company's 10-K barely changes year-over-year, the business is boring-and-steady and outperforms. Big text changes signal hidden bad news.
Explore AI Disclosure Growth on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.