AI Investing US Market: A Japanese Engineer’s Shocking First Look (Diary #5)

Investment
AI Investing US Market: A Japanese Engineer’s Shocking First Look (Diary #5)

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AI Investment Diary – Vol.5

AI Investing US Market: A Japanese Engineer’s Shocking First Look (Diary #5)

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After launching “Strategy G (Japan)” to uncover small-cap growth stocks in my home market, a big question started to bother me.

“Could this framework actually work in the world’s most competitive arena—the US stock market?”

My curiosity and ambition got the best of me, and I opened a new dialogue with my AI. This is the story of that conversation, my shock at the sheer scale of the **AI investing US market**, and the dawn of my next great challenge: “Strategy G (USA).”

The Day My Definition of “Small-Cap” Was Shattered

In Japan, my definition of a “small-cap growth stock” was a company with a market capitalization under ¥30 billion (about $200 million). This was my baseline, my reality.

The moment my AI and I began analyzing the US market, that reality was completely obliterated.

The standard definition of “small-cap” in the US market, as my AI pointed out, starts at around $100 million… and goes up to $2 billion. That’s ten times bigger than what I was used to.

“Wait, *this* is a small-cap stock?”

I said it out loud. A company that would be considered a solid, mid-sized corporation in Japan falls into the “small-cap” bucket in America. That fact alone showed me the immense size of the market I was about to enter and the vast number of opportunities within it.

The Vast Hunting Ground Revealed by AI

This difference in scale was also reflected in the number of potential candidates. While finding companies that met my “Strategy G (Japan)” criteria was a challenge, when the AI ran the same screen on the US market, it returned a staggering number of potential hits.

Cross-border e-commerce platforms, non-lethal defense device manufacturers, digital insurance marketplaces, global avocado distributors… Business models completely different from what I was seeing in Japan appeared one after another. I was genuinely excited.

[Sneak Peek] A Glimpse into the AI’s US Stock Analysis Model

While based on the framework I developed for Japan, the AI’s evaluation model evolved to fit the US market’s unique characteristics. For example, my AI combines over 18 key metrics—here are just a few of the most critical ones—to score each company:

  • Forward Revenue Growth Rate (%): The most crucial metric in the US market for gauging future expectations.
  • Return on Equity (ROE) (%): A classic indicator of management quality and capital efficiency.
  • Equity Ratio (%): Checks the stability of the financial foundation supporting high growth.
  • Price to Sales Ratio (PSR): Essential for valuing high-growth tech companies that may not yet be profitable.

I’ll break down the full scoring model in the next “Knowledge” article.

My AI instantly analyzed these complex metrics to rank the most promising companies. GigaCloud Technology, EverQuote, Harmony Biosciences… A fascinating group of companies I would never have discovered on my own were suddenly right in front of me, all thanks to my unique **AI investing US market** approach.

Evolving the Portfolio: Going Global

Having made the decision to take on this new challenge, I evolved my portfolio once again. I slightly reduced my allocation to “Core Assets” to fund the new “Strategy G (USA).”

Before

Core Assets: 60%
Satellite Assets: 22%
Strategy G (Japan): 8%
Cash: 10%

After

Core Assets: 55%
Satellite Assets: 22%
Strategy G (Japan): 8%
Strategy G (USA): 8%
Cash: 7%

The Future I See in US vs. Japanese Growth Companies

While this challenge has just begun, it’s already taught me a great deal about the different “styles” of growth between US and Japanese companies.

If Japanese companies excel at “kaizen” or incremental improvement—mastering a niche and slowly expanding their share—then US companies are often geared for “disruptive innovation,” aiming to conquer entire global markets at once with game-changing tech in fields like biotech or semiconductors.

Analyzing these differences with my AI gives me an intellectual thrill, as if I’m uncovering insights into the economic structures and even the cultures of both countries.

With my AI co-pilot, I’m taking my journey from Japan to the world. I hope that documenting my new adventure in **AI investing US market** can inspire someone else to take their own next step.

The Right Tools for a Global Challenge

Tackling the global markets with an **AI investing** approach has shown me the critical importance of having the right “weapons”—namely, a powerful brokerage account. An environment that allows access to diverse asset classes like US stocks, Japanese stocks, and CFDs from a single platform dramatically increases strategic flexibility.

Furthermore, this kind of data-intensive analysis often requires serious computing power. For tech-savvy investors who might be running custom scripts or specialized financial software, having a high-performance machine is key. For those on a Mac, running Windows-based applications through a virtual machine like Parallels Desktop can be a game-changer.

Parallels Desktop 19 for Mac

(PR) Power your global analysis by running any app on your Mac.

Did this challenge and use of AI pique your interest?

While this blog follows the real-time trajectory of my AI investing, my YouTube channel explores the broader world of “Generative AI applications,” including productivity hacks and interesting use-cases with tools like ChatGPT and Gemini. If you’re interested, please consider subscribing!

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Disclaimer

The generative AI utilized in this blog may produce hallucinations (information not based on fact). While every effort is made to ensure the accuracy of the information presented, it is not fully guaranteed. Final investment decisions should be made at your own discretion and risk.

The author is a specialist in generative AI, providing consulting services to businesses, and shares information based on a professional understanding of AI’s characteristics.

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