American Superconductor Corporation (AMSC): A Bull Case Theory

We came across a bullish thesis on American Superconductor Corporation (AMSC) on Substack by Hidden Market Gems. In this article, we will summarize the bulls’ thesis on AMSC. American Superconductor Corporation (AMSC)’s share was trading at $18.81 as of April 9^th. AMSC’s trailing and forward P/E were 209 and 31.06 respectively according to Yahoo Finance.

Brightly-lit nighttime view of an electricity power grid with distribution lines and transmission substations.

Amid a volatile market driven by geopolitics, inflation, and economic fragmentation, investors are starting to see the early signs of a broader reset. The AI trade is cooling off, and with sticky inflation, high rates, and growing fiscal constraints, panic is starting to outweigh reason. But in this kind of environment, real opportunities start to emerge—especially in names like American Superconductor (AMSC), which remains under the radar despite strong tailwinds. AMSC is positioned at the center of two critical U.S. priorities: grid modernization and national defense. With government support ramping up for domestic energy infrastructure, AMSC benefits directly from Department of Defense contracts and a broader push to secure and modernize the grid. Its value doesn’t rely on low-cost manufacturing abroad—it’s driven by intellectual property and U.S.-based execution, making it largely immune to tariff risk. As energy nationalism intensifies, AMSC becomes a natural beneficiary—a “pick-and-shovel” play for a fragmented, protectionist world. This is the kind of mispricing that happens when markets sell off indiscriminately. AMSC isn’t about hype or headlines—it’s about essential infrastructure, proven technology, and strategic alignment with where the world is going.

American Superconductor Corporation (AMSC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held AMSC at the end of the fourth quarter which was 16 in the previous quarter. While we acknowledge the risk and potential of AMSC 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 timeframe. If you are looking for an AI stock that is more promising than AMSC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.