In this article, we will be taking a look at 10 stocks recommended by ChatGPT. To skip our detailed analysis of ChatGPT and developments in artificial intelligence, you can go directly to see the 5 Stocks ChatGPT Says Will Make Me Rich in 10 Years.
One of the biggest developments in artificial intelligence (AI) seen so far is the emergence of ChatGPT and similar AI chatbots. ChatGPT was developed by OpenAI, an AI research and deployment company. The chatbot uses deep learning techniques to generate responses to text inputs in the form of a conversation with the user. Ever since its release, ChatGPT has taken the world by storm, making researchers, users, and even investors even more curious about the artificial intelligence sector and what it has to offer.
AI was first deployed in the finance sector years ago, but the speed of its incorporation in the sector was sped up during the COVID-19 pandemic. Since then, it is expected that AI in finance will drive competitive advantages for financial firms. According to a report published by the Organization for Economic Co-operation and Development in 2021, AI can improve firms' efficiency through cost reduction and productivity enhancement, leading to higher profitability. It can also enhance the quality of financial services and products. Because of the benefits AI offers to the financial sector, global spending on AI in the private sector has been steadily increasing. Between 2020 and 2024, spending on AI was forecast to rise from $50.1 billion in 2020 to over $110 billion in 2024.
Picking Stocks Using AI
A recent example of AI deployment in the finance sector can be found in the ETF arena. According to a Bloomberg article published in January, the AI Powered Equity ETF is a $102 million ETF that managed to return about 9.9% in January 2023, while the S&P 500 Total Return Index returned a mere 4.7%. The ETF uses a quantitative model to assess over 6,000 American publicly-traded companies. Even before this more recent development, AI deployment was seen in the finance sector. A BarclayHedge Hedge Fund Sentiment Survey conducted in 2018 found that 56% of hedge fund respondents had used AI to inform their investment decisions. Hedge funds have been using AI to analyze data and forecast market movements for tactical asset allocation for years now. Some hedge funds known to use machine learning and AI algorithms in their business include Cerebellum Capital, Aidiya Holdings, and Taaffeite Capital Management.
The AI Race
Apart from the finance sector, public companies in the tech sector, such as Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL), have also been joining the AI frenzy to keep up with changing trends. Microsoft Corporation (NASDAQ:MSFT), for instance, has begun incorporating generative AI technology in its Bing search engine. In competition, Alphabet Inc. (NASDAQ:GOOGL) has also announced plans to integrate the same technology into its own search engine. Broadcom Inc. (NASDAQ:AVGO) has also been working with generative AI, attributing its increasing business to consumer demand for this technology in their networks. According to the Wall Street Journal in an article published this March, Broadcom Inc.'s (NASDAQ:AVGO) CEO, Hock Tan, expects sales from the company's Ethernet switch products deployed for AI uses to exceed $800 million in 2023, compared to $200 million in 2022. Tan also commented that the company's revenues from its compute offload accelerated business will also hit $3 billion in the fiscal year of 2023, compared to $2 billion the year before.
Additionally, Broadcom Inc. (NASDAQ:AVGO) is not alone in its attempts to capitalize on the recent AI boom. NVIDIA Corporation (NASDAQ:NVDA), another chip maker, has also recently announced the rise of a new business aiming to provide greater access to AI software tools. These are merely a few examples of how companies across the globe, public and private, are swept away by the AI craze. With ChatGPT being one of the primary reasons behind this, we have attempted to use this AI chatbot to generate a list of profitable stocks to invest in to see just how far AI has advanced.
Let's now take a look at 10 stocks ChatGPT says will make me rich in 10 years.
To select the stocks in our list below, we used several prompts on ChatGPT to make the AI language model provide us with a list of 10 stocks that it thinks can make investors rich in 10 years. We asked ChatGPT to think of itself as a professional stock analyst, and consider all information available to it to come up with this list. After that, we ranked these stocks using Insider Monkey's hedge fund data for the fourth quarter, when 943 hedge funds were tracked. They are thus ranked in ascending order of the number of hedge fund investors.
Stocks ChatGPT Says Will Make Me Rich in 10 Years
10. Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
Procter & Gamble Company (NYSE:PG) is a consumer staples company providing branded consumer packaged goods. The company is based in Cincinnati, Ohio. It operates through its Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine & Family Care segments.
On March 3, JPMorgan's Andrea Teixeira upgraded Procter & Gamble Company (NYSE:PG) shares from Neutral to Overweight. The analyst also raised her price target on the stock from $150 to $155.
Procter & Gamble Company (NYSE:PG) shares have been up by 1.75% in the past six months, as of March 15. Analysts see an upside potential of 12.61% on the shares and have placed an average price target of $157.48 on the stock, with a high forecast of $170. This shows that the stock is likely to rise higher, yielding profits for shareholders. Procter & Gamble Company (NYSE:PG) is also a reliable dividend stock, having raised its yield for 66 years in a row. It offers a dividend yield of 2.61% as of March 15, offering investors consistent passive income.
Procter & Gamble Company (NYSE:PG) was found among the 13F holdings of 74 hedge funds in the fourth quarter, with a total stake value of $4.7 billion. Bridgewater Associates was the largest shareholder in the company, holding 4.9 million shares.
Procter & Gamble Company (NYSE:PG), like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL), is a highly popular stock among elite hedge funds today.
9. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 84
Johnson & Johnson (NYSE:JNJ) is a healthcare company based in New Brunswick, New Jersey. The company researches, develops, manufactures, and sells health and beauty products across the globe. Some of its brands include Johnson's, Clean & Clear, and Tylenol.
Guggenheim analyst Vamil Divan holds a Neutral rating and $161 price target on Johnson & Johnson (NYSE:JNJ) shares as of March 1.
Wall Street analysts have an average price target of $180 on Johnson & Johnson (NYSE:JNJ) shares, with a high forecast of $215 as of March 15. They see an upside potential of 16.94% on the shares. Johnson & Johnson (NYSE:JNJ) is also a reliable dividend-payer, having raised its yield for 60 years in a row and offering a dividend yield of 2.94% as of March 15.
There were 84 hedge funds long Johnson & Johnson (NYSE:JNJ) in the fourth quarter. Their total stake value was $5.6 billion.
8. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 106
NVIDIA Corporation (NASDAQ:NVDA) is an information technology company based in Santa Clara, California. The company provides graphics and compute and networking solutions. It operates in the US, Taiwan, China, and internationally.
As of March 1, Raymond James holds a Strong Buy rating on NVIDIA Corporation (NASDAQ:NVDA) shares, alongside a $290 price target.
As of this March, shares of NVIDIA Corporation (NASDAQ:NVDA) have recovered from their 2022 lows showing a growth of 68.1% year-to-date. Analysts see the stock rising further, and have an average price target of $256.59 on the stock, with a high forecast of $350. This represents an upside potential of 6.63%. In the fourth quarter, NVIDIA Corporation (NASDAQ:NVDA) generated revenues of $6.05 billion, beating estimates by $31.61 million.
Citadel Investment Group was the largest shareholder in NVIDIA Corporation (NASDAQ:NVDA) at the end of the fourth quarter, holding 17.9 million shares. In total, 106 hedge funds were long the stock, with a total stake value of $6.1 billion.
“Promoting diversification and managing risk continue to guide our transaction activity, with a focus on the earnings trajectory of existing and potential holdings leading to our most recent moves. We are directing our research efforts to identifying names that are closer to the bottom than the top in terms of earnings and valuations, adding to our positions in ASML, the leading supplier of high-end production equipment to chip makers, and NVIDIA Corporation (NASDAQ:NVDA), whose valuation has washed out due to weakness in gaming and crypto mining as well as slowing enterprise spending.”
7. Berkshire Hathaway Inc. (NYSE:BRK.A)
Number of Hedge Fund Holders: 110
Berkshire Hathaway Inc (NYSE:BRK.A) is a financial company engaged in insurance, freight rail transportation, and utility businesses across the globe. The company is based in Omaha, Nebraska. It offers property, casualty, life, accident, and health insurance and reinsurance, among more.
UBS analyst Brian Meredith holds a Buy rating on Berkshire Hathaway Inc (NYSE:BRK.A) shares as of February 7. The analyst also placed a $542,568 price target on the shares.
Berkshire Hathaway Inc (NYSE:BRK.A) offers investors a diverse business mix with a strong balance sheet and substantial liquidity. Analysts at UBS believe that the company's shares are trading at a more than 20% discount to their intrinsic value. Over the past six months, Berkshire Hathaway Inc (NYSE:BRK.A) shares have risen by 10.72% as well. Analysts on Wall Street have placed an average price target on $518,306 on the shares, with a high forecast of $556,612, representing an upside potential of 12.23%.
Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 110 funds were long Berkshire Hathaway Inc (NYSE:BRK.A). Their total stake value was $15.7 billion.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) is another information technology company on our list of stocks recommended by ChatGPT. It designs, manufactures, and markets smartphones under the iPhone brand, along with related products such as the AirPods, Apple Watch, MacBook, and more. The company is based in Cupertino, California.
Daniel Ives at Wedbush holds an Outperform rating on Apple Inc. (NASDAQ:AAPL) shares as of March 8, alongside a $190 price target.
Apple Inc. (NASDAQ:AAPL) shares have been up by 22% year-to-date as of March 14. The company generated a 53% return on capital in the fourth quarter, and generated revenues of $117.15 billion. Analysts have an average price target of $170.4 on Apple Inc. (NASDAQ:AAPL) shares, with a high forecast of $210.
Berkshire Hathaway was the largest shareholder in Apple Inc. (NASDAQ:AAPL) at the end of the fourth quarter, holding 895 million shares. In total, 135 hedge funds were long the stock, with a total stake value of $136.4 billion.
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Disclosure: None. 10 Stocks ChatGPT Says Will Make Me Rich in 10 Years is originally published on Insider Monkey.