In this article, we will be taking a look at the 10 stocks ChatGPT said will make me rich in 10 years. To skip our detailed analysis of generative AI and its application in the field of investing, you can go directly to see the 5 Stocks ChatGPT Said Will Make Me Rich in 10 Years.
Using Artificial Intelligence To Invest
The markets have been talking about artificial intelligence, particularly generative AI, all year. Companies across a wide range of industries and sectors are attempting to introduce their own AI-driven products and services so as not to be left in the dust by their competitors. At the same time, every investor is trying to get into the artificial intelligence trade today. Individual investors and hedge funds alike are putting their manpower into picking out the best AI stocks for the rest of the year as we head into the second half of 2023. Interestingly enough, at this point, it’s not just manpower that’s going into picking stocks. Some investors and hedge funds are actually trying to harness the power of AI to pick stocks instead of leaving the job to human beings. This trend really gets you thinking about how successful an AI software might be at helping an investor build up their portfolio. Is it a strategy that might lead to mind-blowing results or one that will lead you to ruin?
On August 3, CNBC invited Todd Rosenbluth, the head of research at VettaFi, to talk about just this. CNBC’s Bob Pisani noted that AI-driven exchange-traded funds (ETFs) have been around for a while and are starting to come up more this year. Pisani thus invited Rosenbluth to share some of his insights on these ETFs and how effective they are. According to Rosenbluth, a lot more AI-driven ETFs have been working on picking stocks recently. Here’s what he had to say about this development:
“It’s perhaps a smarter way of picking stocks. I know that computers can be smarter than I know I am, [it’s] whether or not they’re going to be better at outperforming the broader S&P 500. There’s no emotion behind it.”
Is Generative AI Really Helpful For Investors?
The discussion surrounding artificial intelligence, in general, and in the world of investing, has been extremely interesting because of the immense potential of this technology when it comes to changing the way people live, work, and even invest. It makes you wonder how not only AI-driven ETFs but also AI chatbots can contribute to the investing world today. This May, CNN reported that a dummy portfolio of 38 stocks recommended by OpenAI’s viral chatbot, ChatGPT, actually managed to outperform major investment funds in the United Kingdom, for instance. This portfolio managed to gain about 4.9% between March 6 and April 28, while the 10 leading investment funds of the country reported an average loss of about 0.8%. During the same period, the S&P 500 rose by 3%. The result of this experiment is merely one example of the sheer potential vested in artificial intelligence when it comes to investing.
Our Stock-Picking Experiment with ChatGPT
Considering these developments, we also attempted to get a list of stocks from ChatGPT this March. We first prompted the AI chatbot to present itself as a professional investment advisor and then asked it to present a list of 10 stocks it thinks will make us rich in the next 10 years. ChatGPT then proceeded to give us a diversified list of stocks, ranging from tech names and consumer staples to financials and healthcare. Some of the most notable names on its list included Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), all big names in the tech and AI sectors this year.
Today we will be revisiting this list of stocks to see how each of these companies has performed over the period between March and August and check if ChatGPT really was right in recommending these names. By doing this, we will see if these really can be considered stocks that will make you rich in 2023 and beyond.
Our Methodology
In March 2023 we asked ChatGPT to act like an expert stock picker and recommend some stocks that could make us rich in 10 years. To be specific, we asked the chatbot, “Which stocks will make me rich in 10 years?” In this article, we calculated the returns of these stocks from the date of our previous article’s publication, March 16, to August 16. We then ranked these stocks based on these calculated returns, from the lowest to the highest. Hedge fund information from Insider Monkey’s second-quarter data is also mentioned for these companies.
Stocks ChatGPT Said Will Make Me Rich in 10 Years
10. Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
Returns Since March 16: 8%
Procter & Gamble Company (NYSE:PG) is a consumer staples company based in Cincinnati, Ohio. It provides branded consumer packaged goods such as conditioners, shampoos, deodorants, and skin care products under various brands. The company’s brands include Pantene, Olay, and Head & Shoulders, among more.
An Overweight rating was reiterated on shares of Procter & Gamble Company (NYSE:PG) on August 1 by Dara Mohsenian, an analyst at Morgan Stanley. The analyst also maintains a price target of $174 on the stock.
We saw 74 hedge funds holding stakes in Procter & Gamble Company (NYSE:PG) at the end of the second quarter. Their total stake value in the company was $5.3 billion.
Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), Procter & Gamble Company (NYSE:PG) was a ChatGPT-recommended stock that has gone up over the past five months.
9. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 171
Returns Since March 16: 10.6%
James Faucette, an analyst at Morgan Stanley, maintains an Overweight rating on shares of Visa Inc. (NYSE:V) as of July 26. The analyst also raised his price target on the stock from $290 to $292.
Visa Inc. (NYSE:V) is a financial company operating as a payments technology provider across the globe. It is based in San Francisco, California. The company operates VisaNet, a transaction processing network, to offer authorization, clearing, and settlement of payment transaction services.
There were 171 hedge funds holding stakes in Visa Inc. (NYSE:V) in the second quarter, with a total stake value of $24.9 billion.
At the end of the second quarter, TCI Fund Management was the largest shareholder in Visa Inc. (NYSE:V), holding 17.8 million shares in the company.
8. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Returns Since March 16: 11.7%
Our hedge fund data for the second quarter shows 88 hedge funds holding stakes in Johnson & Johnson (NYSE:JNJ). Their total stake value in the company was $4.1 billion.
Johnson & Johnson (NYSE:JNJ) is a healthcare and pharmaceutical company based in New Brunswick, New Jersey. The company researches, develops, manufactures, and sells pharmaceutical products, including health and beauty products, globally.
As of July 31, Louise Chen, an analyst at Cantor Fitzgerald, holds an Overweight rating on shares of Johnson & Johnson (NYSE:JNJ). The analyst also maintains a price target of $215 on the shares.
Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), Johnson & Johnson (NYSE:JNJ) is a ChatGPT-recommended stock that is highly popular among hedge funds today.
7. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Returns Since March 16: 15.4%
Berkshire Hathaway was the most prominent shareholder in Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, holding 915.6 million shares in the company.
Apple Inc. (NASDAQ:AAPL) is a big tech company based in Cupertino, California. It manufactures iPhones, Macs, iPads, AirPods, Apple Watches, and more.
On August 4, Michael Walkley, an analyst at Canaccord Genuity, maintained a Buy rating on shares of Apple Inc. (NASDAQ:AAPL). The analyst also raised his price target on the stock from $185 to $205.
Apple Inc. (NASDAQ:AAPL) was spotted in the 13F holdings of 135 hedge funds during the second quarter, with a total stake value of $193.9 billion.
6. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Returns Since March 16: 16%
Microsoft Corporation (NASDAQ:MSFT) is another big tech company on our list of ChatGPT-recommended stocks. The company develops and supports software, services, devices, and solutions globally. It is based in Redmond, Washington.
A total of 300 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) in the second quarter. Their total stake value in the company was $69.8 billion.
Alex Haissl, an analyst at Redburn Partners, maintains a Buy rating on shares of Microsoft Corporation (NASDAQ:MSFT) as of August 11. The analyst also placed a price target of $440 on the stock.
Bill & Melinda Gates Foundation Trust was the largest shareholder in Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter, holding 39.3 million shares in the company.
Third Point Management made the following comments about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:
“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”
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Disclosure: None. 10 Stocks ChatGPT Said Will Make Me Rich in 10 Years is originally published on Insider Monkey.
