This article presents an overview of the 5 Stocks That Will Make You Rich in 5 Years According to ChatGPT. For a detailed overview of such stocks, read our article, 15 Stocks That Will Make You Rich in 5 Years According to ChatGPT.
5. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 134
ChatGPT believes Apple Inc’s (NASDAQ:AAPL) ecosystem of apps and services, along with Apple Inc’s (NASDAQ:AAPL) “focus on innovation,” make the stock worth buying to get rich in the next five years.
Earlier in December, Morgan Stanley released a list of stocks with high growth and low volume. Morgan Stanley has rated these stocks as Overweight. Apple Inc (NASDAQ:AAPL) made it to the list.
Dan Ives of Wedbush recently said Apple Inc (NASDAQ:AAPL) could hit $4 trillion market cap in 2024.
Hayden Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its third 2023 investor letter:
“Even Berkshire Hathaway’s most famous investment of the last decade – Apple Inc. (NASDAQ:AAPL) – was based on a similar set up. When Berkshire invested in 2016, Apple’s subscription revenues were just starting to cross ~10% of total revenues. Today, that figure is ~25%.
While operating income has grown +90% from 2016 to 2023, the valuation multiple itself has expanded by ~300%, from ~6x EV/EBIT to ~24x EV/EBIT today.
Investors have evolved their perception of Apple’s products – from that of a “fad” hardware company at risk of competition, to that of a “consumer staple”, a necessary part of a household’s budget…” (Click here to read the full text)
4. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 180
Gaming and AI. These are the two growth catalysts for NVIDIA Corp (NASDAQ:NVDA) that make it a suitable stock to buy and hold to get rich in the next five years, according to ChatGPT.
NVIDIA Corp (NASDAQ:NVDA) shares have skyrocketed by 236% in 2023 through December 21.
Dawn Hudson, a director and 10% owner of NVIDIA Corp (NASDAQ:NVDA) shares, sold 1,000 shares on Dec. 15 for a price of $494.525, worth $492,525.
As of the end of the third quarter of 2023, 180 hedge funds tracked by Insider Monkey had stakes in NVIDIA Corp (NASDAQ:NVDA).
Blue Tower Asset Management made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“In addition to the use of larger datasets, the training speed of AI models has increased dramatically. NVIDIA Corporation (NASDAQ:NVDA)’s stock almost tripled in the first 3 quarters of this year with a 197% gain, and a large reason for this is the huge role they have played in recent AI improvements. Nvidia’s single GPU AI training speed performance has increased by a dramatic 1000x in 10 years with only 2.5x coming from Moore’s Law3 driven increases in chip density. Besides better chip manufacturing, there were three other improvement factors at play: simplifications in number representation for the weights of the neural networks, more complex mathematical instructions for reducing the computational overhead involved in mathematical calculations, and increased neuron sparsity (in neural networks, some neurons are useless and can be pruned from the network without reducing performance significantly). In addition to these single GPU improvements, Nvidia also made improvements in data center scale architecture that allows groups of GPUs to work more efficiently together.
It is noteworthy that the vast majority of the improvement came from hardware architectural and software data improvements, rather than transition density. These improvements were likely the low-hanging fruit of training speed improvements as researchers will eventually converge on an ideal architecture. The simplification of going from 32-bit to 8-bit floating point numbers for measuring weights is a one-time gain that can’t be repeated again. I expect the rate of improvement to slow down over the next ten years and eventually approach the levels of Moore’s Law improvements in chip efficiency. The historical trend for computer hardware is for it to eventually be commoditized, and I believe this will eventually occur for Nvidia’s GPUs as well.”
3. Alphabet Inc Class C (NASDAQ:GOOG)
Number of Hedge Fund Investors: 221
Several research reports from the ads industry show ad spending is picking up, driven by expectations that the much-feared recession might never materialize and the Fed would start cutting rates in 2024. As Alphabet Inc Class C (NASDAQ:GOOG) remains the leader in the ads and search industry, this development would help Alphabet Inc Class C (NASDAQ:GOOG). Google saw a 9.5% rise in ad revenue for the third quarter.
In addition to online search, ChatGPT said Alphabet Inc Class C (NASDAQ:GOOG) is a strong play due to AI and “potential growth” in Cloud.
Here is what White Brook Capital has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Alphabet Inc. (NASDAQ:GOOG), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
2. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Ecommerce giant Amazon.com Inc (NASDAQ:AMZN) ranks 2nd in our list of the best stocks to get rich over the next five years. Analysts at Citi recently chose Amazon.com Inc (NASDAQ:AMZN) as one of their top picks for 2024.
AWS recently released plans to invest over $17.9 billion in Canada to expand its infrastructure in the country through 2027.
Here is what White Brook Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Amazon.com, Inc. (NASDAQ:AMZN), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 306
Microsoft Corp’s (NASDAQ:MSFT) software and Cloud growth is what made ChatGPT choose the stock for its top picks in order to become rich in the next five years. One of the biggest growth catalysts for Microsoft Corp (NASDAQ:MSFT) is AI which is expected to reinvigorate its Bing search.
Hedge funds agree with ChatGPT. Microsoft Corp (NASDAQ:MSFT) was the most popular stock among the 910 elite hedge funds tracked by Insider Monkey.
Here is what White Brook Capital has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation (NASDAQ:MSFT), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
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