We recently published a list of 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years. In this article, we are going to take a look at where Mastercard Incorporated (NYSE:MA) stands against other stocks ChatGPT predicts could make you wealthy in 10 years.
2024 was a stellar year for the US markets, driven by a strong performance in the technology sector. The broader market expanded by more than 23% during the year, marking two consecutive years of over 20% growth—something that had not happened in nearly three decades.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 10 Under-the-Radar Stocks with Massive Upside for 2025.
The stock market benefited from a resilient economy that avoided recession, declining interest rates, and waning inflation. Analysts are projecting continued growth in 2025 amid strong economic data and optimism about a business-friendly Trump administration returning to power.
In a note on December 30, Wedbush Securities analyst, Dan Ives, wrote that he expects a 25% surge in tech stocks as the new government focuses on slashing unnecessary regulations. On the other hand, Todd Rosenbluth, the head of research at VettaFi, anticipates that ETFs specializing in small-caps will make gains as investors broaden their market exposure with interest rates dropping.
While the general outlook for 2025 is encouraging, analysts are also cautious about the potential downsides of the new administration’s promised tariffs. Following his election victory, Trump has vowed to impose steep tariffs on imports from Canada, China, and Mexico, which could increase manufacturers’ costs. Ongoing geopolitical tensions in different parts of the world could also hurt the stock market.
Can ChatGPT predict the stock market?
A growing number of investors are turning to ChatGPT for stock suggestions. According to a 2023 survey, around 53% of the Millenials and 50% of Generation Z respondents had used the AI chatbot for investing advice. In contrast, older Americans were skeptical of the recommendations, with only 25% of the Baby Boomers saying they had used ChatGPT to buy stocks.
While most financial analysts question the reliability of ChatGPT for providing accurate and up-to-date information, Alejandro Lopez-Lira, a finance professor at the University of Florida, says that the chatbot may be able to predict stock movements. He used the platform to parse negative and positive headlines for stocks and predict returns for the following day. Lopez-Lira was surprised to find how good the results were.
Whether or not tools like ChatGPT are effective in recommending stocks and predicting their trajectory remains a debate. However, they can be useful for investors researching the companies they want to invest in or when looking up definitions of financial terms they are unfamiliar with.
Methodology
We prompted ChatGPT to predict 15 stocks that could make investors wealthy in 10 years and cite the reasons behind its analysis. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including market dominance, revenue and earnings growth, innovation, and industry growth potential.
For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A woman using a payment terminal at the checkout of a store showing payment products and solutions.
Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 131
Mastercard Incorporated (NYSE:MA) is an American payment card services company headquartered in Purchase, New York. It provides financial services to individual consumers, merchants, small and large businesses, and governments by facilitating electronic funds transfers.
The company has a robust network of digital and cross-border payments, facilitating transactions in over 150 currencies across more than 200 countries and territories. International tourism returning to pre-pandemic levels in 2024 and poised for further growth bodes well for Mastercard Incorporated (NYSE:MA)’s future outlook.
On October 31, the company announced results for the third quarter of fiscal 2024. Net revenues increased 14% from last year, while adjusted net income grew 13% year-over-year. The strong results were driven by healthy consumer spending, which included a cross-border volume growth of 17% compared to the same period last year. EPS for the quarter was $3.89, beating estimates of $3.74 per share.
Mastercard Incorporated (NYSE:MA) has also made two recent strategic acquisitions to expand into technology services, which has raised investor interest in the stock. In October 2024, it acquired Minna Technologies, a Swedish subscription management startup that makes it easier for users to manage their subscription plans. Later in the year in December, it enhanced its cybersecurity offerings with the $2.65 billion acquisition of Recorded Future, a global threat intelligence firm.
Wall Street analysts are bullish on Mastercard Incorporated (NYSE:MA) with a consensus Buy rating and an average share price upside potential of 8%.
Overall, MA ranks 15th on our list of stocks ChatGPT predicts could make you wealthy in 10 years. While we acknowledge the potential of technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
