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 NVIDIA Corporation (NASDAQ:NVDA) 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.
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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).
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is a US-based full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence, which has been a significant catalyst behind NVDA’s growth. Over the last five years, its share price has surged by over 2200%.
In 2024, the chipmaker was the biggest global gainer in market capitalization, with its market value increasing by more than $2 trillion to reach $3.28 trillion at the close of the year, up by over 170% from its market value at the end of 2023. The gains were driven by a growing interest in artificial intelligence and robust demand for its AI chips.
On November 20, NVIDIA Corporation (NASDAQ:NVDA) declared strong results for the third quarter of fiscal 2025. The quarterly revenue of $35.1 billion, was up 94% year-over-year, and 17% sequentially from Q2. This was also 8% above the company’s outlook of $32.5 billion. Non-GAAP diluted EPS was $0.81, beating expectations by six cents, and up 103% compared to a year ago.
Following the announcement of these results, several analysts raised their price targets for NVIDIA Corporation (NASDAQ:NVDA), citing various reasons, including the expected increase in global AI investments and the popularity of the stock among both institutional and individual investors. Wall Street analysts have a consensus Strong Buy rating for NVDA with an average share price upside potential of 14%.
Investor sentiment continues to improve as well. According to Insider Monkey’s database for Q3 2024, 193 hedge funds held a stake in the company, up from 179 at the end of Q2. Here is what Manole Capital Management had to say about the stock in its Q3 2024 investor letter:
As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.
Overall, NVDA ranks 6th 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.