With the second quarter of 2024 earnings season heating up, investors are awaiting companies’ financial reports, as these metrics will likely influence their respective stock performances.
Companies in the artificial intelligence (AI) space are among the most closely followed during this season. Notably, AI-affiliated firms have been stock market leaders in recent months.
To gather insights regarding stocks investors should consider after the earnings season, Finbold turned to OpenAI’s ChatGPT-4o. The AI tool recommended a portfolio of four key companies.
Picks for you
Nvidia (NASDAQ: NVDA)
The AI tool’s first pick is semiconductor giant Nvidia (NASDAQ: NVDA), which it acknowledged as having firmly established itself as a leader in AI technology, particularly in the chips and GPUs. The company reported a staggering 262% year-over-year increase in Q1 2024 revenue, reaching $26 billion, and aims for $28 billion in Q2.
According to ChatGPT-4o, with Nvidia transitioning its revenue focus from gaming to data centers, the company is riding the wave of high demand for AI GPUs. With plans to release AI chips annually, Nvidia’s Blackwell platform has shown strong momentum, reinforcing its market leadership.
Notably, Blackwell is an architecture designed for data-center computing applications and gaming and workstation applications with dedicated dies for each purpose.
In the meantime, Nvidia continues to face bearish conditions in the short term. By the close of markets on July 29, NVDA was valued at $111, with a 24-hour drop of over 1%.
Palantir Technologies (NYSE: PLTR)
ChatGPT-4o selected Palantir Technologies (NYSE: PLTR) as the second option for the portfolio, noting that the company is a key player in big data analytics, using AI to broaden its client base and enhance its offerings.
Notably, the company experienced a 69% increase in commercial client count and a 40% year-over-year jump in commercial revenue in Q1 2024. Palantir’s growth spans both government and commercial sectors, showcasing robust performance.
Collaborations with Starlab Space and Voyager Space demonstrate Palantir’s innovative application of AI across various industries. By press time, Palantir was trading at $27, reflecting 24-hour losses of less than 0.5%. However, in 2024, the stock is up over 60%.
Microsoft (NASDAQ: MSFT)
According to ChatGPT-4o, Microsoft (NASDAQ: MSFT) is a must-have option for the portfolio, noting that the company continues to seamlessly integrate AI into its extensive product range, ensuring sustained growth and market leadership.
The AI platform noted that Microsoft consistently surpasses earnings expectations, driven by its cloud computing and AI-enhanced products. Introducing AI-enhanced products like Copilot Plus PCs and Surface laptops highlights Microsoft’s commitment to AI innovation.
As one of the largest companies by market cap, ChatGPT-4o stated that Microsoft remains a stable and lucrative investment with a broad market presence. As things stand, MSFT is trading at $426, having made slight gains of about 0.3% in 24 hours.
Amazon (NASDAQ: AMZN)
The last recommendation for the portfolio is Amazon (NASDAQ: AMZN). The AI tool stated that Amazon’s cloud computing division, Amazon Web Services (AWS), is a major contributor to its revenue, bolstered by AI advancements.
It’s worth noting that Amazon reported a 13% increase in Q1 2024 net sales, totaling $143.3 billion, with an operating income of $10.4 billion. Amazon’s diverse revenue streams, including e-commerce, AWS, advertising, and subscriptions, ensure steady growth.
AWS’s ongoing growth and Amazon’s overall innovation in AI-driven services position it as a resilient stock in the AI sector.
By the last market close, AMZN was trading at $183, having made slight gains of about 0.4% in a day.
Overall, ChatGPT-4o noted that the AI stock portfolio is designed to capitalize on the transformative potential of the technology. With these strategic picks, the portfolio aims to deliver robust returns, reflecting the evolving landscape of artificial intelligence.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
