On August 28, Andrew Slimmon, a senior portfolio manager at Morgan Stanley, said in an interview with CNBC that the future for stocks is looking “very bright”.
Indeed, the U.S. stock market reached its most expensive valuation ever this summer, the NASDAQ Composite surging over 40% in the span of about four months, driven largely by new technologies such as generative artificial intelligence (AI).
To see what sectors are likely to continue delivering next year as well, we consulted OpenAI’s ChatGPT about 5 stocks to hold through 2026.
1. Microsoft (MSFT)
ChatGPT’s first pick was Microsoft (NASDAQ: MSFT). The chatbot acknowledged the company’s position in cloud computing, singling out Azure and its integrated AI capabilities across its suite of products.
In addition to enterprise software, ChatGPT noted business partnerships and investments in OpenAI, which have helped make Microsoft a frontrunner in monetizing artificial intelligence among institutional and retail users.
Moreover, the tech giant boasts a strong balance sheet, recurring subscription revenue, and a history of dividends, which contribute to its appeal as a long-term investment.
2. Alphabet (GOOGL)
Alphabet (NASDAQ: GOOGL) was the second pick. The company has a virtual monopoly in digital advertising, search, and cloud services, and much like Microsoft, it has invested heavily in AI.
The firm’s other ventures include Waymo (self-driving cars), DeepMind (healthcare), and various quantum computing projects.
With AI-powered search and new ad formats across Google, YouTube, and Android platforms, ChatGPT suggests, Alphabet’s ad business could expand significantly, potentially rivaling Microsoft.
3. Tesla (TSLA)
Tesla (NASDAQ: TSLA), Elon Musk’s golden goose, continues to lead in electric vehicles (EV) with expanding production capacity and advancements in autonomous driving technology.
Accordingly, the automaker is well-positioned to capitalize not only on the growing demand for EVs but sustainable energy solutions as well. What’s more, its Full Self-Driving (FSD) software, powering the recently launched robotaxi business, could see exponential growth as it finds uses outside its current sphere.
4. Nvidia (NVDA)
NASDAQ has been propelled by advancements in AI, and Nvidia (NASDAQ: NVDA) is the backbone of the industry, leading the semiconductor sector with its graphics processing units (GPUs) and data centers.
Besides AI, its technology is integral to advancements in professional visualization, ensuring strong demand for its products. ChatGPT projects that Nvidia will likely become even more entrenched and expand its portfolio to encompass more of automotive AI and edge computing, making it one of the most strategically critical tech suppliers in the world.
5. Amazon (AMZN)
Amazon (NASDAQ: AMZN) is still the dominating force in e-commerce, but its operations now include cloud computing as well through Amazon Computing Services (AWS).
Indeed, AWS is embedding AI across most of Amazon’s services, not only helping businesses deploy generative AI but enhancing the end-user’s shopping experience as well.
Likewise, its streaming (Prime Video, Twitch), advertising, and healthcare (One Medical, Amazon Pharmacy) ventures contribute to its high-margin growth, with ad revenue that could potentially rival YouTube in the future.
Featured image via Shutterstock
