As we enter the tail end of 2024, which has been a great year for the markets, as the S&P 500 has rallied by 27.35% since the beginning of the year, one question lies on the minds of investors the world over — what do I invest in for next year?
While we are unfortunately not in possession of a crystal ball, there are several trends that have already become apparent — and there’s also the question of existing momentum to consider.
The last two years have been dominated by the narrative surrounding artificial intelligence (AI) — and the potential it holds to unlock new frontiers in efficiency and automation across more or less every sector of human economic activity.
Picks for you
But the market can be a fickle beast — macroeconomic conditions, geopolitical tensions, and a myriad of other factors could serve to cut the present bull run short — or reverse it completely.
For additional clarity, Finbold has decided to utilize OpenAI’s most advanced publicly available large language model — ChatGPT-4o, to determine which five stocks currently have the most appealing growth prospects as we draw closer to the end of 2024.
Of the five stocks the AI model picked, two are quite high-profile — but you might be surprised by the other three.
1. Microsoft (NASDAQ: MSFT)
The brainchild of Bill Gates, Microsoft (NASDAQ: MSFT) has been a tech titan for decades. While it’s easy to dismiss it out of hand, the company’s glory days are far from over, as demonstrated by even the most cursory glance at a long-term Microsoft stock price chart.
On a year-to-date (YTD) basis, MSFT stock has seen prices increase by 18.46% — although it is trading just 6.2% lower than its yearly and all-time high price of $467, the valuation remains reasonable.
One of Microsoft’s key revenue drivers, Azure, is growing at an impressive pace, as witnessed by the company’s latest earnings report. At the same time, an almost prescient partnership with OpenAI has ensured that the business is well-positioned to take advantage of advancements in artificial intelligence.
In general, GPT considers MSFT stock a solid pick on account of its ability to weather various market conditions while simultaneously securing decent revenue growth and exposure to disruptive technologies.
2. Meta Platforms (NASDAQ: META)
The parent company of Facebook and Instagram, Meta Platforms (NASDAQ: META) is one of the companies with the largest footprint in the history of tech — perhaps even wider. As the business was the herald of the age of social media, Meta stock has secured stellar returns ever since its 2012 initial public offering (IPO).
However, it hasn’t always been exactly smooth sailing — from August of 2021 until the beginning of 2023, Meta shares were in an extended downtrend, shedding as much as 75.11% of their value at low points. The company appeared stagnant and inefficient — and its huge investments in the Metaverse seemed like a bottomless pit at times.
Since then, a wide-ranging cost-cutting program announced in 2023, increasing advertising revenue, and strategic investments in artificial intelligence have ensured a return to form for the company — at press time, at a price of $607.75 per Meta share, YTD returns stood at 75.50%.
OpenAI’s large language model selected Meta on account of its newly lean structure and dominance in online advertising, which it considers as factors that make it primed for a solid performance in 2025.
3. Royalty Pharma (NASDAQ: RPRX)
In its first departure from big tech, OpenAI’s model selected Royalty Pharma (NASDAQ: RPRX) — a biotech/pharmaceutical company with quite a unique business model. As you may well know, the research and development that goes into new drugs comes at a steep cost — smaller ventures and research teams can rarely afford the $1.3 billion average cost of developing a new drug.
That’s where Royalty Pharma steps in — in exchange for financing late-stage research, the business acquires royalty rights on any eventual sales. Through this model, RPRX stock offers exposure to potential biotech breakthroughs without the risks that are usually involved.
However, the AI model did note how volatile the stock is — in 2024, Royalty Pharma stock notched a 10.75% loss. ChatGPT selected the stock on account of its balanced risk-reward profile —opining that, at a trailing price-to-earnings (PE) ratio of 9.8 and a forward PE ratio of 5.6, RPRX shares represent an appealing biotech value play.
4. ASML Holding NV (NASDAQ: ASML)
Our fourth entry, ASML Holding NV (NASDAQ: ASML) is a Dutch semiconductor company — but unlike most stocks in the sector, it isn’t involved in the design or manufacturing of advanced chips — at least not directly. ASML manufactures advanced lithography equipment — machines used to then make chips.
At present, the most advanced chips in the world are made utilizing extreme ultraviolet lithography — and ASML is the only company in the world that can make the machines necessary to execute that process. This gives it an entirely unique edge — a virtual monopoly on equipment that is crucial for the ongoing artificial intelligence transformation.
Over the course of 2024, the price of ASLM stock has decreased by 0.93% — the company’s valuation remains quite reasonable, especially when you factor in its growth prospects. However, ChatGPT did caution that this pick is best suited to investors who have a long time horizon.
5. Bunge Global SA (NYSE: BG)
The final pick made by ChatGPT, Bunge Global SA (NYSE: BG) is a food company focused on processing oilseeds and grains. Bunge produces a variety of crucial items — from simple plant-based oils and fats for human consumption to biofuels and animal feed.
Since the start of the year, BG stock prices have decreased by 22.07% — ChatGPT picked it as a value play based on two crucial catalysts.
Firstly, the company sold a 50% stake in its biofuel business for $800 million in a bid to focus on its core competencies. Secondly, the agribusiness is slated to merge with Viterra in a $34 billion deal, creating one of the largest agricultural companies in the world.
Featured image via Shutterstock
