As it turned out, by the end of the first half of 2024, going all-in on stocks like Nvidia (NASDAQ: NVDA), Super Micro Computer (NASDAQ: SMCI), or even MicroStrategy (NASDAQ: MSTR) would have provided the keys to immense wealth.
Though the very same companies continue showing strength and holding promise, the situation in the other half of the year may not be so straightforward, and given the feverish rise many big tech firms have experienced in the stock market, a completely different allocation may be needed to maximize the returns.
Hoping to discover how a savvy investor could make the most in the 2024 stock market and how they might maximize their profits for the end of the year, Finbold asked the most advanced model of OpenAI’s leading artificial intelligence (AI) platform – ChatGPT-4o – to help and build a $1,000 stock portfolio for the end of the year.
Picks for you
ChatGPT’s biggest proposed holdings
Unsurprisingly, given the company’s growth in the last 18 months, the biggest holding in ChatGPT’s portfolio, seeing $200 allocated to it, would be Nvidia. According to the AI, the semiconductor giant’s ‘strong performance in the first half of 2024 is expected to continue as AI adoption grows.’
ChatGPT would also invest $150 in Microsoft (NASDAQ: MSFT) as the large language model (LLM) states the company is ‘another beneficiary of the AI surge, with its investments in AI and cloud computing driving growth. It remains a solid pick.’
ChatGPT would invest $100 each in these companies
The AI also selected eight companies in which it would invest $100. The first among these is Adobe (NASDAQ: ADBE), and it was chosen due to a combination of its ‘strong performance and growth potential.’
ChatGPT would also buy $100 worth of Illumina (NASDAQ: ILMN) shares as it ‘is poised for growth with its leading position in genetic sequencing’ and the same amount of Schlumberger (NYSE: SLB) stock given ‘its leadership in oilfield services.’
According to the AI, SLB’s underperformance isn’t a particularly great reason for concern, and there is a significant upside potential as oil prices stabilize.
Another stock that has underperformed recently but ChatGPT nonetheless considered a strong pick is PayPal (NASDAQ: PYPL). The LLM believes PYPL shares merit a $100 investment due to the firm’s ‘innovative payment solutions and the ongoing shift towards digital payments.’
Sealed Air (NYSE: SEE) would also be included in the portfolio as it ‘benefits from resilient economic activity’ and its ‘innovations in packaging solutions position it well for continued growth.’
Finally, ChatGPT would invest another $100 in Realty Income (NYSE: O) thanks to the ‘reliable dividends and resilience in rising interest rate environments.’
ChatGPT makes a defensive pick
The advanced AI also believes there is room in the portfolio for a ‘defensive’ pick and would, therefore, buy $50 worth of Kraft Heinz (NASDAQ: KHC) shares.
The company is a strong pick due to multiple factors, including brand recognition, stability, and consistent performance.
ChatGPT general consideration for the portfolio
Along with selecting individual stocks, ChatGPT provided some insights into why its outlook for the selected stocks is positive within their sectors. It, for example, singled out Nvidia, Microsoft, and Adobe for their expected ability to massively capitalize on the continuation of the AI boom.
On the other hand, stocks from some sectors, such as real estate and consumer, were selected primarily due to the reliability and stability they offer.
ChatGPT also explained that the entire portfolio was designed ‘to balance growth opportunities with stability, leveraging the strengths of different sectors based on the performance and outlook for the second half of 2024.’
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
