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Here’s how a ChatGPT 2.0 Portfolio picks its winning stocks

Here's how a ChatGPT 2.0 Portfolio picks its winning stocks

Earlier this month, the financial world witnessed the launch of the ‘GPT 2.0 Portfolio,’ a unique stock portfolio that relies solely on recommendations generated by ChatGPT, the AI-powered language model developed by OpenAI.

This innovative iteration comes on the heels of its predecessor, ‘The GPT Portfolio,’ and features a carefully curated selection of 15 stocks. As unveiled in our previous report, over 40,000 individuals have already committed $35 million to this AI-driven venture. 

The secret behind its investment choices lies in a sophisticated AI-driven scoring system, which evaluates a myriad of economic and company-specific factors. As an added layer of dynamism, GPT revisits and reevaluates this analysis at the end of each month, and selects a fresh set of 15 stocks.

Today, we delve into the rationale behind some of The GPT 2.0 Portfolio’s highest-rated stocks, notably United Health Group (NYSE: UNH), Regeneron (NASDAQ: REGN), and Qualcomm (NASDAQ: QCOM), shedding light on the AI’s decision-making prowess.

GPT 2.0’s current 15 stock holdings. Source: The GPT Portfolio Twitter

United Health Group (NYSE: UNH)

One of GPT’s top-rated portfolio picks is United Health Group, a US healthcare and insurance company with a market capitalization of more than $455 billion. 

The stock scored 85 in GPT’s grading system, with the AI bot seeing the company as “a strong investment opportunity given the current economic climate.”

ChatGPT also noted significant resilience and potential growth in the broader healthcare sector, alongside United Health’s robust financials such as a forward price-earnings (P/E) ratio of 21.52 and a trailing P/E of 21.52, indicating a reasonable company valuation. 

“The company also offers a dividend yield of 1.47%, adding to its attractiveness for investors seeking income. However, the ongoing war in Ukraine and potential supply chain disruptions, as well as the broader economic uncertainty, warrant a degree of caution.”

– The GPT Portfolio said in the Twitter post.

The stock was trading at $492.13 at press time, up 2.4% on the day. On the monthly and year-to-date charts, UNH is down 1.1% and 5%, respectively.

UNH 1-month price chart. Source: Finbold

Regeneron (NASDAQ: REGN)

Another high-scoring stock handpicked by GPT is Regeneron, a biotechnology company specializing in rare diseases and gene therapy. Like UNH, REGN also registered 85/100 in GPT’s scoring system.

As for the reasoning behind its decision to choose it, the AI tool highlighted Regeneron’s strong financials, particularly the 90.4 billion market cap and a P/E ratio of 21.89, suggesting a reasonable valuation. 

“Furthermore, the company’s involvement in AI in healthcare, a sector expected to see significant growth, adds to its investment appeal. However, the ongoing war in Ukraine and potential supply chain disruptions could pose some risks.”

Regeneron, which GPT sees as “a growth stock with potential for further upward movement, was sitting at $831.6, down 0.6% on the day, 1.5% in the past month, while gaining over 15% year-to-date.

REGN 1-month price chart. Source: Finbold

Qualcomm (NASDAQ: QCOM)

Number three on GPT’s list is Qualcomm, one of the biggest semiconductor manufacturers in the world. 

The stock made its way into the AI-based portfolio thanks to several reasons, including the company’s recent deal with Apple to extend their 5G chip supply agreement until 2026, which GPT believes “provides a significant boost to the company’s outlook.”

“Furthermore, Qualcomm’s expansion into AI, AR/VR, and automotive chips shows promising diversification efforts. The company’s financials are also strong, with a low P/E ratio and a healthy dividend yield.”

– The GPT Portfolio added.

As with its previous picks, there are some downside risks that could weigh on QCOM’s stock market performance, including the ongoing geopolitical turmoil, possible supply chain constraints, and Qualcomm’s issues in China. 

The chipmaker’s share price was sitting at $109.22 at the time of writing, down 1.3% on the day. QCOM price is almost unchanged in the past 30 days, although it is up around 1.9% since the start of the year.

QCOM 1-month price chart. Source: Finbold

Apart from those three, other well-known stocks included in GPT 2.0’s portfolio are Salesforce (NYSE: CRM), Exxon Mobil (NYSE: XOM), Adobe (NASDAQ: ADBE), Oracle (NYSE: ORCL), and Visa (NYSE: V), among others. 

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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.

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