In late 2023, OpenAI’s ChatGPT provided an ideal portfolio for investors to consider at the start of 2024.
At the beginning of the year, the artificial intelligence (AI) tool recommended five stocks for investment: Microsoft, Zoom Video Communications (NASDAQ: ZM), Shopify (NYSE: SHOP), Nvidia (NASDAQ: NVDA), and Pfizer (NYSE: PFE).
As investors navigate the year’s midpoint, it’s time to evaluate how these stocks have performed year-to-date (YTD) and what a $1,000 investment in this portfolio would look like today.
Picks for you
Performance of the stocks
Microsoft has shown robust growth with a YTD gain of 25.72%. The company continues to benefit from its strong position in the AI scene, as well as its cloud computing and software services.
Conversely, Zoom Video Communications has faced challenges, resulting in a YTD loss of 16.99%. Despite an initial surge during the pandemic, maintaining growth and market share has been difficult for Zoom. Notably, the company’s sales growth slowed for the ninth straight quarter as it sought to adjust its business.
Shopify also struggled this year, reflecting broader challenges in the e-commerce sector, and posted a YTD loss of 8.79%.
In stark contrast, Nvidia stock has soared, boasting a YTD gain of 166.14%. Some gains have been attributed to the growth in the AI market, which saw Nvidia emerge as the world’s most valuable company with a market cap of over $3 trillion. This remarkable growth is largely due to the company’s leadership in AI and graphics processing units (GPUs).
Pfizer, however, has seen a decline, with a YTD loss of 6.05%, likely influenced by post-pandemic shifts in the pharmaceutical market.
The returns
Assuming an equal $200 investment in each stock at the start of the year, the returns are as follows: Microsoft’s initial $200 investment would now be worth $251.44, reflecting its 25.72% increase. Zoom’s value decreased to $166.02 due to its 16.99% loss. Shopify’s investment dropped to $182.42, and Pfizer’s fell to $187.90. NVIDIA stands out with its initial $200 investment now valued at $532.28, thanks to its 166.14% gain.
Combining these, the total initial investment of $1,000 has grown to approximately $1,320.06. This represents a 32.01% return YTD, significantly outperforming many benchmarks and demonstrating the potential benefits of a diversified investment strategy.
While the portfolio has seen both winners and losers, the substantial gains from Nvidia have more than compensated for the losses in other stocks. The performance of the gainers highlights the significant impact of the AI wave on the overall stock market.
It is worth noting that past performance does not indicate future results, and it will be interesting to monitor how these equities fare over a full-year timeline.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
