By the conclusion of the first half of 2024, it became evident that investing heavily in stocks like Nvidia, Super Micro Computer, or even MicroStrategy would have resulted in substantial wealth. While these companies continue to demonstrate strength and promise, the situation in the second half of the year may not be as straightforward. Considering the exponential growth experienced by many prominent tech firms in the stock market, a different investment strategy may be necessary to maximize returns.
In an effort to uncover the most effective approach for investors in the 2024 stock market and optimize end-of-year profits, Finbold sought the assistance of OpenAI’s advanced artificial intelligence platform, ChatGPT-4o. They tasked the AI model with constructing a $1,000 stock portfolio for the year-end.
ChatGPT-4o’s Top Holdings:
Unsurprisingly, given its remarkable growth over the past 18 months, Nvidia emerged as the largest holding in ChatGPT-4o’s portfolio, with an allocation of $200. According to the AI, the semiconductor giant’s strong performance in the first half of 2024 is expected to continue due to the increasing adoption of AI.
Microsoft was another significant investment for ChatGPT-4o, with $150 allocated to the company. The AI model identified Microsoft as a beneficiary of the AI surge, as its investments in AI and cloud computing are driving growth. It remains a reliable choice.
ChatGPT-4o also selected eight companies in which it would invest $100 each. Adobe was chosen based on its strong performance and growth potential. Illumina, with its leading position in genetic sequencing, and Schlumberger, a leader in oilfield services, were also included in the portfolio. Despite Schlumberger’s recent underperformance, the AI believes there is considerable upside potential as oil prices stabilize.
PayPal, despite its recent underperformance, was considered a strong pick by ChatGPT-4o due to its innovative payment solutions and the ongoing shift towards digital payments. Sealed Air, benefiting from resilient economic activity and its packaging solutions innovations, was also included. Lastly, Realty Income, known for its reliable dividends and resilience in rising interest rate environments, received an investment of $100.
A Defensive Pick:
ChatGPT-4o also recognized the importance of including a defensive pick in the portfolio and thus allocated $50 to Kraft Heinz. The company was chosen for its brand recognition, stability, and consistent performance.
Additional Considerations:
Alongside the selection of individual stocks, ChatGPT-4o provided insights into why it held a positive outlook for these stocks within their respective sectors. It highlighted Nvidia, Microsoft, and Adobe for their potential to capitalize on the ongoing AI boom. Stocks from sectors such as real estate and consumer goods were chosen for their reliability and stability.
Overall, ChatGPT-4o designed the entire portfolio to balance growth opportunities with stability, leveraging the strengths of different sectors based on performance and outlook for the second half of 2024.
Disclaimer: The content of this article should not be considered investment advice. Investing always carries risks, and capital is at risk.
