Yahoo Finance ChatGPT Stock Predictions: 10 Stocks That Have 10X Potential
In this article, we will take a detailed look at ChatGPT Stock Predictions: 10 Stocks That Have 10X Potential. For a quick overview of such stocks, read our article ChatGPT Stock Predictions: 5 Stocks That Have 10X Potential.
From taking customer service calls to composing music, AI has already started showing its prowess and impact all over the world. But can AI help investors in spotting potential multibaggers? Several reports show that hedge funds, venture capitalists and wise investors are using AI to their advantage. For example, California-based venture capital firm Sierra Ventures developed an AI software which would help the firm decide whether to invest in a startup. Talking to The Wall Street Journal, the firm's Managing Partner Mark Fernandes said that analysis from this software caused him pay attention to a promising startup that he would have otherwise ignored.
"If you think about the volume of deals coming in, I would’ve missed that," Fernandes said.
How Can AI Help Investors and Professional Stock Pickers?
Mike Wilson, Chief U.S. Equity Strategist & Chief Investment Officer at Morgan Stanley, talked to Bloomberg about the impact of AI on businesses and his broader view on the economy. Wilson said that we are still in the early days of AI when it comes to the business world. He said that the "real opportunity" would be when AI is "diffused" to the economy and companies begin to adapt to AI technologies. Wilson said so far the role of AI has been of an assistant rather than an enabler. But the power of AI in the investing world is fast becoming decisive as the technology helps companies make decisions potentially worth billions of dollars.
In the investing world, AI has been in action in some form over the past several years, as quant funds and high-performance trading firms rigorously used machine learning for sentiment analysis, finding patterns in stocks and predicting market movements. A research paper titled Artificial Intelligence applied to Stock Market Trading: A Review mentions several studies and academic researches describing the importance of using AI, machine learning and data-based predictive analysis in stock investing. For example, the research mentions a paper which analyzed stock returns when a data mining approach is incorporated where thousands of press releases from companies trading on NYSE and NSADAQ indices were processed. The data-based analysis divided all press relapses in three categories: "Good News," "Bad News," and "No Movers" (for neutral news). The paper found out that good news result in significant stock jumps, while bad news cause stock dips. When this sentiment analysis is practiced, "results show a recall of approximately 60% and a better cumulative return and average return per trade than the random trader in a stock market simulation." That's why in a world where data and AI-based analysis is the future, leaving everything to macro movements and randomness won't take an average investor far.
AI-based Sentiment Analysis on Stocks
The research paper also analyzed another study in which it pulled about 300,000 posts about Apple stock from investing-focused social media platform StockTwits during 2010-2017. Algorithms were then applied to perform sentiment analysis and compare it with historical price movements during this entire period (stock price data was pulled from Yahoo Finance).
"For sentiment prediction, the achieved test accuracy was 63.5%, 75.3% recall, and 76.8% precision, and for stock movement prediction, the completed test accuracy was 76.68%, 100% recall, and 69.5% precision," the research said.
Performance and Returns of AI-Powered Funds and Indexes
Amplify Alternative Harvest ETF (NYSEARCA: MJ) is up 18% so far this year, compared to the S&P 500 gain of just 4.5%. The fund, powered by IBM Watson platform, uses sentiment analysis, machine learning and quantum computing to process 10 years of historical data, millions of news articles and data points to analyze securities. Eurekahedge AI Hedge Fund Index, an equally weighted index of 11 constituent funds using artificial intelligence and machine learning theory in their trading processes, is up 3.9% in 2024.
Methodology
For this article we asked ChatGPT to recommend stocks, based on the data as of its knowledge cutoff date, that have the potential to grow 10X in the next few years. Here is our exact prompt:
"Wear the hat of a stock trader and financial expert and recommend stocks based on your knowledge that have the potential to 10X in the next few years."
As expected, ChatGPT first gave fair warnings that investing in stocks have risks and no one could say with certainty which stocks would grow ten times their current value in the future. But ChatGPT recommended 15 stocks based on "historical trends" and the "market landscape" from various sectors which have "substantial" potential over the next few years. We have sorted these stocks based on the number of hedge fund investors as of the end of 2023. Some top names in the list include Alphabet Inc (NASDAQ:GOOG), Nvidia Corp (NASDAQ:NVDA) and Palantir Technologies Inc (NYSE:PLTR).
Don't Miss: ChatGPT's Recent Stock Recommendations
10. Nano-X Imaging Ltd. (NASDAQ:NNOX)
Number of Hedge Fund Investors: 10
Medical imaging systems company Nano-X Imaging Ltd. (NASDAQ:NNOX) makes commercial-grade tomographic imaging device with a digital X-ray source. ChatGPT believes Nano-X Imaging Ltd. (NASDAQ:NNOX) has the potential to "disrupt" the healthcare industry with its technology.
So far this year the stock has gained about 41%. Most of these gains came when Nvidia disclosed a $379,000 stake in Nano-X Imaging Ltd. (NASDAQ:NNOX) earlier this year.
9. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Investors: 26
Gene editing platform company CRISPR Therapeutics AG (NASDAQ:CRSP) ranks ninth in our list of the stocks that have 10X potential according to ChatGPT. The chatbot said CRISPR technology has "revolutionary potential" in the gene editing space and since CRISPR Therapeutics AG (NASDAQ:CRSP) is at the "forefront" of this domain, the stock is promising.
Of the 933 funds tracked by Insider Monkey, 26 hedge funds reported having stakes in CRISPR Therapeutics AG (NASDAQ:CRSP). The biggest stake in CRISPR Therapeutics AG (NASDAQ:CRSP) is owned by Catherine D. Wood' s ARK Investment Management which owns a $534 million stake in CRISPR Therapeutics AG (NASDAQ:CRSP).
In addition to CRSP, ChatGPT and hedge funds also like Alphabet Inc (NASDAQ:GOOG), Nvidia Corp (NASDAQ:NVDA) and Palantir Technologies Inc (NYSE:PLTR).
8. Teladoc Health Inc (NYSE:TDOC)
Number of Hedge Fund Investors: 27
ChatGPT said since telemedicine has experienced "exponential growth," Teladoc Health Inc (NYSE:TDOC), which according to the chatbot is a "leader" in the industry, could enjoy huge gains in the future amid expansion of virtual healthcare services. The stock has, however, lost about 37% so far this year.
Insider Monkey's database of 933 hedge funds shows that 27 hedge funds reported owning stakes in Teladoc Health Inc (NYSE:TDOC) as of the end of 2023.
7. Trade Desk Inc (NASDAQ:TTD)
Number of Hedge Fund Investors: 41
Digital advertising platform company Trade Desk Inc (NASDAQ:TTD) is one of the stocks with 10X potential according to ChatGPT stock predictions. Of the 933 hedge funds tracked by Insider Monkey, 41 hedge funds reported owning stakes in Trade Desk Inc (NASDAQ:TTD). ChatGPT believes the stock could see "substantial" growth in the future on back of the rise in ad spending.
ChatGPT is also bullish on Alphabet Inc (NASDAQ:GOOG), Nvidia Corp (NASDAQ:NVDA) and Palantir Technologies Inc (NYSE:PLTR).
ClearBridge Select Strategy stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its fourth quarter 2023 investor letter:
“We have chosen to source a significant number of ideas among companies earlier in their business lifecycle by focusing on four secular growth themes: data and analytics, onshoring/reshoring, information security and e-commerce. In addition to Microsoft, three of the four other new positions we initiated during the quarter fit within these focus areas: The Trade Desk, Inc. (NASDAQ:TTD), Monolithic Power Systems and Model N.
Trade Desk, in the communication services sector, is a disruptor in the advertising technology market, operating a cloud-based platform that enables buyers to manage their digital advertising campaigns. We added the shares on a pullback due to recessionary fears and ad buyer cautiousness.”
6. Unity Technologies (NYSE:U)
Number of Hedge Fund Investors: 38
Unity Technologies (NYSE:U) ranks sixth in our list of the stocks with 10X potential according to ChatGPT. The AI chatbot believes Unity Technologies (NYSE:U) is "well-positioned" to benefit from the demand of immersive experience in gaming and film industries. Unity Technologies (NYSE:U) is having a bad time this year, with the stock falling about 37% so far. In February, Piper Sandler had upgraded the stock to Neutral from Underweight.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding Unity Software Inc. (NYSE:U):
“We also sold Unity Software Inc. (NYSE:U), a select growth name purchased in early 2022 to participate in the growth of the global video game market, as our thesis no longer remains valid. Via M&A, Unity has diversified away from its game engine subscription business into the less differentiated advertising segment and most recently saw negative customer reaction to price increases, calling into question the offering’s pricing power.”
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Disclosure. None ChatGPT Stock Predictions: 10 Stocks That Have 10X Potential was initially published on Insider Monkey.
