In this article, we will be taking a look at the 10 stocks ChatGPT said will make me rich in 10 years.

Using Artificial Intelligence To Invest

The markets have been talking about artificial intelligence, particularly generative AI, all year. Companies across a wide range of industries and sectors are attempting to introduce their own AI-driven products and services so as not to be left in the dust by their competitors. At the same time, every investor is trying to get into the artificial intelligence trade today. Individual investors and hedge funds alike are putting their manpower into picking out the best AI stocks for the rest of the year as we head into the second half of 2023. Interestingly enough, at this point, it’s not just manpower that’s going into picking stocks. Some investors and hedge funds are actually trying to harness the power of AI to pick stocks instead of leaving the job to human beings. This trend really gets you thinking about how successful an AI software might be at helping an investor build up their portfolio. Is it a strategy that might lead to mind-blowing results or one that will lead you to ruin?

On August 3, CNBC invited Todd Rosenbluth, the head of research at VettaFi, to talk about just this. CNBC’s Bob Pisani noted that AI-driven exchange-traded funds (ETFs) have been around for a while and are starting to come up more this year. Pisani thus invited Rosenbluth to share some of his insights on these ETFs and how effective they are. According to Rosenbluth, a lot more AI-driven ETFs have been working on picking stocks recently. Here’s what he had to say about this development:

“It’s perhaps a smarter way of picking stocks. I know that computers can be smarter than I know I am, [it’s] whether or not they’re going to be better at outperforming the broader S&P 500. There’s no emotion behind it.”

Is Generative AI Really Helpful For Investors?

The discussion surrounding artificial intelligence, in general, and in the world of investing, has been extremely interesting because of the immense potential of this technology when it comes to changing the way people live, work, and even invest. It makes you wonder how not only AI-driven ETFs but also AI chatbots can contribute to the investing world today. This May, CNN reported that a dummy portfolio of 38 stocks recommended by OpenAI’s viral chatbot, ChatGPT, actually managed to outperform major investment funds in the United Kingdom, for instance. This portfolio managed to gain about 4.9% between March 6 and April 28, while the 10 leading investment funds of the country reported an average loss of about 0.8%. During the same period, the S&P 500 rose by 3%. The result of this experiment is merely one example of the sheer potential vested in artificial intelligence when it comes to investing.

Our Stock-Picking Experiment with ChatGPT

Considering these developments, we also attempted to get a list of stocks from ChatGPT this March. We first prompted the AI chatbot to present itself as a professional investment advisor and then asked it to present a list of 10 stocks it thinks will make us rich in the next 10 years. ChatGPT then proceeded to give us a diversified list of stocks, ranging from tech names and consumer staples to financials and healthcare. Some of the most notable names on its list included Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), all big names in the tech and AI sectors this year.

Today we will be revisiting this list of stocks to see how each of these companies has performed over the period between March and August and check if ChatGPT really was right in recommending these names. By doing this, we will see if these really can be considered stocks that will make you rich in 2023 and beyond.

Our Methodology

In March 2023 we asked ChatGPT to act like an expert stock picker and recommend some stocks that could make us rich in 10 years. To be specific, we asked the chatbot, “Which stocks will make me rich in 10 years?” In this article, we calculated the returns of these stocks from the date of our previous article’s publication, March 16, to August 16. We then ranked these stocks based on these calculated returns, from the lowest to the highest. Hedge fund information from Insider Monkey’s second-quarter data is also mentioned for these companies.

Stocks ChatGPT Said Will Make Me Rich in 10 Years

10. Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 74

Returns Since March 16: 8%

Procter & Gamble Company (NYSE:PG) is a consumer staples company based in Cincinnati, Ohio. It provides branded consumer packaged goods such as conditioners, shampoos, deodorants, and skin care products under various brands. The company’s brands include Pantene, Olay, and Head & Shoulders, among more.

An Overweight rating was reiterated on shares of Procter & Gamble Company (NYSE:PG) on August 1 by Dara Mohsenian, an analyst at Morgan Stanley. The analyst also maintains a price target of $174 on the stock.

We saw 74 hedge funds holding stakes in Procter & Gamble Company (NYSE:PG) at the end of the second quarter. Their total stake value in the company was $5.3 billion.

Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), Procter & Gamble Company (NYSE:PG) was a ChatGPT-recommended stock that has gone up over the past five months.

9. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 171

Returns Since March 16: 10.6%

James Faucette, an analyst at Morgan Stanley, maintains an Overweight rating on shares of Visa Inc. (NYSE:V) as of July 26. The analyst also raised his price target on the stock from $290 to $292.

Visa Inc. (NYSE:V) is a financial company operating as a payments technology provider across the globe. It is based in San Francisco, California. The company operates VisaNet, a transaction processing network, to offer authorization, clearing, and settlement of payment transaction services.

There were 171 hedge funds holding stakes in  Visa Inc. (NYSE:V) in the second quarter, with a total stake value of $24.9 billion.

At the end of the second quarter, TCI Fund Management was the largest shareholder in Visa Inc. (NYSE:V), holding 17.8 million shares in the company.

8. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Returns Since March 16: 11.7%

Our hedge fund data for the second quarter shows 88 hedge funds holding stakes in Johnson & Johnson (NYSE:JNJ). Their total stake value in the company was $4.1 billion.

Johnson & Johnson (NYSE:JNJ) is a healthcare and pharmaceutical company based in New Brunswick, New Jersey. The company researches, develops, manufactures, and sells pharmaceutical products, including health and beauty products, globally.

As of July 31, Louise Chen, an analyst at Cantor Fitzgerald, holds an Overweight rating on shares of Johnson & Johnson (NYSE:JNJ). The analyst also maintains a price target of $215 on the shares.

Like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), Johnson & Johnson (NYSE:JNJ) is a ChatGPT-recommended stock that is highly popular among hedge funds today.

7. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Returns Since March 16: 15.4%

Berkshire Hathaway was the most prominent shareholder in Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, holding 915.6 million shares in the company.

Apple Inc. (NASDAQ:AAPL) is a big tech company based in Cupertino, California. It manufactures iPhones, Macs, iPads, AirPods, Apple Watches, and more.

On August 4, Michael Walkley, an analyst at Canaccord Genuity, maintained a Buy rating on shares of Apple Inc. (NASDAQ:AAPL). The analyst also raised his price target on the stock from $185 to $205.

Apple Inc. (NASDAQ:AAPL) was spotted in the 13F holdings of 135 hedge funds during the second quarter, with a total stake value of $193.9 billion.

6. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Returns Since March 16: 16%

Microsoft Corporation (NASDAQ:MSFT) is another big tech company on our list of ChatGPT-recommended stocks. The company develops and supports software, services, devices, and solutions globally. It is based in Redmond, Washington.

A total of 300 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) in the second quarter. Their total stake value in the company was $69.8 billion.

Alex Haissl, an analyst at Redburn Partners, maintains a Buy rating on shares of Microsoft Corporation (NASDAQ:MSFT) as of August 11. The analyst also placed a price target of $440 on the stock.

Bill & Melinda Gates Foundation Trust was the largest shareholder in Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter, holding 39.3 million shares in the company.

Third Point Management made the following comments about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:

“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”

5. Berkshire Hathaway Inc. (NYSE:BRK.A)

Number of Hedge Fund Holders: 109

Returns Since March 16: 19.8%

Berkshire Hathaway Inc. (NYSE:BRK.A) is a financial company operating in the insurance, utility, and freight rail transportation businesses.

UBS analyst Brian Meredith maintains a Buy rating and a $621,591 price target on Berkshire Hathaway Inc. (NYSE:BRK.A) shares as of August 7.

In the second quarter, 109 hedge funds were long Berkshire Hathaway Inc. (NYSE:BRK.A), with a total stake value of $15.5 billion.

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

Returns Since March 16: 28.3%

Mark Mahaney at Evercore ISI maintains an Outperform rating and a $160 price target on Alphabet Inc. (NASDAQ:GOOGL) shares as of July 26.

Alphabet Inc. (NASDAQ:GOOGL) is another big tech company on our list. It offers Google products like the Android software, Google Chrome, Gmail, and more.

We saw 204 hedge funds long Alphabet Inc. (NASDAQ:GOOGL) in the second quarter, with a total stake value of $17.3 billion.

This is what Weitz Investment Management said about Alphabet Inc. (NASDAQ:GOOGL) in its second-quarter 2023 investor letter:

“The year-to-date’s top contributors Microsoft Corp. (MSFT) and Google parent Alphabet Inc. (NASDAQ:GOOG) (also a top quarterly contributor) have generated an enormous volume of AI-centric headlines. Both are at the vanguard of introducing AI-powered technologies into consumer-facing products, most notably their respective search engine. We trimmed several of the year’s winners on strength, including Meta, Microsoft, Alphabet, CoStar Group, Inc. (CSGP), and CarMax.”

3. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

Returns Since March 16: 35.01%

Amazon.com, Inc. (NASDAQ:AMZN) was seen in the portfolios of 278 hedge funds in the second quarter. Their total stake value was $34.9 billion.

Based in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) is an e-commerce and broad-line retail company. It engages in the retail sale of consumer products and subscriptions.

On August 11, Redburn Partners’ Alex Haissl maintained a Buy rating and a $230 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares.

VGI Partners Global Investments Limited said the following about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2023 investor letter:

“We continue to see upside to Amazon.com, Inc. (NASDAQ:AMZN)’s two core businesses – Amazon Web Services (AWS) and retail/ecommerce. Whilst Microsoft and ChatGPT have captured the imagination of investors looking for AI exposure, the AI business at AWS is extremely well positioned to increase sales through its combination of software infrastructure products, proprietary training and inference chips (an alternative to NVIDIA). AWS is also developing large language models which are only beginning to be appreciated by the investment community.

In addition, we see significant room for Amazon’s retail business to surprise to the upside through margin expansion. After a period of massive capacity expansion and transport infrastructure investment, Amazon has rationalised its North American retail footprint and we believe it will reap the margin benefit of this over the coming years.”

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

Returns Since March 16: 43.6%

Meta Platforms, Inc. (NASDAQ:META) is a communication services company. It is based in Menlo Park, California.

Meta Platforms, Inc. (NASDAQ:META) had 225 hedge funds long its stock in the second quarter, with a total stake value of $30.9 billion.

Joseph Bonner at Argus Research maintains a Buy rating and a $375 price target on Meta Platforms, Inc. (NASDAQ:META) shares as of August 1.

Here’s what Weitz Investment Management said about Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) shares more than doubled this year (and tripled off their November 2021 low) as management’s austerity measures bolstered profitability, and operating results demonstrated that Meta’s advertising business is regaining momentum. We trimmed several of the year’s winners on strength, including Meta, Microsoft, Alphabet, CoStar Group, Inc. (CSGP), and CarMax.”

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

Returns Since March 16: 70.3%

Raymond James analyst Chris Caso holds a Strong Buy rating and a $500 price target on NVIDIA Corporation (NASDAQ:NVDA) shares as of August 16.

In total, 175 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA) in the second quarter. Their total stake value was $25.9 billion.

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company, most notably known for its AI chips and their application in generative AI. It is based in Santa Clara, California.

Polen Capital said the following about NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) was the largest relative headwind to the Portfolio as we do not own this “AI darling.” NVIDIA shares rose more than 50% in the second quarter alone, following a 90% increase in the share price in the first quarter of 2023. NVIDIA supplies GPUs (graphics processing units), the preferred (often necessary) semiconductors for machine learning and AI. On their recent earnings call, NVIDIA management announced that they expect a significant increase in demand for the GPUs for datacenter customers beginning this quarter and lasting at least through the end of this year. NVIDIA’s datacenter business, which was almost non-existent from a revenue perspective eight years ago, is now the company’s largest and fastest-growing business.

We find NVIDIA’s competitive advantages to be quite large around its technology, but even more importantly around its full-stack solutions, including highly integrated hardware, software, and networking equipment and a robust developer ecosystem. It would be difficult to disrupt these competitive advantages in our view. That said, with a greater than $1 trillion valuation on the back of what feels like peak-level AI exuberance since OpenAI’s breakthrough with ChatGPT, we believe virtually all the upside opportunities we can currently see for the company are already priced in…” (Click here to read the full text)

See also 11 Most Popular ChatGPT Apps for Smartphones and Top 10 AI Tools Cooler Than ChatGPT.

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Disclosure: None. 10 Stocks ChatGPT Said Will Make Me Rich in 10 Years is originally published on Insider Monkey.