In this article, we will take a look at ChatGPT’s top 5 picks. To see more such companies, go directly to ChatGPT Stock Portfolio: Top 10 Picks.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA) could be one of the biggest beneficiaries of the current AI boom, believe several Wall Street analysts. One such bullish call came from BofA’s Vivek Arya, who had predicted that NVIDIA Corporation (NASDAQ:NVDA) will enjoy a huge sales upside in Q2 due to generative AI capabilities of H100 GPU. This forecast came true as the company recently gave a spectacular Q2 revenue guidance.
Alger Spectra Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put. Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. As such, we believe Nvidia is a long-term high unit volume growth opportunity. During the period, NVIDIA reported fiscal fourth-quarter results that met expectations, as the company navigated. through an inventory correction associated with the broad macroeconomic slowdown. Moreover, management gave fiscal year earnings guidance that was better than analyst estimates. noting strong year-over-year growth in gaming and data centers. Management’s constructive assessment of 2023 prospects. coupled with the rapid rollout and adoption of generative Al offerings, led to positive share price performance.”
4. salesforce.com, inc. (NYSE:CRM)
Number of Hedge Fund Holders: 136
salesforce.com, inc. (NYSE:CRM) shares are up 50% year to date through May 13. Recently CRM stock hit its 52-week high when it touched $203.80 a piece. Surprisingly, there was now news catalyst driving this surge (was it ChatGPT?)
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is back with a vengeance as the company’s Google I/O event recently demonstrated the powerful capabilities of its AI systems. Forced by Microsoft into the competition, Alphabet Inc. (NASDAQ:GOOG) plans to integrate AI in search and across its products suite. However, analysts are still in the wait-and-see mode on how Alphabet Inc. (NASDAQ:GOOG) would save the biggest source of its revenue stream: search advertising.
Alphabet Inc. (NASDAQ:GOOG) shares are up about 31% year to date through May 13, which is impressive given the hammering the stock suffered earlier this year after Microsoft Corporation (NASDAQ:MSFT)’s onslaught and the initial embarrassments the company had to face during the first demo of Bard.
Diamond Hill Large Cap Strategy made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2023 investor letter:
“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet Inc. (NASDAQ:GOOG), Microsoft and Booking Holdings, all of which posted double-digit gains. Shares of media and technology giant Alphabet outperformed as the company announced expense discipline while continuing to invest in its core products of Google Search, YouTube and Google Cloud.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 220
Meta Platforms, Inc. (NASDAQ:META) shares posted a strong rebound after languishing for several months amid slowing growth and advertising concerns. Meta Platforms, Inc. (NASDAQ:META)’s first quarter results crushed all pessimism as its advertising revenue showed growth and the company also revealed some promising AI plans. The stock is up 87% year to date through May 13.
Meta Platforms, Inc. (NASDAQ:META) recently received praise from OpenAI CEO Sam Altman, who said at the 2023 Sohn Investment Conference that Meta could be a “surprising” new player in AI.
Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:
“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 289
Microsoft Corporation (NASDAQ:MSFT) is up about 28% year to date, and much of these gains came thanks to ChatGPT since Microsoft revealed plans to invest a whopping $10 billion in OpenAI, the creator of ChatGPT. Recently, Wedbush analyst Dan Ives said that his recent field checks made it “crystal clear” to him that monetizing ChatGPT and AI, in general, is a “transformation opportunity” for Microsoft Corporation (NASDAQ:MSFT). He thinks integration of ChatGPT in Microsoft Corporation (NASDAQ:MSFT) products adds “another growth leg” for the company.
Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services. Azure, and Enterprise Services), and More Personal Computing (Windows Devices, Gaming, and Search). While the company reported decent fiscal second quarter results, their investment in OpenAl’s ChatGPT captured the attention of investors. contributing to positive performance. Throughout the quarter. Microsoft surprised investors with continual rollouts of new Al capabilities across the company’s portfolio (e.g., Bing, GitHub. Teams, Office 365). Furthermore, the company announced Microsoft 365 Copilot, which leverages GPT-4, a large language model, combined with the Microsoft Graph of data to provide Al virtual assistance. We believe Microsoft’s investment in OpenAl provides a first-mover advantage in the Al transformer model space. Despite challenges in the early days of Al-powered applications, the pace of Al innovation is faster than any other enterprise technology previously observed, in our view.”
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