Remember when everyone said AI could never pick stocks? Some of the early numbers are making that line look old. AI systems have improved fast, and early numbers are making that view harder to defend. FinQ launched two AI-managed ETFs in February, and they are up 25.35% and 23.98%, compared with 11.0% for the S&P 500 over the same period, Reuters reported on Oct. 14. Two Pacer ETFs that rely only on AI are up 10.34% and 10.33% since their early May launch, compared with 5.8% for the S&P 500.
A January paper by researcher Keywan Rasekhschaffe found that AI-written trading signals improved a stock-picking model. In its tests, the best combined setups raised the Sharpe ratio, a measure of return for each unit of risk, by 22% to 49% across three datasets.
ChatGPT’s portfolio in the Rallies AI Arena is up 75.6% since March and has beaten the S&P 500, according to Rallies Arena. Rallies Arena said on X on Oct. 14 that it is still way too early to draw conclusions.
How Rallies Tests ChatGPT
Rallies is an AI investing app that gives several leading AI models money to trade stocks. Models like ChatGPT, Claude, Gemini and Grok each manage a $100,000 portfolio. Rallies told them to beat the S&P 500. We covered the Claude side of the experiment in our Claude AI Portfolio: 8 Best-Performing Stocks in 2026.
We ranked the 10 stocks in ChatGPT’s portfolio in ascending order based on the number of hedge fund investors at the end of the second quarter of 2026. The data comes from Insider Monkey’s database of 1,006 hedge funds. The performance figure for each stock shows its gain or loss since ChatGPT bought it, according to Rallies data as of Oct. 14.
Photo by Adam Nowakowski on Unsplash
#10 Leidos Holdings, Inc. (NYSE:LDOS)
Number of Hedge Fund Investors: 38
ChatGPT bought Leidos at $117.68, and the stock is up 2.2% since then, according to Rallies data as of Oct. 14. The stock makes up 12.1% of the portfolio. Leidos is a large government services and technology contractor. It grew revenue 7% in the second quarter and raised its full-year guidance. Hedge fund interest is the lowest on this list. 38 hedge funds held Leidos at the end of the second quarter, down from 44 in the first quarter. A bullish take on the stock points to a big contract backlog and a valuation near 11 times earnings and free cash flow. Read the full analysis here.
#9 Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Investors: 75
ChatGPT bought Lockheed Martin at $563.69, and the stock is down 10.2% since then, Rallies data as of Oct. 14 shows. It is the smallest position in the portfolio at 3.7%. Lockheed Martin builds fighter jets, missiles and other defense systems. 75 hedge funds held it at the end of the second quarter, compared with 83 in the first quarter.
The stock gained 26% in the first quarter as the start of the U.S.–Iran conflict lifted defense spending expectations, RiverPark Large Growth Fund said in its letter. Click to read the RiverPark letter. Greenskeeper Asset Management then named Lockheed its second-largest detractor in the second quarter, when the stock fell 15.7%. See the Greenskeeper letter here.
#8 The Cigna Group (NYSE:CI)
Number of Hedge Fund Investors: 77
ChatGPT bought Cigna at $280.61, and the stock is down 0.2% since then, according to Rallies data as of Oct. 14. It makes up 12.1% of the portfolio. Cigna sells health insurance and runs a large pharmacy benefit business. It beat estimates in the second quarter and raised its full-year adjusted income guidance. The number of hedge fund investors slipped to 77 from 79 in the first quarter. Regulation of its pharmacy benefits business has weighed on the stock before, according to Parnassus Core Equity Fund. Check the full letter here.
#7 Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Number of Hedge Fund Investors: 86
ChatGPT bought Credo at $117.49, and the stock is up 61.6% since then, the best gain in the portfolio, Rallies data as of Oct. 14 shows. It makes up 5.8% of the portfolio. Credo makes high-speed connectivity products that move data inside AI data centers. ChatGPT made Credo its largest holding on March 6, according to Rallies Arena. Hedge funds noticed. 86 of them held Credo at the end of the second quarter, up from 59 in the first quarter. Its gross margins run in the mid-to-high 60% range, which is high for a hardware company.
#6 Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Investors: 87
ChatGPT bought Progressive at $202.89, and the stock is up 9.0% since then, according to Rallies data as of Oct. 14. It makes up 13.5% of the portfolio. Progressive is one of the largest auto insurers in the US. ChatGPT called it an “anti-AI insurance hedge” that balances its exposure to AI infrastructure and big tech. The chatbot pointed to an 86% combined ratio and 18% policy growth. 87 hedge funds held the stock at the end of the second quarter, up from 82 in the first quarter. Our earlier piece includes an investor letter that takes a harder view of its slowing policy growth. Find out more here.
#5 Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Investors: 96
ChatGPT bought Exxon at $143.98, and the stock is up 20.3% since then, Rallies data as of Oct. 14 shows. It makes up 9.6% of the portfolio. 96 hedge funds held Exxon at the end of the second quarter, up from 94 in the first quarter.
ClearBridge Dividend Strategy added to its Exxon position in 2025 and called the stock a sturdy portfolio hedge if stagflation hits. Read the full ClearBridge letter.
#4 Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Investors: 112
ChatGPT bought Amphenol at $65.88, and the stock is up 28.5% since then, according to Rallies data as of Oct. 14. It makes up 9.2% of the portfolio. Amphenol makes electronic and fiber optic connectors. ChatGPT called it a cleaner way to ride AI spending. Baron Durable Advantage Fund says Amphenol benefits from the data center buildout as the leading supplier of high-speed copper interconnects. The hedge fund count held at 112 in both quarters. An analyst also picked Amphenol as a diversified AI stock beyond the chipmakers and cloud giants. See the full breakdown here.
#3 JPMorgan Chase & Co.
Number of Hedge Fund Investors: 133
ChatGPT bought JPMorgan at $298.10, and the stock is up 12.5% since then, Rallies data as of Oct. 14 shows. It makes up 5.9% of the portfolio. 133 hedge funds held the bank at the end of the second quarter, up from 131 in the first quarter. Giverny Capital Asset Management looked at why the stock lagged the market even as earnings grew. Read the Giverny letter here.
#2 Visa Inc. (NYSE:V)
Number of Hedge Fund Investors: 194
ChatGPT bought Visa at $328.80, and the stock is up 19.4% since then, according to Rallies data as of Oct. 14. It makes up 10.9% of the portfolio. ChatGPT called Visa a “boring” stock that makes money in a world full of AI hype. The number of hedge fund investors rose to 194 in the second quarter from 181 in the first quarter. Visa also drew attention from Claude, Bill Ackman and Trump. Click to see why.
#1 Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Investors: 275
ChatGPT bought Alphabet at $286.64, and the stock is up 22.9% since then, Rallies data as of Oct. 14 shows. It is the largest position in the portfolio at 17.1%. ChatGPT opened the position in late March. Alphabet is also the most popular stock on the list. 275 hedge funds held it at the end of the second quarter, up from 265 in the first quarter. Google Cloud revenue growth sped up to 82% in the second quarter from 63% in the first. Read why investors like Alphabet. We also asked whether the stock is really undervalued. Click to see our answer.
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