Investing tips from AI: A chatbot was asked to pick five stocks
AI investment tips: What happened when an artificial intelligence chatbot was asked to pick five stocks?
- Google’s chatbot Bard was asked to choose five lesser-known stocks to invest in
- The choices ranged from cybersecurity to online gaming
Google’s new AI chatbot Bard and rival OpenAI’s ChatGPT currently dominate the artificial intelligence conversation.
The availability of huge amounts of data and new algorithms have led to major AI breakthroughs in many industries in recent years.
That seems to have accelerated dramatically in recent months and it looks like AI will have a major, disruptive impact on many segments of society, including the world of investing.
But can it choose good investments? Broker XTB.com asked AI to offer five stocks that could be well invested at the moment. Only time will tell if this goes well, but we’ll try again in the future.
Battle of the Chatbots: Bard is Google’s answer to ChatGPT.
Perhaps unsurprisingly, the AI stock picker replied with Apple, Microsoft, Amazon, Alphabet, Tesla.
Since these stocks were extremely popular and fairly obvious choices, Bard was then asked to name five lesser-known stocks that would be good to invest in
Here are the suggestions and reasoning:
Acacia communication
Acacia Communications is a semiconductor company that makes high-speed data communication products. The company is growing rapidly and has a strong track record of innovation.
CrowdStrike Holdings
CrowdStrike Holdings is a cybersecurity company that provides cloud-based security solutions. The company is growing rapidly and is well positioned to capitalize on the growing demand for cybersecurity solutions.
Marketa
Marqeta is a fintech company that provides payment processing solutions to businesses. The company is growing rapidly and is well positioned to take advantage of the growing e-commerce market.
Roblox Corporation
Roblox Corporation is a gaming company that operates a popular online gaming platform. The company is growing rapidly and is well positioned to capitalize on the growing popularity of online gaming.
Snowflake Computing
Snowflake Computing is a cloud computing company that provides data warehousing solutions. The company is growing rapidly and is well positioned to capitalize on the growing demand for cloud-based data warehousing solutions.
When it comes to stock indices and which ones are best to invest in, Bard provided the following answer.
Bard said, “I would say the S&P 500 and the Nasdaq Composite are the best options. Both indices have a long history of growth and have outperformed other indices over the long term.
The S&P 500 is a market capitalization weighted index of the 500 largest publicly traded companies in the United States.
It’s a good index to invest in if you’re looking for exposure to the US stock market. The Nasdaq Composite is a market capitalization weighted index of all stocks listed on the Nasdaq exchange. It is a good index to invest in if you are looking for exposure to the technology sector.
‘Both indices are relatively cheap and offer diversification benefits. They are also liquid, so you can easily buy and sell shares.’
XTB.com said, “Overall, this artificial intelligence chatbot provided pretty detailed answers to certain questions, such as lesser-known stocks to invest in.”
What does an expert think of AI stock selection?
A quick look at the AI stock selection shows that they are heavily tech-focused, so what does an investment expert think?
Jason Hollands, a director of Evelyn Partners, issued a warning. He said, “Snowflake Communications and CrowdStrike are both part of the Robo Global Artificial Intelligence Index, an area of the market that is currently seeing a lot of hot money pouring in, pushing valuations into bubble-like territory.”
He added: “I would caution anyone from buying stocks they are unfamiliar with simply based on a list provided by a free AI chatbot.
“Generative AI tools like Bard and ChatGPT are hugely fascinating, but they are designed to generate content, not select investments.”
He also points out that one of Bard’s suggestions, Acacia Communicatons, was acquired by technology giant Cisco Systems two years ago and is itself no longer publicly traded.
When building a long-term portfolio, it’s important to consider the amount of risk you’re willing to take on and make sure you’re diversified across different asset classes, markets and sectors.