As artificial intelligence (AI) applications grow, so does technology reliance. Large-scale language (deep learning) models help us, from working on a do list to detect illnesses, to picking stocks to buy, for almost everything in our daily lives.
The focus of this article is its final one. Given the ability of AI to analyze large amounts of data in very short time (a ability that requires a huge amount of energy), this technology naturally fits into investors, day traders, hedge funds, and more.
For example, most banks and brokers now offer robo-advisor accounts that use AI to build and manage investment portfolios at a much lower cost than humans maintain. (Even so, financial planning should be left to the real people.)
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For these Do-It-You-To-Your (DIY) investors, there are laundry lists from stock picking platforms such as Danelfin, which use AI to spit out a list of top stocks that match a specific criteria.
I decided to test the predictive capabilities of AI. On Friday, May 30th, I asked Google’s Gemini AI chatbots that should be invested in June. We also sought a list of the best stocks to buy that month.
Here’s what it had to say and how its forecasts matched with actual market movements: All returns will be made by the end of June 30th.
Where to invest
When I asked Gemini where to invest in June, I offered some suggestions for “potential investment opportunities and considerations” including the industrial sector and select technology stocks.
According to Gemini, the industry sector is not only “increasing momentum from increasing infrastructure investments,” but also is working to “invigorate domestic manufacturing.”
Industrial stocks measured by the Industrial Sector SPDR Fund (XLI) fell just above 3% in June, placing them in the middle of the pack as long as the 11 S&P 500 sectors progress.
Among the moon’s biggest industrials winners were GE Aerospace (GE, +4.7%), Ge Ververnova (GEV, +11.9%) and Howmet Aerospace (HWM, +9.6%).
The chatbot advised to focus on selected tech stocks that are “attentive” – ​​including NVIDIA (NVDA), which rose 16.8% over the month, and Microsoft (MSFT), which won 8%.
Stock markets closed in June as investors supported the positive development of President Donald Trump’s tariff policy, including easing trade tensions between the US and China.
During that month, the high-tech Nasdaq composite emerged as a clear winner, ending June with a 6.6% rise. The 5.0% return on the S&P 500 was enough to send it back to the highest ever territory, but the Blue Chip Dow Jones Industrial Arage added 4.3%.
According to AI, the best stocks to buy in June
When I asked Gemini on May 30 what the best stocks to buy in June was, it offered some suggestions.
Tap the alphabet (GOOGL) as the “Fund Manager Likes” stock pick and consider “Google), Google (Google), YouTube, Android, Google Cloud” to “good for growth.”
Gemini added that some analysts feel GOOGL is underrated.
Google shares rose 2.6% in June, slowing the S&P 500’s 5.0% return. In the long term, telecommunications services stocks have fallen by 6.9% per year to date, down 3.3% over the past 12 months.
Nike (NKE), a manufacturer of athletic apparel and footwear, is another name that Gemini suggested is stock to watch in June given “recent analyst discussions and market activities.”
NKE shares have fallen more than 9% this year’s annual year towards June, but the deficit has dropped to 6.9% thanks to a valued revenue report.
Analysts at HSBC Global Research believe that the blue chip stock has finally reached its inflection point and has upgraded to buy from hold after earnings.
“We believe there is concrete evidence that Nike has a way to see sales rebounds in the not too distant future, and there is a margin to be repaired.
HSBC adds that Nike “sees like an abused leader with a compelling reboot,” and that “the fully refreshed team is acting with speed and experience.”
Final results of AI vs. stock market in June
Gemini states that its recommendations are “general guidance only and do not constitute financial advice.”
He also reminded me of the risks associated with investing in the stock market, such as losing money, and advised me to consider doing my own due diligence and talking to a financial advisor.
Certainly, I don’t blindly invest in what AI chatbots recommend. Still, it’s an interesting exercise to see how AI-made picks work throughout the month.
I’m doing it again in June. Go back next month and see how AI stock prices have progressed. Tip: Looking at Jabil (JBL) and Cybersecurity Stocks.
