Fund Face-Off

AI may be a useful tool in the stock selection process, according to new research by Finder.

The Australian comparison site tasked two AI platforms – ChatGPT and Bard – with designing an investment fund using the strategies and approaches of the country’s top 10 funds. These AI-designed funds were then compared against the top funds over a three-month period between May and August 2023.

The study found that Bard’s portfolio, made up of 19 stocks primarily from the United States and within the technology sector, achieved an 8.2 percent average growth, outperforming the average growth of the top investment funds, which was at 6.3 percent.

ChatGPT’s portfolio, which was made up of 23 stocks also primarily from the United States but more diversified across sectors, performed the worst during this period, achieving an average growth of just 4.21 percent.

Although Bard had the top performing portfolio, Finder Investment Expert Kylie Purcell points out that the biggest winner was actually the S&P 500 index, which rose 9.3 percent over the test period.

“Ultimately the study shows just how difficult it is to beat the market, whether you’re a top fund manager or an AI-powered chatbot,” she said.

Leveling Up

American video game and electronics retailer GameStop has beaten Wall Street estimates, making a smaller-than-expected loss in its second-quarter financial results.

GameStop’s revenue rose around two percent to US$1.16 billion for the quarter, topping previous estimates of US$1.14 billion. While the company still lost $0.03 per share, this is considerably less compared with previous estimates of a US$0.14 loss per share.

This recent success has been spearheaded by Executive Chair Ryan Cohen, who has pushed the physical store-based company to embrace a more online-focused model.

“GameStop’s Q2 results show encouraging signs toward the company’s ongoing transformation plans to regain its presence in the video game retail industry under its new leadership,” said John Oh, Sector Analyst at global investment research firm Third Bridge Group.

New Investing App

Indian mobile payments app PhonePe has announced Share.Market, a new stockbroking app launched by its subsidiary PhonePe Wealth Broking.

The app aims to enable retail investors and traders to purchase stocks, mutual funds and exchange-traded funds that align with specific themes, sectors or market trends.

Users will be able to track the stock market and access real-time insights and tools to help them make informed decisions.

“We are delighted to launch Share.Market, which further enables our vision of driving financial inclusion at a population scale,” Share.Market CEO Ujjwal Jain said of the launch.

“Our goal is to offer the benefits of discount broking while creating lasting value for our customers as they invest and trade.”

AI Stocks to Watch

With AI’s surge in popularity not looking to come to an end anytime soon, here is a list of the top AI stocks to watch, according to City Index market analyst Joshua Warner:

NVDIA: The leading provider of chips that are needed for data centers to run powerful AI and machine-learning applications.

Palantir: Utilizes AI models to provide continually evolving software solutions to help governments and financial firms better understand data.

ai: Provides over 40 AI software solutions, including tools that can analyze banking transactions and customer relationship management systems.

IonQ: A quantum computing manufacturer, whose value has recently increased fourfold.