As the fourth quarter of 2024 approaches, the stock market offers several opportunities despite ongoing concerns about the economy’s health.
Several key factors are likely to influence the market in the upcoming quarter. For instance, the market may benefit from a low-interest-rate environment if the Federal Reserve follows through with expected rate cuts in September.
Additionally, with the highly anticipated United States presidential elections approaching, investors will be seeking the best stocks to include in their portfolios, factoring in the potential impact of the poll’s outcome.
Therefore, Finbold leveraged OpenAI’s latest artificial intelligence (AI) tool, ChatGPT-4o, to construct an ideal portfolio with a modest investment of $1,000 to assist with this.
The selection includes equities from technology, dividend-paying stocks, and growth opportunities.
Stocks in tech sector (50% – $500)
Nvidia (NASDAQ: NVDA) – $250
According to the AI model, Nvidia (NASDAQ: NVDA) continues to lead the semiconductor industry with its graphics processing units (GPUs) and advancements in AI. It pointed out that the company’s dominance in AI and machine learning technologies has positioned it as a key player in the tech sector.
Nvidia’s GPUs are integral to applications ranging from gaming to data centers, making its growth trajectory particularly promising. This dominance is reflected in impressive Q2 2024 revenues of $30.04 billion, surpassing analysts’ estimates of $28.72 billion.
NVDA outlook for Q4 2024. Source: ChatGPT-4o
The stock’s strong overall performance makes it a compelling choice for tech-focused investors. However, Nvidia has experienced short-term volatility, struggling to break through the $130 resistance. Currently trading at $119, NVDA has gained nearly $150 in 2024, but it’s down almost 8% over the past week
NVDA YTD stock price chart. Source: Finbold
Broadcom (NASDAQ: AVGO) – $250
The AI tool selected Broadcom (NASDAQ: AVGO) for its key role in the semiconductor industry, which is known for its extensive portfolio of networking chips and storage solutions. The company’s dividend yield and consistent revenue growth are particularly attractive.
ChatGPT-4o cited Broadcom’s acquisition of VMware, which is expected to enhance the tech giant’s cloud computing capabilities and provide additional growth avenues. According to the AI, the stock offers a balanced approach with income and growth potential, making it a strategic addition to a diversified portfolio.
By press time, AVGO stock was trading at $162, reflecting gains of 50% in 2024.
AVGO YTD stock price chart. Source: Finbold
Dividend-Paying Stocks (40% – $400)
Johnson & Johnson (NYSE: JNJ) – $200
Johnson & Johnson (NYSE: JNJ) is a reliable choice in healthcare, and it is known for its stability and strong dividend history. The company’s diverse product portfolio, including pharmaceuticals, medical devices, and consumer health products, contributes to its financial resilience.
JNJ Q4 2024 outlook. Source: ChatGPT-4o
As per the AI platform, J&J’s recent focus on expanding its oncology pipeline and strategic acquisitions in the biotech sector highlights its commitment to long-term growth.
At the close of markets on August 30, JNJ traded at $165, reflecting gains of 3.6% in 2024.
JNJ YTD stock price chart. Source: Finbold
Procter & Gamble (NYSE: PG) – $200
Procter & Gamble (NYSE: PG) is a leading consumer goods company with a track record of delivering steady dividends and maintaining a solid market position.
The AI platform noted that the company’s extensive range of essential products ensures its resilience during economic downturns. Procter & Gamble’s emphasis on innovation and sustainability supports its reputation as a responsible company.
PG Q4 2024 outlook. Source: ChatGPT-4o
The firm’s consistent financial performance and reliable dividends make it an ideal choice for conservative investors. As of the last market close, PG was trading at $171 with YTD gains of 15%.
PG YTD stock price chart. Source: Finbold
Growth Stocks (10% – $100)
Tesla (NASDAQ: TSLA) – $100
With its ambitious growth plans, Tesla (NASDAQ: TSLA) remains at the forefront of the electric vehicle (EV) revolution. The company’s expansion into new markets and advancements in battery technology and autonomous driving contribute to its growth potential.
Recent achievements, such as scaling up production and expanding its Supercharger network, highlight its leadership in the EV sector.
Despite its high valuation and recent headwinds from a slowdown in the EV market, Tesla’s market potential and pioneering role in sustainable energy justify its inclusion in a growth-oriented portfolio.
TSLA Q4 2024 outlook. Source: ChatGPT-4o
The stock has dropped over 13% in 2024, trading at $214 as of press time. Interestingly, Tesla is the only stock among those selected by the AI model to have recorded losses. Despite sluggish consumer demand and a price war with competitors, there remains optimism for a recovery. The potential rebound is tied to upcoming products, such as the robotaxi.
TSLA YTD stock price chart. Source: Finbold
In summary, with uncertainty heading into the last quarter of the year, the mentioned stocks offer diversified options for investors looking to benefit from different sectors.
However, with lingering fears of a possible recession, it’s important to research which equities might exhibit resilience in such a downturn.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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