Three recommended stocks for investing your $3,000 IRS tax return refund, as selected by artificial intelligence.
In the imminent wave of IRS tax refunds, roughly averaging $3,000, many Americans are concocting creative ways to utilize this additional cash. While some might choose to splurge, smart minds are contemplating long-term strategies. The stock market presents a promising avenue for those considering investing their refunds.
To aid retail investors navigating today's volatile stock market landscape, we approached OpenAI's artificial intelligence — ChatGPT — for some savvy equity recommendations. Here are its top three picks:
Alphabet (NASDAQ: GOOGL)
Google's parent company, Alphabet (NASDAQ: GOOGL), continues to reign supreme in digital advertising, cloud computing, and artificial intelligence. ChatGPT drew attention to the integration of its Gemini AI model into key services like Google Search, YouTube, Gmail, and Docs, generating new revenue streams and efficiencies.
Google Cloud's steady growth and YouTube's influential status in online media further strengthen Alphabet's position. Despite its colossal size, Alphabet boasts a relatively attractive valuation compared to its competitors, making it an enticing long-term investment. ChatGPT labeled Alphabet as "a rare combination of scale, innovation, and fair pricing." As of the last market close, GOOG was trading at $172, up nearly 1.5% over the past week.
JPMorgan Chase (NYSE: JPM)
ChatGPT described JPMorgan (NYSE: JPM) as "a fortress of financial resilience and reliability," attributing its stability during economic crises, interest rate shifts, and industry disruptions to its robust operations. Spanning retail banking, corporate lending, asset management, and investment banking, JPMorgan's diversified operations empower it to weather market turbulence.
Its healthy dividend and benefits from the current high-interest rate environment have boosted net interest income, further solidifying its stand as a reliable investment choice. At the last market close, JPM stock was trading at $264, up more than 2% in the past week.
Eli Lilly (NYSE: LLY)
ChatGPT forecasts immense growth potential for Eli Lilly's (NYSE: LLY) innovative treatments for obesity and diabetes. The company's groundbreaking drugs, Mounjaro and Zepbound, are generating considerable demand and are projected to bring in tens of billions in annual revenue. Given the soaring global obesity rates, the long-term market opportunity is vast.
Beyond weight-loss medications, Eli Lilly's strong healthcare innovation pipeline targeting Alzheimer's, cancer, and autoimmune conditions places it at the forefront of healthcare innovation.
At the close of the most recent session, LLY shares were trading at $737.67, up nearly 4% over the past week.
While no stock is without risk, investing your tax refund in high-quality companies could yield significantly higher returns over time than spending it immediately.
- To capitalize on the upcoming IRS tax refunds, considering the long-term strategy of investing in stocks, one could explore high-quality companies like Alphabet (NASDAQ: GOOGL), JPMorgan Chase (NYSE: JPM), and Eli Lilly (NYSE: LLY).
- For those looking to leverage technology and artificial intelligence in their investment portfolios, Alphabet (NASDAQ: GOOGL) stands out as a lucrative choice given its dominance in digital advertising, cloud computing, and AI, with its Gemini AI model integration into key services.
