AI use cases now run the gamut. From early cancer detection and digital companionship to helping frustrated readers find Waldo, there seems to be an implementation for every aspect of life. That’s true for money management, too.
While the efficacy of AI stock-picking remains a subject of debate, there is no denying that the technology’s applications in personal finance and investing are increasingly popular. Dozens of apps and websites offer AI stock advice, and even more aim to help users improve their financial skills.
Accordingly, Money decided to tap into those platforms to see which stocks — and the sectors in which they operate — are being recommended by AI right now. Going one step further, we conducted our own research to determine whether any trends or notable takeaways could be gleaned from those suggestions (and then theoretically applied to retail investors’ portfolios).
Here are some stocks that AI says could outperform the market in August.
AI remains bullish on financials
After running multiple scanners and queries, AI is bullish on financials, albeit less so than last month. AI stock picker Danelfin includes U.S. Bancorp (one of its July picks) and London-based Barclays PLC among its top five.
If the Federal Reserve cuts its benchmark interest rate this later summer or early next fall — as is expected according to the CME Group’s FedWatch Tool — the result will be a boon for financials. Increased loan originations and debt refinancing alongside reduced borrowing costs could attract inflows.
In the wake of its July meeting, the central bank held rates steady, citing ongoing macro uncertainty. While the group doesn’t meet in August, the FedWatch Tool pins the likelihood of a rate cut in September and October at 39.3% and 60.1%, respectively.
A mixed bag spanning sectors
Beyond financials, a variety of companies made the cut. Rounding out Danelfin’s top five are Swedish telecom Ericsson, cruise line operator Carnival and Canadian miner B2Gold Corp.
With gold in a holding pattern since setting its all-time high on April 21, the precious metal could break out later this summer with the spot price currently 5.6% lower than its record high. Meanwhile, the communication services sector has been the S&P 500’s second-best performer this year, but Ericsson is down 10.53% in 2025 despite beating earnings expectations earlier this month. And while consumer discretionary has performed second-worst among all 11 sectors this year, it’s been the second-best performer over the past month. Carnival, up 22.19% this year, could benefit from that momentum.
Google Gemini’s picks span technology, industrials and utilities with Nvidia, GE Vernova and electric power generation company Vista Corp. To support those picks, the AI cites ongoing investor interest in chipmakers, a continued focus on energy transition/infrastructure spending and robust demand for electricity from energy-intensive operations, respectively. Industrials — in which GE Vernova operates — has been the top-performing S&P 500 sector this year.
ChatGPT also likes Nvidia, assigning the stock a “Very high” conviction level. The AI states that “Nvidia remains the most leveraged name in the AI infrastructure boom” and that the company is engaged in China workarounds. It assigns the stock an 80% to 85% probability of outperformance, arguing that Nvidia is poised to lead “barring a sector-wide tech unwind.”
ChatGPT’s second-ranked pick, Eli Lilly, receives a “High” conviction vote of confidence. Despite health care being the only S&P 500 sector in the red this year, the chatbot says that the pharmaceutical company is “perfectly positioned” amid the weight-loss megatrend. Additionally, it could see new trial readouts from its neurodegeneration drug line in August, with one of its Phase 3 Alzheimer’s drugs potentially releasing data next month. ChatGPT assigns Eli Lilly a 75% to 80% probability of outperformance, arguing that even if the broad market stalls, it has a good chance of beating the benchmark due to its low correlation with tech.
How AI’s picks performed in July
In July, Danelfin, Gemini and ChatGPT were all bullish on the financials sector, which only gained 0.63% over the past month versus the S&P 500’s gain of 2.55%.
Drilling down into its individual picks, AI posted mixed results in July. Of Danelfin’s picks choices in the financials sector, two outperformed the market while two lagged. U.S. Bancorp gained 0.35% and Wells Fargo & Co. gained 1.52%, while JPMorgan Chase & Co. (3.13%) and SouthState Corporation (4.04%) outperformed the index.
(Of note: Danelfin’s AI aims to outperform the market over 90 days, so there is no guarantee that the stocks it recommends will outpace the S&P 500 in the month of August.)
ChatGPT’s pick — Goldman Sachs — gained of 3.18% over the past month, making its pick a winner.
Of course, these results should be taken with a grain of salt. July saw the start of earnings season, with companies beginning to report second-quarter results. Additionally, all three major indices — the S&P 500, Nasdaq and Dow Jones Industrial Average — set numerous all-time highs.
With analysts having recalibrated their stock market outlook for the remainder of 2025, there is a good chance AI’s picks perform well again in August. However, with the pause in tariffs purportedly expiring on Friday, market sentiment could shift.
We’ll find out in one month’s time.
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According to a recent report from Money.com, the use of artificial intelligence (AI) has expanded to cover a wide range of industries and applications. From detecting cancer early to providing digital companionship, AI is now being used to improve various aspects of our lives. This includes money management, where AI is becoming increasingly popular in personal finance and investing.
While the effectiveness of AI in stock-picking is still up for debate, there is no denying its growing presence in the financial sector. Numerous apps and websites now offer AI stock advice, and many more aim to help users improve their financial skills. In light of this, Money.com decided to explore which stocks and sectors are currently being recommended by AI.
After conducting multiple scans and queries, it was found that AI is bullish on financials, although not as much as in previous months. U.S. Bancorp and Barclays PLC were among the top five picks by AI stock picker Danelfin, which also includes Swedish telecom Ericsson, cruise line operator Carnival, and Canadian miner B2Gold Corp.
One potential factor that could boost financials is a potential interest rate cut by the Federal Reserve later this summer or in the fall. This could lead to increased loan originations and debt refinancing, as well as reduced borrowing costs, which could attract more investments.
Aside from financials, AI also recommended a diverse range of companies, including Nvidia in the technology sector, GE Vernova in industrials, and Vista Corp in utilities. These picks were supported by ongoing investor interest in chipmakers, a focus on energy transition and infrastructure spending, and strong demand for electricity from energy-intensive operations, respectively.
Overall, AI’s stock picks span a variety of sectors, including financials, communication services, consumer discretionary, technology, industrials, and utilities. This suggests that AI is not favoring any particular sector, but rather looking for potential opportunities across the market.
In conclusion, while the effectiveness of AI in stock-picking is still being debated, its presence in the financial sector is undeniable. With its ability to analyze vast amounts of data and identify potential trends, AI is becoming an increasingly popular tool for investors looking to improve their financial skills and make informed decisions.
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