With IRS tax refunds set to arrive, averaging around $3,000, many Americans are weighing the best ways to use the extra cash.
While some may choose to spend it, others are eyeing smarter, long-term strategies. The stock market offers a compelling opportunity for those considering investing their refunds.
To help retail investors navigate today’s volatile stock market environment, Finbold asked OpenAI’s artificial intelligence (AI) tool, ChatGPT, to recommend three equities worth buying now. Here are its top picks:
Alphabet (NASDAQ: GOOGL)
Google’s parent company, Alphabet (NASDAQ: GOOGL), remains a powerhouse in digital advertising, cloud computing, and artificial intelligence. ChatGPT highlighted the integration of its Gemini AI model into key services like Google Search, YouTube, Gmail, and Docs, which is helping drive new revenue streams and efficiencies.
Google Cloud continues to grow profitably, and YouTube remains one of the most influential platforms in online media. Despite its massive scale, Alphabet trades at a relatively attractive valuation compared to its peers, making it a solid long-term investment.
ChatGPT described 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 called JPMorgan (NYSE: JPM) “a cornerstone of financial strength and reliability,” citing its resilience through economic crises, interest rate shifts, and industry disruptions.
The firm’s diversified operations, spanning retail banking, corporate lending, asset management, and investment banking, equip it to handle market uncertainty. It also offers consistent earnings, a healthy dividend, and benefits from the current high interest rate environment, which has boosted net interest income.
At the last market close, JPM stock was trading at $264, up more than 2% in the past week.
Eli Lilly (NYSE: LLY)
ChatGPT sees Eli Lilly’s (NYSE: LLY) biggest growth potential in its innovative treatments for obesity and diabetes. The company’s breakthrough drugs, Mounjaro and Zepbound, have seen strong demand and are projected to generate tens of billions in annual revenue. With global obesity rates climbing, the long-term market opportunity is significant.
Beyond weight-loss medications, Eli Lilly boasts a strong pipeline targeting Alzheimer’s, cancer, and autoimmune conditions, positioning it as a leader in 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 risk-free, ChatGPT emphasized that investing your tax refund in high-quality companies could deliver much greater returns over time than spending it outright.
Featured image via Shutterstock
