AI vs the Stock Market: How GOOGL, NKE and Industrials Performed in June

Abstract image of AI robot pointing at a digitized stock bar chart

(Image credit: Getty Images)

As the uses for artificial intelligence (AI) grow, so does our dependence on the technology.

Large language (deep learning) models are now helping us with almost everything in our daily lives, from tackling to-do lists to detecting diseases to picking stocks to buy.

It's that last one that's the focus of this article. Given AI's ability to analyze massive amounts of data in a very short time — a feature that requires an enormous amount of energy — the technology is a natural fit for investors, day traders, hedge funds and the like.

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As an example, most banks and brokers now offer robo-adviser accounts, which use AI to build and manage investment portfolios at a much lower cost than those maintained by humans. (Still, financial planning should likely be left to the actual people.)

As for those do-it-yourself (DIY) investors, there's a laundry list of stock-picking platforms such as Danelfin that use AI to spit out lists of the top stocks matching their specific criteria.

I decided to test AI's predictive capabilities, and, on Friday, May 30, I asked Google's Gemini AI chatbot where I should invest in June. I also asked for a list of the best stocks to buy for the month.

Here's what it had to say and how its predictions matched actual market movement. All returns are through the June 30 close.

Where to invest

When I asked Gemini where to invest in June, it offered several suggestions of "potential investment opportunities and considerations," including the industrial sector and select tech stocks.

The industrial sector, according to Gemini, "is seeing momentum from rising infrastructure investment," as well as efforts to "revitalize domestic manufacturing."

Industrial stocks, as measured by the Industrial Select Sector SPDR Fund (XLI), rose a little more than 3% in June, putting them right in the middle of the pack as far as the 11 S&P 500 sectors go.

Among the month's biggest industrials gainers were GE Aerospace (GE, +4.7%), GE Vernova (GEV, +11.9%) and Howmet Aerospace (HWM, +9.6%).

The chatbot also advised keeping an eye on select tech stocks "that are drawing attention," including Nvidia (NVDA), which finished the month up 16.8%, and Microsoft (MSFT), which gained 8%.

The stock market closed out June with strong gains as investors cheered positive developments in President Donald Trump's tariff policies, including easing trade tensions between the United States and China.

For the month, the tech-heavy Nasdaq Composite emerged as the clear winner, rising 6.6% to end June at a record high. The S&P 500's 5% return was enough to send it back into all-time-high territory, while the blue chip Dow Jones Industrial Average added 4.3%.

Best stocks to buy in June, according to AI

When I asked Gemini on May 30 what the best stocks to buy in June would be, it offered several suggestions.

It tapped Alphabet (GOOGL) as a stock pick that's "favored by fund managers," and is "positioned well for growth," given the company's "dominance in search (Google), YouTube, Android and Google Cloud."

Gemini added that some analysts feel GOOGL is undervalued.

GOOGL shares rose 2.6% in June, lagging the S&P 500's 5% return. Longer term, the communication services stock is down 6.9% for the year to date and has shed 3.3% the past 12 months.

Nike (NKE), an athletic apparel and footwear maker, is another name that Gemini suggested was a stock to watch in June, given "recent analyst discussions and market activity."

NKE shares were down more than 9% for the year to date heading into June, but pared this deficit to 6.9%, thanks to a well-received earnings report.

HSBC Global Research analysts think the blue chip stock has finally reached an inflection point, and upgraded it to Buy from Hold after earnings.

"We think there is more than tangible evidence that Nike has a path to see its sales rebound in the not-too-distant future, and its margins to be repaired, and this despite an unfavorable tariff headwind," they wrote in a note to clients.

HSBC adds that Nike appears to be "a battered leader with a convincing reboot," and that its "full refreshed team … is acting with speed and experience."

The bottom line on AI vs the stock market in June

Gemini notes that its recommendations are "for general guidance only and does not constitute financial advice," which I appreciated.

It also reminded me of the risks involved with investing in the stock market, such as losing my money, and advised me to conduct my own due diligence and consider speaking with a financial adviser.

I would never blindly invest in anything an AI chatbot recommended — and neither should you.

Still, it's an interesting exercise to see how picks made by AI would perform throughout the month — so much, I'm doing it again for June.

Check back next month to see how AI's stock picks fared. Hint: We're watching Jabil (JBL) and cybersecurity stocks.

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With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.