We Asked AI Which Stocks to Buy in October. Here's What It Said

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 October.

AI's stock picks continue tapping into AI

October is historically a volatile month for the market. That could be magnified by another rate cut from the Federal Reserve, a potential government shutdown, a jobs report suggesting the economy is slowing and newly announced tariffs on pharmaceuticals, furniture and movies filmed outside of the U.S.

But that may not impact Gemini's picks, two of which fall under the tech sector (with the other being an oil and natural gas exploration and development company). Its first choice, Microsoft, has a market capitalization that's rapidly approaching $4 trillion. The Magnificent Seven lynchpin was chosen due to it being a "safe harbor when the broader market faces seasonal October volatility" while maintaining its dominant position in the AI and cloud races with Copilot and Azure.

Gemini also picked AppLovin, which provides AI-powered software platforms that businesses use to acquire users and drive monetization, with Diamondback Energy rounding out its selections for October. The AI cites how the energy company "has recently been highlighted by analysts for its strong operational efficiency ... and raising its production outlook."

All three of Gemini's picks should be fairly insulated from volatility this month. But the tech sector, broadly, could pull back after posting a 6.81% gain last month. Meanwhile, crude oil prices are sitting well below their year-to-date high, which could continue to present headwinds for Diamondback Energy, a stock that has already lost 14.20% this year.

On the other hand, ChatGPT — whose three picks last month blew the S&P 500 out of the water (see results below) — went all in on tech for October. With Nvidia, Microsoft and Broadcom, ChatGPT suggested stocks with exposure to the ongoing AI megatrend from three different angles. Whereas Nvidia is a "pure play," Microsoft has exposure to AI across software, cloud and enterprise. Broadcom provides AI infrastructure.

One big risk to these picks, as ChatGPT noted, is the potential for a market "rotation away from 'growth' names back to defensives," like utilities, consumer staples and health care.

Lastly, Danelfin's top three picks saw a repeat from last month in Nokia, another telecom stock in Ericsson and what's perhaps 2025's biggest Magnificent Seven disappointment, Amazon. Communication services posted a gain of 6.43% in September, so that could pose pullback risks to Nokia and Ericsson.

But Amazon is an intriguing buy-low choice as the stock is down 9.29% from its all-time high in February while losing 0.30% this year. Despite its struggles, Wall Street analysts assign the e-commerce and cloud services stock a Strong Buy rating, suggesting that it's overdue for a rebound.

How AI's picks performed in September

September tends to be the worst month for stocks, with an average loss of 1.2%. But this September defied that trend, with the index setting eight all-time highs. The Fed's first rate cut since 2024 served as a catalyst, as did a rebound from the tech sector after it sold off in August.

Hindsight is 20/20, but backtesting AI's stock picks from last month can provide clues about its predictive abilities going forward. In September, the S&P 500 posted a gain of 4.25% — the benchmark that the stocks chosen by AI would have to outperform. Two of Gemini's three picks succeeded to that end. Cialis- and Mounjaro-maker Eli Lilly came up short with a gain of 3.78%, but GE Vernova and Nvidia gained 6.08% and 9.25%, respectively.

ChatGPT's picks proved to be prescient. Utilities company NRG Energy gained of 11.60%, while AI darling Palantir gained 16.12% and Oracle surged 24.83%. All three stocks trounced the S&P 500 in September.

Danelfin's three picks — each of which received a proprietary AI Score of 9 out of 10 — also performed admirably. Communication services was the second-best performer of the S&P 500's 11 sectors over the past month. That was reflected in the performance of Danelfin's choice of Nokia, which saw shares rise by 13.71%. Walmart and Archer Aviation also did well, with gains of 5.32% and 11.40%, respectively.

(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 any given month.)

Aside from one of Gemini's three picks, September would have proven fruitful for investors taking recommendations from the predictive AIs that Money profiled. In total, eight of the nine stocks they chose last month outperformed the market.

As the calendar turns to October, which has a track record of volatility and played host to the market crashes of 1929 and 1987, we'll see again in a month's time whether AI's stock picks can best the S&P 500.

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