We Asked AI Which Stocks to Buy in July. Here's What It Said
AI use cases now run the gamut. From early cancer detection and 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 are good buys for the month of July.
AI is bullish on the financials sector
After running multiple scanners and queries, it's evident that the S&P 500's financials sector is of particular interest to AI.
Thus far in 2025, financials have posted a gain of 8.36% — fourth best among the S&P 500's 11 sectors. Financials only trail technology (8.91%), communication services (12.11%) and industrials (11.96%) in year-to-date gains, and their index-beating performance is something Money highlighted as a likely outcome in the wake of President Donald Trump's election given his anti-regulatory platform.
In the lead-up to Election Day, Trump received more contributions from the securities and investments industry — which includes hedge funds, investment banks, brokerage firms and mortgage lenders — than former Vice President Kamala Harris. While on the campaign trail, Trump pledged to further deregulate the financial industry, promising lower taxes, regulations and interest rates, all of which have outsized impacts on companies operating in the financial services space.
Fast-forward to July, and some of those promises could become a reality if the so-called "big, beautiful" bill, which seeks to extend the corporate tax cuts from Trump's first administration, is signed into law.
If the Federal Reserve cuts its benchmark interest rate this summer — as is expected according to the CME Group's FedWatch Tool — the result will be an additional boon for financials. The industry will likely see an increase in loan origination and debt refinancing as reduced borrowing costs for businesses and lower rates attract inflows. While the FedWatch Tool pins the likelihood of a rate cut in July at just 19.1%, it projects a 93.2% chance of a cut during the Fed's September meeting.
Stocks that could outperform in July, according to AI — and why
AI unsurprisingly recommended a handful of companies operating in the financials sector. Danelfin, an AI-powered stock-picking platform that generates a proprietary "AI Score" for each equity it rates, put four U.S.-based banking companies in its list of top five stocks for July (the sole exception being a Brazilian banking company).
Among those picks are JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC), US Bancorp (USB) and SouthState Corporation (SSB). Of those four, analysts at the Wall Street Journal assign SouthState Corporation a 12-month price target that carries the highest potential upside percentage at nearly 24% from where shares of SSB are currently trading. US Bancorp was second, with potential upside of more than 10% over the next 12 months.
Other AI platforms backed the financials thesis.
Gemini stated that "the Federal Reserve recently indicated that banks are financially strong enough to survive a downturn, which could bode well for financial stocks," and ChatGPT added that it likes Goldman Sachs (GS) after the investment bank's stock reached its third consecutive record closing price on June 30, resulting in a year-to-date gain of more than 23%. ChatGPT cited how "this rise follows favorable results from the Federal Reserve's annual stress tests, confirming the resilience of the banking sector. Analysts believe Goldman is poised for significant capital returns."
Of course, any stocks recommended by AI — or your friends on social media, for that matter — should be taken with a grain of salt. Always conduct your own due diligence and understand what aligns best with your portfolio.
However, if you are looking for guidance into which sectors or companies may have bullish momentum, these AI stock picks might help point you in that direction.
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