ChatGPT stock predictions could be more than shots in the dark by AI. The processing and inferential power of artificial intelligence progresses seemingly exponentially every day. This rapid increase in functionality means the technology might become a powerful assistant for market research. For us at InvestorPlace, this sparks curiosity as to just how good of a tool AI chatbots are for collecting investing advice.
So we decided to look into OpenAI’s ChatGPT stock predictions on the best biotech stocks for ten times gains. Of course, the chatbot cautioned us that it is just an AI, and cannot provide predictions based on real-time data. Yet, it yielded three stocks that it determined have investing potential based on their historical data and market performance.
Let’s take a look at what ChatGPT 3.5 thinks of biotech stocks and where the real value lies for investors. While discussing these three stocks, we may even determine if ChatGPT stock predictions really could lead to ten times gains.
ChatGPT Stock Predictions: CRISPR Therapeutics (CRSP)
Recent news has seen a boom in CRISPR Therapeutic’s (NASDAQ:CRSP) stock price, thanks to regulatory approvals for its new treatments. ChatGPT 3.5, which scans internet databases to compile an answer, likely factored this news when picking the stock. Furthermore, with CRSP stock being up 146% over the last year, the chatbot has plenty of supportive data points.
In contrast, however, there are some nuances to CRISPR’s new treatment for sickle-cell anemia. First, investors should consider the patient population of individuals suffering from SCA. Over an estimated 20 million people worldwide live with the disease. However, they mostly live in underdeveloped regions with a lack of healthcare infrastructure.
Then, take into consideration that the treatment currently costs 2.2 million dollars per patient, and it sounds even less substantial. When most of the potential customers live far from capable treatment centers and have no chance of affording it, does it really drive profit? Taking this into consideration, I would say CRSP isn’t a bad pick, but 10X returns aren’t likely.
Moderna (MRNA)
Rising to fame during the COVID-19 pandemic for its mRNA vaccine, Moderna’s (NASDAQ:MRNA) stock spiked in 2021 and has since corrected. Interestingly, ChatGPT recommends Moderna despite many analysts agreeing it isn’t among the biotech stocks to buy right now. While the company may have some significant projects in the works, it’s important to consider their applications should they succeed.
Two driving factors for the favorable predictions are the successful trial phases for both melanoma and respiratory syncytial virus vaccines. Moderna has applied its mRNA delivery technology to the RSV vaccine, which shows significant promise in decreasing future outbreaks. The melanoma vaccine trial results cut the risk of death from the cancer by 49%. Thus, depending on future pricing and distribution, both technologies could be significant movers for MRNA stock.
Ultimately, it comes down to how Moderna will release both vaccines and whether government subsidies will be involved like before. For now, keeping an eye on Moderna’s mRNA technology is the key to deciding when to make a move.
Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) specializes in developing therapies for cystic fibrosis and other serious diseases. As a company, it possesses a strong development pipeline and has seen success with its cystic fibrosis treatments. Vertex also performs ongoing research in other areas, such as sickle cell disease and alpha-1 antitrypsin deficiency.
Though the third of the ChatGPT stock predictions, this one seems somewhat more promising. That’s because analysts currently give it a moderate buy rating while the company stokes several irons in the fire. However, biotech stocks with a variety of pending projects either have significant potential for upside or crushing debt from development failures.
In the case of VRTX, the company has strategically partnered with several companies, such as CRISPR Therapeutics to reduce development costs. This also broadens the distribution relationships should Vertex’s treatments get regulatory approval. Thus, Vertex has some serious return potential for the coming years if it plays its cards right.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.