Here we will see how evolving AI technologies like OpenAI's ChatGPT could affect the stock portfolio

Last year was bad for US-based technology companies listed on the Nasdaq. 2022 was one of the worst years for US indices since 2008 as the Nasdaq 100 index plummeted by 32%. For tech organizations that weren't ready for the change in work methods, the US Federal Reserve raising interest rates, and also the return-to-work post-COVID-19 lockdowns, were bad news. But evolving AI technologies like ChatGPT can be good news.

Technology is constantly moving on, and breaking new ground and ChatGPT is a big step ahead in artificial Intelligence. And if you are the kind to invest in US markets as part of your diversification, you should look at businesses that are making investments in artificial intelligence. The "Imitation Game" or "Turing Test" was created in 1950 by Alan Turing, who is regarded as the founder of theoretical computer science and by some as the father of artificial intelligence. It was designed to assess a machine's capacity to display behavior that appears intelligent and is comparable to that of humans. In December 2022, ChatGPT becomes the second chatbot to pass the Turing Test after Google's LaMDA in June 2022.  Alphabet's LaMDA and OpenAI's ChatGPT are signs that technological advancement has reached a crucial turning point even if we have been hearing about and utilizing AI in our daily lives for several years.

The important thing to remember is that AI is likely to revolutionize and disrupt every sector of the economy. The world is changing as this takes place, and businesses that are disruptors will succeed in terms of sales, earnings, cash flows, and enterprise values. Others will lose business, and as a result, valuations. Investors must make sure their portfolios are ready for this new turn of events by adding exposure to AI-driven businesses. Now, ChatGPT can affect your stock portfolio. By 2030, it's conceivable that a higher percentage of the S&P 500's market capitalization will be made up of AI-driven businesses. The competent player goes where the ball is, much like in soccer, whereas the great player goes where the ball will be.

200–300 US-listed firms are working on AI or related technologies, such as the Internet of Things (IoT), 5G, cyber security, Blockchain, Metaverse, etc., that are available to investors that are interested in the US IT industry. Using a method akin to a scientific investing framework, you should select a portfolio of 15–25 firms from this pool of stocks based on their financial stability, growth potential, and pricing.