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For a few of us, ChatGPT has already turn out to be a necessary device for navigating every day life. However how useful is it when making an attempt to slender down one of the best FTSE shares to ponder shopping for for 2026?
I ran just a little experiment to seek out out.
The bot’s high 5
The AI bot’s response was a smattering of the UK’s largest and best-known firms:
- AstraZeneca
- Nationwide Grid
- Barclays
- Aviva
- Rolls-Royce
Every of the above has loved glorious positive aspects in 2025. Even the ‘worst’ performer — energy supplier Nationwide Grid — nonetheless rewarded holders with a 19% acquire (as I kind on 30 December). That’s on par with the index itself.
And let’s not overlook that all the above can have additionally distributed dividends over this era.
FTSE shining star
The inclusion of Rolls-Royce wasn’t precisely stunning. Buyers loved one other marvellous yr with the share worth virtually doubling.
Even so, this has left the inventory at a punchy valuation of 35 occasions forecast FY26 earnings, implying that quite a lot of excellent news is already priced in. A ceasefire in Ukraine might see short-term merchants leap ship.
So, is that this the place the music stops?
Probably not. There’s nonetheless lots to love right here. Demand for air journey continues to be stable, boosting gross sales of engines (and the profitable upkeep contracts that include them). No matter what occurs subsequent in Japanese Europe, geopolitical jitters and better defence spending by nations gained’t go away in a single day both.
Oh, and the stability sheet appears to be like an terrible lot extra strong than it as soon as did.
Put merely, a inventory can hold rising even when it already appears to be like costly.
Not so quick
However as fascinating as ChatGPT’s choice is, there are some things that bother me.
The bot solely went for firms from the FTSE 100. That’s not incorrect in itself. Nevertheless it does imply that a lot of different high-quality companies from decrease down the FTSE meals chain have been ignored. And so they might take pleasure in good/higher positive aspects subsequent yr given adequate boosts.
Second, Barclays and Aviva each sit within the Financials sector. Positive, share costs might fall en masse within the occasion of an financial disaster. However spreading threat across the market is smart. So, there could possibly be extra diversification right here.
Final, there have been no turnaround or contrarian performs. In different phrases, the bot appeared drawn to shares displaying constructive momentum. And but it’s usually the case that essentially the most hated in a single yr are most in demand the following.
Warning suggested
To be honest, ChatGPT is as handicapped as we’re in the case of inventory selecting. Nobody actually is aware of what’s going to occur subsequent yr. Curiously, it’s the long-term outlook we may be extra assured about.
I additionally solely requested for 5 options. Realistically, an investor could be courageous to limit their portfolio to such a quantity, particularly if producing passive revenue — which may by no means be assured — have been the purpose.
However these caveats (and my earlier issues) are precisely why I feel ChatGPT must be used with warning (if in any respect). At greatest, the bot may get fortunate. At worst, it might trigger monetary ache, particularly because it has no thought how the particular person prompting it’d behave within the occasion of a market crash.
No matter occurs in 2026, I gained’t be delegating vital choices to AI.
