We recently published a list of ChatGPT Stock Advice: Top 12 Stock Recommendations. In this article, we will take a look at where Johnson & Johnson (NYSE:JNJ) stands against other top stock recommendations by ChatGPT.
After a two-year surge of 53%, the stock market has been taken for a wild ride in 2025, driven by uncertainties surrounding the escalating trade wars. As of the close of business on May 2, the broad market index was down by 3.31% year-to-date.
A New York-based investment banking firm recently projected positive but muted returns for 2025. However, it added that the continued adoption of AI could lead to a strong rally. The company also pointed out how bull markets have historically produced mediocre results in the third year, although not usually negative.
Trends over the past decades also show that sustained high returns are uncommon. Following the strong back-to-back performance in the 1920s, markets went down sharply in 1929, marking the beginning of the Great Depression. Then, after recovering in 1935 and 1936, they took a giant step back again a year later.
Over the years, many investors have turned toward ChatGPT for investment advice, including how the markets would respond to news headlines, statements from the Federal Reserve, or any other event that could cause share price movements. A 2023 survey revealed that about 53% of the Millennials, 50% of Gen Z, and 46% of Gen X respondents had used the AI chatbot for investing advice.
In contrast, older Americans were found to be more skeptical of the recommendations, with just 25% of the Baby Boomers using ChatGPT to buy stocks. Collectively, about 47% of all survey respondents had used the platform for stock recommendations. Among them, 69% stated they would consider using ChatGPT for investment advice in the future as well.
While the reliability of ChatGPT to provide accurate and up-to-date information has repeatedly come under question from most financial analysts, a professor at the University of Florida in 2023 claimed that the chatbot may be able to predict stock movements. Alejandro Lopez-Lira used the platform to parse negative and positive headlines for stocks and predict returns for the following day, and was surprised to find how good the results were.
Whether or not tools like ChatGPT are effective in stock recommendations remains a debate. However, they can be useful for new investors looking for financial education and researching companies they want to invest in.
ChatGPT Stock Advice: Johnson & Johnson (JNJ) Among Top Stock Recommendations
A smiling baby with an array of baby care products in the foreground.
Our Methodology
For this list, we prompted ChatGPT to recommend the top 12 stocks based on its assessment of historical trends and the current market situation. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including long-term past performance, innovation capacity, economic resilience, and current macroeconomic trends.
For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 1,000 prominent hedge funds as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Johnson & Johnson (NYSE:JNJ) is a multinational corporation engaged in researching, developing, manufacturing, and selling various products. Over the last few years, the company has been shifting its focus from consumer health products toward the pharmaceuticals and medtech sectors, which offer significant opportunities for growth.
In March, the company announced investments of $55 billion in the US over the next four years, representing a 25% increase in investment from the prior four years and building on Johnson & Johnson (NYSE:JNJ)’s 140-year legacy of improving lives and supporting jobs in America. The plan includes four new manufacturing facilities, along with significant investments in R&D infrastructure.
Johnson & Johnson (NYSE:JNJ) recently reported sales of $21.9 billion for Q1 2025, with an operational sales growth of 4.2%. Adjusted earnings per share were posted a $2.77, up by 2.2% and beating estimates by 19 cents. The strong results were driven by robust cancer drug sales. The company also raised its 2025 sales forecast by $700 million to reflect the inclusion of schizophrenia drug Caplyta to its portfolio.
On April 9, Goldman Sachs upgraded Johnson & Johnson (NYSE:JNJ)’s rating from Neutral to Buy and also raised the stock’s price target from $157 per share to $172. The encouraging outlook was based on the analyst’s belief that market concerns regarding the loss of exclusivity for Stelara are overstated. Wall Street analysts have a consensus Buy rating for JNJ, with an average share price upside potential of 9.15%.
Investors are also bullish on the company. According to Insider Monkey’s database for Q4 2024, 98 hedge funds held a stake in Johnson & Johnson (NYSE:JNJ), up from 81 at the end of the third quarter. Mar Vista U.S. Quality Select Strategy stated the following regarding JNJ in its Q1 2025 investor letter:
“Johnson & Johnson (NYSE:JNJ) appreciated 16% as the market favored businesses with more defensive characteristics. JNJ also posted strong fundamental results in pharmaceutical (+7% revenue growth) ahead of Stelera biogeneric approvals in January 2025. We expect JNJ to grow revenues 5-7% through 2030 with faster EPS growth driven by new innovative immunology, oncology, and neurology drugs. JNJ’s MedTech franchise should outpace the growth of the rest of the industry on the strength of new products in electrophysiology, orthopedics, and robotics.”
JNJ is among the best companies to invest in according to ChatGPT’s stock advice.
Overall, JNJ ranks 7th among ChatGPT Stock Advice: Top 12 Stock Recommendations. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
