Link to Claude | Link to GPT

Studies show that LLMs perform financial analysis better than actual financial analysts. For fun, I wanted to see what Claude and GPT thought of NVIDIA's earnings.

Here's the information I fed into the models:

• Balance Sheets
• Earnings
• Cash Flow statements
• Ratios (P/E ratio, P/S ratio, etc)

(Note, this information is fetched in the backend and injected into the prompt).

Both Claude and GPT independently rated NVIDIA's earnings a 5/5 despite its high P/E and P/S ratio!

Claude's Summary

Pros:

1. Exceptional revenue growth and profitability
2. Strong cash flow generation
3. Robust balance sheet with high cash reserves
4. High efficiency in converting sales to profits
5. Strong return on equity and assets

Cons:

1. High market valuation might lead to increased volatility
2. Potential for increased competition in the AI chip market
3. Cyclical nature of the semiconductor industry

Recommendation and Rating: 5/5

OpenAI's Summary

Pros:

• Strong profitability with high margins and return on equity.
• Excellent liquidity position with a high current ratio.
• Strong cash flow generation, exceeding net income.
• High Piotroski F-Score indicating robust financial health.

Cons:

• Negative change in working capital, which could impact liquidity if not managed properly.

Recommendation

Based on the financial data, NVIDIA appears to be in excellent financial health with strong profitability, liquidity, and cash flow metrics. The high Piotroski F-Score further supports this positive outlook. However, potential investors should keep an eye on the change in working capital.

Rating: 5/5

I believe that AI will make financial analysis wayyy easier for retail investors who are just learning how to analyze a business. What do you guys think? Would you trust AI for to analyze stocks?

Their full responses:

• Link to Claude 3.5 Sonnet's Response
• Link to GPT-4's Response