Warren Buffett has famously said, “Price is what you pay. Value is what you get.”
For decades, value investors have relied on financial statements, intrinsic value calculations, and patience to find stocks trading below their real worth.
But what if AI could help with this research—analyzing thousands of companies instantly, summarizing reports, and even predicting long-term business potential?
That’s exactly what Generative AI can do.
💡 In this guide, we’ll walk through a step-by-step example of how to use AI to analyze a stock like a value investor—focusing on real fundamentals, not hype.
And we’ll show you why AI alone isn’t enough—and how a real-time check on Intel (INTC) reveals the risks of blindly trusting AI stock picks.
Let’s dive in. 🚀
Step 1: Define the Value Investing Criteria
Before we ask AI for stock recommendations, let’s define what we’re looking for.
A value investor typically looks for stocks that have:
✔ Undervalued Price: Low Price-to-Earnings (P/E) or Price-to-Book (P/B) ratios.
✔ Margin of Safety: A price well below its intrinsic value.
✔ Low Debt: Healthy debt-to-equity ratio.
✔ Competitive Advantage: A durable moat that ensures long-term success.
✔Strong Financials: Consistent revenue & earnings growth.
Now, let’s put Generative AI to work.
Step 2: Use Generative AI to Find Potential Stocks
Using ChatGPT or BloombergGPT for Stock Screening
We can use ChatGPT (with browsing enabled) or BloombergGPT to scan for stocks that fit value investing criteria.
Here’s a real example of a prompt you could use:
💬 Prompt for AI:
“Find publicly traded companies with a P/E ratio below 15, a P/B ratio under 2, and a history of at least five years of revenue growth. Exclude companies with high debt-to-equity ratios. List the top 3 candidates and summarize their key financials.”
Example AI Response:
🔎 Top AI-Generated Stock Picks (as of February 2025):
| Stock | P/E Ratio | P/B Ratio | Debt-to-Equity | 5-Year Revenue Growth |
| Intel (INTC) | 12.5 | 1.8 | 0.4 | ✅ Steady Growth |
| Ford (F) | 9.2 | 1.5 | 0.6 | ✅ Strong Recovery |
| Pfizer (PFE) | 13.0 | 1.7 | 0.3 | ✅ Consistent Sales |
💡 Why AI Picked These Stocks:
- Intel: A tech giant trading below its historical P/E average, with growing AI chip demand.
- Ford: Undervalued due to short-term EV uncertainty, but strong fundamentals.
- Pfizer: A well-established healthcare leader, priced attractively post-pandemic.
At this stage, AI has given us a shortlist of potential value stocks. But is this data accurate today?
Let’s take one example—Intel (INTC)—and fact-check AI’s recommendation.
Step 3: Fact-Checking AI’s Stock Pick (Intel Example)
At first glance, Intel looks like a great value stock based on AI’s selection:
✔ Low P/E ratio (appears cheap compared to earnings)
✔ Low Price-to-Book ratio (seems undervalued compared to assets)
✔ History of strong revenue growth (according to AI)
But here’s where AI makes a critical mistake.
🚨 The Problem: AI Is Using Outdated or Surface-Level Data
A quick real-time check on Intel reveals some major red flags:
❌ Revenue is actually shrinking – Down 7% year-over-year in Q4 2024.
❌ Intel is losing market share to AMD & Nvidia in AI and data center chips.
❌ CEO Pat Gelsinger just stepped down after struggling to turn the company around.
❌ Stock price is falling and struggling to recover.
💡 Why Human Analysis Is Critical
- AI can screen for cheap-looking stocks, but it doesn’t understand management struggles, market sentiment, or industry shifts.
- A human investor would spot Intel’s real weaknesses—showing it’s cheap for a reason (a potential value trap).
- This is why AI + Human Judgment = Smarter Investing.
🚨 Lesson: AI can help identify stocks, but you MUST do your own fact-checking before making a decision.
Step 4: How to Use AI the Right Way for Value Investing
So how should a smart value investor use AI?
✅ DO: Use AI as a Research Assistant, Not a Decision-Maker
Think of AI as an extra set of eyes that helps spot opportunities—but always do your own research before investing.
✅ DO: Combine AI Insights with Human Judgment
AI can process massive amounts of data, but it lacks human intuition and common sense. Use AI to find stock ideas, then apply your own analysis.
🚫 DON’T: Blindly Trust AI Stock Picks
Just because AI suggests a stock doesn’t mean it’s a guaranteed winner. AI doesn’t predict the future—it just finds patterns.
🚫 DON’T: Fall for AI Hype & Unrealistic Promises
If an AI tool claims “guaranteed profits” or “market-beating returns,” be skeptical. No AI can consistently outperform the market.
Final Thoughts: Should You Use AI for Stock Picking?
✅ YES, if:
- You want to analyze stocks faster and uncover hidden opportunities
- You’re looking for an extra tool to improve your research process
- You understand that AI isn’t perfect—it’s just another helpful investing tool
❌ NO, if:
- You expect AI to do all the work for you
- You blindly follow AI stock picks without understanding the risks
- You don’t have an investing strategy beyond “AI told me to buy this”
👉 Final Takeaway: AI tools can give you an edge, but they’re not a shortcut to guaranteed profits. Use them wisely, and you’ll improve your investing game—without losing your shirt.
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