How I Use ChatGPT for Investing

Good Evening! 👋

Dear Investor,

Happy Wealth Wednesday.

It is 2025, and artificial intelligence has quietly become one of the most powerful tools for investors. What used to take hours of research can now be done in minutes if you know how to ask the right questions.

I have been using ChatGPT as part of my own investment research, and it has completely changed how I study companies. It is not about replacing your judgment. It is about speeding up the learning curve so you can understand a business faster and make smarter decisions. In other words, if you called me on the phone and said, “have you heard of company xyz?” If the answer is no, this is how I would start my research into the company. Think about this as your warmup before you really dig into the company!

Today, I want to walk you through 7 simple ways you can use ChatGPT to research stocks like a professional investor.

1. Helps You Understand a Company

Warren Buffett has a famous rule: never invest in a company you do not understand. It sounds simple, but most investors skip this step. They rush into a stock because it is trending, not because they actually know how the business makes money.

ChatGPT can change that. You can ask it to explain a company’s business model in plain English so you fully grasp what the company does before you invest a dollar.

Example prompt:
“Explain Apple’s business model to me like I am a college student”

Answer: Apple’s business model centers on creating a connected ecosystem of products and services that keep customers loyal. They design and sell devices like the iPhone, Mac, iPad, and Apple Watch, while also offering software and services such as iCloud, the App Store, Apple Music, and Apple Pay. Everything works together smoothly, making life easier for users and encouraging them to stay within Apple’s ecosystem. This strategy allows Apple to earn money not only from the initial sale of devices but also from ongoing subscriptions and upgrades, giving the company a steady stream of long-term revenue.

This gives you a clear overview of how Apple earns money from products, services, and ecosystem lock-in. Once you understand how a company makes money, you can start to understand how it grows and where its risks lie.

Note: Sometimes, I don’t understand the company so I will say “explain it like I am a middle schooler.”

2. Summarize Earnings Calls

As an investor, one of the most important habits you can build is staying informed about the companies you own. Public companies release earnings calls every quarter, and those calls tell you what management is seeing in real time.

The problem is that they are long, filled with jargon, and not every line is useful. ChatGPT can save you hours by summarizing the key takeaways for you.

Example prompt:
“What are the top 5 points from Apple’s Q1 2025 earnings call?”

Answer: Apple’s Q1 2025 earnings call highlighted another record-breaking quarter with $124.3 billion in revenue, up about 4% from last year, and earnings per share rising 10% to $2.40. The company’s Services division continued to shine, hitting an all-time high of roughly $26.3 billion thanks to strong growth in paid subscriptions. Product performance was mixed, with iPhone sales dipping slightly, while Mac and iPad sales surged by about 16% and 15% respectively. Apple also announced that its active device base surpassed 2.35 billion worldwide, underscoring the power of its ecosystem and recurring revenue model. Looking ahead, Apple expects revenue growth in the low- to mid-single digits and gross margins between 46.5% and 47.5%, while acknowledging challenges such as currency headwinds, soft demand in China, and the rollout of Apple Intelligence as a potential growth driver.

Within seconds, you can get a clear breakdown of what matters most. Maybe it highlights revenue growth in services, iPhone demand in China, or changes to future guidance. The point is, you will know exactly what management said without digging through dozens of pages of transcripts.

3. Perform a SWOT Analysis

A SWOT analysis helps you identify a company’s strengths, weaknesses, opportunities, and threats. It is one of the simplest yet most overlooked exercises in investing. The challenge is that it takes time, especially if you are analyzing multiple companies.

ChatGPT can make this process much faster. Instead of spending hours researching, you can ask it to organize this information for you and then verify or expand on what it provides.

Example prompt:
“Write me a SWOT analysis on Apple.”

Answer:

Strengths:
Apple’s greatest strength is its powerful brand and loyal customer base. Its ecosystem of devices and services, including the iPhone, Mac, Apple Watch, and subscriptions like iCloud and Apple Music, creates a seamless experience that keeps users engaged. The company maintains exceptional financial health with strong profit margins and one of the largest cash reserves in the world. Its combination of consistent innovation, tight hardware and software integration, and world-class marketing gives Apple a clear advantage over competitors.

Weaknesses:
Apple relies heavily on the iPhone, which still generates most of its revenue. This dependence makes the company vulnerable to smartphone market slowdowns. Its high prices limit growth in price-sensitive markets, and its supply chain depends on partners such as Foxconn, which can create risks if production is disrupted. Some analysts also believe Apple’s product innovation has slowed in recent years, particularly in hardware design.

Opportunities:
Apple has strong growth potential in artificial intelligence, augmented reality, and health technology. Its move into AI through Apple Intelligence could encourage users to upgrade devices and open new revenue streams. Expanding Services revenue through Apple TV+, Apple Pay, and the App Store gives Apple a stable source of recurring income. Growth in wearables and health tracking, as well as potential expansion into financial services and mixed reality, provide additional long-term opportunities.

Threats:
Apple faces tough competition from Samsung, Google, and Microsoft, along with emerging AI-focused companies. Governments in the United States and Europe continue to challenge Apple on antitrust and privacy issues, creating regulatory risks. Economic slowdowns and geopolitical tensions, especially involving China, could affect both demand and manufacturing. Rapid changes in technology and the rise of cloud-based ecosystems also pose challenges if Apple does not adapt quickly.

You will get a quick breakdown of what Apple does well, where it could improve, and what outside factors might affect its performance. It is not a replacement for your own thinking, but it is an incredible starting point that gives you a clear framework for your research.

4. Understand Risk Factors

Every investment comes with risk. The goal is not to avoid risk but to understand it. Before you buy a stock, you should know what could go wrong and how those risks might impact the company’s future.

ChatGPT can help identify and summarize a company’s main risk factors. You can use it to highlight issues mentioned in annual reports, regulatory filings, or industry analyses that might take you hours to find on your own.

Example prompt:
“What are the key risks of investing in Apple?”

Answer: The key risks of investing in Apple include its heavy reliance on the iPhone, which still accounts for a large portion of total revenue. If demand for smartphones slows or competitors like Samsung and Google gain market share, Apple’s growth could be limited. Another major risk is regulatory pressure, as governments in the United States and Europe continue to investigate Apple’s App Store fees and antitrust practices, which could lead to fines or forced changes to its business model. Apple is also exposed to supply chain risks since much of its production takes place in China, making it vulnerable to political tensions, tariffs, and disruptions from pandemics or natural disasters. Currency fluctuations can affect profits because Apple earns a significant share of its revenue overseas. Lastly, Apple faces the constant challenge of maintaining innovation and consumer excitement in mature product categories, where slower product cycles or weaker demand could impact future growth.

5. Identify Revenue Streams

One of the most important steps in understanding a company is knowing where its money actually comes from. Most investors can name a company’s main product, but few can explain how that product fits into the company’s full revenue mix.

ChatGPT can break this down in seconds. By asking it to outline a company’s key revenue streams, you can see which areas drive growth, which are slowing down, and how diversified the business really is.

Example prompt:
“What are Apple’s main revenue streams, and which ones are growing the fastest?”

Answer: Apple’s main revenue streams come from the iPhone, Services, Mac, iPad, and Wearables, Home, and Accessories. The iPhone remains the largest contributor, generating roughly $69 billion in Q1 2025, though sales dipped about 1% year over year. Services, which include the App Store, iCloud, Apple Music, Apple TV+, Apple Pay, and subscriptions, brought in $26.3 billion and grew around 14%, making it Apple’s fastest-growing segment. Mac revenue rose 16% to $9 billion, and iPad sales increased 15% to just over $8 billion, both showing strong rebounds after softer demand in 2024. Wearables, Home, and Accessories, which includes AirPods, Apple Watch, and HomePod, brought in $11.7 billion but slipped slightly compared to the prior year. Overall, Apple’s business continues to shift gradually from hardware toward recurring Services revenue, which provides more predictable and higher-margin growth.

This gives you a clear picture of Apple’s hardware, services, and subscription businesses. You can then dig deeper to understand how those segments contribute to profitability and where the company’s future growth might come from.

Before we wrap up, I want to mention something important.

I use ChatGPT for understanding businesses, analyzing risks, and spotting catalysts, but when it comes to financial data, I rely on Perplexity. It pulls in real-time information and the most up-to-date numbers. ChatGPT is incredible for analysis and explanation, while Perplexity is better for precision and current financials.

In another article, I will walk you through exactly how I use Perplexity to research a company’s financials step-by-step.

Conclusion

Artificial intelligence is not replacing investors. It is giving us better tools to think.

ChatGPT helps you understand companies faster, analyze them deeper, and ask smarter questions before you invest. The real skill is learning how to combine your judgment with technology to make better decisions.

Wealth in 2025 and beyond will go to those who know how to leverage these tools, think independently, and keep learning.

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