Potential of ChatGPT in predicting stock market trends based on Twitter Sentiment Analysis

TL;DR

This study explores ChatGPT's ability to predict stock market trends by analyzing Twitter sentiment, showing a positive correlation between ChatGPT's sentiment evaluations and subsequent stock movements for Microsoft and Google.

Contribution

It demonstrates ChatGPT's potential as a tool for financial prediction using social media sentiment analysis, a novel application of its conversational AI capabilities.

Findings

Positive correlation between ChatGPT sentiment and stock movements

Effective use of Twitter data for stock trend prediction

Highlights AI's growing role in financial forecasting

Abstract

The rise of ChatGPT has brought a notable shift to the AI sector, with its exceptional conversational skills and deep grasp of language. Recognizing its value across different areas, our study investigates ChatGPT's capacity to predict stock market movements using only social media tweets and sentiment analysis. We aim to see if ChatGPT can tap into the vast sentiment data on platforms like Twitter to offer insightful predictions about stock trends. We focus on determining if a tweet has a positive, negative, or neutral effect on two big tech giants Microsoft and Google's stock value. Our findings highlight a positive link between ChatGPT's evaluations and the following days stock results for both tech companies. This research enriches our view on ChatGPT's adaptability and emphasizes the growing importance of AI in shaping financial market forecasts.