I asked Google AI to buy me the best UK stocks for 2025. Here are the 5 names it gave me

Artificial intelligence will be about 10 times smarter by 2024, and because of that, I thought it might be great for stock picking. So, I asked GoogleArtificial intelligence (AI) platform Gemini (formerly Bard) of the five best stocks to buy in 2025. Here’s what he said.

Google says…

Predicting the ‘best’ stocks is risky, as the market is constantly changing. However, based on current trends and analyst views, here are five UK stocks that could do well in 2025:

1. Diageo: this global beverage giant owns iconic brands such as Johnnie Walker, Guinness, again Smirnoff. It has a strong track record of growth and a solid business model.
2. AstraZeneca: a leading pharmaceutical company with a strong pipeline of new medicines. AstraZeneca is well positioned to capitalize on the world’s aging population and growing demand for healthcare.
3. Unilever: a consumer goods giant with a diverse portfolio of products, incl Pigeon, Liptonagain This is Ben & Jerry’s. Unilever’s strong brand recognition and global reach make it a relatively stable investment.
4. NatWest Group (LSENWG): The UK’s second largest bank is benefiting from rising interest rates, which is increasing its borrowing limit. However, the economic situation is still uncertain, which may affect the bank’s performance.
5. Shell: A major oil and gas company is switching to renewable energy sources, but still generates huge profits from its fossil businesses. Oil and gas prices are volatile, creating both risks and opportunities for investors.

Common options

Well, where to start? Perhaps it is best to start by highlighting that NatWest is not the UK’s second largest bank. However, other than that, these look like other common stocks, weighted towards the consumer goods ratio, which would do better in rating cut cycles.

Similarly, Shell and AstraZeneca are the two largest stocks by market capitalization FTSE 100. Shell is a diversified energy company although it remains heavily dependent on hydrocarbon revenues. It also trades at a marked discount to its Big Six American peers.

Meanwhile, AstraZeneca shares have fallen sharply in recent months following the start of the investigation in China. However, several analysts have suggested that this could be a good opportunity to buy stock in the biotech-pharma giant with a price-to-earnings-to-growth ratio (PEG) falling to 1.4.

Why NatWest?

Gemini’s investment outlook may not be detailed, but there are good reasons to believe that NatWest could be very strong again in 2025. Historically, banks have performed well during interest rate cut cycles, which would create favorable conditions for NatWest to proceed.

Low interest rates generally encourage lending and economic activity, which improves bank profits through increased demand for loans. In addition, banks have hedging strategies to reduce the impact of interest rate declines, and these strategies can actually increase margins if central banks lower rates.

While challenges remain, including navigating economic uncertainty and slightly resurgent inflation driven by part of Labour’s first budget, the potential for improved performance in a supportive financial environment makes NatWest a stock to watch.