Stock Selection: DeepSeek's picks for 2026-10-26
DeepSeek picked SGRY, RRC, TSLA, NVDA, MU for a 1-day horizon. Portfolio return vs SPY: +1.55%. Picks that beat SPY: 80%.
| Experiment | Stock Selection |
|---|---|
| Model | DeepSeek |
| Prompt version | stock-selection-v8 |
| Asked | |
| Horizon | 1-day |
| Measured from | 2026-10-26 |
| Measured to | 2026-10-27 |
| Benchmark | SPY |
| Status | Settled |
| Portfolio return vs SPY | +1.55% |
| Picks that beat SPY | 80% |
| Benchmark return | +0.23% |
The picks
| Rank | Symbol | Return | Confidence | vs benchmark | Called right |
|---|---|---|---|---|---|
| 1 | SGRY | +0.82% | 85% | +0.60% | Yes |
| 2 | RRC | +3.81% | 80% | +3.58% | Yes |
| 3 | TSLA | +2.13% | 75% | +1.90% | Yes |
| 4 | NVDA | +0.05% | 70% | -0.17% | No |
| 5 | MU | +2.06% | 65% | +1.84% | Yes |
The model's market view
US equities are poised for a higher open on Monday, supported by a pullback in crude oil prices and anticipation of a busy week of mega-cap earnings and the Federal Reserve's policy decision. While broad-market gains may be moderate, stock-specific catalysts such as M&A announcements and analyst upgrades are likely to drive significant one-day outperformance. The AI trade remains a focus following Anthropic's IPO filing, but concerns about AI spending persist, creating dispersion among individual names.
Why each pick
SGRY
Surgery Partners surged over 46% after HealthSpan Partners agreed to acquire the company for $23.50 per share in cash, representing a more than 49% premium to Friday's close. Despite the sharp move, the stock still trades below the offer price, leaving a merger-arbitrage gap that could narrow further during the session. Risks include deal-completion uncertainty and potential regulatory hurdles, but the cash nature of the offer provides a relatively clear valuation anchor.
RRC
Range Resources jumped roughly 16% after EQT Corporation agreed to acquire the company in an all-stock deal valued at over $50 billion, implying approximately $54.91 per share. The stock is trading below the implied deal value, and continued merger-arbitrage interest could push it closer to the offer price during the session. Risks include fluctuations in EQT's share price (which determines the exchange ratio) and natural-gas market volatility.
TSLA
Tesla is leading the megacap advance, up more than 5%, after Barclays upgraded the stock to overweight from equal-weight with a $450 price target, citing potential SpaceX merger synergies. The upgrade has triggered strong momentum and short-covering interest. Risks include overextension after the sharp rally and the possibility of profit-taking into the close, as well as lingering concerns about the company's recent quarterly results.
NVDA
Nvidia is advancing about 2% as semiconductor stocks broadly recover following a turbulent stretch. Anthropic's IPO filing has renewed focus on AI infrastructure demand, benefiting the leading AI-chip supplier. Broadcom and AMD are also higher, supporting sector sentiment. Risks include persistent concerns about debt-funded AI data-center spending and the stock's sensitivity to interest-rate expectations ahead of the Fed decision.
MU
Micron Technology is up nearly 3%, leading the storage-chip sector higher after BofA highlighted the company's technology competitiveness and long-term supply contracts. Sector peers SanDisk and SK Hynix are also gaining, suggesting broad-based momentum. Risks include the memory sector's history of sharp cyclical swings and the potential for gains to fade if broader AI-spending worries resurface during the session.
Other models on the same run
| Model | Picks | Portfolio return vs SPY | Picks that beat SPY |
|---|---|---|---|
| Muse Spark 1.1 | VZ, CDNS, CRWD, NUE, CLS | +1.19% | 60% |
| Claude Sonnet 5.5 | SMH, NVDA, XLP, XLE, MSFT | -0.02% | 40% |
| Perplexity | RRC, VZ, TSLA, AMZN, AAPL | +1.06% | 60% |
| GPT-6 | TSLA, NVDA, SOXL, AVGO, CRWD | +2.48% | 80% |
| Grok 4.7 | TSLA, NVDA, PANW, CCI, AMD | +1.14% | 60% |
Written up on ForecastNest Insights: Stock Selection: DeepSeek's picks for 2026-10-26.
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