AI Holds Strong Potential to Transform Stock Market Forecasting in Nepal
Summary
Artificial intelligence is showing strong promise for forecasting Nepal Stock Exchange movements, with studies finding LSTM and graph neural network models can improve prediction accuracy. Researchers say practical adoption is still limited and will require better data, infrastructure, and regulation.
Key Points
- AI is emerging as a promising tool for stock market forecasting and investment analysis in Nepal's NEPSE.
- A study in JBSSR found LSTM outperformed GRU and CNN in predicting NEPSE data, while a 2025 study found GCN performed better than GAT in graph-based modeling.
- Despite encouraging results, AI use in Nepal's stock market remains mostly academic and has not yet been widely applied to live trading.
- The article says AI should complement, not replace, human judgment, especially because stock prices are affected by unexpected political and economic events.
-1.png)