In today’s changing stock market, the best machine learning stocks to buy are grabbing attention. The frenzy surrounding the sector stems from the transformative nature of the technology. Machine learning, a significant part of artificial intelligence (AI), continues transforming various sectors. In time, this idea will influence every facet of our world. The rapidly progressing sector brings forth improvements in data interpretation, automation and decision-making processes, to name a few.
As the month progresses, many investors will focus on these must buy machine learning stocks to tap into the industry’s growing potential. With so many options available, which ones truly stand out? Join us as we explore the best machine learning stocks to buy.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) has undoubtedly etched its name as one of August’s must buy machine learning stocks. With a striking year-to-date (YTD) return of 138%, the data-driven behemoth demonstrates what it means to be among the top machine learning stocks for investors keen to ride the AI revolution.
Palantir primarily engages in data analytics. It uses its AI and machine learning models to provide insights that decision-makers can use to improve their decision making process. Initially, Palantir focused mainly on government contracts. Recently, though, it has broadened its commercial clientele and now showcases a varied portfolio.
Moreover, the latest Q2 earnings report, showcased a non-GAAP EPS of 5 cents and a revenue of approximately $533.3 million, aligned with Wall Street’s projections, offering investors a consistent feeling of confidence.
However, it wasn’t solely the earnings that captured the attention of investors. Amid the buzzing AI landscape, Palantir’s strategic decision to raise its full-year sales forecast further cemented its position among leading AI stocks. Bolstering this momentum, the announcement of a $1 billion share buyback program clearly underlines the company’s confidence in its growth trajectory.
Snowflake (SNOW)
As August takes center stage, investors keen on infusing their portfolios with cutting-edge technology may want to zoom in on Snowflake (NYSE:SNOW). With a commendable YTD return of around 13%, Snowflake has secured a spot among the top machine learning stocks this month. But what’s truly fascinating is its Q1 2024 financials. Snowflake reported a robust 48% jump in revenue, raking in $623.7 million. Though it registered a net loss, the rapid growth trajectory shows promise. The three-year revenue growth rate for the company stands at an impressive 80%.
The market’s confidence in Snowflake isn’t solely hinged on these figures. The recent buzz? Snowflake’s expanding alliance with industry behemoths. The stock got a fresh tailwind after announcing a partnership with Nvidia (NASDAQ:NVDA) for generative AI applications. Moreover, its deepening ties with Microsoft (NASDAQ:MSFT), emphasizing generative AI, is an apt testament to its vision. With Morgan Stanley (NYSE:MS) indicating that the cybersecurity industry will gain as much as $30 billion, tech synergy and alliances could potentially play a pivotal role for Snowflake. Furthermore, the upgrade from Scotiabank (NYSE:BNS), which celebrates the company’s revenue and product strength, adds another feather to its cap.
ServiceNow (NOW)
In the ever-evolving realm of machine learning stocks, ServiceNow (NYSE:NOW) is emerging as a standout, charting an impressive 42% YTD return. For the second quarter of 2023, ServiceNow announced a strong revenue figure of $2.15 billion. The number reflects 23% growth from the previous year. Remarkably, the net income surged to an impressive $1.04 billion, representing a fivefold increase. This leap translated to a diluted EPS of $5.08, exceeding expectations by nearly 16%.
Diving deeper into the recent headlines, there’s a palpable buzz around ServiceNow’s innovative strides. The collaboration with Nvidia and Accenture (NYSE:ACN) for the AI Lighthouse project notably bridges ServiceNow’s enterprise automation capabilities with Nvidia’s supercomputing prowess. The recent launch of Starcoder, in alliance with Hugging Face, underscores ServiceNow’s commitment to revolutionizing the digital workflow landscape. Furthermore, the unveiling of Now Platform’s major expansion in Utah promises firms enhanced agility on their digital journeys.
ServiceNow unquestionably leads the pack for those seeking machine learning stocks with consistent growth. The bold forays into AI and strategic partnerships signify their position as a must buy machine learning stock. So, while the AI world is vast and full of contenders, ServiceNow shines brightly, making the future look not just smart but also exceptionally efficient.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
