Machine learning stocks to make you rich will leverage the number one commodity in today’s digital economy, data. There’s far more data available than even the most robust analytic teams can digest and draw insights from. To that end, companies are leveraging machine learning to make sense of the depths of their data. Common methods iteratively tweak and adjust models and tools to suit changing variables.
Of course, as machine learning became popular, many companies slapped the label on their product, whether or not it truly applied. But these three companies leveraged machine learning before it was cool. Luckily for early investors, these machine learning stocks to make you rich are still positioned at the top of the respective industries.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) is in the news this week on the strength of the software stock’s machine learning offerings. First, Palantir announced yet another government contract to develop machine learning tools for military applications. The $250 million contract will last through 2026, cementing Palantir’s place in defensive machine learning capability delivery.
To further reinforce Palantir’s machine learning position, insiders indicate that the firm will likely be the UK government’s top pick to rebuild the nation’s digital healthcare systems. While the $579 million contract isn’t yet a lock, anonymous insiders say the announcement could come down the pipe later this month after some paperwork formalities wrap up. Machine learning applications within the contract abound as analysts expect pattern recognition to be a major part of overhauling legacy systems and streamlining operations.
Palantir may be a controversial stock, marred by its meme stock past. But after three consecutive profitable quarters and a slew of machine learning opportunities arising, Palantir is proving to be unstoppable.
When it comes to art, Adobe (NASDAQ:ADBE) has been using machine learning for quite a while. For over ten years, some of the coolest features in Adobe Photoshop were created using these technologies. Photoshop unveiled “content aware fill” in 2021, letting users change a background without messing up the main subject. As an industry go-to tool for digital art, Adobe’s machine learning potential positions it at the top of marketing, editing, and similar creative sectors.
They’re not stopping there, though. Adobe has introduced new artificial intelligence and machine learning tools to its creative suite. One of them is Adobe Firefly, which generates images from text, giving artists a whole new way to play with their art. For enterprise and corporate clients, Adobe Sensei GenAI helps users develop dashboards to integrate and interpret data in an application that learns from that same data over time.
Financially, Adobe’s been doing well and has the potential for some serious growth. In its most recent report, Adobe they raked in $4.89 billion in revenue, a 13% year-over-year increase. Adobe is also moving to hike its product pricing slightly. The realignment will further expand the company’s bottom line as it adapts to an inflationary environment alongside higher R&D costs.
Crowdstrike (NASDAQ:CRWD) is at the forefront of cybersecurity today, and the company leverages machine learning to secure its top spot in the industry. Specifically, Crowdstrike uses massive databases, constantly updated, to train its security tools. The technique has been core to Crowdstrike’s business model since its inception. This demonstrates that, unlike many firms, Crowdstrike’s commitment to machine learning isn’t bandwagoning.
The company’s financials are strong, too, and its recurring revenue popped 37% to nearly $3 billion in its most recent filing. It’s also adapting to shifting economic winds. Its free cash flow margins expanded to 36% as it upsold existing customers, snagged new ones, and cut costs at home.
Crowdstrike is on the pricier end of early machine learning stocks. Still, its price-to-sales ratio is aligned with the competition, meaning it isn’t treading in overvalued territory. Ultimately, cybersecurity demand will continue expanding. Likewise, Crowdstrike’s machine learning will position it to maintain its dominant position within that growth market.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.