Machine learning is revolutionizing industries from healthcare to transportation and offering investors profitable opportunities in machine learning stocks. However, investors interested in machine learning stock must tread carefully, as not all stocks in this sector guarantee rewards. Many companies, though they claim advanced machine learning capabilities, lack robust business models or clear applications.
Moreover, insights from a recent WallStreetZen study highlight an intriguing pattern: companies that mention artificial intelligence (AI) in their earnings reports have seen their stock prices increase on average by 4.6%. This surge is even more pronounced in the tech sector, reaching 11.9%.
As machine learning evolves, it’s becoming a crucial element of AI applications, influencing future developments. Consequently, these three stocks have moved beyond mere hype and are actively integrating machine learning into their core services, positioning themselves for substantial growth in 2024 and beyond.
Nvidia (NVDA)
When discussing machine learning, Nvidia (NASDAQ:NVDA) invariably takes center stage. The company’s second-quarter results showed a 101% revenue bump to $13.51 billion, with data center revenue soaring to $10.32 billion, marking a 171% rise from the previous year. This stellar performance sets the stage for Nvidia’s ongoing expansion.
Moreover, the company stands out with its GH200 Grace Hopper super chip, which combines the H100 GPU with the Grace CPU, playing a pivotal role in powering AI and machine learning. As highlighted by IEEE Spectrum, Nvidia consistently leverages advanced manufacturing technology, with the H100 being a prime example.
Additionally, Nvidia’s upcoming ‘Super’ models are poised to set new benchmarks in graphical performance, a development eagerly anticipated by both gamers and professionals. Users who constantly seek superior rendering capabilities for demanding applications will find these improvements especially pertinent. Through these advancements, Nvidia not only reinforces its position as a leader in GPU technology but also responds adeptly to the evolving needs of its diverse user base.
Accenture (ACN)
Accenture (NYSE:ACN) has emerged as a standout in the machine learning stock market this year, boasting an impressive 18% year-to-date increase. Accenture’s commitment to expanding its AI and machine learning capabilities is evident, particularly with the strategic acquisition of Nextira, an AWS Premier Partner.
Moreover, Accenture’s third-quarter results revealed a robust revenue of $15.99 billion, up 4% year-over-year, and earnings per share (EPS) of $2.71, narrowly beating estimates. This financial resilience is further highlighted by an impressive annual free cash flow of $9 billion, of which $7 billion was returned to shareholders.
Furthermore, Accenture announced a significant investment of $3 billion over three years in its AI and data practice. This initiative, aimed at transforming clients into AI-centric businesses, includes the launch of the AI Navigator for Enterprise, a generative AI-based platform. These strategic moves make Accenture a key machine learning stock to watch in the rapidly evolving AI landscape.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is asserting itself as a formidable player among machine learning stocks, with a notable 54% year-to-date return. Microsoft’s fiscal 2023 fourth-quarter earnings support this trajectory, boasting a revenue of $56.5 billion, a 12.8% increase year-over-year, and earnings per share of $2.99, surpassing estimates by a robust 34 cents.
Moreover, the company’s integration of Bing’s AI chat across various browsers exemplifies its commitment to making AI more accessible and user-friendly. This move is part of Microsoft’s broader mission to democratize AI technology, enhancing user experiences across its platforms.
Further solidifying its position, Microsoft has initiated key projects and collaborations, such as the formation of the Frontier Model Forum and its partnership with Nvidia. This collaboration focuses on integrating the AI Enterprise Suite with Azure Machine Learning, aiming to deliver advanced enterprise-level machine learning solutions. These initiatives underscore Microsoft’s status as a leading machine learning stock, making it an attractive option for investors in the ever-evolving tech landscape.
On the date of publication, Muslim Farooque did not have (either 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
