The U.S. economy is poised for remarkable growth driven by advancements in machine learning. This transformative technology is set to revolutionize various industries like manufacturing, retail and healthcare. Machine learning will enhance quality control and automation in manufacturing, leading to more efficient production processes and personalized products. Retail will see improved data analysis, personalized shopping experiences and increased use of robotics for tasks like inventory management. Machine learning will advance diagnostics, treatment and prevention in healthcare, allowing for earlier disease detection and tailored patient care. Machine learning will revolutionize our society in the next couple of years.
The machine learning industry expects immense growth over the next few years. From 2023 to 2032, the industry is expected to grow from $51.48 billion to $771.38 billion, exhibiting a CAGR of 35.09%. The number one reason for this development is the freshness of machine learning. These top machine learning stocks are all releasing new technological and product innovations, making all of them strong buys.
Top Machine Learning Stocks: Oracle (ORCL)
Oracle (NYSE:ORCL) is a computer technology company specializing in integrated cloud applications and a cloud infrastructure platform. It is valued at $115.34, an increase of 21% year-over-year (YoY).
ORCL’s market cap grew from $289.81 billion in 2023 to $314.88 billion in 2024, representing an 8.65% growth rate. Other financials, like EBIT Margin, also showed promise, reaching 29.15%, or 514.8% more than the sector median. EV/Sales were valued at 7.53, 151.02% more than the sector median of 3.00. These metrics reaffirm ORCL’s profitability and define it as a stock for growth and profit.
ORCL made headlines recently by adding generative AI capabilities to its Fusion Cloud Applications suite, its flagship product. The addition enhances the product, making it ideal for finance, marketing and service. That innovation is bound to see appreciation in the stock price amid the AI craze and the quality of this product. In addition, to bolster its AI, Oracle partnered with Palantir (NYSE:PLTR) to create practical yet secure AI. That partnership aids Oracle in boosting its grip on AI while building a reliable relationship with a leader in the field.
ORCL’s innovations regarding the cloud and AI and its adequate financials mean this stock will prosper. It is a top technology stock, prompting me to give it a Buy rating.
CrowdStrike (CRWD)
CrowdStrike (NASDAQ:CRWD) is a cybersecurity company that provides cyberattack and cloud workload services. With a 132% YoY growth rate, CrowdStrike currently stands at $297.62. Additionally, it shows high potential, with Yahoo Finance analysts forecasting a 12-month price median of $393.65.
The company has consistently had revenue growth ranging from 32% to 42% over the last four quarters. In each of these periods, the revenue has been over four times more than the cost of revenue. Additionally, the FCF showed a slight dip in Q3 2023 but has been making its way up and is valued at $283.58 million in Q1 24. Like FCF, the EPS (Basic) started making new growth in Q3 2023, when it was $.04 and has grown to $.22 in Q1 2024.
The enhancement of CrowdStrike has been largely due to AI and further technological advancements. Recently, it was announced that CrowdStrike and Nvidia (NASDAQ:NVDA) are collaborating to combine the powers of cybersecurity and generative AI. More specifically, this collaboration is said to lead Nvidia AI to the CrowdStrike Falcon XDR platform. That can lead to advancing AI and machine learning and, further, developing cybersecurity and cloud services that CrowdStrike offers.
CrowdStrike is built upon developing technology and has excellent potential for the future. Its collaboration with Nvidia marks the first step in its machine learning and AI development.
Top Machine Learning Stocks: Palantir (PLTR)
Palantir is a SaaS company specializing internationally in the public and private sectors. It provides a robust end-to-end infrastructure, which makes its products competitive. Its services incorporate AI and ML to make raw data usable.
PLTR saw its first profitable year in FY2023, making $209.82 million. The company’s revenue is expected to grow rapidly, with ever-increasing EPS estimates. YoY quarterly growth is sitting at 202.5%, primarily due to 2023 being a break-out year. An exemplary debt/equity of 6.44% corroborates all other indicators of a strong financial status.
All seven Wall St. analysts covering PLTR have raised EPS estimates in the past 90 days, which is crucial given that Q1 earnings will be released on May 6th. The expansion of Palantir has come with many accolades, leading to it gaining market recognition. Towards the end of FY2023, PLTR was the No. 1 Vendor in AI, data science, and machine learning. An increase in good press will surely increase the number of clients, leading to higher earnings.
While many are bearish on this stock, I am pretty bullish, given that earnings are rising and frequent positive EPS revisions exist. A solid technical base and exceptional finances make this stock a buy.
On the date of publication, Michael Que did not hold (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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
