3 machine learning stocks that can turn $100,000 into $1 million

US stocks have calmed down since the rally in Q1 2024. S&P500, Nasdaqand russell 2000 All are down slightly from their previous highs. While market trends such as the generative AI craze may have been enough to propel stocks to new heights, analysts and investors have recently become increasingly concerned about how overinflated buy/sell multiples have become. With U.S. stock prices falling, it may be time to think about which stocks to buy when valuations are down. Given the traction that AI-related technology companies received in both 2023 and 2024, machine learning stocks could also receive significant support in 2024.

Machine learning (M.L.) is artificial intelligence (A.I.) Allows computers to learn from data and experience without explicit programming. Over the past decade, this technology has also gained attention for numerous applications. Below are three machine learning stocks that could increase your capital 10x if you choose to hold them for the long term.

Crowd Strike (CRWD)

cloud strike (NASDAQ:CRWD) is a cybersecurity company specializing in cloud-based endpoint protection and threat intelligence services. The cybersecurity company employs numerous machine learning algorithms to detect cyber threats on corporate networks and across endpoints. It appears the company is already feeling the effects of the current market turmoil. The stock is down more than 2% since the start of the second quarter, but this is likely not due to anything wrong with the business.

The company's fourth-quarter results highlighted how cybersecurity companies can thrive amid economic uncertainty. CrowdStrike, in particular, beat Wall Street's earnings expectations, with 2023 sales up 54% year over year and revenue for the quarter up 45% year over year. Even as the cybersecurity industry as a whole struggles with growth, CrowdStrike continues to significantly improve its sales year-over-year. The company has also avoided layoffs, unlike the following companies: Z scaler (NASDAQ:ZS) and sentinel one (New York Stock Exchange:S).

However, CrowdStrike's valuation multiple has risen too much. CrowdStrike's stock price rose more than 140% by the end of 2023. CrowdStrike's stock price is currently trading at around 80.0 times forward earnings (P/E) after rising more than 22% since the beginning of 2024. If CrowdStrike's valuation falls a little, the stock price may also fall. Now is a good time to consider investing in the company's stock. As companies continue to pursue digital transformation plans, CrowdStrike will be a clear beneficiary.

Palantir (PLTR)

meanwhile Palantir Technologies (New York Stock Exchange:PLTR) skyrocketed in Q1 2024, rising as high as 54% at one point, and I was alarmed by its valuation. In my eyes, I pointed out that this data analytics company is overvalued as a mature AI company even though it has not yet achieved that status. PLTR's price-to-earnings ratio reached 80.2 times expected earnings in early March. It just didn't make sense for companies that had just deployed an AI platform to be valued so much higher than other companies. Nvidia (NASDAQ:NVDA).

But since then, PLTR stock has fallen more than 16%, and its valuation has also declined slightly. Therefore, now may be a good time to consider PLTR as a long-term investment. Despite my cynicism about the company's valuation, Palantir remains a great business. This data analytics company began serving the defense and intelligence sectors by providing comprehensive data analytics products. At the time, Peter Thiel was at the helm of the company. Now, Palantir is expanding its horizons to serve customers in the healthcare, energy, and financial industries using both on-premises and cloud software solutions. At the end of 2023, Palantir's broad customer base included 497 companies.

Additionally, Palantir has made great strides in improving profitability, and while its new artificial intelligence platform (AIP) may be initially overvalued, the platform is expected to generate revenue growth and growth at some point in the future. Potentially boost revenue. In other words, if you buy at the right price, PLTR stock could be a worthy long-term investment in machine learning.

International Business Machines (IBM)

international office equipment (New York Stock Exchange:IBM) is an established technology business that employs machine learning in many of its core operations. Not to mention, IBM's price-to-earnings ratio is only about 18.7 times forward earnings, making the tech giant a strong candidate to add 10x returns to a company's portfolio.

Given that we are at the beginning of the generative AI era, IBM's machine learning and AI business is just getting started. The company's watsonx platform enables businesses to leverage the best ML and AI models to meet their analytical needs. Additionally, IBM's AIOps products use machine learning to automate certain tasks associated with operating and monitoring cloud infrastructure, minimizing costs. These types of AI and ML-based tools are not only useful for many companies, but are also essential for maintaining modern business in the digital age.

Another new area where IBM can drive value is its quantum computing business. Machine learning and generative AI are currently the new hot spots in technology, but quantum computing has the potential to surpass the capabilities of both in certain applications. In addition to operating its own physical quantum computers, IBM has been working to make quantum computing accessible through a cloud-based quantum computing service called IBM Quantum Experience. This will give customers and researchers access to quantum hardware and software.

IBM has had strong free cash flow recently and could make further breakthroughs in machine learning and quantum computing, driving innovation and profit growth over the long term.

On the date of publication, Tyrik Torres did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.