InvestorPlace – Stock Market News, Stock Advice, Trading Tips
artificial intelligence(artificial intelligence) has become a buzzword recently, but machine learning is a more accurate term for what most AI companies aspire to. But because of AI's cultural popularity thanks to science fiction and Hollywood, the term has overtaken machine learning as the primary explainer of the current trends in data analytics and targeted information retrieval that make up much of the AI sector. As such, many of the leading AI stocks might be better classified as machine learning stocks.
However, the real value in these machine learning stocks lies in their potential future applications to data analytics, as machine learning models aim to automate a variety of algorithmic processes. Depending on the potential benefits from this automation, machine learning companies could see increased revenue as a result of their software services. Investors would be wise to keep an eye on these three machine learning stocks.
International Business Machines (IBM)
Source: shutterstock.com/LCV
It has been an industry staple for many years International Business Machines (New York Stock Exchange:IBM) is one of the earliest developers of machine learning technology still on the market today, and one of the latest versions of Watson AI models, Watson Studio, has the potential to make the company a key player in the future of AI training and machine learning.
With this new platform, IBM aims to empower small developers to design and implement their own AI through machine learning training, allowing data scientists and software engineers to customize the Watson AI base to their specific needs while providing data and insights to IBM's development teams.
Essentially, this means that IBM will develop a symbiotic relationship with developers, with both parties collaborating to improve the efficiency of their respective machine learning structures. With the introduction of Watson Studio and strong margins so far in 2024, IBM stock continues to look like a great value among machine learning stocks.
Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
Microsoft (Nasdaq:MSFT) remains a dominant player in the software and cloud computing markets through its Microsoft Azure division. Now, the company is also pioneering the concept of offering machine learning models as a service to extract even more revenue from its strong data center business.
The intended value of the Azure Machine Learning platform comes from Microsoft's ability to create scalable data analysis and AI training environments for customers of all sizes and applications. In addition, Microsoft's vast data resources, as the world's largest software user base, give it a huge advantage in AI development and enable machine learning services to be even more effective.
This will allow Microsoft to carve out a niche for itself among machine learning stocks by using that data to improve its own products while also improving enterprise-level capabilities for its customers. Combine this with Microsoft's dominance in the technology space and deep pockets for further research, and MSFT will likely continue to be a big player in the world of AI and machine learning development.
Alphabet (GOOG, GOOGL)
Image credit: Koshiro K / Shutterstock.com
No discussion of machine learning stocks would be complete without considering some things. alphabet (Nasdaq:GoogleNasdaq:Google) offers. Alphabet has been a consistent and quiet member of the machine learning community through the development and maintenance of software called TensorFlow.
TensorFlow has been around for over eight years, and with its dual ability to be programmed in both Python and C++, it has become one of the core tools many developers use to build machine learning applications. Because it is open source and free, Alphabet does not make any revenue from the use of TensorFlow, but it does own the architecture upon which many machine learning applications are built.
This gives Alphabet greater ability to acquire these developers later or collaborate on future development cycles. When you consider this, along with its 2024 revenue projections of $340.61 billion, Alphabet stands out as a strong contender among machine learning stocks.
As of the publication date of this article, Viktor Zarev did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com copyright. Publication Guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Viktor Zarev is a scientist, researcher and author specializing in explaining the complex world of tech stocks with a focus on accuracy and understanding.
More from InvestorPlace
This article about 3 Machine Learning Wonders that could make you rich originally appeared on InvestorPlace.
