3 Machine Learning Stocks with the Potential to Become Multibaggers: April Edition

After a disastrous week, U.S. stocks appear to be trending higher again. As of the close of stock trading on Tuesday, S&P500 It rose 2.1% this week, mostly in tech stocks. Nasdaq It rose more than 2.7%. Interest rate risk remains largely intact. Investors should be careful when putting money back into U.S. stocks, as the Federal Reserve has clearly maintained its view that interest rates will remain high for an extended period of time. However, the ongoing market rally is giving stock investors and traders an opportunity to reconsider investing in an innovative area of ​​the economy: machine learning (M.L.) and artificial intelligence (A.I.). These multibagger machine learning stocks have performed extremely well over the last year, driving the Nasdaq to record highs. These types of stocks could drive the Nasdaq higher in 2024.

Machine learning is a branch of artificial intelligence that has been around long before generative AI jumped into the social zeitgeist. ML technology essentially helps computers glean insights from data without explicit programming. Machine learning technology has been around for a while, so its applications are numerous.

With that said, here are three multibagger machine learning stocks to consider in April.

Nvidia (NVDA)

Shareholder of highly regarded graphics card manufacturer; Nvidia (NASDAQ:NVDA), I had a big scare last week. NVDA's shares plummeted by nearly 14%. The company's stock ended this week at around $762 per share, well below its high of $950 per share at the end of the first quarter in late March. However, the stock price has once again fallen short of expectations. As of Tuesday's close, Nvidia's stock price was up 8.2% this week, leaving no doubt that the company could be on its way to new all-time highs.

There's no doubting Nvidia's prowess in machine learning and artificial intelligence technology. The chipmaker's CUDA software offers a number of machine learning and data analysis libraries that can accelerate data science work while using Nvidia's GPUs. Of course, Nvidia's recently announced Blackwell will be a game changer in both the ML and AI space.

Trading at 33.0 times forward earnings, Nvidia stock looks like a great buy these days.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is the second semiconductor company to join this list of machine learning stocks. The reason is ultimately similar to what I wrote for his Nvidia. Over the past decade, AMD has established itself as a solid provider of GPUs that are not only powerful but also cost-effective. Before the Covid-19 pandemic, AMD was only generating billions in annual revenue. As of the latest fiscal year, that amount has nearly quadrupled to about $23 billion.

When it comes to the world of machine learning, AMD's Radeon graphics are essential. If you have an AMD graphics card with Radeon, you can develop desktop-level AI and machine learning workflows.

In addition to AMD's machine learning capabilities, the chipmaker also has big ambitions for artificial intelligence. Back in December, AMD claimed that its MI300x GPUs were faster than what Nvidia was offering on the market. These GPU accelerators may be used in servers that process large amounts of data.

AMD stock fell 10% last week, but is back on the rise. Now may be the time for investors to reassess AMD's potential.

Alphabet (GOOG, GOOGL)

It would be very difficult to make a machine learning list without mentioning one of the companies that provides the cloud infrastructure where machine learning algorithms are routinely deployed. alphabet (NASDAQ:googleNasdaq:Google) is the parent company of Google and is involved in everything from cloud computing and quantum computing to artificial intelligence, mobile devices, and operating systems.

Google Cloud continues to be the place where many companies deploy machine learning and data analysis algorithms. The tech giant's latest earnings report revealed that cloud continues to be Google's top growth engine. Google Cloud's revenue for Q4 2023 was $9.2 billion, a sharp contrast to Q4 2022's $7.3 billion. Other than providing computing power to run machine learning algorithms. Google also offers a number of courses and certifications for aspiring machine learning engineers.

Investors should also keep an eye on Google's AI product Gemini. Gemini could become an integral part of Google Cloud in the coming months and years.

Among the other companies on this list, GOOG stock trades cheapest at 23.4 times forward earnings. Stock prices are sitting in a sweet spot. It's time for investors to ask themselves if they should invest now.

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.