Invest in these machine learning stocks to take advantage of continued advancements and efficiencies driven by AI
The secret to making big money in the stock market is to spot multi-year trends early and commit to them for the long term. Identifying long-term trends is no easy task, but with machine learning and AI, it's undeniably a problem that can't be ignored. These technologies have dominated the news headlines and propelled the stock market to unprecedented highs last year. So for investors looking to take their portfolio to the next level, betting on machine learning stocks is a no-brainer.
After the huge gains made by machine learning stocks last year, many felt their best days were behind them. However, these fears are overblown, given the penetration of AI and machine learning into nearly every industry. These technologies will greatly improve the productivity and efficiency of companies, creating significant value for customers and shareholders. Not all machine learning stocks are the same, so it's best to separate the good ones from the bad ones.
Top Machine Learning Stock: CrowdStrike (CRWD)
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Crowdstrike (Nasdaq:CRWD) is a leading cybersecurity company that leverages machine learning to power powerful cybersecurity capabilities. The company's popular Falcon platform uses machine learning algorithms to detect and respond to threats in real time. After years of analyzing vast amounts of data, the Falcon platform's machine learning capabilities have improved exponentially.
As a result, CRWD has become one of the most successful companies in its space, with an impressive track record of beating expectations in both sales and profits. Moreover, the company recently announced another phenomenal performance in the first quarter (Q1), with revenue surging 33% year over year to $845.4 million, beating expectations by $5.4 million. Additionally, EPS was 95 cents, beating expectations by 13 cents. So the company is on a roll, and its superior generative AI capabilities will further improve its quality of service.
The company recently announced its security analyst, Charlotte AI, who will provide a glimpse into the broader impact of AI on cybersecurity, and also announced a partnership with Cloud Czar. Amazon (Nasdaq:Amazon) Web Service (AWS) to help with AI-generated efforts. This machine learning stock is a strong buy.
Baidu (BIDU)
Baidu (Nasdaq:Bidou) is a Chinese technology giant that is reinventing its business with the help of AI and machine learning. The company has positioned itself as a pioneer in the use of AI across multiple segments.
For example, Baidu's Ernie large-scale language model stands out as one of the most advanced in its class, rivaling industry leaders such as ChatGPT. The Ernie AI chatbot already has over 200 million users and is likely to be a driving force behind Baidu's growth. Additionally, Baidu's PaddlePaddle platform is an open-source deep learning framework that supports a wide range of AI applications and rivals popular frameworks such as Google's TensorFlow.
The most promising of the company's AI initiatives is Baidu AI Cloud, which is driving significant growth in the company's non-online marketing revenue and provides pre-trained machine learning models covering multiple diverse domains, and has been a key growth driver of the company's business in recent quarters.
Another interesting AI-powered project from Baidu is its powerful self-driving technology, Apollo, which is key to driving its self-driving car efforts. Tesla (Nasdaq:TSLAThe company is partnering with Baidu to roll out robotaxis in China, which will obviously be a big revenue stream for both companies and position Baidu as the second-largest player in China's auto industry.
Palantir (PLTR)
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Palantir's (New York Stock Exchange:P.L.T.R.Foundry's robust big data analytics platform is powered by cutting-edge machine learning. This advanced technology enables commercial and non-commercial clients to make informed decisions through predictive analytics. The integration of machine learning models into the core Foundry platform improves decision effectiveness and increases operational efficiency.
PLTR shares have soared over the past year, up more than 70%. The AI boom is a big factor, but a lot of it has to do with the company's stellar performance. The company has handily beat revenue expectations for the past three consecutive quarters, driven by rapid growth in its U.S. commercial division. In its most recent quarterly results, the company posted revenue of $634 million, beating market expectations by $16.5 million. Additionally, earnings of 8 cents per share were in line with Wall Street expectations, marking the company's sixth consecutive profitable quarter.
U.S. commercial revenue was particularly impressive, with segment net income surging to $150 million, up 40% year over year. Excluding revenue from strategic agreements, U.S. commercial revenue grew 68% year over year and 22% quarter over quarter. Additionally, as of the end of the first quarter, Palantir had 262 enterprise customers in the U.S., up 69% year over year. If you're looking for machine learning stocks to buy, this is the one to buy.
As of the date of publication, Muslim Farooq 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 author in accordance with InvestorPlace.com's Publishing Guidelines.
