Source: shutterstock.com/cono0430
Machine learning stocks represent publicly traded firms specializing in a subfield of artificial intelligence (AI). The terms AI and machine learning have become synonymous, but machine learning is really about making machines imitate intelligent human behavior. Semantics aside, machine learning and AI have come to the forefront in 2023.
Generative AI has boomed this year, and the race is on to identify the next must-buy shares in the sector. The firms identified in this article arent cheap in an absolute sense. Their price can be quite high. However, they are expected to provide strong returns, making them a bargain for investors currently and cheap in a relative sense.
Source: Sundry Photography / Shutterstock.com
Lets begin our discussion of machine learning stocks with ServiceNow (NYSE:NOW). The firm offers a cloud computing platform utilizing machine learning to help firms manage their workflows. Enterprise AI is a burgeoning field that will only continue to grow as firms integrate machine learning into their workflows.
As mentioned in the introduction, ServiceNow is not cheap in an absolute sense. At $563 a share, there are a lot of other equities that investors could buy for much cheaper. However, Wall Street expects ServiceNow to move past $600 and perhaps $700. The metrics-oriented website Gurufocus believes ServiceNows potential returns are even higher and peg its value at $790.
The firms Q2 earnings report, released July 26, gives investors a lot of reason to believe that share prices should continue to rise. The firm exceeded revenue growth and profitability guidance during the period, which allowed management the confidence to raise subscription revenue and margin guidance for the year.
Q2 subscription revenue reached $2.075 billion, up 25% year-over-year (YOY). Total revenues reached $2.150 million in the quarter.
Source: Pamela Marciano / Shutterstock.com
AMD (NASDAQ:AMD) and its stock continued to be overshadowed by its main rival, Nvidia (NASDAQ:NVDA). The former has almost doubled in 2023, while the latter has more than tripled. Its basically become accepted that AMD is far behind its competition in all things AI and machine learning. However, the news is mixed, making AMD particularly interesting as Nvidia shares are continually scrutinized for their price levels.
An article from early 2023 noted that the comparison between AMD and Nvidia isnt unfair. It concluded that Nvidia is better all around. However, that article also touched on the notion that AMD could potentially optimize its cards through software capabilities inherent to the firm.
That was the same conclusion MosaicML came to when testing the two firms head-to-head several months later. AMD isnt very far behind Nvidia, after all, and it has a chance to make up ground via its software prowess. Thats exactly why investors should consider AMD currently, given its relatively cheaper price.
Source: T. Schneider / Shutterstock.com
CrowdStrike (NASDAQ:CRWD) operates in a combination of growing fields. The stock represents cybersecurity and machine learning directed toward identifying IT threats. It provides endpoint security and was recently awarded its second consecutive annual honor as the best at the SC Awards Europe 2023. The company is well-regarded in its industry and is growing very quickly.
The entity also has strong fundamentals. In Q1, revenues increased by 61% YOY, reaching $487.8 million. CrowdStrikes net income loss narrowed from $85 million to $31.5 million during the period YOY. The firm generated $215 million in cash flow, leaving a lot of room to maneuver overall.
Furthermore, CrowdStrike announced it is partnering with Amazon (NASDAQ:AMZN) to work with AWS on generative AI applications to increase security. CrowdStrike is arguably the best endpoint security stock available overall, and its strong inroads into AI and machine learning have set it up for even greater growth moving forward.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The rest is here:
3 Cheap Machine Learning Stocks That Smart Investors Will Snap ... - InvestorPlace
- Predictive Analytics And Machine Learning Market: A ... - Fagen wasanni - August 4th, 2023 [August 4th, 2023]
- Photonic Neural Networks: Revolutionizing Machine Learning and AI - Fagen wasanni - August 4th, 2023 [August 4th, 2023]
- Growing Concerns Over Bias in Powerful AI and Machine Learning ... - Fagen wasanni - August 4th, 2023 [August 4th, 2023]
- Machine learning prediction and classification of behavioral ... - Nature.com - August 4th, 2023 [August 4th, 2023]
- Predicting BRAFV600E mutations in papillary thyroid carcinoma ... - Nature.com - August 4th, 2023 [August 4th, 2023]
- Johns Hopkins makes major investment in the power, promise of ... - The Hub at Johns Hopkins - August 4th, 2023 [August 4th, 2023]
- Postdoctoral Fellowship: Pathogenesis of High Consequence ... - Global Biodefense - August 4th, 2023 [August 4th, 2023]
- Apple's Commitment to Generative AI and Machine Learning - Fagen wasanni - August 4th, 2023 [August 4th, 2023]
- Richmond could become AI and machine learning tech hub - The Daily Progress - August 4th, 2023 [August 4th, 2023]
- Platform Reduces Barriers Biologists Face In Accessing Machine ... - Bio-IT World - August 4th, 2023 [August 4th, 2023]
- A comparative study of predicting the availability of power line ... - Nature.com - August 4th, 2023 [August 4th, 2023]
- Preventing Bias In Machine Learning - Texas A&M Today - Texas A&M University Today - August 4th, 2023 [August 4th, 2023]
- Research Analyst/ Associate/ Fellow in Machine Learning and ... - Times Higher Education - August 6th, 2023 [August 6th, 2023]
- AI and Machine Learning: The New Frontier in Global Anti-Money ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- Harnessing the Power of AI and Machine Learning: Growth ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- Harnessing the Power of AI and Machine Learning for Enhanced ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- Use cases of Stereo Matching part8(Machine Learning + AI) - Medium - August 6th, 2023 [August 6th, 2023]
- Use cases of Stereo Matching part7(Machine Learning + AI) - Medium - August 6th, 2023 [August 6th, 2023]
- Use cases of Stereo Matching part9(Machine Learning + AI) - Medium - August 6th, 2023 [August 6th, 2023]
- How machine learning can expand the Landscape of Edge AI. | TDK - TDK Corporation - August 6th, 2023 [August 6th, 2023]
- Machine Learning-Trained Autonomy Tested By XQ-58 For Skyborg - Aviation Week - August 6th, 2023 [August 6th, 2023]
- Artificial Intelligence and Machine Learning in Packaging Robotics ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- 86-year old Hammett equation gets a machine learning update - Chemistry World - August 6th, 2023 [August 6th, 2023]
- Q & A: How A.I. and machine learning are transforming the lending ... - Digital Journal - August 6th, 2023 [August 6th, 2023]
- The Rise of AI and Machine Learning in Global E-Commerce ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- Machine learning-based technique for gain and resonance ... - Nature.com - August 6th, 2023 [August 6th, 2023]
- Machine learning for the development of diagnostic models of ... - Nature.com - August 6th, 2023 [August 6th, 2023]
- AI and the Heart: How Machine Learning is Changing the Face of ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- The Hidden Impact of AI in Photography and How Machine Learning ... - Cryptopolitan - August 6th, 2023 [August 6th, 2023]
- Machine learning identifies physical signs of stroke - Open Access Government - August 6th, 2023 [August 6th, 2023]
- Machine-learning for the prediction of one-year seizure recurrence ... - Nature.com - August 6th, 2023 [August 6th, 2023]
- Automated Machine Learning: Revolutionizing Predictive Analytics ... - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- Tim Cook says AI, machine learning are part of virtually every product Apple is building - CryptoSlate - August 6th, 2023 [August 6th, 2023]
- AI GNNs: Transforming the Landscape of Machine Learning - Fagen wasanni - August 6th, 2023 [August 6th, 2023]
- 3 Cheap Machine Learning Stocks That Smart Investors Will Snap Up Now - InvestorPlace - August 6th, 2023 [August 6th, 2023]