3 Machine Learning Stocks That Are Poised for Success by 2025
Investing in machine learning has become synonymous with investing in artificial intelligence (AI). Many of the top AI stocks are also considered excellent machine learning stocks. Machine learning plays a crucial role in the development of AI applications, making it a valuable market to explore.
In 2022, the global machine learning market reached a value of $19.2 billion, and it is projected to grow to $26 billion in 2023. By 2030, experts expect the market to reach an impressive $225.9 billion, with a compound annual growth rate (CAGR) of 36.2%. This growth can be attributed to the increasing demand for machine learning technology in critical sectors like cybersecurity and healthcare. This makes investing in machine learning ventures a smart choice right now.
Here are three companies that offer explosive potential in 2023 and beyond:
1. Alphabet (GOOGL):
Alphabet, the parent company of Google, was one of the early adopters of machine learning technology. Machine learning is not only utilized in Google’s search engine but also plays a vital role in several other aspects of the company’s business, particularly in its fast-growing cloud infrastructure platform, Google Cloud.
Alphabet showcased its leadership in machine learning with the successful launch of ChatGPT in early 2023. This generative AI solution provides a strong competition to existing platforms. Despite a slump in GOOGL stock from November 2021 to December 2022, the year 2023 has seen a remarkable recovery, with the stock gaining 35%. Alphabet offers significant growth potential among tech stocks.
2. Palantir (PLTR):
Palantir stands out as one of the most promising stocks for investors interested in AI and machine learning. The company introduced cloud-based customizable platforms called Gotham and Foundry, allowing governments and private companies to aggregate and analyze big data efficiently to enhance decision-making.
An earlier concern with Palantir was its lack of profitability. However, the company has overcome this by reporting profits in the last two quarters, resulting in a surge in PLTR stock price. To assess Palantir’s investment potential, one must consider the company’s ability to secure new business from both the government and commercial sectors. With rising earnings and a debt-free status, Palantir has the flexibility to pursue aggressive growth strategies.
3. Snowflake (SNOW):
Snowflake, a cloud-based storage company, offers a crucial feature for machine learning: the ability to aggregate and process data from various sources within a company. Alongside this, Snowflake provides its customers with built-in systems and integrations that aid in machine learning tasks.
Since going public in 2020, Snowflake has reported quarter-on-quarter revenue growth. However, the same level of success is yet to be reflected in the SNOW stock price. One important factor contributing to this disparity is Snowflake’s lack of profitability. It is crucial to differentiate between the company’s performance and its stock market value. As Snowflake continues to drive revenue growth, its stock price should eventually align with its success.
While Alphabet and Palantir are considered reliable investment choices for machine learning, Snowflake’s future is less certain. However, the company’s consistent revenue growth indicates its potential for success in the long run.
Investing in machine learning stocks has become increasingly popular in recent years, with the market set to experience substantial growth in the coming decade. Alphabet, Palantir, and Snowflake are three companies that offer investors exciting opportunities in this rapidly expanding field.
