North America is leading this surge, driven by substantial investments in AI and cloud-based machine learning technologies, making it a hotbed for innovation in sectors like healthcare, automotive, and financial services €‹.
Investors looking for machine learning stocks should consider those companies at the forefront of these developments. Firms that are integrating AI into their operations, developing new machine learning models and expanding their cloud-based services are likely to be key players as the market evolves.
So here are three of the best machine learning stocks for investors to buy.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) reported strong Q1 results with revenues of $67.6 billion, surpassing analyst expectations of $66.1 billion. Net income stood at $1.89 per share, higher than the forecasted $1.53 per share. A significant milestone was the declaration of its inaugural dividend at 20 cents per share and plans to repurchase $70 billion in stock
The company is focused on expanding its artificial intelligence (AI) capabilities and enhancing its cloud services. Key areas of development include AI-driven products, autonomous driving technology through Waymo, and health-related innovations via Verily. Both of these are standout examples of machine learning technology delivering real value to users and investors.
Analysts anticipate that Alphabet’s earnings will grow significantly in the coming year, with expectations for EPS to increase by 34%. This makes it one of the fastest-growing tech and machine learning stocks in the FAANG acronym, which can of course at least partially be attributed to the explosive growth of AI.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) is a leading software company specializing in big data analytics. It offers platforms such as Palantir Gotham, Palantir Foundry, and Palantir Apollo.
Last quarter, PLTR achieved GAAP net income of $106 million with a 17% margin, marking its sixth consecutive quarter of profitability. GAAP income from operations reached $81 million, reflecting a 13% margin and continuing a streak of operational profitability. Revenue surged by 21% year-over-year and 4% quarter-over-quarter to $634 million,
Palantir continues to maintain a strong strategic position in the data analytics industry by leveraging its advanced software platforms and expanding its client base. The company is focused on enhancing its AI capabilities and integrating them into its existing products.
Palantir secured multiple high-profile government contracts, including a deal with the Department of Defense to provide data analytics solutions for military operations. The company has also expanded its footprint in the healthcare sector by partnering with major pharmaceutical companies to enhance data integration and analysis for drug development and clinical trials.
Snowflake (SNOW)
Snowflake (NYSE:SNOW) is a leading cloud data platform provider that enables organizations to consolidate data into a single source for more efficient analysis and data-driven decision-making.
SNOW reported revenue of $828.71 million for Q1 2024, marking a 32.9% increase year-over-year, which exceeded the analyst consensus estimate by 5.31%. However, its EPS of 14 cents fell short of analyst expectations, reflecting a -17.65% surprise against the consensus estimate of 17 cents.
Snowflake deepened its partnership with Amazon (NASDAQ:AMZN) AWS to enhance integration and provide advanced analytics capabilities, including machine learning and real-time data processing. The company also acquired DataRobot, a leading provider of automated machine learning tools, to enhance its AI capabilities and offer more advanced predictive analytics solutions to its customers.
The firm has also been recognized for its innovative approach to data management and analytics. Snowflake was named a leader in the cloud data warehouse market by Gartner (NYSE:IT). These developments lead me to believe that SNOW could lead to long-term generational wealth for investors.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.