Stocks connected to machine learning are synonymous with those connected to artificial intelligence. Machine learning falls under the umbrella of AI and relates to the use of data and algorithms to imitate human learning to improve accuracy. Kinda scary? Sure. However, machine learning is also proving to be revolutionary in 2023. The emergence of generative AI and its promise to improve our world has created a lot of value. This has led to the rise of machine learning stocks to buy.
While the companies discussed in this article might not be truly up-and-coming as they are established, they certainly are improving. That makes them must-buy stocks that any investor ought to consider.
Nvidia (NVDA)
There are 13.5 billion reasons Nvidia (NASDAQ:NVDA) why stock should be on every investor’s list. I’m of course referring to Nvidia’s $13.5 billion in second-quarter revenues. That far exceeded the $11 billion mark, perceived as incredibly ambitious, that Nvidia had given as guidance.
Those blowout earnings lend credence to the notion that AI and machine learning will be much more than a bubble. Instead, it is crystal clear that companies are clamoring for Nvidia’s leading AI chips and that the pace of things is increasing, not slowing.
Nvidia’s data center revenues alone – at $10.32 billion – nearly reached that $11 billion figure. Cloud firms are scrambling to secure their supply of chips that are used for machine learning purposes among other things.
NVDA shares can absolutely run higher from their current position. Their price-to-earnings ratio has temporarily fallen given how unexpectedly high earnings were. Nvidia is predicting $16 billion in revenues for the coming quarter. I don’t believe there’s any real reason to back off from its shares currently.
Crowdstrike (CRWD)
Crowdstrike (NASDAQ:CRWD) is another machine learning stock to consider. The company utilizes machine learning to help it better understand how to stop breaches before they can occur. It’s an AI-powered cybersecurity firm that is strongly rated on Wall Street and offers a lot of upside on that basis.
Crowdstrike is getting better and better at thwarting cyber attacks probably by the second. Machine learning allows the company to more intelligently prevent cyber attacks with each piece of data it gathers from an attack.
The company has been growing at a rapid pace over the last few years and has seen year-over-year increases above 40% in each of those periods. However, it has simultaneously struggled to find profitability which likely explains the disconnect between prices and expected prices.
Crowdstrike has several opportunities in front of it. First, if it can address profitability concerns it’s certain to appreciate in price. Second, there’s a general rush toward securing systems that also benefit the company and should provide it fertile ground for future gains.
AMD (AMD)
AMD (NASDAQ:AMD) is the runner-up in the battle for machine learning supremacy at this point.
The stock has boomed in 2023 alongside Nvidia but not to the same degree. It is going to continue to crop up in the machine learning/AI conversation and absolutely makes sense as an investment now.
Let’s try to understand AMD in relation to machine learning and its strengths and weaknesses vis-a-vis Nvidia. By now, everyone knows that Nvidia wins the overall battle hands down. When it comes to CPUs, AMD has a lot to offer. Its CPUs, along with those from Intel (NASDAQ:INTC), are the highest rated for machine learning purposes.
However, GPUs outperform CPUs when it comes to machine learning and Nvidia is the king of GPU. It has the highest-rated machine learning GPUs for at least the top five spots according to this source.
As bad as that sounds AMD is roughly 80% as capable as Nvidia overall in relation to AI and machine learning. Therefore, it has a massive opportunity at hand in closing that gap. It’s also one of those machine learning stocks to buy.
On the date of publication, Alex Sirois did not have (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.
