Machine learning is a branch of artificial intelligence (AI) that is red hot right now. Machine learning is a technology that enables computers to emulate how humans learn and adapt by combining data and experience. It began in earnest back in the 1950s, led by IBM (NYSE:IBM), whose scientists coined the term. Today, machine learning is training AI models and applications, teaching them how to collect, collate and communicate information back to us humans. Given the massive potential of AI, machine learning has become a fast-growing segment of technology.
Fortune Business Insights forecasted the global market for machine learning will grow from $26.03 billion in 2023 to $225.91 billion by 2030 for a compound annual growth rate (CAGR) of 36%. As the market takes off, let’s look at how to get rich quickly with these three machine learning stocks to buy now.
ServiceNow (NOW)
ServiceNow (NYSE:NOW) uses machine learning to power its software that specializes in workflow management. The company essentially uses machine learning to help its customers eliminate mundane tasks, helping to improve workplace productivity in the process. The company has been reporting strong growth in recent quarters due to growing demand for its machine learning products and also its new AI offerings.
ServiceNow has developed 15 new generative AI tools over the last year and is achieving up to 40% productivity gains as a result. The company said its recent fourth-quarter 2023 earnings were given a boost by the rollout of new AI software that works in combination with machine learning. ServiceNow primarily makes money from subscription revenues and sees those rising substantially this year. NOW stock is up 68% over the last 12 months, including an 11% gain year-to-date.
Tesla (TSLA)
Tesla’s (NASDAQ:TSLA) self-driving car features rely entirely on machine learning. While self-driving vehicles are controversial and potentially dangerous, they’re likely the future of the automotive industry. Emulating the many split-second decisions that a human driver makes is complex and requires the most advanced machine learning available. Tesla is a true pioneer in this area, and the company’s “Autopilot and “Full Self-Driving” features are leaders when it comes to self-driving vehicle technology.
Additionally, Tesla is currently developing a new supercomputer called Dojo. The company claims it will use machine learning to train AI models and further develop and enhance its self-driving vehicle technologies. Tesla announced plans to spend more than $1 billion on the continued development of this new supercomputer. Company CEO Elon Musk also continues to talk up the importance of AI and the need for Tesla to expand its footprint in the space. TSLA stock is up nearly 800% over the past five years.
Nvidia (NVDA)
Nvidia’s (NASDAQ:NVDA) microchips and semiconductors are powering the machine learning and AI revolution that’s now underway. The supercomputers that run machine learning and train AI models require massive amounts of information and circuitry, and Nvidia’s high-end graphics processing units (GPUs) perform the task better than any other company. Nvidia’s most advanced GPUs power data centers and are being used to train AI models all over the world.
Nvidia’s microchips and semiconductors are being used by a diverse range of customers, including mega-cap technology companies like Microsoft (NASDAQ:MSFT) and automakers like Tesla. Not only that but biotech companies developing disease cures and shipping companies trying to maximize their supply chains are too. Nvidia’s next earnings print is scheduled for Feb. 21 and promises to be another blockbuster. NVDA has risen 234% over the last 12 months, including a nearly 50% increase so far this year.
On the date of publication, Joel Baglole held long positions in NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
