Artificial Intelligence (AI) has received incredible attention this year due to the release of OpenAI’s advanced chatbot, ChatGPT. Since its advent, ChatGPT has fortunately not been the only chatbot to be released. Revolutionary chatbots released to-date include Sydney, Jasper, Perplexity AI and You Chat. For this article, I decided to ask Bing’s chatbot Sydney for its top 3 machine learning stock picks for this month. For those unfamiliar, machine learning (ML) is a branch of artificial intelligence that enables computers to learn from data and experience without explicit programming. The potential of language-based AI has made machine learning stocks among the hottest investments in 2023. The technology has numerous applications in various industries, including cloud computing, cybersecurity and online search and discovery.
All in all, the results from Sydney were insightful but nothing extraordinary.
NVIDIA (NVDA)
Nvidia (NASDAQ:NVDA) has received a lot of attention and hype this year, both of which are warranted. The semiconductor company provides not just graphics cards, but also machine learning know-how to its customers. Nvidia’s chips help power the elaborate large language models used to train and run machine learning models, especially for deep learning, a subset of machine learning that involves complex neural networks.
Nvidia also offers software platforms, such as CUDA and TensorRT, that help developers optimize their machine learning applications. In addition, Nvidia has been expanding its presence in data center and automotive markets, where machine learning is increasingly in demand. While Nvidia’s recent financial results noted a continued drop in revenue from its gaming segment, there was a clear overall demand for the company’s AI chips used in data centers. Nvidia’s share price has skyrocketed nearly 200% year-to-date(YTD), elevating the Nasdaq Composite to YTD return of more than 31%.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) has evolved a lot from when the company started in 2003. Back then, Palantir primarily built software servicing the intelligence community of the United States. Nowadays, the firm boasts both enterprises and government agencies as its clientele. Specializing in AI and ML, Palantir helps these businesses and agencies unlock insights from their data. Palantir’s platforms, such as Foundry and Gotham, enable data integration, analysis, visualization and collaboration across various domains, such as defense, healthcare, energy and finance. Additionally, their Apollo platform allows for the rapid deployment of software and updates.
In 2022, Palantir’s total revenue grew by 24% year-over-year (YoY). Additionally, the software firm reported its first quarter of positive GAAP net income. Similarly, in Q1 2023, total revenue grew by 18% YoY, and Palantir posted a second quarter of positive GAAP net income, driven by strong growth in its commercial and government segments. Having reached and sustained bottom-line profitability, Palantir’s stock price has surged by 140% YTD. Furthermore, with the recent launch of its AI platform, which can help customers with data-specific inquiries, Palantir’s potential to innovate and remain relevant should not be underestimated.
Pinterest (PINS)
Although many would consider Pinterest (NYSE:PINS) to be just a social media platform to find image and video based content, this characterization ignores all the software underneath the hood. The company uses ML to personalize its content recommendations for its users. Pinterest’s machine learning algorithms analyze user behavior, preferences, and interests to deliver relevant pins, ads and shopping experiences. In Q1 2023, Pinterest beat Wall Street’s estimates, announcing revenue grew by 5% YoY, driven primarily by strong growth in its global monthly active users and average revenue per user. Additionally, Pinterest announced an ad partnership with Amazon (NASDAQ:AMZN) which would allow the ecommerce giant’s merchants to advertise on Pinterest’s platform. Pinterest’s stock price is up over 25% YTD.
On the date of publication, Tyrik Torres 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.
