The 3 All-Around Best Machine Learning Stocks
The term “machine learning” usually sounds like something from the not-too-distant future in a sci-fi movie. But, it’s actually a technology that’s already very widely used. For example, companies like Netflix and Meta Platforms use machine learning to offer better experiences for their users. Netflix uses it to recommend movies that the viewer might like. And, Meta uses it to determine which content gets seen in its newsfeed algorithms. Over the next few years, this technology could be poised to reach a tipping point. To get ahead of this growth, many investors are investing heavily into machine learning stocks.
Machine learning, also known as artificial intelligence, uses computers to perform tasks that usually require a human. Humans are very good at using their intuition and context clues to make inferences. Computers, on the other hand, are good at quickly making exact calculations. However, it’s very difficult to program a machine to make non-exact decisions. Machine learning seeks to blend computers’ processing speed with humans’ intuition.
When searching for machine learning stocks, there are lots of different types of companies to consider. For example, a company that sells hardware used for supercomputers could be considered a machine learning stock. As would a software company that powers machine learning algorithms. You could also include companies that sell consumer products that use machine learning.
In this article, we’ll examine the three machine learning stocks that are the best all-around.
Top Machine Learning Stocks 2022
No. 3 Google (Nasdaq: GOOG)
Google, a subsidiary of Alphabet, is one of the best machine learning stocks for one simple reason. Google’s search algorithm is almost definitely the most widely-used instance of machine learning at work.
We use Google so frequently that it’s easy to take it for granted. The Google search mission is to organize the world’s information and make it universally accessible and useful. When you make a search on Google, Google’s algorithm filters through hundreds of billions of web pages in seconds. To do this, it leverages machine learning that analyzes dozens of different factors and instantly spits out results. This process allows Google to crawl the entire web, index pages, filter spam and provide you with the best results.
As the market currently stands, Google’s dominance should continue for the immediate future. It currently owns a dominating 93% share of the search engine market. To use Jeff Bezos’ words, “Think of Google like a mountain. You can climb the mountain, but you can’t move it.”
It’s hard to imagine a world without Google, especially considering all of the services it provides. Google offers services such as search, Gmaps, Gmail, Google workplace, Internet of Things, cloud storage and much more. This portfolio of products is what makes Google one of the all-around best machine learning stocks.
Google also owns Waymo, which is its self-driving car division. Waymo’s technology processes terabytes of data each second to allow its cars to drive themselves.
No. 2 Nvidia (Nasdaq: NVDA)
Nvidia is not quite the household name that Google is. But, it’s still one of the all-around best machine learning stocks to buy. This is because Nvidia is one of the world leaders when it comes to graphics chips. Its chips are used in a range of different products but mainly for data centers and gaming. In particular, Nvidia’s graphics cards have become the go-to choice for data centers across the globe.
One thing to note about machine learning is that it requires staggering amounts of data. For example, a self-driving car needs to analyze terabytes of different data points and make decisions in seconds. Just a split-second delay can be the difference between life and death for the passenger. This is part of the reason that edge computing is becoming so popular as an alternative to cloud computing. Nvidia’s chips are known for being one of the few on the market that is capable of providing such processing power.
Additionally, Nvidia estimates that it has a total market opportunity of $1 trillion. This is spread out over its automotive division, which is worth $300 billion. Its chips & systems division is worth $300 billion. The gaming division is worth $100 billion. And, its enterprise software division is worth $300 billion. For this reason, Nvidia should be one of the top machine learning stocks to buy over the next few years.
Machine Learnings Stocks No. 1 Amazon (Nasdaq: AMZN)
There are countless ways that Amazon is pushing the boundaries of machine learning. To start, Amazon uses machine learning under its “recommended products” section. This portion of Amazon’s platform is responsible for weighing several different factors in order to recommend comparable products. This improves the shopper experience and also helps pad Amazon’s bottom line.
Perhaps the biggest instance of machine learning is through its Amazon Web Services platform. Amazon Web Services is Amazon’s cloud computing software that has over 100,000 customers. AWS leverages machine learning to help its customers dig into their internal data to pull insights. Using machine learning through AWS helps customers improve their customer experience, optimize their business processes and accelerate innovations.
Additionally, Amazon sells its Alexa smart speakers, which bring machine learning into consumer’s homes. This product integrates with Amazon’s retail platform, its portfolio of Ring home security products, and Whole Foods to deliver groceries.
In 2021, Amazon reported a staggering $469 billion in revenue and a total net profit of $33.36 billion. This gives it plenty of firepower for enhancing its current machine learning offerings as well as continuing to design new ones.
I hope you’ve found this article valuable for learning about the three all-around best machine learning stocks. Please remember that I’m not a financial advisor and am just offering my own research and commentary. As usual, please base all investment decisions on your own due diligence.