United States equities may be on the rise again after a troublesome start to 2024. The S&P 500 and Nasdaq closed up on Monday with former up 1.4% and the latter appreciating 2.2%. While stocks may be back on the rise, equities investors may want to reconsider putting money in innovative companies. Given the traction AI-related technology companies got last year, 2024 may be the year for machine learning (ML) stocks. If you are looking to add a machine learning stock ot your portfolio, we have a few for you to consider.
For those who don’t know, machine learning (ML) is a branch of artificial intelligence (AI) that enables computers to learn from data and experience without explicit programming. The potential of language-based AI, as exhibited through innovative breakthroughs such as OpenAI’s ChatGPT, could make machine learning stocks a great bet in 2024.
The technology has also garnered attention for its numerous applications. Experts predict machine learning will have an immense impact on various industries, including cloud computing, cybersecurity and online search and discovery.
Palantir Technologies (NYSE:PLTR) provides AI and ML-based data analytics tool for a number of businesses. In recent years, the company has successfully pivoted from its initial focus on the U.S.’s defense and intelligence sectors to other industries, including healthcare and finance. For example, Palantir won a lucrative albeit controversial contract in late November 2023 to manage England’s National Health Service data, exemplifying the traction of the platform outside of its original core end markets.
While the company has had several consecutive quarters of profitability, Palantir’s growth potential related to its new AI tools have been thrown into doubt with a recent downgrade from Jefferies, which claimed the company’s foray into the artificial intelligence space was being hyped up. Even if this may turn out to be true, Palantir’s ML capabilities are undisputed at this point and will help propel the company to new levels of growth in the future.
UiPath (NYSE:PATH) creates and implements software allowing customers to automate various business processes using robotic process automation (RPA) and artificial intelligence.
The UiPath Business Automation Platform enables employees to quickly build automations for both existing and new processes by using software robots to perform a myriad of repetitive tasks. These range from simply logging into applications or moving folders to extracting information from documents along with updating information fields and databases. UiPath also provides a number of turnkey automation solutions, allowing the company to target customers in a variety of industries including banking, healthcare and manufacturing.
Last year, shares of PATH almost doubled. Since the start of the new year, there has been pullback from all the major indices and, of course, UiPath, at its frothy valuation, saw some selling pressure. The company’s share price has fallen 7% from a year-to-date perspective. Adoption of UiPath’s new “Autopilot” generative AI tool that helps professionals to automate workflows through language, could help push both revenue growth and share price to new heights in 2024. If you want to add a top-performing machine learning stock to your portfolio, start here.
Nvidia (NASDAQ:NVDA) was one of the best-performing stocks of 2023, with its staggering gain of more than 239.0% year to date, and it’s already off to a good start in 2024. Shares in the chipmaker have recently risen well above $500/share, marking another all-time high for Nvidia. The chipmaker’s shares catapulted earlier in thin 2023 after OpenAI released its now famous ChatGPT conversational AI. Since then, Nvidia has been riding high on the booming demand for its artificial intelligence solutions, which continue to power some of the most advanced applications in the world.
What goes understated is the chipmaker’s contributions to machine learning. The chipmaker’s RAPIDS data library and CUDA platform provides a unified framework for developers to accelerate the testing of machine learning applications using the company’s GPUs.
For investors hoping for exposure to machine learning as well as a good machine learning stock, Nvidia is sure bet.
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.