Stocks to buy

The 3 Best Machine Learning Stocks to Buy in January 2024

Machine learning is transforming sectors including healthcare and transportation, offering lucrative opportunities in the best machine learning stocks. However, investors should approach cautiously, as not all stocks in this sector ensure returns. Discernment is key, as many firms claim advanced machine learning needs more solid business models or definitive applications.

Moreover, this sector branches into specialized niches, including data analysis and artificial intelligence (AI), with machine learning being a key driver. Some businesses have made remarkable strides in this space, demonstrating commendable growth and innovation. Their work within machine learning is remarkable, effectively reshaping the way we interact with technology. Subsequently, Statista projects that the machine-learning market will reach $204.30 billion by 2024.

Furthermore, machine learning stocks are gaining momentum, reflecting a growing fascination with AI. This expanding field holds substantial growth prospects, offering investors opportunities to support the innovators shaping our tech future. For those seeking the next breakthrough, machine learning stocks could be the secret to forge the billionaires of tomorrow.

Amazon (AMZN)

Amazon (AMZN) prime label on a parcel

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Amazon (NASDAQ:AMZN) has impressively evolved from a garage startup to the world’s second-largest company by revenue. A significant part of its 2023 success was achieving the fastest delivery speeds ever, particularly boosting its appeal in the consumables and everyday essentials market.

Impressively, Amazon shows robust growth in its financial performance, notably in the third quarter, with EPS of 94 cents, smashing the 60 cents forecast. The company revenue soared by 12.6% year over year (YOY) to $143.1 billion, beating expectations by $1.54 billion and showcasing its market strength and efficiency.

Furthermore, Amazon is boosting its Prime Video game, bringing in a pro from Walt Disney for its advertising push. Additionally, Amazon has been focused on developing a platform that appeals to businesses for machine learning purposes, creating a workflow pipeline to onboard companies of various sizes. This effort leverages AWS cloud technology to build AI models.

Nvidia (NVDA)

NVIDIA company logo on smartphone against background of red stock chart. Business crisis, collapse of trading and investment, bankruptcy, falling value concept. NVDA stock

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Nvidia (NASDAQ:NVDA) is pushing the frontiers of quantum computing with its cuQuantum project, revolutionizing qubit simulation.

Simultaneously, it’s spicing up the AI realm with the Omniverse Cloud, enabling developers to master Isaac AMRs for sophisticated, AI-enhanced robotics. This fusion of high-tech and utility delivers innovation with a snazzy edge.

In the third quarter, Nvidia’s financials were impressive. Their non-GAAP earnings per share soared to $4.02, surpassing estimates by 63 cents. Revenue rocketed to $18.12 billion, up an astonishing 205.6% YOY. Also, data center revenue hit a new high of $14.51 billion, cementing Nvidia’s strong standing in the tech sector.

Furthermore, unveiling the GeForce RTX 4090D GPU in China gave Nvidia’s stock an additional boost. Analyst Vivek Arya, holding a confident $700 price target, forecasts the company will generate an impressive $100 billion incremental free cash flow over 2024 and 2025. Nvidia is not just playing in the tech arena; it’s setting new benchmarks, making it a standout choice for investors.

Advanced Micro Devices

In this photo illustration, the AMD logo is shown on a smartphone screen.

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Advanced Micro Devices (NASDAQ:AMD), with a market capitalization of 244 billion, solidifies its prominent status in the semiconductor sector. Endorsed by investment firm UBS alongside Micron Technology (NASDAQ:MU) for 2024, AMD’s robust market presence and growth prospects are recognized, signaling a promising future.

Financially, In the third quarter, AMD’s non-GAAP earnings per share reached 70 cents, exceeding estimates by 2 cents. Revenue rose to $5.8 billion, a 4.1% increase from last year, beating expectations by $110 million. Particularly, client segment revenue, driven by robust Ryzen mobile processor sales, soared to $1.5 billion, up 42% YOY.

Moreover, AMD isn’t just riding the wave. It’s making its own with the MI300 chips, poised as rivals to Nvidia’s H100. This strategic move has attracted tech giants like Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT), who are lining up for AMD’s innovative chips. In the high-stakes semiconductor game, AMD is not just playing. It’s setting the pace.

On the date of publication, Muslim Farooque 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.

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