If You Can Only Buy One Machine Learning Stock, It Better Be One of These 3 Names
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If You Can Only Buy One Machine Learning Stock, It Better Be One of These 3 Names

Aug 22, 2023

Machine learning is only accelerating from here


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In the world of technology, machine learning has become a core discipline. Companies around the world are leveraging this technology to make smarter decisions, improve efficiency and gain competitive advantages. If you’re interested in investing in the field of machine learning, it’s important to identify the best stocks in this fast-growing sector; these are the Best Machine Learning Stocks.

Apart from being one of the most exciting and innovative fields in the market today, artificial intelligence is calling for further investor interest in other niches of the technology value chain. As investors will see, the current geopolitical tensions between the U.S. and China have added additional value to the semiconductor and chip space as well, creating a more significant bottleneck for these technology companies to take advantage of. The following names will represent those who made it past the supply bottleneck and are poised to deliver stratospheric returns as the rest of the market realizes what is going on.

Regarding technology and machine learning, NVIDIA (NASDAQ:NVDA) steals the spotlight. Their specialty is graphics processing units, also known as GPUs, which are like the heart of computers for complex graphics and computation. Their GPUs are a favorite choice of gamers because they make video games look so real that it’s hard to distinguish them from life itself.

But their impact goes far beyond that, as they are also key in fields such as artificial intelligence and machine learning. This means their technology is driving advances in data science, research, and many other areas where machine learning is crucial.

Now, NVIDIA stands out for its focus on GPUs, which gives them a significant competitive advantage in machine learning. Their GPUs are specifically designed to accelerate and improve the performance of machine learning algorithms, which is crucial for faster and more accurate results. While there are stronger peers in their respective fields, NVIDIA offers a more specialized approach and technology that has established itself as a market leader.

In addition, if we take a look at the numbers, NVIDIA also impresses with its financial results. Despite some fluctuations in revenue, it has shown steady growth in the first quarter. Its total revenue was $7.19 billion, and although there was a decrease compared to the previous year, the growth compared to the previous quarter was significant, reaching 19%. This shows that the company is on a path of recovery and continued growth.

Now, let’s compare NVIDIA to the other two options. First, we have Accenture (NYSE:ACN), a professional services firm that helps other companies improve and transform their business. They offer technology and consulting solutions to various industries. Through machine learning, Accenture helps its clients harness the power of data to make smarter and more efficient decisions.

As for their financial results, in the last quarter, they had revenue of $16.6 billion, with a GAAP operating margin of 14.2% and an adjusted operating margin of 16.3%. Earnings per share (EPS) increased 13% year-over-year to $3.15 GAAP and $3.19 adjusted.

In addition, new bookings grew 2% in U.S. dollars and 4% in local currency to $17.2 billion. The company projects revenue growth of 8% to 9% in local currency by fiscal 2023, with a GAAP operating margin of 14.2% and an adjusted operating margin of 15.4%. It also expects GAAP EPS between $10.94 and $11.05, with adjusted EPS in a similar range.

On the other hand, Snowflake (NYSE:SNOW) is a technology company focused on cloud data storage. In the last quarter, they had product revenue of $590.1 million, up 50% year-over-year. They have 373 customers whose product revenue in the last 12 months exceeds $1 million. The net revenue retention rate is 151%. In addition, they have 590 clients on the Forbes Global 2000 list. Their outstanding performance obligations grew 31% year-over-year to $3.4 billion.

All in all, NVIDIA takes the prize as the best choice for investing in the machine learning field. Its specialized focus on GPUs and its impact on artificial intelligence and machine learning make it stand out among the available options.

If you are looking for a company that is at the forefront of technology and is driving advancements in different fields, NVIDIA is definitely the choice you won’t want to pass up. I hope this comparison has been helpful to you in making an informed decision.

Good luck with your investments!

As of this writing, Gabriel Osorio-Mazzilli did not hold (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.

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.

Technology, Artificial Intelligence

Article printed from InvestorPlace Media, https://investorplace.com/2023/08/if-you-can-only-buy-one-machine-learning-stock-it-better-be-one-of-these-3-names/.

©2023 InvestorPlace Media, LLC

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