The 3 Best Machine Learning Stocks to Buy Now: September 2023
Machine learning has been the stuff of science fiction for longer than most of us have been alive. The 20th century was filled with stories of robots who could think and feel just like us. But computers in the 20th century lagged significantly behind what fiction had promised, and AI seemed like nothing more than a dream. But in the 21st century, the AI promise may be coming true. Machine learning stocks are bringing AI to every level of business and creativity. From art, to coding, to social media and beyond, AI is shaping the world around us and building our future. The machine learning stocks delivering those AIs to us will see the biggest returns for investors. And with the industry moving quicker every day, now is the best time to get in if you didn’t get in yesterday.
While many people still see AI as a passing fad, chatbots on the internet are not the AI revolution. The real revolution is happening in enterprise software and cloud services. There are machine learning tools available that significantly enhance worker productivity – and in many cases they’re being offered as an upsell on currently available cloud services. Thus many companies will have no choice but to buy if they don’t want their company to be left behind by their more productive competitors.
Not every company that uses the word “AI” will survive, of course. But the best bets are on some of the companies that already have a proven track record in the machine learning space. So for an investor who can’t wait for science fiction to become fact, here are three of the best machine learning stocks to buy today.
Adobe’s (NASDAQ:ADBE) synthesis of machine learning and art has transformed the creative industry for years. At the forefront of this innovation is Adobe’s flagship software, Photoshop, which now leverages generative AI to empower users to bring any imaginable image to life. With tools such as Firefly, users can turn text prompts into any image they wish. And with Photoshop’s other AI tools, it’s no wonder Adobe is used by art companies at every level.
What sets Adobe’s approach apart is its use of entirely Adobe-licensed art as the training data for these AI models. This addresses the ethical concerns some artists had for AI. Ethics often command a price premium where art is concerned, and Adobe’s commitment to assuaging artists’ desires puts them at the forefront of this new medium of art.
Furthermore, Adobe is actively embracing AI-generated art in other ways. They now offer AI-generated content in Adobe Stock, and will buy the rights to user-generated AI images as well. Adobe was already a leader in the technology of art, and their machine learning tools are only cementing that.
Adobe’s just-released earnings report also demonstrates their growth and dominance. In Q3 2023, revenue was $4.89 billion, growing 10% year on year. Dilute earnings per share were $3.05, up from $2.42 in Q3 2022. Adobe’s machine learning products are pushing both growth and earnings, and the best may yet be to come. And in proving that machine learning can be a creative tool as well, Adobe has proven to be one of the best machine learning stocks to buy.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google, stands at the forefront of the AI revolution with its array of enterprise-level technologies and services. Google has already indexed the web for search, now it can use that indexing for building machine learning applications and AI. The most visible AI from Alphabet is Google Bard. This ChatGPT-like AI can answer questions and assist users in web searches. But Bard’s influence is far overshadowed by Alphabet’s other offerings.
In the enterprise sector, Alphabet has integrated machine learning and AI tools into its cloud services, adding them as an upcharge. This includes tools such as Google Duet. Google Duet can help write emails, make presentations and find data in both Google Drive and Gmail. It can even help complete code. This automates the mundane tasks of the day and increases worker productivity. And while Google Bard was delayed in its entry to Europe Duet’s is already available in all markets where Google Workspace is sold.
Because the real strength of AI lies in augmenting human productivity, much like computers and the internet did in the past. By automating repetitive tasks, AI liberates workers to focus on more creative and intellectual pursuits. Many companies will race to buy these new AI tools or risk getting left behind by their competitors. Buying an AI cloud service in 2023 is like getting your workers computers in 1993, and most companies probably know it. So as the company at the forefront of enterprise cloud and AI, Alphabet is one of the best machine learning stocks to buy right now.
In the realm of machine learning stocks, Meta (NASDAQ:META) has taken a unique tact: make the tools open source. Meta, the parent company of Facebook, is emerging as a trailblazer in the AI landscape with LLaMa, the Large Language Model Meta AI. This open-source system can generate language, generate code and explain code in simple language. This versatility not only benefits the developer community but also holds the key to Meta’s continued dominance in social media.
Meta has long relied on AI and machine learning to identify and remove unwanted content across its many platforms. With over 3 billion monthly users on Facebook alone, manual content curation is impractical, if not impossible. To ensure a positive user experience and comply with global regulations, AI tools like LLaMa will be paramount. Meta has a long history of removing unwanted content with machine learning, LLaMa is just an evolution of that approach.
Crucially, Meta’s decision to open-source LLaMa allows the global community of developers to contribute to its enhancement. This collaborative approach harnesses the wisdom of the crowds and gives LLaMa far more developers than Meta could ever hire.
Machine learning is already indispensable for social media’s present and AI will be key to social media’s future. The ability to curate content, serve content tailored to users’ interests and target ads, are all powerful ways that Meta still stands above many of its social media peers. Add powerful AI tools to the mix and Meta is one of today’s hottest machine learning stocks to buy.
On the date of publication, John Blankenhorn held long positions in ADBE, GOOGL and META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.