Top 3 Best Machine Learning Stocks to Watch

Brandie E Blackler
9 Min read

Machine learning (ML) and artificial intelligence (AI) made headlines as some of the most talked about topics in 2023.

There have been some interesting developments in the machine learning area. What once looked like something out of a sci-fi movie is now a reality and very much part of our daily lives.

Naturally, the stock market has taken notice, and machine learning stocks have been drawing the attention to investors alike. 

In this article, we will go through some of the basics of machine learning stocks, as well as their pros and cons, the top machine learning stocks to watch, and whether or not they would make potential options for your portfolio. 

Sounds interesting? Let’s get started. 

Best Machine Learning Stocks: Introduction 

You’ve probably heard or read something about AI and machine learning (ML) at some point over these past 12 months.

The field has grown exponentially in a short period, thanks to the impressive advances in ML technology.

Tech juggernauts and even smaller companies have also drawn plenty of attention from the stock market, with investors spotting a potential option in machine learning stocks. 

But before we get started on the best machine learning stocks to watch, we need a proper introduction to this interesting and complex field.

Would you like to learn more about trading, investing and the financial markets? Register for one of our free webinars - Click the banner below:

Free trading webinars

Tune into live webinars hosted by our trading experts

What is Machine Learning? What are Machine Learning Stocks? 

Machine learning (or simply ML) is a subset of artificial intelligence (AI). While they’ve been often mentioned together, we are talking about two different concepts. AI is a broad umbrella term, while ML is just one of the many fields grouped under it – also known as a sub-niche.

Simply put, ML refers to a machine’s ability to learn from and make predictions based on data.

Machines are programmed with an algorithm - a set of rules and instructions that the computer must follow. These machines will then gather and analyze data first, learning how to make sense of that information.

In a relatively short space of time, the machines will be able to recognize patterns, becoming much quicker and more efficient. 

Machine learning has plenty of uses, which range from simply providing music and video recommendations in streaming platforms to driving autonomous vehicles or solving complex mathematical and scientific problems.

In finance, machine learning can be used to create automated trading bots, which can buy and sell stocks based on certain parameters, and even predict market movements. 

Of course, you can also invest in ML. In this case, machine learning stocks refer to publicly traded companies that are actively engaged in the development, usage and application of ML technology. 

Machine learning comes with several advantages compared to regular programs, and even compared to human knowledge – Naturally, ML equally comes with disadvantages, which we will review further on: 

  • Machines can analyze bulks of data in a very short amount of time. 
  • Optimized decision-making processes. 
  • They can also come up with new and valuable insights by tackling problems from different angles. 

Best Machine Learning Stocks: Advantages and Disadvantages 

Machine learning stocks, like all investment options, come with their own set of advantages and disadvantages. Here are some of the pros and cons of machine learning stocks:

Advantages of Machine Learning Stocks 

  • ML is one of the fastest-growing fields right now, with rapid advancements. Investing in it early would provide a chance to capitalize on it in the potential near future. Machine learning will likely become an increasingly common part of our daily lives.
  • There is a healthy amount of competition in the ML industry right now, which in turn drives innovation forward. Companies try to gain an edge by providing better customer support, innovative products and solutions, and optimizing business operations. ML companies can use their technology to analyze data, make decisions and quickly adapt to market trends. 
  • ML companies aren’t restricted to the big names like Google, Amazon, or Microsoft. There are plenty of smaller, niche companies that focus on specific sectors - healthcare, finance, or autonomous vehicles, for example.

Disadvantages of Machine Learning Stocks 

  • Stocks can be quite volatile, and machine learning stocks are no exception. The companies are subject to market sentiment, technological shifts, and competition. Some ML companies also deal with sensitive data, exposing them to regulatory and privacy risks, particularly when it comes to changes in data protection laws. 
  • Understanding the ins and outs of machine learning is quite difficult, as the theme is extremely complex. Investors need to have a full understanding of what they are dealing with before making any commitments, which may require some extensive research. 
  • It’s no secret that there are plenty of ethical concerns surrounding machine learning and the AI industry as a whole. The market is sensitive to public opinion, and eventual legal challenges, public backlash, and other problems can affect these stocks. 

If you would like to start trading the markets but lack experience, why not register for a free demo account? Practise with virtual funds before using real capital - Click the banner below to register today:

Risk Free Demo Account

Register for a Free Online Demo Account and Master Your Trading Strategy

Top 3 Best Machine Learning Stocks to Watch 

Having now gone through the basics of ML, we will now take a look at the best machine learning stocks available, including the advantages and disadvantages of each one of them. 

Please be aware, that the chosen best machine learning stocks to watch are based on the subjective opinion of the author. 

1. NVIDIA (NVDA) 

NVIDIA has long been a mainstay in the graphic cards market, being arguably the leading name in the industry. However the company’s graphic processing units (GPUs) have also been used to power machine learning platforms. Additionally, NVIDIA is also one of the leading names in the semiconductor industry.

The list of NVIDIA customers includes automakers, biotech companies, and retailers, among others. 

Advantage of NVIDIA stocks: 

  • NVIDIA constantly generates sizable operating profit margins, well into double digits, which creates a positive outlook for investors. The company also invests billions of dollars in research and development (R&D) every year. 

Disadvantage of NVIDIA stocks: 

  • While it is one of the leading companies in the semiconductors industry, NVIDIA will likely face increased competition from other tech giants in the future, such as Intel and Asus. 

You can trade NVDA CFDs in both price directions and invest in the shares directly.

2. Tesla (TSLA) 

Tesla has been synonymous with electric vehicles. Having committed to EV production from the start, Tesla still holds a sizable share of the market. The American carmaker is also famous for its heavy investment in machine learning, spearheading the movement for self-driving vehicles. 

Advantage of Tesla stocks: 

  • As one of the first movers in the EV and self-driving cars markets, Tesla still holds an advantage over its potential competitors, like Ford, GM, and Toyota. The company is constantly improving its machine learning system, collecting data and videos from Tesla car owners via its cloud-based software. 

Disadvantage of Tesla stocks: 

  • The Elon Musk factor has some positives, but also equal negatives. Tesla’s CEO is one of the world’s leading entrepreneurs, but Musk also finds himself involved in controversies more often than not. His actions and statements can also negatively impact Tesla’s stocks.

There is the option to trade TSLA CFDs in both price directions, while you can also invest in shares directly

3. Accenture (ACN) 

Accenture is a global consulting and IT services company. Recently, the company has invested heavily in machine learning. Accenture offers machine learning services to boost its clients’ productivity while applying ML to solve problems with increased efficiency. 

Advantage of Accenture stocks: 

  • As the world’s leading consulting firm, Accenture was already well-positioned from the start. Getting a jump-start with its investments in ML makes the scenario even better for the Irish-American giant. 

Disadvantage of Accenture stocks: 

  • Accenture stocks come at a premium price. Additionally, Accenture is also considered a slow-growth stock, which can be seen as a positive, but also as a negative, as it probably won’t offer immediate gains. 

You can trade ACN CFDs in both price directions, while you also have the option to invest in ACN shares.

Do you have access to the popular MetaTrader 5 trading platform? Gain free access and analyse various instruments, trade stocks and more with a few clicks - Click the banner below to download for free today:

The World's Premier Multi Asset Platform


Best Machine Learning Stocks: Conclusion 

Machine learning is one of the leading innovations in the tech industry. Investing in machine learning stocks can be an option to diversify a portfolio

Just like any other stock, machine learning stocks have pros and cons. While the sector is likely set to grow in a short space of time, there are also some concerns - particularly from an ethical standpoint - surrounding AI-related markets. 

If you decide to invest in machine learning stocks, then a reliable and certified broker like Admirals is a possible option. 

At Admirals, you will have access to the MetaTrader 5 tool. With MT5, you will have access to several valuable features, including charts, news, educational tools, and also automated AI trading bots

You can sign up now and start trading with a live account. However, if you would like to practice with virtual funds, you can sign up for a demo account instead. 

With a demo account, you can trade without using real assets. Once you feel comfortable enough, you can switch over to a live account and start trading with real money. 

Ready to start trading and investing? Register for a free live account with Admirals - Click the banner below to get started:

Open a Live Account

Trade the Live Markets and Trade Efficiently

 

Which machine learning stocks are best?

Potentially some of the machine learning stocks which are best include the following:

  1. NVIDIA (NVDA)
  2. Tesla (TSLA)
  3. Accenture (ACN)

 

What are machine learning stocks?

Machine learning stocks represent companies in the financial market that leverage artificial intelligence to develop and apply advanced data-driven algorithms for predictive analysis and decision-making.

 

Other Articles of Interest:

 

 

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals' investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.

3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.

4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on Brandie E Blackler, Financial Analyst, personal estimations.

5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.

6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

TOP ARTICLES
The Best Cobalt Stocks to Watch
Cobalt is a metal which is poised to play a key role in the global energy transition, due to its use in lithium-ion batteries. So, how can investors gain exposure to this metal? In this article, we will examine 2 top cobalt stocks for investors to consider and demonstrate how to invest in cobalt sto...
Investing in Utility Stocks
Utility companies are responsible for providing households and businesses with electricity, gas, water, waste disposal and other necessary services in the modern world. Whilst investing in utilities may not be considered as exciting as other industries such as technology, utility stocks can form par...
Top 3 Best Tin Stocks to Watch
When talking about valuable metals, tin is hardly the first one that comes to mind. But this commodity has been drawing attention from investors recently. The best tin stocks to watch have become an interesting alternative if you are looking for ways to diversify your portfolio within the precious...
View All