In this piece, we will take a look at the five best machine learning stocks to buy. For more stocks, head on over to 11 Best Machine Learning Stocks to Buy.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
NVIDIA Corporation (NASDAQ:NVDA) is one of the largest semiconductor designers in the world. It designs and sells graphics processing units (GPUs) that are used in machine learning and artificial intelligence applications. The firm is headquartered in Santa Clara, California.
Given its role in the industry, NVIDIA Corporation (NASDAQ:NVDA) has a wide variety of machine learning applications in its developer suite. These include linear algebra, math, and parallel algorithm libraries such as cuSPARSE, cuBLAS, and Thrust. The company’s technologies aid researchers in all steps of the machine learning process, from training their algorithms through cuGRAPH and cuDNN, to testing and deploying the models through RTX.
NVIDIA Corporation (NASDAQ:NVDA)’s Accelerated Machine Learning Platform enables faster iteration and processing times, and its Rapids platform is optimized to provide GPUs with a significant edge over CPUs for machine learning. By the end of this year’s second quarter, 84 out of the 895 hedge funds polled by Insider Monkey had invested in NVIDIA Corporation (NASDAQ:NVDA).
Out of these, Ken Fisher’s Fisher Asset Management is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor. It owns 7.5 million shares that are worth $1.1 billion.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 87
Advanced Micro Devices, Inc. (NASDAQ:AMD) is another American semiconductor designer and seller. The firm sells central processing units (CPUs) and graphics processing units (GPUs) to a wide variety of customers. It is headquartered in Santa Clara, California.
Advanced Micro Devices, Inc. (NASDAQ:AMD) has a host of different machine learning platforms and suites under its belt. The firm’s Instinct Deep Learning data center solutions are used by companies such as Asus, Dell, Lenovo, and HP. They offer the companies with technologies such as ROCm which enables them to fine tune autonomous driving, utilize machine learning for drug discovery, use the software for image detection and recognition, and built smarter robotics through supporting both TensorFlow and PyTorch.
Insider Monkey’s June quarter of 2022 survey of 895 hedge funds outlined that 87 had invested in Advanced Micro Devices, Inc. (NASDAQ:AMD).
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 25 million shares that are worth $1.9 billion.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) is one of the largest technology companies in the world, and also perhaps the largest to employ the consumer facing side of machine learning. The firm offers a wide variety of products such as YouTube, Google Search, and Gmail.
Alphabet Inc. (NASDAQ:GOOG)’s most renowned machine learning product is Google itself. At the heart of Google Search is Google’s machine learning algorithm called RankBrain. This algorithm is behind what is termed Word2vec, a Google technology for translating queries into searcher intent and delivering the correct output. RankBrain uses a variety of factors such as domain strength, keyword optimization, and page load speed to sift out the webpages it believes will serve the searcher’s query out of the billions present on the Internet.
Alphabet Inc. (NASDAQ:GOOG) also provides artificial intelligence products for developers such as AutoML, Video AI, and Vision AI. By the end of this year’s second quarter, 153 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
Out of these, Chris Hohn’s TCI Fund Management is Alphabet Inc. (NASDAQ:GOOG)’s largest investor. It owns 2.4 million shares that are worth $5.4 billion.
Merion Road Capital mentioned the company in its Q3 2022 investor letter. Here is what the fund said:
“Portfolio returns continued to get dragged down by some of our core holdings in large-cap technology like Alphabet Inc. (NASDAQ:GOOG). The market positioning and long-term opportunity set for these companies has not changed. Current prices obviously reflect increased macroeconomic risks and risk-free rates/premium. But it’s hard to argue that these risks are not reflected in the price or that GOOG should be disproportionately hurt by rising rates when it is trading at a mid-teen multiple of free cash flow. In any case, GOOG is a secular winner when we look beyond a few months or years.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) is one of the largest electronic commerce retailers in the world. The firm also offers cloud computing services and consumer electronics, and it is also working on its satellite internet constellation.
Amazon.com, Inc. (NASDAQ:AMZN) has integrated machine learning into its diverse suite of products and services. These range from its commerce platform to its Amazon Web Services (AWS) cloud computing division and its Alexa voice assistant. Its commerce platform uses the technology to provide recommendations, sniff out fraud, and analyze purchasing patterns and behavior. Alexa uses machine learning for natural language processing and natural language generation.
Additionally, Amazon.com, Inc. (NASDAQ:AMZN) also uses machine learning for search engine optimization on its platform and optimizing packaging in its warehouses to remove waste. By the end of this year’s June quarter, 252 out of the 895 hedge funds polled by Insider Monkey had held a stake in the company.
Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 48 million shares that are worth $5.1 billion.
Polen Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“Shares of Amazon declined during the quarter against a backdrop of very tough comparisons, ongoing cost pressures, and a bolus in capital expenditures. We believe some of these issues are transitory, and we used this quarter as an opportunity to add to our position in this competitively advantaged company at what we believe is a compelling valuation. We detail our thoughts further in the Portfolio Activity section.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) is an American technology company that rose to fame due to its Windows operating system. Now, the firm has expanded its product and services portfolio to include cloud computing, consumer electronics, and other services.
Microsoft Corporation (NASDAQ:MSFT) offers companies the chance to use machine learning for their enterprise needs through Azure Machine Learning as a Service platform. This allows companies to run machine learning cycles end to end, from cleaning data, to training, testing, and validation. Some of the largest companies and organizations in the world use Azure Machine Learning, such as 3M, Pepsi, FedEx, and the NHS. It also supports a variety of platforms such as PyTorch, TensorFlow, and XGBoost.
Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 258 had invested in Microsoft Corporation (NASDAQ:MSFT).
Out of these, Ken Fisher’s Fisher Asset Management is Microsoft Corporation (NASDAQ:MSFT)’s largest investor. It owns 28.6 million shares that are worth $7.3 billion.
Lakehouse Capital mentioned the company in its September 2022 investor letter. Here is what the fund said:
Azure has grown at a rapid clip over the past decade to cement itself as the second-largest cloud service provider globally, behind Amazon Web Services. The business benefits from strong secular tailwinds as cloud adoption continues unabated and there is considerable runway ahead – it’s currently estimated that less than 20% of global IT spend is currently in the cloud. Research indicates that 80% of enterprises use Azure and its market share has grown to 21%, up from 13% five years ago. The mission-critical nature of the product, which is similar to many of Microsoft’s other solutions, is incredibly attractive as it leads to sticky, recurring revenue streams. Something we love to see…” (Click here to read the full text)
Disclosure: None. You can also take a look at Top 10 Tech Stocks to Buy According to Billionaire Louis Bacon and 10 Best FTSE Dividend Stocks To Buy Now.
