In this article, we will be looking at the 5 best machine learning stocks to invest in. If you want to see our detailed analysis of these companies, you can go directly to the 10 Best Machine Learning Stocks to Invest In.
5. Micron Technology, Inc. (NASDAQ: MU)
Number of Hedge Fund Holders: 100
Micron Technology, Inc. (NASDAQ: MU) is a manufacturer of memory and storage products for sale across the globe. The company has also introduced its Micron Deep Learning Accelerator technology, cementing its presence in the machine learning sector. It ranks 5th on our list of the best machine learning stocks to invest in.
This July, Citigroup analyst Christopher Danely raised his financial year 2021 and 2023 estimates for Micron Technology, Inc. (NASDAQ: MU) in light of the company’s quarterly reports exceeding expectations. Danely also reiterated a Buy rating and the firm’s $135 price target on the company’s shares.
In the fiscal third quarter of 2021, Micron Technology, Inc. (NASDAQ: MU) had an EPS of $1.88, beating estimates by $0.16. The company’s revenue was $7.42 billion, up 36.48% year over year and beating estimates by $153.35 million. Micron Technology, Inc. (NASDAQ: MU) has also gained 59.54% in the past year.
As of the end of the first quarter of 2021, 100 hedge funds out of the 866 tracked by Insider Monkey held stakes in Micron Technology, Inc. (NASDAQ: MU) worth roughly $7.62 billion. This is compared to 100 hedge funds in the previous quarter with a stake value of about $8.14 billion.
Bonsai Partners mentioned Micron Technology, Inc. (NASDAQ: MU) in its first-quarter 2021 investor letter. Here‘s what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
4. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 127
Apple Inc. (NASDAQ: AAPL) is a technology company famous for its iPhone line. Apple products are fitted with hardware for machine learning tasks to enhance user experience. The company ranks 4th on our list of the best machine learning stocks to invest in.
This July, JP Morgan raised its price target on Apple Inc. (NASDAQ: AAPL) shares from $165 to $170, keeping an Overweight rating on the stock. In June, Wedbush also kept its Outperform rating on Apple Inc. (NASDAQ: AAPL) shares with a price target of $185.
In the fiscal second quarter of 2021, Apple Inc. (NASDAQ: AAPL) had an EPS of $1.40, beating estimates by $0.41, and the company’s revenue was $89.58 billion, up 53.63% year over year, and beating estimates by $12.30 billion. Apple Inc. (NASDAQ: AAPL) has gained 11.56% in the past 6 months and 12.84% year to date.
As of the end of the first quarter of 2021, 127 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ: AAPL) worth roughly $130 billion. This is compared to 146 hedge funds in the previous quarter with a stake value of about $142 billion.
3. Alphabet Inc. (NASDAQ: GOOG)
Number of Hedge Fund Holders: 185
Alphabet Inc. (NASDAQ: GOOG) is a provider of online advertising services in the US, Europe, Middle East, Africa, Asia Pacific, Canada, and Latin America. It is the parent company of Google and uses AI and deep learning in almost all its operations, including in the running of the Google search engine, Google ads, Maps, and other areas. The company ranks 3rd on our list of the best machine learning stocks to invest in.
This July, Roth Capital analyst Darren Aftahi reiterated the firm’s Buy rating on Alphabet Inc. (NASDAQ: GOOG) shares, alongside the $115 price target they set on it.
In the first quarter of 2021, Alphabet Inc. (NASDAQ: GOOG) had an EPS of $26.29, beating estimates by $10.63, and the company’s revenue was $55.31 billion, up 34.39% year over year and beating estimates by $3.62 billion. Alphabet Inc. (NASDAQ: GOOG) has gained 49.56% in the past 6 months and 51.82% year to date.
As of the end of the first quarter of 2021, 185 hedge funds out of the 866 tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ: GOOG) worth roughly $24.5 billion. This is compared to 179 hedge funds in the previous quarter with a stake value of about $21.9 billion.
2. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ: AMZN) is a technology and e-commerce giant operating across the globe. The company makes use of machine learning and AI to aggregate and analyze purchasing data on products to forecast demand, and to accomplish a range of other tasks as well. It ranks 2nd on our list of the best machine learning stocks to invest in.
This June, Piper Sandler analyst Thomas Champion reiterated an Overweight rating on Amazon.com, Inc. (NASDAQ: AMZN) shares, alongside a $4,000 price target. Champion mentioned that Amazon Prime Day sales saw a 13% increase year over year as well.
In the first quarter of 2021, Amazon.com, Inc. (NASDAQ: AMZN) had an EPS of $15.79, beating estimates by $6.15. The company’s revenue was $108.52 billion, up 43.82% year over year and beating estimates by $3.89 billion. Amazon.com, Inc. (NASDAQ: AMZN) has gained 16.43% in the past 6 months and 15.68% year to date.
As of the end of the first quarter of 2021, 243 hedge funds out of the 866 tracked by Insider Monkey held stakes in Amazon.com, Inc. (NASDAQ: AMZN) worth roughly $50.4 billion. This is compared to 273 hedge funds in the previous quarter with a stake value of about $51.3 billion.
1. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 251
Microsoft Corporation (NASDAQ: MSFT) is one of the biggest technology companies operating globally, with machine learning and AI being a vital part of most of its products, include Bing, Microsoft Office, Windows, and even Xbox games. The company ranks 1st on our list of the best machine learning stocks to invest in.
This June, Jefferies analyst Brent Thill raised his price target on Microsoft Corporation (NASDAQ: MSFT) shares from $290 to $310, keeping a Buy rating on the stock as well.
In the fiscal third quarter of 2021, Microsoft Corporation (NASDAQ: MSFT) had an EPS of $1.95, beating estimates by $0.17. The company’s revenue was $41.71 billion, up 19.09% year over year and beating estimates by $852.09 million. Microsoft Corporation (NASDAQ: MSFT) has gained 29.84% in the past 6 months and 29.04% year to date.
As of the end of the first quarter of 2021, 251 hedge funds out of the 866 tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ: MSFT) worth roughly $58.9 billion. This is compared to 258 hedge funds in the previous quarter with a stake value of about $52.8 billion.
You can also take a peek at 15 Most Valuable Technology Companies in the World and 10 Emerging Energy Technologies You Can Invest In Today.
