5 Machine Learning Stocks to Capture Massive Growth

With worldwide spending on AI technologies expected to ramp up over the next several years, these five machine learning names are worth a closer look.

Presentation about machine learning
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There is often confusion between artificial intelligence (AI) and machine learning (ML), but there are differences.

AI, for example, is a broad description of the category of technologies that allow for the simulation of human-like capabilities in machines.

Machine learning, meanwhile, is a subset of AI. It generally involves the processing of large amounts of data, which is then applied to algorithms. By doing this, ML makes it possible for a computer system to recognize objects, predict when a machine will fail, or even drive a car. In other words, it allows systems to learn and make choices with little human interaction.

Consider that machine learning is not new. The roots of this technology go back to the 1950s, when it was developed to help with such things as playing chess.

But it was not until the past decade that machine learning has become transformative. Some of the reasons for this include the development of new theories like deep learning – which is a subset of ML – as well as the explosion of data and the growth in cloud computing.

So how big is this opportunity for machine learning stocks?

It's definitely massive. According to International Data Corporation (IDC), worldwide spending on AI technologies is expected to see a five-year compound annual growth rate (CAGR) of 17.4% by 2024, with revenues hitting $554.3 billion.

That said, here are five machine learning stocks that could benefit from substantial growth in the global AI market.


Data is as of June 3.

Tom Taulli
Contributing Writer, Kiplinger.com

Tom Taulli has been developing software since the 1980s when he was in high school.  He sold his applications to a variety of publications. In college, he started his first company, which focused on the development of e-learning systems. He would go on to create other companies as well, including Hypermart.net that was sold to InfoSpace in 1996. Along the way, Tom has written columns for online publications such as Bloomberg, Forbes, Barron's and Kiplinger.  He has also written a variety of books, including Artificial Intelligence Basics:  A Non-Technical Introduction. He can be reached on Twitter at @ttaulli.