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 is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. He is also the founder of several high-tech companies, such as Web IPO (one of the pioneers of digital public offerings). He can be reached on Twitter at @ttaulli.