"3 Machine Learning Stocks for Getting Rich in 2023" by ALEX SIROIS VIA INVESTOR PLACE OF NASDAQ, 20 JULY

Artificial Intelligence (AI) exploded in 2023 as generative AI programs, including ChatGPT and Bard, entered the mainstream. Therefore, the machine learning stocks that allow computers to learn without being explicitly programmed are receiving renewed attention. Machine learning is a subfield of AI and isn’t analogous to the broader field of AI but rather a part thereof.

In any case, publicly-traded firms specializing in machine learning are booming as AI booms. That growth presents an opportunity for investors. We’re generally talking about AI stocks when we talk about machine learning stocks, but there are some key differences. Let’s consider those firms and their stocks.

Nvidia (NVDA)

Nvidia’s (NASDAQ:NVDA) stock has risen dramatically in 2023, primarily due to its AI chips. Its GPU chipsets are the most powerful available, and as AI has taken off, the competition to secure those chips has made Nvidia the hottest firm there is.

Nvidia chips also power complex large language models used to train machine learning models based on technical subfields, including neural networks. Those chips are in high demand in data centers and automotive sectors, where machine learning is utilized at higher rates.

Nvidia’s software platforms are used by developers who iterate their machine-learning applications toward more optimized states. Nvidia RAPIDS and CUDA allow data scientists to accelerate machine learning through the company’s GPUs.

All of this simply suggests that Nvidia will continue to move from strength to strength this year, even as valuation concerns plague its shares. I don’t think those fears are valid or justified. Nvidia remains the clear dominant force in AI and machine learning to this point.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is the primary challenger to Nvidia’s dominance in AI and machine learning.

It’s entirely reasonable to believe that AMD could attract Nvidia investor capital on overvaluation fears. That’s one reason investors should consider AMD.

However, the more salient reason is simply that AMD is not that far behind Nvidia. MosiacML recently pegged AMD’s high-end chip speed as about 80% as fast as those from Nvidia. Here’s the good news regarding machine learning: AMD has done very well on the software side, according to MosaicML, which notes that software has been the “Achilles heel” for most machine learning firms.

The suggestion is that AMD can continue to close the gap between it and Nvidia due to its software prowess. Nvidia’s machine-learning drivers are considered superior and are subject to more frequent updates. Those advantages favor Nvidia. However, AMD is not that far behind, and it can certainly help investors get rich, as 2023 has already shown.

Palantir (PLTR)

Palantir Technologies (NYSE:PLTR) stock has boomed in 2023 due to AI and machine learning. It didn’t catch the early wave of AI adoption that benefited Microsoft(NASDAQ:MSFT), AMD, Nvidia, and others — instead getting hot in recent months.

Its Gotham and Foundry platforms have found a following in private firms and, more prominently, with public firms and government organizations. Adoption across the defense sector has been particularly important in helping Palantir take advantage of AI stock growth. The company has long been associated with the defense industry and has developed a deep connection by applying silicon-valley-style tech to government entities.

That relationship, paired with Palantir’s AI strengths, promises to propel Palantir much higher. The company is profitable now, so that hurdle has been passed. It has a huge opportunity ahead, especially as the defense industry is likely to spend heavily on AI due to high-stakes geopolitics that makes the Department of Defense highly probable to loosen its purse strings moving forward. Palantir has already benefited in 2023, but it can absolutely run higher.

https://www.nasdaq.com/articles/3-machine-learning-stocks-for-getting-rich-in-2023