Machine learning stocks represent companies specializing in a branch of artificial intelligence (AI) that enables computers to emulate how humans learn and adapt by using data and experience. While it may seem like the stuff of science fiction, machine learning is hardly new.
Artificial Intelligence
Early work began in the late 1950s, and the coining of the term "machine learning" is credited to IBM (IBM +0.26%) scientist Arthur Samuel.
In the early 1960s, a machine learning-equipped computer beat researchers at a game of checkers. Today, machine learning systems are tackling far more complex problems. You benefit daily from machine learning when you do an internet search on Alphabet's (GOOGL -0.12%)(GOOG -0.00%) Google or get a recommended television show or movie from Netflix (NFLX +0.12%).
Businesses of all kinds are trying to apply machine learning to their operations. According to researcher Statista, global spending on machine learning will total about $113 billion in 2025 and rise at a compound annual growth rate of almost 35% until 2030, when the market is projected to reach $503 billion. Given those projections, investing in companies with exposure to machine learning could yield rich rewards.
Machine Learning
Best machine learning stocks in 2025
Although they're not pure plays on machine learning, here are some top companies participating in the machine learning sector:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Nvidia (NASDAQ:NVDA) | $4.6 trillion | 0.02% | Semiconductors and Semiconductor Equipment |
| Tesla (NASDAQ:TSLA) | $1.6 trillion | 0.00% | Automobiles |
| Accenture Plc (NYSE:ACN) | $178.3 billion | 2.25% | IT Services |
| ServiceNow (NYSE:NOW) | $158.4 billion | 0.00% | Software |
| Snowflake (NYSE:SNOW) | $75.9 billion | 0.00% | IT Services |
| CrowdStrike (NASDAQ:CRWD) | $120.3 billion | 0.00% | Software |
| Palantir Technologies (NASDAQ:PLTR) | $462.8 billion | 0.00% | Software |
NASDAQ: NVDA
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There is a changing of the guard in the semiconductor industry, and Nvidia is quickly emerging as the technological leader in the space. It's powering high-end computing with its GPUs that accelerate the production of data centers and training of AI models. In the third quarter of fiscal 2026, Nvidia reported revenue of $51.2 billion for its data center business, a 66% year-over-year increase.
Semiconductor
NASDAQ: TSLA
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NYSE: ACN
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This is a slow-and-steady growth stock, so it isn't the most exciting company on this list. But what Accenture stock lacks in excitement, it makes up for in shareholder returns with dividends and share repurchases.
The company has steadily increased the capital it has returned to shareholders in the form of dividends and stock repurchases from 2019, when it returned $4.6 billion, to fiscal 2025, when it returned $8.3 billion. In October 2025, Accenture increased its dividend to $1.63 per share, 10% over its previous quarterly dividend.
NYSE: NOW
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NYSE: SNOW
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NASDAQ: CRWD
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CrowdStrike, a cloud-native company, got its start as a vendor of endpoint security software for devices used outside of traditional office settings. As a top security vendor, it is effectively leveraging machine learning to provide robust online protection that continues to improve over time.
The company maintains an incredible rate of growth. At the end of the third quarter of fiscal 2026, CrowdStrike reported annual recurring revenue (ARR) of $4.92 billion, a 23% year-over-year increase. It also reported a company record for third-quarter free cash flow of $296 million.
NASDAQ: PLTR
Key Data Points
That's where Palantir's AI and machine learning software comes into play. The company designs operating systems that use machine learning at the very core of their functionality, helping customers make better decisions and forecasts. The company has sizable contracts with various government agencies and a rapidly expanding list of private-sector customers.
Palantir has a large following of retail investor fans, making it a top meme stock. But this is a rock-solid business. Palantir generates a profit (as measured by free cash flow) and has a stellar balance sheet armed with more than $6 billion in cash and short-term investments and no long-term debt at the end of the third quarter 2025.
Should you invest in machine learning stocks?
Companies around the world are pouring resources into developing AI and machine learning software for diverse purposes, but this alone doesn't mean that investing in machine learning stocks is right for everyone.
Here are some of the potential benefits of an investment in machine learning stocks:
- Great growth opportunities, as the machine learning sector is poised to expand significantly
- Portfolio diversification
- Exposure to a wide swath of industries as various businesses adopt machine learning solutions
Naturally, there are also some risks that investors must recognize before buying machine learning stocks:
- During market downturns, businesses may invest less in their businesses and decide against adopting new machine learning solutions.
- A more compelling technology may emerge that makes machine learning less desirable.
- Machine learning companies may invest heavily in R&D, compromising profits in the near term for long-term success.
As the technology continues to improve, it will increasingly influence the ways many companies operate and interact with customers.
But the sector is still emerging, so machine learning stocks are generally best suited for buy-and-hold investors who are comfortable with plenty of price volatility. As the machine learning industry advances and matures, those who stay invested in machine learning stocks for many years could realize substantial returns.
Factors to consider before investing in machine learning stocks
Since machine learning companies represent a niche within the tech sector, individuals should be aware of how a machine learning stock investment will affect their portfolios. To achieve adequate portfolio diversification, investors may, for example, want to trim positions in other tech stocks.
Another consideration for investors is whether passive income is a priority. Because many machine learning companies must make significant investments in R&D to keep up with competitors, they don't have the luxury of returning ample amounts of cash to investors.
A third factor that potential investors should weigh is whether they have a high enough risk tolerance to ride out volatility. Unlike the steadiness of utility stocks or consumer staples stocks, tech stocks like those specializing in machine learning may suffer steeper drops when the economy experiences a downturn.
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How to invest in machine learning stocks
Investors who believe they're ready to start investing in machine learning stocks have to take only a few basic steps to get started.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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