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. Early work began in the late 1950s, and the coining of the term "machine learning" is credited to IBM (IBM -0.06%) 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. On a daily basis, you benefit from machine learning when you do an internet search on Alphabet's (GOOGL -0.59%)(GOOG -0.47%) Google or get a recommended television show or movie from Netflix (NFLX +0.82%).
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:
1. Nvidia
NASDAQ: NVDA
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2. Tesla
NASDAQ: TSLA
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Semiconductor
3. Accenture
NYSE: ACN
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4. ServiceNow
NYSE: NOW
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Artificial Intelligence
5. Snowflake
NYSE: SNOW
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NASDAQ: CRWD
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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:
- These stocks provide great growth opportunities as the machine learning sector is poised to expand significantly.
- Portfolio diversification.
- Gaining exposure to a wide swath of industries as various businesses are adopting machine learning solutions.
Naturally, there are 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, investors who stay invested in machine learning stocks for many years could realize substantial returns.
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