Machine learning (“ML”) is integrated into everything from business needs to consumer needs in the artificial intelligence (AI) driven world.
The increasing proliferation of ML in cloud computing solutions, quantum computing systems, automation, robotics, leading medical diagnostic systems, autonomous vehicles and smart electronic devices for consumers, to name a few, has created a unique niche for the technology.
The futuristic technology is mainly used by enterprises in different sectors to make enterprise functions slimmer and more efficient.
Effective algorithms, frameworks and techniques of ML, which solve complex problems quickly, are expected to continue to increase the adoption rate in the short term as well as in the long term.
If we look at this, technology cattle like Alphabetgoogle Google, Amazon AMZN, Microsoft MSFT en International business machines IBM is making strong efforts to make breakthroughs in the ML arena.
ML remains promising in 2021 & beyond
We note that the Coronavirus pandemic automation in enterprises has resulted in the use of ML.
In addition, the emerging mega-trend in the IT industry, namely hyper-automation, which claims that almost anything in an enterprise can be automated, is likely to become popular. This in turn is expected to accelerate the deployment rate of ML models in IT enterprises.
In addition, improving customer experience and personalization in the retail industry is probably the most important reason for accepting ML in 2021.
Furthermore, the increasing proliferation of IoT devices (Internet of Things), the increasing use of Machine Learning as a Service (MLaaS), the increasing demand for faster computing power and the emergence of reinforcement learning, are the way for an ML boom in 2021 and further.
According to data provided by Grand View Research, the ML market is expected to reach $ 96.7 billion by 2025, which will see a CAGR of 43.8% between 2019 and 2025.
According to a report by Mordor Intelligence, the global MLaaS market is expected to have a CAGR of 43% between 2020 and 2025.
Year-to-date price performance
3 ML shares for a profitable 2021 portfolio
Here we have selected three companies that are well prepared to capitalize on the ML outlook. Strikingly, each of the following stocks outperformed the S&P 500 index on a year-to-date basis.
Baidu BIDU is one of the most advanced China-based AI enterprises. It also contains a number of patents for autonomous management. The company’s Apollo technology is gaining traction in the self-driving car space.
His other ML projects such as virtual assistants and voice replication are making remarkable progress. The company’s ML algorithms, voice and image recognition software and natural language processing provide users with more personalized results.
In addition, the Zacks Rank # 1 (Strong Buy) initiative to integrate ML with its ongoing innovation in augmented reality remains a positive position. Furthermore, Baidu’s home robot – Little Fish, based on advanced ML capabilities – is remarkable.
You can see the full list of today’s Zacks # 1 Rank shares here.
The Zacks consensus estimate for the company’s 2021 revenue has moved 3% to $ 10 over the past 60 days.
AlphabetGoogle’s division remains one of the most notable technical giants on the heels of the enhanced ML solutions portfolio.
The company’s cloud computing arm, Google Cloud, is constantly gaining solid momentum with the support of its robust ML solutions. The Document AI solution, supported by ML, helps to analyze documents efficiently. Furthermore, the advanced and reliable cloud infrastructure, which supports the deployment of ML models and the smooth operation of ML workflows, is very positive.
Aside from cloud computing, the company explored ways to incorporate ML techniques during the discovery of medicine. Recently, it demonstrated a virtual screening method, based on graphically convolutional networks, which is expected to be a breakthrough in the pharmaceutical industry.
Furthermore, Alphabet, which currently has a Zacks Rank # 2 (Buy), was a forerunner in the autonomous driving range at the rear of its Waymo vehicles, which is heavily powered by ML technology.
The Zacks consensus estimate for the company’s revenue from 2021 has moved 1.2% to $ 62.30 over the past 60 days.
Tencent Holdings TCEHY integrates ML and AI expertise, including data protection and identity verification capabilities against fraud, streaming, security software and other services. This enables the company to currently have a Zacks Rank # 2 to expand customers in vertical finance, media, education and e-commerce.
In addition, Tencent’s open source project on the distributed ML platform, Angel, based on a parameter server framework, holds promise.
The Zacks consensus estimate for the company’s revenue from 2021 has moved 4.8% to $ 2.39 over the past 60 days.
Zacks Top 10 Shares for 2021
In addition to the stocks discussed above, would you like to know about our top ten tickets for the entire 2021?
These ten are carefully hand-picked from more than 4,000 companies covered by the Zacks Rank. It is our most important choice to buy and hold.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
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