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Machine learning stocks receive a lot of love in 2024

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United States equities are on the rise again in 2024. TheS&P 500and Nasdaq have appreciated 7.2% and 7.4%, respectively. While stocks may be back on the rise, equities investors may want to reconsider putting money in innovative companies. Given the traction AI-related technology companies got last year, machine learning stocks may also receive a lot of love in 2024.

Machine learning (ML)is a branch of artificial intelligence (AI) that enables computers to learn from data and experience without explicit programming. Over the past decade, the technology has also garnered attention for its numerous applications. ML has also received positive attention from Wall Street. Below are three machine learning stocks that could make investors rich in the long-term.

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UiPath(NYSE:PATH) creates and implements software allowing customers to automate various business processes using robotic process automation (RPA) and artificial intelligence.

TheUiPath Business Automation Platformenables employees to quickly build automations for both existing and new processes by using software robots to perform a myriad of repetitive tasks. These range from simply logging into applications or moving folders to extracting information from documents along with updating information fields and databases. UiPath also provides a number ofturnkey automation solutions, allowing the company to target customers in a variety of industries including banking, healthcare and manufacturing.

Last year, shares of PATH almost doubled. Since the start of the new year, there has been pullback from all the major indices and, of course, UiPath, at its frothy valuation, saw some selling pressure. The companys share price has fallen 7% YTD. Selling pressure has continued slightly after weaker-than-expected guidance in UiPaths Q4 2023 earnings report. Outside of guidance, the company beat both revenue and earnings estimates. Q4 revenue increased 31% YOY to $405 million, and annual recurring revenue increased 22% to $1.5 billion. The company also achieved its first quarter of GAAP profitability as a public company in the fourth quarter.

Strong financial figures, despite weaker-than-expected guidance, could make UiPath a strong performer in 2024.

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Its hard to make a machine learning list without listing a semiconductor name, since semiconductors help machine learning programs to work the way they do. Advanced Micro Devices (NASDAQ:AMD) has built a number of advanced hardware for gaming and other computing applications. AMDs Radeon GPUs nowadays support RDNA 3 architecture-based GPUs for desktop-level AI and machine learning workflows.

2024 will be a big year for AMD in terms of AI and ML computing. The chipmaker announced the MI300x GPU chipset almost a year ago in its second quarter 2023 earnings report. To follow that up, in the third-quarter earnings report, AMD announced itexpects to sell $2 billion in AI chips next year. Because these AI chips arestillin high demand in North America, Europe and Asia, AMD will likely reap a significant profit upon entering the space.

Wall Street, notably, is loving AMDs stock. Wall Street firms have recently begun to boost their target prices for the chipmaker. The investment bank Jefferiesraisedtheir target price for AMD to $200/share from $130/share. JPMorgan, Goldman Sachs, Baird and a host of other investment banksalso made significant increases to their target pricesin late January 2024. Moreover, Japanese bank Mizuho Securities has recently raised its target price for $200/share to $235/share.

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Last on our list of machine learning stocks is Palantir Technologies(NYSE:PLTR). Palantir has received a lot of love from some on Wall Street and a number of retail investors. Shares have risen 37% YTD. For those who dont know, Palantir initially focused on serving the defense and intelligence sectors but has since expanded its customer base to include various industries such as healthcare, energy and finance. The company provides a number of AI and ML-based data analytics tools for a number of businesses.

Most recently, Palantir has enjoyed a lot of attention due to its new AI Platform (AIP). AIP candeploycommercial and open-source large language models onto internally held data sets and, from there, recommend business processes and actions. Although I think Palantir has become too overvalued based on many believing its a fully-grown AI company when its just in the beginning, the company certainly has the potential to make investors money in the long-term.

On the date of publication, Tyrik Torresdid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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Wall Street's Favorite Machine Learning Stocks? 3 Names That Could Make You Filthy Rich - InvestorPlace