Machine learning (“ML”) is being integrated into everything, starting from business needs to consumer needs in the world powered by Artificial Intelligence (AI).
The increasing proliferation of ML in cloud computing solutions, quantum computing systems, automation, robotics, cutting-edge medical diagnostic systems, autonomous vehicles and smart consumer electronics, to name a few, has created a unique niche for technology.
Notably, futuristic technology is being used by companies in various sectors to make business functions leaner and more efficient.
Effective ML algorithms, frameworks and techniques that solve complex problems quickly are expected to continue to boost your adoption rate in the short and long term.
Looking at this, tech giants like AlphabetGOOGL Google, Amazon AMZN, Microsoft MSFT and International Business Machines IBM is making great efforts to achieve breakthroughs in ML.
ML will remain promising in 2021 and beyond
We observed that the self-induction of the Coronavirus pandemic in companies triggered the use of ML.
In addition, the emerging megatrend in the IT industry, namely hyper-automation, which says that almost everything in a company can be automated, is likely to gain popularity. This, in turn, should accelerate the rate of implementation of ML models in IT companies.
In addition, increasing customer experience and personalization in the retail industry is likely to be the main reasons behind the adoption of ML in 2021.
In addition, the increasing proliferation of Internet of Things (IoT) devices, the growing adoption of Machine Learning as a Service (MLaaS), the growing demand for faster computing power and the emergence of reinforcement learning are paving the way for a ML boom in 2021 and beyond.
According to data provided by Grand View Research, the ML market is expected to reach $ 96.7 billion by 2025, witnessing a 43.8% CAGR between 2019 and 2025.
According to a report by Mordor Intelligence, the global MLaaS market is expected to see a 43% CAGR between 2020 and 2025.
Year-to-date price performance
3 ML actions for a profitable 2021 portfolio
Here, we have chosen three companies, which are well positioned to capitalize on ML prospects. Notably, each of the following stocks exceeded the S&P 500 index for the year.
Baidu BIDU is one of the most advanced AI companies based in China. He also holds a number of patents in autonomous direction. The company’s Apollo technology is gaining traction in the self-driving space.
His other ML projects, such as virtual assistants and voice replication, are making remarkable progress. The company’s ML algorithms, speech and image recognition software and natural language processing are offering users more personalized results.
In addition, the initiative of this company Zacks Rank # 1 (strong buy) to integrate ML with its continuous innovation in augmented reality remains a major positive factor. In addition, Baidu’s home robot – Little Fish, based on advanced ML features – is noteworthy.
You can see the complete list of today’s Zacks # 1 Rank stocks here.
Notably, Zacks’ consensus estimate for the company’s 2021 earnings moved north by 3% to $ 10 over the past 60 days.
AlphabetGoogle’s division, Google remains one of the notable technology giants, following the strengthening of the ML solutions portfolio.
The company’s cloud computing arm, Google Cloud, is continually gaining solid momentum with the support of its robust ML solutions. Its Document AI solution, which is supported by ML, helps to analyze documents efficiently. In addition, its advanced and reliable cloud infrastructure, which supports the deployment of ML models and the smooth functioning of ML workflows, is a big plus.
In addition to cloud computing, the company has explored ways to infuse ML techniques into the drug discovery process. Recently, it demonstrated a virtual screening method, based on convolutional graph networks, which is expected to be a breakthrough in the pharmaceutical industry.
In addition, Alphabet, which currently carries a Zacks Rank # 2 (Buy), has been at the forefront of autonomous driving space at the rear of its Waymo vehicles, which are highly powered by ML technology.
Notably, Zacks’ consensus estimate for the company’s 2021 earnings moved north by 1.2% to $ 62.30 in the last 60 days.
Tencent Holdings TCEHY is integrating experience in ML and AI, including data protection and anti-fraud identity authentication features, in streaming, security software and other services. This is allowing the company, currently carrying Zacks Rank # 2, to expand its clientele in finance, media, education and e-commerce verticals.
In addition, Tencent’s open source project on the distributed ML platform, Angel, based on a parameter server structure, is promising.
Notably, Zacks’ consensus estimate for the company’s 2021 earnings moved north by 4.8% to $ 2.39 in the past 60 days.
Zacks Top 10 Stocks for 2021
In addition to the actions discussed above, would you like to know about our top 10 tickers for the entire year 2021?
These 10 are carefully handpicked from over 4,000 companies covered by Zacks Rank. They are our primary choices for buying and maintaining.
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Microsoft Corporation (MSFT): Free inventory analysis report
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