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Machine learning, akin to a hidden gem nested in the depths of technology, has been rapidly gaining traction in the business world. Much like a rolling snowball growing larger with momentum, this innovative technology is snowballing a wealth of opportunities for investors eyeing multi-bagger potential in the stock market.
Unveiling the Powerhouse: Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA), standing tall like a modern colossus, offers a tantalizing glimpse of the future. Priced at $700 currently, this stock appears poised for a meteoric rise, potentially reaching $1,000 or even $1,500 in the near future. With unrivaled dominance in artificial intelligence and machine learning, Nvidia’s graphic processing units (GPU) reign supreme, offering unparalleled performance for machine learning tasks, per a LinkedIn article.
Highlighted by explosive earnings growth, Nvidia boasts an adjusted EPS of $5.16, soaring past expectations of $4.64, and a revenue of $22.1 billion, outshining anticipated figures of $20.62 billion. This momentum is set to continue, with projected sales of $24 billion for the current quarter, far exceeding estimates of $22.2 billion and dwarfing the $7.19 billion in sales recorded just a year ago.
CFO Colette Kress sweetens the deal further by affirming an improved supply of AI GPUs and robust demand. Excitingly, the company anticipates a surge in demand outstripping supply for its upcoming products, as delineated by Barron’s.
The Rising Star: Advanced Micro Devices (AMD)
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Advanced Micro Devices (NASDAQ:AMD), the silent victor of the machine learning and AI revolution, currently sits at $164.29, hinting at a promising ascent towards $200. Boasting the accelerated RDNA 3 GPU architecture, AMD’s upgraded machine learning accelerators exhibit more than double the speed of its preceding generation, as highlighted by SiliconANGLE.
Adding fuel to the fire, the MI300 chips from AMD are set to rival Nvidia’s revered H100 chips, some of the most potent AI chips available. Noteworthy endorsements from industry giants like Microsoft and Meta Platforms, favoring AMD’s MI300 chips as a cost-effective alternative to Nvidia’s pricier counterparts, as reported by CNBC, further solidify AMD’s growth trajectory in the machine learning market.
Diversification Avenue: iShares U.S. Technology ETF (IYW)
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In the vast sea of tech investments lies the iShares U.S. Technology ETF (NYSEARCA:IYW), a diversified ark with approximately 133 holdings, opening the door to a multitude of opportunities for discerning investors.
Sailing from around $102.50 to a recent high of about $135, IYW is on a promising trajectory towards $160. Sporting a modest expense ratio of 0.40%, the fund encapsulates a mix of U.S. electronics, computer software, hardware, and informational technology stocks. A myriad of tech titans such as Nvidia, Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Meta Platforms (NASDAQ:META) nestle within its holdings, promising diversification in the soaring tech sector.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The perspectives voiced in this article reflect the writer’s own, mirroring the guidelines set forth by InvestorPlace.com.
A seasoned contributor at InvestorPlace.com, Ian Cooper has been dissecting stocks and options in web-based advisories since 1999.
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The post unearths the untapped potential of 3 machine learning stocks that could blossom into multi-baggers, adding vibrant hues to your investment portfolio.
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