In this piece, we will take a look at the 10 best machine learning stocks according to analysts.
The AI boom of the last two years has pushed mathematical computing technologies to the forefront of Wall Street and the technology industry. In its simplest form, AI is a set of programming instructions that allow software to learn from existing data and use this learning to generate new outputs using logic and other parameters. Machine learning is a subset of AI, and it uses algorithms to autonomously learn from data to provide outputs for specific use cases. Machine learning is a subset of AI, meaning that while all machine learning is AI, not all AI applications are machine learning.
Some ways in which engineers use machine learning are via classification, clustering, regression, supervised, unsupervised, and associated learning algorithms. AI, on the other hand, also involves technologies such as artificial narrow AI, general AI, and super AI. Right now, only narrow AI technologies are available, and these are limited to specific abilities such as ChatGPT being able to generate only text based outputs.
For stocks, this means that AI stocks and machine learning stocks are nearly the same. On the software side of the AI industry, those that develop AI technologies are also heavily in machine learning. On the hardware side, the same firms cater to the computational needs of AI and ML companies. It also means that for a variety of businesses, machine learning is often more suitable since it allows them to develop a customized and autonomous learning approach. And like AI, the industry is relatively nascent. Market research shows that the machine learning industry was worth $15.1 billion in 2021. From 2022 until 2029, the sector is expected to grow at a compounded annual growth rate (CAGR) of 38.8% and be worth $210 billion.
This multi billion dollar valuation for the machine learning industry benefits from the technology’s ability to adapt itself to custom business use cases. Research from McKinsey sheds light on some of these, and it also shares details about rapid cost improvements that machine learning users are experiencing. Starting from the use cases, include capital markets and education. In capital markets, machine learning can help financial institutions avoid asset mispricing losses of as much as $950 million. By using machine learning and its neural network subset, banks can reduce operational costs and portfolio risk, increase valuation accuracy, and speed up risk and valuation calculations compared to traditional Monte Carlo and risk valuation approaches.
In the education industry, an online education provider used a machine learning model to improve its student drop out (attrition) rates. The model allowed the university to identify three additional student archetypes that accounted for 70% of the students likely to leave their courses. Crucially, traditional linear models were unable to identify these groups, and machine learning enabled the university to develop a targeted approach to reduce attrition. Finally, image classification systems powered by an advanced form of machine learning called deep learning are rapidly improving their costs. Data from Stanford University shares that training costs of these systems dropped by 64% between 2015 and 2021 while training times improved by 94%.
Evaluating machine learning stock performance is trickier since there are no exclusive ETFs or stock indexes that focus only on machine learning stocks. Therefore, we’re left to use AI stocks as a proxy to also evaluate machine learning stock performance. As part of our research for this piece, Insider Monkey analyzed the year to date price performance of 39 AI stock ETFs. On average, these funds have gained 13.26% year to date while on median their price gains are 11.47%. Their performance ranges between -2.53% to 32.48%.
On the hardware side, semiconductor stocks are the primary beneficiaries of the AI surge. While their returns have stunned investors, there is some information that suggests that the sector might be overvalued. Data compiled by Aswath Damodaran shows that semiconductor stocks have an EV/EBITDA ratio of 31.6, which is the highest among all industries tracked. These stocks will also benefit from increased attention from the US government, which has earmarked $280 billion for research and production through the CHIPS and Science Act of 2022. For AI software companies, valuing them means dividing them by their size and operations. By size, the mega cap stocks have an early mover advantage in the machine learning industry and are generating as much as $4.4 billion in revenue.
Dividing them by operations means that there are AI companies that offer cloud capacity by buying GPUs and those that use this capacity. For the former, the CFO of the world’s biggest GPU provider shared in May 2024 that for “every $1” spent on AI infrastructure, “cloud providers have an opportunity to earn $5 in GPU instant hosting revenue over four years.”
With these details in mind, let’s take a look at the top machine learning stocks according to analysts.
A leading semiconductor chip on a computer robot arm, reflecting the technology advances of the company.
Our Methodology
To make our list of the best machine learning stocks, we first compiled an initial list of 150 stocks from three AI and robotics ETFs. Then, repeated entries, robotics, and firms that either do not significantly use machine learning in their operations or operate in unrelated industries were removed. This led to a final list of 78 stocks which were ranked by their average analyst share price target upside. Out of these, the stocks with the highest upside were chosen.
We also mentioned the number of hedge funds that had bought these stocks during the same filing period. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Investors in Q1 2024: 103
Analyst Average Share Price Target: $107.12
Upside: 33%
Alibaba Group Holding Limited (NYSE:BABA) is one of the biggest eCommerce retailers in the world. It commands almost 40% of the market in China, which houses the world’s second largest population. Its heft, as evidenced by $34 billion in cash provides Alibaba Group Holding Limited (NYSE:BABA) with adequate resources to weather out a slowing Chinese economy. Additionally, it is also a technology conglomerate, which provides it with revenue diversification through high growth industries such as cloud computing and machine learning. However, Alibaba Group Holding Limited (NYSE:BABA) is facing tough competition from Chinese eCommerce upstarts such as Pinduoduo which are doing well in the troubled Chinese economy by offering discounted products and bulk buying offers. Most of Alibaba Group Holding Limited (NYSE:BABA)’s businesses, such as marketing services, travel advisory, and restaurant guides are all cyclical in nature. This means that the shares are vulnerable to more negative news for the Chinese economy, as evidenced by its 2% share price drop in July after the economy grew by 4.7% in Q2 and missed expectations of 5.1%.
Additionally, Alibaba Group Holding Limited (NYSE:BABA) trades at a forward P/E of just 9.23. This is significantly lower than its American peer Amazon’s 40.16. The stark difference captures investor sentiment surrounding Chinese stocks, and continued US China trade tensions particularly when it comes to tariffs and chip restrictions could cause further trouble for Alibaba Group Holding Limited (NYSE:BABA). Here’s what Artisan Partners had to say about the firm in its Q1 2024 investor letter:
Alibaba shares declined 7% during the quarter. There isn’t much new to say about Alibaba. There was no meaningful news that drove the share price decline. The earnings for the December quarter were fine, with revenues and profits both increasing 5%—not typically an exciting level of growth, but certainly enough to justify the company’s paltry valuation of 4X–5X EBIT. As we have written in recent letters, this is a valuation level that is normally reserved for a dying business, and Alibaba is not a dying business. Management continues to implement changes that are intended to increase shareholder value. Over the past year, they have changed management, adjusted the company structure, contemplated spinning off assets, made progress monetizing the balance sheet and have improved the capital allocation. All of these actions have yet to be reflected at all in the share price. This is a stock that could double and would still be cheap.
9. Teradata Corporation (NYSE:TDC)
Number of Hedge Fund Investors in Q1 2024: 33
Analyst Average Share Price Target: $46.73
Upside: 37%
Teradata Corporation (NYSE:TDC) is a data focused cloud company that enables businesses to run analytics through multiple clouds. It allows users to build machine learning directly into their databases via the Teradata ClearScape Analytics platform, meaning that businesses do not have to run separate run time environments for their machine learning requirements. The three key tenets of valuing cloud computing stocks are their revenue growth, cost control as measured through free cash flow, and recurring revenue. Any weakness on this front means the stocks will suffer, and this is also the case with Teradata Corporation (NYSE:TDC). Its shares are down by 20% year to date, driven by the 21% drop in February and a 13% drop in May. The February drop came on the back of a 1% annual recurring revenue drop. Teradata Corporation (NYSE:TDC)’s ARR sat at $1.48 billion, which undershot the low end of its guidance of $1.498 billion. In May, while Teradata Corporation (NYSE:TDC)’s ARR grew by 48% to $528, management guidance was 53% to 57%. These factors show high market expectations for cloud providers, as even strong growth can fail to satiate investors.
However, Teradata Corporation (NYSE:TDC) nevertheless offers businesses the ability to simultaneously manage large and complex data sets. Ariel Investments was aware of these strengths in its Q1 2024 investor letter where it shared:
We purchased American software company, Teradata Corporation (TDC), which is a provider of business analytic solutions, hybrid cloud products and consulting services. Teradata stands out for its ability to manage and analyze large, complex datasets, with the largest number of concurrent users and lowest cost per query while offering deep analytical insights across various operational data sets. Although the market is focused on near-term setbacks in the company’s transformation to a cloud-based computing model, we believe the Teradata’s technology advantages, updated cloud offerings, and install base provide for a solid long-term trajectory in an important growth area.
8. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Investors in Q1 2024: 24
Analyst Average Share Price Target: $55.38
Upside: 40%
Symbotic Inc. (NASDAQ:SYM) is a specialty process automation firm which focuses on the needs of the warehousing and the logistics industry. It offers machine learning to its customers through platforms such as its AI powered robotic warehouse process automation products. Symbotic Inc. (NASDAQ:SYM) is one of the few firms of its kind with a pure play focus on warehouse automation, which offers it a significant competitive moat. This is evidenced by the firm’s $23 billion order backlog. Its financial heft is further bolstered by $546 million in cash and no long term debt, allowing Symbotic Inc. (NASDAQ:SYM) to ensure a steady flow of revenue even as the broader cloud sector struggles. One of Symbotic Inc. (NASDAQ:SYM)’s biggest customers is the retail giant Walmart, which has teamed up with the firm to deploy AI automation across its warehouses.
One key application of machine learning is image recognition, and on this front, here’s what Symbotic Inc. (NASDAQ:SYM)’s management had to say during its Q2 2024 earnings call:
So we’ve been working on this for about three years now, but putting vision on our bots and that combined with NVIDIA chips that we’re using, allows us to recognize boxes that may be deformed, but still recognize what the product is. And so that makes our bots much more able to pick irregular cases. And as you know, we’re one of the only people, maybe the only one that puts our box directly on shelves. We don’t put them on trays. That requires a lot of expertise and a lot of knowledge. And so we’ve been on this journey for a while, and now about 40% of our bots in our network are vision-enabled. And so there’s a bunch of work for the AI to catch up with. Recognizing 1,000 different pictures of a single box and saying, oh, that’s XY’s product.
And the shape, I didn’t recognize it before because we were just using sensors, but now with vision, we can actually recognize that. So that’s one thing. The other thing we did is that we changed the routing algorithms for our bots, and they will also be vision-enabled so that they’re more reliable, so that if something happens, like a bot gets stuck on, a broken case or something that we can now route around it. And we always could do that a little bit, but now we can do it much better. And then to be able to actually see the bot in front of us is also innovative. The other thing we’ve done is we have started work on perishable testing. And so we think that’s going to go fairly well because there’s not a lot of new things we have to do on perishables, but we want to test what happens when a bot runs over yogurt.
So things like that, and then the next thing after that will be testing bots in a frozen environment. So those are a couple of things we’ve been doing.
7. HubSpot, Inc. (NYSE:HUBS)
Number of Hedge Fund Investors in Q1 2024: 55
Analyst Average Share Price Target: $663
Upside: 40%
HubSpot, Inc. (NYSE:HUBS) is a cloud computing company that focuses on customer relationship management (CRM) products. The consumer facing nature of its products, which allow businesses to meet their customer management also creates significant room for HubSpot, Inc. (NYSE:HUBS) to integrate machine learning into its platform. One such use case comes through HubSpot, Inc. (NYSE:HUBS)’s Marketing Hub which uses machine learning for advertising. Yet, due to the growth intense nature of the cloud industry, the firm remains vulnerable to any growth slowdown, or a market downturn that affects its recurring revenue. To combat the slow industry in H1 2024, HubSpot, Inc. (NYSE:HUBS) has introduced 70 AI features for its customers, reduced its entry level prices, and attempted to beef up retention by allowing customers to upgrade their packages easily. Its shares did fall in July, but this was unrelated to fundamentals as investors reacted negatively to the report that Google parent Alphabet wasn’t buying HubSpot, Inc. (NYSE:HUBS).
HubSpot, Inc. (NYSE:HUBS)’s management commented on its new features during the Q1 2024 the earnings call:
Customers are looking at consolidating on our platform. They want to be very, very sure, and so there’s, like some additional proof-of-concepts there. In terms of AI though, we have, it’s been about a year, right? Last year, about this time, is when we launched our first set of products. And, most of the products are now in GA. In fact, in April, as part of our new spotlight, we launched about 70 additional AI features. And, what we are seeing, in terms of adoption is there are customers who are leading with AI.
They’re looking at like every single department within the go-to-market function saying, how can I leverage AI? And, those customers are moving fast. And, we can see that in terms of content use case adoption. We can see that in terms of service, summarization as well as deflection of call adoption, and we can see that in terms of Sales Hub, adoption of AI features. But then there are, a whole set of customers who are either just getting out of experimenting or figuring out the first set of use cases and then getting value, and that is going to take time. So, our focus this year is all about driving repeat usage. From a product perspective, you’re focused on driving repeat usage. From a go-to-market perspective, we are focused on educating customers how their data is being used, where they can drive productivity benefits as well as growth benefits.
6. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Investors in Q1 2024: 24
Analyst Average Share Price Target: $38.33
Upside: 41%
Informatica Inc. (NYSE:INFA) is a California based data analytics services provider that leverages AI and machine learning in its platform. Informatica Inc. (NYSE:INFA) allows customers to deploy serverless machine learning models at scale, through products such as its CLAIRE engine. Informatica Inc. (NYSE:INFA) has been playing the current downturn in the cloud industry rather smartly. This downturn has seen large and small firms fail to meet analyst expectations of revenue and recurring revenue growth. During this tumultuous time period, Informatica Inc. (NYSE:INFA) has started to diversify its customer support to cover even those products that are self managed. It has also grown its migration portfolio, which allows businesses to shift their cloud needs, by introducing products like the PowerCenter Cloud Edition. Consequently, Informatica Inc. (NYSE:INFA)’s shares have weathered the storm and are down by a modest 6% year to date, fueled in part by the end of speculation about its acquisition by Salesforce.
As for its AI and machine learning initiatives, here’s what Informatica Inc. (NYSE:INFA)’s management shared during its Q1 2024 earnings call:
Our efforts to assist customers with their AI strategy or GenAI strategy is divided into two categories, Informatica for GenAI and GenAI from Informatica, both available from the IDMC platform. In the area of Informatica for GenAI, we are already well underway with our new API and AMP integration services where customers can use services for a simple no-code way to add advanced GenAI capabilities to existing IDMC implementation.
This makes it easier for developers to use different GenAI models, us being now the Switzerland of models, and let customers update their apps with GenAI capabilities without changing any code. Our GenAI solution with built-in software development lifecycle and API governance drives better control, performance and scalability, ensuring GenAI is ready for complex business needs. This is a fast-moving space as we innovate and our customers use IDMC capabilities for their GenAI use cases. Now, in the area of GenAI from Informatica, we believe this is a game-changer. To support our customers’ AI journey, we have developed CLAIRE GPT, a transformational chat interface to do all of the complex data management tasks through NLP in a user-friendly format that will revolutionize and democratize data management throughout the enterprise.
5. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Investors in Q1 2024: 73
Analyst Average Share Price Target: $195.42
Upside: 46%
Snowflake Inc. (NYSE:SNOW) is a data warehousing firm that offers customers the ability to store and analyze data through platforms such as the Data Cloud. It offers machine learning through Snowflake ML which enables users to create a machine learning layer on top of their existing data sets. This removes the need to create separate databases for machine learning to improve efficiency. Snowflake Inc. (NYSE:SNOW) enjoys a substantial position in its market, as evidenced by its 22% market share in the data warehousing industry. This means that as opposed to revenue growth, investors expect more recurring revenue and tighter cost control from management. Any misses on these fronts will affect the shares, and this was also the case in May 2024 as the stock fell by 5% after Snowflake Inc. (NYSE:SNOW)’s full year gross profit and operating margin guidance were lowered to 75% and 3%, down from the earlier 76% and 6%, respectively. This followed a devastating 27% share price drop in February after Snowflake Inc. (NYSE:SNOW) withdrew its $10 billion revenue target for FY 2029.
Snowflake Inc. (NYSE:SNOW) expanded its machine learning portfolio by announcing an acquisition in May 2024. Here’s what management had to say about this during the Q1 2025 earnings call:
We announced our intent to acquire certain technology assets and hire key employees from TruEra. TruEra is an AI observability platform that provides capabilities to evaluate and monitor large language model apps and machine learning models and production. We are excited to welcome approximately 35 employees from TruEra to Snowflake, the impact of the transaction is reflected in our outlook.
4. Genius Sports Limited (NYSE:GENI)
Number of Hedge Fund Investors in Q1 2024: 28
Analyst Average Share Price Target: $9
Upside: 51%
Genius Sports Limited (NYSE:GENI) is one of the more unique machine learning stocks on our list. This is because while the other stocks are primarily cloud services providers, Genius Sports Limited (NYSE:GENI) provides data streaming and other associated services primarily to the sports industry which includes bookmakers. Due to the amount of data that it handles, the firm is also able to offer machine learning for performance tracking and other uses. Genius Sports Limited (NYSE:GENI) has data rights to big ticket franchises such as the MLB and NFL until 2028, which means that the firm is in a commanding position in its market. While the stock is still cyclical, the lock in contracts mean that Genius Sports Limited (NYSE:GENI) is somewhat protected against demand fluctuations that often harm cloud computing and other firms. Given that the sports betting industry is expected to grow at a CAGR of 9.1% between 2022 and 2031 to $664 billion, Genius Sports Limited (NYSE:GENI)’s franchise deals and its presence in the sports betting market enables it to ride out this trend well.
Voss Capital was quite appreciative of the stock too in its Q1 2024 investor letter. Here is what the firm said:
The company is well positioned to continue to benefit from increased sports betting legalization and the growth of in-game betting in the US, regardless of which sportsbook(s) ultimately command the most market share. We expect the company to maintain >20% organic 5 | P a g e revenue growth with >50% incremental EBITDA margins over the next few years. If correct, we believe we are paying < 10x 2027 FCF at today’s market prices.
GENI’s new BetVision was only recently launched in September 2023, and it enables in-game bets for the NFL with low latency as well as calculating and displaying real-time analytics and odds. In-game betting makes up 25% – 30% of bets in U.S. football vs 80%+ in the more mature UK soccer betting market. We believe NFL games, which comprised 96 out of the top 100 viewed television programs last year, lend themselves even more to in-game betting with more potential variables/events than soccer. Key to the thesis is that GENI’s take rate for in-game bets (5% – 6%) is 3x higher than the take rate on facilitating pre-game bets (1.5% – 2.0%) and comes at zero incremental cost to GENI, thus is highly margin accretive with a long runway for increased penetration to catch up to more mature regions like the UK:
“As we continue to increase the in-play betting, we directly benefit from this higher revenue share at no incremental cost, therefore, contributing to our profitability at near 100% margin.” – GENI November 13th, 2023 earnings call
It is notable that GENI has beaten and raised guidance for the last nine quarters in a row, establishing near bulletproof credibility in our minds that management does what they say will do, and yet the market remains highly skeptical of their visibility on rights costs and the scalability of the NFL and UK soccer rights that GENI pays for and recently extended, thus creating the attractive buying opportunity recently.
Our base case price target of $11.00 (>110% upside) by late 2026 uses 12x 2026 EBITDA. 12x seems conservative in the context of what we anticipate being a 40%+ EBITDA CAGR over the next few years and ultimately a 30%+ EBITDA margin business at maturity in a duopolistic industry structure. Longer term, we believe the upside is much greater.
3. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Investors in Q1 2024: 48
Analyst Average Share Price Target: $146.73
Upside: 58%
Baidu, Inc. (NASDAQ:BIDU) is a Chinese search services, marketing, cloud computing, and other software services provider. It is also heavily invested in the machine learning space and provides industrial machine learning applications through platforms such as the PaddlePaddle. Baidu, Inc. (NASDAQ:BIDU)’s heft allows it to compete with Chinese computing giant Alibaba, and it was one of the first movers in the AI chatbot industry in 2023 when it announced the Ernie Bot. At the same time, tensions between the US and China, particularly when it comes to chips, means that Baidu’s AI initiatives might not be able to access the same level of computing power as other firms. Additionally, the stock trades at a forward P/E of just 9, which is indicative of investor pessimism surrounding China. The firm’s trailing twelve month EPS is 7.45, so even if were to estimate a ‘modest’ P/E of 20 which removes the Chinese pessimism, then Baidu, Inc. (NASDAQ:BIDU)’s share price would have been $149 which is significantly higher than the current price of $92.
Ariel Investments mentioned Baidu, Inc. (NASDAQ:BIDU) in its Q1 2024 investor letter. Here is what the firm said:
Alternatively, several positions weighed on performance. China’s internet search and online community leader, Baidu, Inc. traded lower alongside Chinese equities as intensifying problems in China weighed on investor sentiment during the period. The company continues to invest heavily in Artificial Intelligence (AI) and recently launched its generative AI, Ernie Bot, aimed at rivaling Open AI’s ChatGPT. While monetization of the new technology is largely dependent on regulatory review, we think Baidu should continue to experience margin improvement with the ongoing implementation of efficiency and profitability initiatives. While some investors remain on the sidelines due to uncertainty surrounding China’s economic growth, government regulations, and the political rhetoric towards Taiwan, we remain enthusiastic about Baidu’s longer-term opportunity for revenue growth and margin expansion across internet search, cloud, autonomous driving, artificial intelligence and online video.
2. PROS Holdings, Inc. (NYSE:PRO)
Number of Hedge Fund Investors in Q1 2024: 17
Analyst Average Share Price Target: $40.56
Upside: 61%
PROS Holdings, Inc. (NYSE:PRO) is a small Texas based company which provides revenue and sales optimization products to the airline industry. It offers machine learning for product and pricing optimization through its PROS AI platform. Since it’s a SaaS company, key to PROS Holdings, Inc. (NYSE:PRO)’s hypothesis is its ability to grow revenue and beef up margins. On this front, the stock price is influenced by PROS Holdings, Inc. (NYSE:PRO)’s goal to become a Rule of 40 firm by 2026 by delivering at least 16% to 21% in revenue growth and 19% to 24% in free cash flow margin. Coupling this with the firm’s business model which is mostly levered towards customer facing firms that are sensitive to economic conditions, PROS Holdings, Inc. (NYSE:PRO)’s growth and recurring revenue is contingent on a vibrant economy. While this might mean that the firm can find it difficult to keep up with its growth trend (revenue growth was 10% in Q1), PROS Holdings, Inc. (NYSE:PRO) is making some moves to expand its market presence.
These include a partnership with tech giant Microsoft to offer CoPilot for machine learning and AI driven pricing information. PROS Holdings, Inc. (NYSE:PRO)’s management elaborated on this platform during the Q1 2024 earnings call where it shared:
In Q1, we officially launched the PROS Copilot for Sales Plugin in partnership with Microsoft. In today’s environment, customers place a premium on speed and efficiency, and research shows that 35% to 50% of sales go to the vendor that responds first.
The PROS Copilot for Sales Plugin seamlessly integrates PROS AI-powered quote insights into Microsoft Copilot for Sales, empowering sellers to deliver fast, personalized offers to customers directly from email threads. PROS is the first vendor to integrate quote insights into Microsoft’s Copilot for Sales, uniquely harnessing the power of data from across PROS Smart CPQ, Microsoft 365 apps, and CRM platforms to drive AI- powered offers that win. Our platform innovations are resonating, evidenced by our wins across industries. I will share a few of our exciting wins, starting with new customers. In Q1, ECE Group and Les Schwab made the strategic decision to adopt the PROS Platform. ECE Group, a global leader in real estate management, chose to activate Smart CPQ to power offers for their retail rental spaces to accelerate time-to-quote and drive a better customer experience.
1. Hesai Group (NASDAQ:HSAI)
Number of Hedge Fund Investors in Q1 2024: 7
Analyst Average Share Price Target: $10.65
Upside: 130%
Hesai Group (NASDAQ:HSAI) is the only hardware machine learning stock on our list. While this might sound a bit counterintuitive, given the software heavy stocks so far, it nevertheless stands to benefit strongly from the uptick in machine learning. This is because Hesai Group (NASDAQ:HSAI) sells LiDAR products that are used in autonomous driving fleets, driver assistance platforms, and logistics, cleaning, and other robots. All these systems rely on machine learning, as you might have learned if you read our coverage of Symbotic in this list. Electric vehicle maker Tesla’s assisted driving platform FSD also relies on these sensors to calibrate its models, and these use cases combined leave Hesai Group (NASDAQ:HSAI) with a large market at its disposal. Hesai Group (NASDAQ:HSAI) is also aware of this potential, and it has teamed up with machine vision classification firm CRATUS to develop autonomous warehouse robots.
HSAI’s LiDAR potential might have made it a hot machine learning stock. However, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HSAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None.
