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Machine learning stocks are gaining traction as the interest in artificial intelligence (AI) and machine learning soars, especially after the launch of ChatGPT by OpenAI. This technology has given us a glimpse of its potential, sparking curiosity about its future applications, and has led to my list of machine learning stocks to buy.

Machine learning stocks present a promising opportunity for growth, with the potential to create significant wealth. As per analyst forecasts, I think around a decade from now is when we will see these companies go parabolic and reach their full growth potential.

These companies leverage machine learning for various applications, including diagnosing life-threatening diseases, preventing credit card fraud, developing chatbots and exploring advanced tech like artificial general intelligence. The future will only get better from here.

So if youre looking for machine learning stocks to buy with substantial upside potential, keep reading to discover three top picks.

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DraftKings (NASDAQ:DKNG) leverages machine learning to enhance its online sports betting and gambling platform. The company has shown significant growth, with recent revenue increases and expansion in legalized betting markets.

DKNG has significantly revised its revenue outlook for 2024 upwards, expecting it to be between $4.65 billion and $4.9 billion, marking an anticipated year-over-year growth of 27% to 34%. This adjustment reflects higher projections compared to their earlier forecast ranging from $4.50 billion to $4.80 billion. Additionally, the company has increased its adjusted EBITDA forecast for 2024, now ranging from $410 million to $510 million, up from the previous estimate of $350 million to $450 million.

DraftKings has also announced plans to acquire the gambling company Jackpocket for $750 million in a cash-and-stock deal. This acquisition is expected to further enhance DraftKings market presence and capabilities in online betting.

I covered DKNG before, and I still think its one of the best meme stocks that investors can get behind. The companys stock price has risen 72.64% over the past year, and it seems theres still plenty of fuel left in the tank to surge higher.

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Cloudflare (NYSE:NET) provides a cloud platform that offers a range of network services to businesses worldwide. The company uses machine learning to enhance its cybersecurity solutions.

Cloudflare has outlined a robust strategy for 2024, focusing on advancing its cybersecurity solutions and expanding its network services. The company expects to generate total revenue between $1.648 billion and $1.652 billion for the year. This revenue forecast reflects a significant increase in their operational scale.

NET is another stock that is leveraging machine learning to its full advantage. Ive been bullish on this company for some time and continue to be so. Notably, Cloudflare is expanding its deployment of inference-tuned graphic processing units (GPUs) across its global network. By the end of 2024, these GPUs will be deployed in nearly every city within Cloudflares network.

NET has been silently integrating many parts of its network within the internets fabric for millions of users, such as through its DNS service, Cloudflare WARP; reverse proxy for website owners; and much more. Around 30% of the 10,000 most popular websites globally use Cloudflare. Many of NETs services can be accessed free of charge.

It is following a classic tech stock strategy of expanding its users, influence and reach over reaching immediate profits, and its financials have slowly scaled with this performance.

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CrowdStrike (NASDAQ:CRWD) is a leading cybersecurity company that uses machine learning to detect and prevent cyber threats.

In its latest quarterly report on Mar. 5, CRWD reported a 102% earnings growth to 95 cents per share and a 33% revenue increase to $845.3 million. Analysts expect a 57% earnings growth to 89 cents per share in the next report and a 27% EPS increase for the full fiscal year ending in January.

Adding to the bull case for CRWD is that it has has partnered with Google Cloud by Alphabet (NASDAQ:GOOG, GOOGL) to enhance AI-native cybersecurity solutions, positioning itself strongly against competitors like Palo Alto Networks (NASDAQ:PANW).

Many contributors here at Investorplace have identified CRWD as one of the best cybersecurity stocks for investors to buy, and I am in agreement here. Its aggressive EPS growth and stock price appreciation (140.04% over the past year), make it a very attractive pick for long-term investors.

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

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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The 2034 Millionaire's Club: 3 Machine Learning Stocks to Buy Now - InvestorPlace