Machine learning stocks sit at a powerful intersection of artificial intelligence (AI) and business growth. We can largely attribute the success of tools like ChatGPT to machine learning technology, which has spawned a new arms race for companies to crown themselves as having the dominant platform. Yet machine learning stocks are pioneering other fields of tools, such as medicine for assessing patients’ risk of contracting cancer to banks assessing a creditor’s risk of default.

Therefore, machine learning stocks have wide and varied applications across various industries, so it may be worth investigating some of the lesser-known brands to include in your portfolio. In this article, we’ll cover three companies that aren’t exactly marquee names but hold great potential for investors willing to look beyond the most obvious choices.

So here are the best machine learning stocks for investors to consider buying.

C3.ai (AI)

Source: Owlie Productions / Shutterstock.com

C3.ai (NYSE:AI) specializes in enterprise artificial intelligence applications. There’s a strong bull case for buying AI stock right now since Oppenheimer recognized it as a stock to watch in 2024. The bank described AI stock as an “infrastructure” company predicted to perform strongly next year.

Some company-specific catalysts are also on the horizon for AI stock, including an anticipated revenue boost from increased data collection and model training in the year’s second half.

Some analysts have praised the company for its strides in bringing generative AI to enterprise clients. The biggest hurdles these large businesses face revolve around data security and hallucination problems, which can’t be met with off-the-shelf solutions that companies like OpenAI provide.

AI stock claims that its generative AI solution will prevent cloud leakage and be free from hallucinations, making the technology much more attractive and usable for large corporations.

Given its position in the industry and growth prospects, C3.ai is one of those machine learning stocks to buy.

Appian (APPN)

Source: JHVEPhoto / Shutterstock.com

Appian (NASDAQ:APPN) integrates machine learning into its low-code automation platform. It allows developers to deploy quickly and scale applications that would otherwise take weeks or months of testing and development, saving organizations time and potentially reducing overheads.

APPN is my contrarian pick of these machine learning stocks, mostly due to its disappointing recent quarter. Appian shares fell 5.88% after posting its Q3 results to the market last month. Much of the pessimism stemmed from its revenue and adjusted EBITDA guidance falling below expectations. It also slightly missed Wall Street’s full-year revenue estimates and continued to burn through its cash reserves quickly.

However, there is some optimism on the horizon. Wall Street, for instance, rates APPN stock as a “Buy,” and this comes with a $48.33 implied price target from nine analysts. It’s also trading at just 5.29 times sales and has a five-year revenue growth forecast of 18.47%.

As a volatile machine learning stock, APPN is prone to up-and-down swings as it continues to onboard new users to its platforms. There are no structural problems for its business that I can make sense of, and with a lower interest rate environment expected into next year, we could see a substantial rebound in its share price moving forward.

Elastic N.V. (ESTC)

Source: Tada Images / Shutterstock.com

Elastic N.V. (NYSE:ESTC) is a cloud-based enterprise data search company that uses machine learning to deliver relevant results to users. Like other companies on this list, ESTC stock leverages generative AI in the enterprise space to the great enthusiasm of its clients.

Its recent financial results have also been impressive. Q2 revenue came in at $311 million, up 17% year-over-year. Meanwhile, its FY 2024 guidance was also increased to $1.24 – $1.25 billion.

Although ESTC stock is currently unprofitable, analysts predict that it may break even within the next twelve months and also forecast a five-year revenue growth of 19.63%.

ESTC also looks like a safer option than other machine-leaning startups, having nearly a billion dollars of cash and cash equivalents on its balance sheet and burning through only around 12% of that in 2023. This combination of factors makes it one of those machine learning stocks to buy.

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.