In this paper, a graph-based semi-supervised learning (GSSL) algorithm, greedy-gradient max cut (GGMC), based fault diagnosis method for direct online induction motors is proposed. Two identical 0.25 HP three-phase squirrel-cage induction motors under healthy, single-and multi-fault conditions were tested in the lab. Three-phase stator currents and three-dimensional vibration signals of the two motors were recorded simultaneously in each test, and used as datasets in this study. Features for machine learning are extracted from experimental stator currents and vibration data by the discrete wavelet transform (DWT). To validate the effectiveness of the proposed GGMC-based fault diagnosis method, its classification accuracy using binary classification and multiclass classification for faults of the two motors are compared with other two GSSL algorithms, local and global consistency (LGC) and Gaussian field and harmonic function (GFHF). In this study, the performance of stator currents and vibration as a monitoring signal is evaluated, it is found that stator currents perform much better than vibration signals for multiclass classification, while they both perform well for binary classification.