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2 AI Stocks Worth Buying Before They Increase by 37% and 108%, According to Analysts

2 AI Stocks Worth Buying Before They Increase by 37% and 108%, According to Analysts

AI Stocks on the Rise

In recent years, artificial intelligence (AI) stocks have seen significant gains in the stock market. This trend isn’t surprising, given the swift integration of AI technology propelling various companies forward.

Encouragingly, the momentum for AI adoption shows no signs of waning. Some forecasts suggest that the global AI market might grow at an impressive 31% per year until 2033, potentially reaching $3.5 trillion in revenue by the end of that period. Considering this, it’s worth diving deeper into a couple of promising AI stocks: Nvidia and Soundhound AI.

There’s an intriguing question floating around—could AI be on the verge of creating the first millionaire? A recent report highlighted a lesser-known company dubbed an “essential monopoly,” which supplies crucial technology to both Nvidia and Intel.

Analysts are quite optimistic about both Nvidia and SoundHound AI, projecting healthy profits for the upcoming year. Let’s break down the reasons behind this optimism.

Nvidia, in particular, has leveraged the AI boom to become a key player in the industry. The company’s strong demand for chips that handle AI tasks in data centers has significantly raised its profile. Analysts believe the stock still has potential for growth.

According to a consensus from 74 analysts, Nvidia’s median price target for the next 12 months is $250, signaling a possible increase of 37% from current prices. It’s noteworthy that an impressive 91% of these analysts suggest buying Nvidia, reaffirming its leadership in the AI chip sector.

With an astounding 81% market share in AI chips, Nvidia is well-positioned to capitalize on a swell of investment in AI data centers this year. Reports indicate that the top four U.S. hyperscalers could invest up to $700 billion in new data centers by 2026. According to McKinsey, 60% of the spending on AI data centers will go towards chips and computing hardware, indicating substantial growth opportunities for Nvidia.

This backdrop explains the anticipated robust growth for Nvidia in the coming months.

Looking at its recent fiscal year numbers, earnings are projected to have risen by 57% to $4.69 per share. The upward trajectory is expected to continue into FY2027. Moreover, the anticipated launch of Nvidia’s Vera Rubin AI processor this year could significantly boost its market presence, tapping into substantial AI data center spending.

Now, turning to SoundHound AI, the company is also witnessing impressive growth, largely due to the efficiency gains its voice AI solutions provide. Expected sales figures suggest that the company could double its revenue from $85 million last year to between $165 million and $180 million in the fourth quarter of 2025.

Despite this progress, SoundHound’s stock has faced challenges, dropping 55% in value over the past six months. However, at 20 times sales, the stock still stands at a level that reflects its strong growth potential. Some investors might find this valuation surprising, but given SoundHound’s promising expansion trajectory, it seems justified.

The voice AI market is projected to grow by 24% annually through 2030, potentially reaching $41 billion. SoundHound’s growth rate indicates it’s establishing itself more firmly within this expanding arena, supported by an extensive and varied clientele.

Additionally, the company reported a potential revenue backlog of $1.2 billion last year, a figure that noticeably surpasses current growth expectations for SoundHound.

It’s perhaps not surprising that analysts remain upbeat about SoundHound’s outlook. They estimate a median 12-month price target of $15.50, suggesting an impressive upside of 108%. Furthermore, 7 out of 9 analysts covering the company consider it a Buy.

As SoundHound approaches its earnings report on February 26th, driven by robust growth and guidance, there could be a real opportunity for the stock to gain back momentum. Investing now might be wise, as it could align with analyst forecasts and lead to significant increases in value.

For those interested in Nvidia stock, there are some points to consider.

A recent analysis from the Motley Fool Stock Advisor highlighted several stocks that could currently offer better value than Nvidia. In their view, these stocks have the potential for impressive returns over the next few years.

Overall, it’s certainly a captivating time in the realm of AI stocks, and while Nvidia shines brightly, SoundHound AI also presents compelling prospects. The landscape is evolving quickly, and savvy investors may want to stay alert.

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