AI Stocks to Watch: SoundHound AI and Tesla

Looking for AI stocks with potential for massive gains? Discover why SoundHound AI and Tesla are worth considering as part of your investment portfolio.

By Nora Belle || Senior Author of ADM

5 min read || September 15, 2024

Beyond Nvidia: Two AI Stocks to Watch

The artificial intelligence (AI) revolution is in full swing, and companies like Nvidia have been reaping the rewards. However, as the AI landscape continues to evolve, there are other promising opportunities for investors to capitalize on. Today, we’ll take a look at two AI stocks that could soar in the coming years: SoundHound AI and Tesla.

SoundHound AI

SoundHound AI is a lesser-known player in the AI space, but it has a compelling story to tell. The company specializes in conversational intelligence solutions, or voice AI products, that can be integrated into smart devices. Its technology has applications across various industries, from automotive and consumer electronics to restaurants and customer service.

One of SoundHound’s key advantages is its proprietary technology, which the company believes is superior to that of its larger competitors like Amazon and Microsoft. This technology allows SoundHound to create more flexible and customizable voice AI solutions for its clients.

Despite its smaller size, SoundHound has managed to attract high-profile customers, including Stellantis, Toast, and Qualcomm. The company has also been aggressive in expanding its business through acquisitions, recently purchasing SYNQ3 Restaurant Solutions and Amelia.

While SoundHound is still in the early stages of growth and has yet to turn a profit, analysts are bullish on its future prospects. DA Davidson’s Gil Luria has a price target of $9.50 per share for SoundHound, implying a 98% upside from its current price.

Tesla

Tesla is undoubtedly one of the most well-known names in the electric vehicle industry. However, its potential to revolutionize transportation through autonomous driving is often overlooked.

Tesla’s large fleet of FSD-enabled vehicles provides it with a massive amount of data, which is essential for training AI models. The company is also developing a robotaxi service, which could become a significant source of revenue in the future.

While Tesla’s stock price has been volatile in recent months, due in part to challenging economic conditions and increased competition, the long-term outlook for the company remains positive. Ark Invest analysts believe that Tesla could reach a market capitalization of $9 trillion by 2029, implying a 1,040% upside from its current price.

Investment Considerations

Both SoundHound AI and Tesla offer significant potential for investors, but it’s important to consider the risks involved. SoundHound is a smaller company with a limited track record, and its stock price could be more volatile than that of a larger, more established company. Tesla, on the other hand, is a more mature company, but its stock price is also subject to fluctuations based on factors such as economic conditions and competition.

If you’re considering investing in either of these companies, it’s important to do your own research and consult with a financial advisor. Keep in mind that past performance is not indicative of future results, and there is no guarantee that either stock will outperform the market.