The Magnificent Seven stocks in the AI sector are capturing the attention of investors, with mega-cap companies like Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla leading the way. However, there are other lucrative AI investments worth considering beyond these giants, such as SoundHound AI.
SoundHound AI, a voice-recognition software application, has seen an impressive 85% increase in its stock price so far in 2024. The company went public through a special purpose acquisition company (SPAC) a couple of years ago and experienced volatile trading activity before gaining momentum recently.
Nvidia’s recent 13F filing revealed its investments in five public companies, including SoundHound AI, sparking increased interest in the company. SoundHound AI operates in a market estimated to be worth $160 billion, with significant players like Apple, Microsoft, Amazon, and Alphabet showing interest in voice-recognition technology.
While the potential for growth in the voice-recognition market is evident, investors should approach SoundHound AI with caution due to its small size and relatively low revenue generation. The company’s upcoming earnings call on Feb. 29 will provide insights into its performance and future outlook, offering investors valuable information for decision-making.
While SoundHound AI may present a speculative investment opportunity with the potential for significant returns in the long run, the current high valuation may not be justified. Investors are advised to listen closely to management during the earnings call, watch for any pullbacks in the stock price, and proceed with caution when considering investment in SoundHound AI.
