The realm of artificial intelligence (AI) technology is brimming with potential for investors seeking substantial returns. The transformative power of AI is anticipated to propel the world economy to new heights, ushering in trillions of dollars in productivity gains in the foreseeable future. Amidst a slight setback in the market this year, there lies an opportunity for savvy investors to capitalize on the long-term growth trajectory of AI stocks. Here are two stocks that have seen a decline from their peak levels, presenting an enticing buying opportunity.
- SoundHound AI (Nasdaq: SOUN)
- A frontrunner in voice assistant technology, SoundHound AI is witnessing remarkable revenue growth. Despite a soaring performance in 2024, the stock has plummeted by 49% year to date, following Nvidia’s move to divest its stake. However, the sell-off appears to be an overreaction, creating an opportune moment for investors.
- The collaboration between SoundHound and Nvidia in AI solutions for vehicles has been gaining traction. Noteworthy demonstrations at renowned events like CES and Nvidia’s forthcoming GTC 2025 showcase exemplify the potential of their partnership.
- SoundHound’s revenue surged significantly in 2024 after the acquisition of Amelia, expanding its market reach beyond the automotive and restaurant sectors into retail, banking, and healthcare industries. The recent foray into the energy sector indicates a promising growth trajectory.
- The company’s robust pipeline, coupled with a strategic focus on enhancing product capabilities for optimal customer value, underscores its bright future. With a revised revenue guidance for 2025 and a market cap of $4 billion, SoundHound exemplifies substantial growth potential, despite its seemingly high valuation.
- Dell Technologies (NYSE: DELL)
- Positioned to leverage the skyrocketing global AI server market, Dell stands poised for substantial growth amid the AI computing infrastructure expansion. With a substantial portion of its revenue stemming from the infrastructure solutions segment, which includes servers, Dell is well placed to capitalize on the burgeoning demand for AI computing capabilities.
- Despite a recent 46% dip from its peak and a 17% decline year to date, Dell’s long-term outlook remains positive, buoyed by resilient supply chain strategies to circumvent near-term challenges arising from external factors like tariffs.
- Dell’s recent collaboration with xAI and the impressive growth in its infrastructure solutions business in 2024 underscore the company’s potential for further expansion.
- With a conservative valuation, attributing to its low expectations in the PC business, Dell’s projected revenue and earnings growth in 2025, driven by robust server demand, sets the stage for significant returns for investors in the foreseeable future.
As we navigate the dynamic landscape of AI investments, seizing the opportunity to invest in SoundHound AI and Dell Technologies presents the prospect for substantial returns in the evolving AI market. Stay attuned to the paradigm shifts in the AI domain, and capitalize on these strategic investment opportunities for long-term growth and profitability.
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