Here’s how you can get your share of the AI gold rush.
The artificial intelligence (AI) boom is set to create wealth for savvy investors. Here, we profile two innovative AI leaders delivering wealth-building benefits to shareholders.
#1 AI Stock to Buy: SoundHound AI
SoundHound AIof (Seong 2.03%) Cutting-edge voice technology can interpret speech in a similar way to the human brain, and businesses are rushing to harness the power of this transformative technology, whose conversational AI delivers faster, more accurate experiences than competing platforms.
Restaurants are using SoundHound AI tools to create custom voice assistants. The smart response and ordering solution eliminates wait times for customers by handling multiple orders simultaneously. The technology also increases profitability by allowing restaurants to handle more orders and reduce labor costs. Customers include: Papa John’s, Casey’sand chipotle pepper.
Automotive giants are also racing to adopt SoundHound’s technology. The voice AI pioneer’s voice recognition software is integrated with generative AI models such as OpenAI’s ChatGPT to give cars access to vast amounts of real-time information, including navigation, weather and maintenance updates, via hands-free control. Mercedes Benz, Stellantisand Hondais included in SoundHound’s ever-growing list of customers.
Meanwhile, SoundHound’s sales are growing at a rapid clip: The company’s second-quarter revenue rose 54% year over year to $13.5 million.
As the small business continues to scale, profitability should improve. SoundHound’s recent acquisition of enterprise AI software provider Amelia should help in this regard, as management expects the acquisition to be accretive to SoundHound’s revenue by the second half of 2025.
#2 AI Stock to Buy: Advanced Micro Devices
NVIDIAof (NVDA 4.55%) AI chips are selling like hotcakes. Semiconductor designers are struggling to keep up with surging demand for the increasingly important technology. The shortage has sent prices soaring and delayed many companies’ AI plans. Chip buyers are clearly eager to boost supply. They’re eager to embrace Nvidia’s new competitor, Advanced Micro Devices (AMD 2.16%) You can accomplish that task.
AMD’s data center revenue grew 115% to $2.8 billion in the second quarter, boosted by strong sales of the company’s new AI accelerators that speed up machine learning workloads.
CEO Lisa Su predicts that AMD’s new AI chip revenue will surge to more than $4.5 billion in 2024. But the chipmaker is only scratching the surface of the long-term market opportunity: Su predicts that global AI chip sales will grow to a staggering $400 billion by 2027.
Analysts say AMD could capture 20% of this rapidly expanding market by 2028. Piper SandlerLarge chip buyers, e.g. Microsoft and Meta Platformis reportedly planning to integrate AMD’s AI accelerators into its cloud computing operations.
Like SoundHound, AMD is also making acquisitions to strengthen its competitive position and accelerate its expansion. The technology leader completed its acquisition of Silo AI for $665 million on August 12. Europe’s largest private AI research lab is home to a team of experienced scientists and engineers that will strengthen AMD’s model and software development efforts.
Just days later, AMD closed a deal to acquire ZT Systems for $4.9 billion, an AI infrastructure provider that should bolster AMD’s ability to design and deploy large-scale cloud computing systems for customers.
Randi Zuckerberg, former director of market development and communications at Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Advanced Micro Devices, Chipotle Mexican Grill, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Casey’s General Stores and Stellantis and recommends buying Microsoft’s January 2026 $395 calls, selling Microsoft’s January 2026 $405 calls, and selling Chipotle Mexican Grill’s September 2024 $52 puts. The Motley Fool has a disclosure policy.
