From Nasdaq:

1. Nvidia has seen explosive growth in its market cap, topping $2 trillion. Despite a high valuation, the company’s revenue for fiscal 2024 reached nearly $61 billion, with profits close to $30 billion. This growth has led to an 80% increase in value since January, making Nvidia a compelling long-term investment.

2. SoundHound AI, known for conversational AI experiences, received a boost after Nvidia’s investment. With $46 million in revenue and a net loss of $89 million last year, SoundHound’s market cap of $2.5 billion is supported by investors’ faith in its potential success. However, the lack of profitability may deter risk-averse investors.

3. MicroStrategy, specializing in AI for enterprise analytics, struggled with profitability despite a sizable $496 million in revenue last year. At nearly 60 times its revenue, MicroStrategy’s high valuation, likely influenced by Bitcoin acquisitions, may pose a risk for long-term investors. The stock’s rise of 137% this year may not be sustainable.



Read more at Nasdaq: 3 AI Stocks That Are Trading at Absurdly Highly Valuations