Two out-of-favor growth stocks, CleanSpark and SoundHound AI, present buying opportunities for investors

From Nasdaq: 2024-07-17 05:10:00

1. As hypergrowth stocks faltered in the past two years, two out-of-favor growth stocks, CleanSpark and SoundHound AI, present buying opportunities for patient investors looking ahead. CleanSpark, a clean Bitcoin miner, saw a revenue surge and EBITDA turning positive, while SoundHound AI, an AI-driven audio recognition company, showed impressive growth despite its stock’s dip.

2. CleanSpark became the third-largest U.S. Bitcoin miner with 85% revenue growth from fiscal 2021 to 2023. It expanded operations, increased mined Bitcoins, and improved hash rate efficiency. SoundHound AI, known for its audio recognition app and Houndify platform, enhanced voice recognition for companies and projects a 50% revenue CAGR from 2023 to 2025.

3. SoundHound AI’s stock may not be cheap at nearly 30 times this year’s sales, but it holds significant growth potential in the AI and voice recognition market. Investors considering SoundHound should weigh its promising future prospects against its current valuation, with analysts projecting strong revenue growth and ongoing strategic partnerships and acquisitions.



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