SoundHound has more potential for growth compared to Nvidia in the AI industry

From Nasdaq: 2024-07-04 10:53:00

Investors looking to capitalize on AI should consider buying stock in both SoundHound and Nvidia. SoundHound, with a market cap of $1.3 billion, has more potential to grow significantly compared to Nvidia at $3 trillion. SoundHound’s technology powers sound and voice recognition in various industries. Despite trading at 19 times sales, its revenue growth supports its high valuation. Nvidia, dominant in the AI industry, generated 87% of revenue from data center chips in Q1 FY 2025. Its growth rates have justified its valuation multiple increase from around 10 times sales to nearly 40 times sales in the past 5 years. While Nvidia remains a strong investment for AI bulls, lesser-known stocks like SoundHound might offer better growth potential. The Motley Fool’s Stock Advisor team has identified the 10 best stocks for investors to buy now, which could produce significant returns in the future.



Read more at Nasdaq: Better Artificial Intelligence Stock: Nvidia vs. SoundHound