From Nasdaq: 2024-09-14 10:00:00

Investigations and probes are escalating in the artificial intelligence industry in 2024, with Nvidia facing a federal subpoena, Alphabet dealing with antitrust litigation, and whistleblower pressure on the SEC to investigate OpenAI. Investors are hesitating due to the risks associated with these probes despite the tech companies’ strong fundamentals.

SoundHound AI (NASDAQ: SOUN), a relatively unknown but promising AI stock, with a market cap of $1.7 billion, is gaining attention for its voice AI and speech recognition technology. The company is attracting customers from various industries, including automakers like Dodge and Honda, as well as restaurant operators like Applebee’s and White Castle.

Although SoundHound has an impressive technology portfolio and a growing customer base, it faces challenges in competing with tech giants investing heavily in AI like Google, IBM, and Microsoft. The company’s $60 million research and development budget may not be enough to stay competitive. Investors should consider the risks and potential rewards before investing in SoundHound.

Despite potential competition from big tech companies, SoundHound remains a promising pick for growth investors. Its success could lead to significant share price growth, but failure could result in total loss for shareholders. Investors interested in maximum growth potential should closely monitor SoundHound, while others may opt to observe from the sidelines.

Investors should weigh the risks and potential rewards before considering investing in SoundHound AI. The Motley Fool’s Stock Advisor team has identified 10 best stocks for investors to buy, but SoundHound AI did not make the cut. Nvidia previously featured in this list in 2005, showcasing the potential for significant returns with the right investments and strategies.

Disclosure: Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board. The Motley Fool has positions in Alphabet, Microsoft, and Nvidia, and recommends International Business Machines. The author, Ryan Vanzo, has no positions in the mentioned stocks. This information does not necessarily reflect the views of Nasdaq, Inc.



Read more at Nasdaq: 1 Top Artificial Intelligence (AI) Stock That’s Not Currently Facing a DOJ or SEC Probe