Investors are considering SoundHound AI and Palantir over Nvidia due to growth potential

From Nasdaq: 2025-04-24 11:34:00

Nvidia stock is down 30% this year with analysts lowering growth forecasts, trading at 18.4 times sales. For AI investments, consider lesser-known companies with more growth potential than Nvidia. SoundHound AI, a small $3.3 billion market cap company, focuses on AI applications in audible speech with a projected $40 billion market by 2032.

Palantir Technologies, despite being larger than SoundHound, has significant upside potential driven by AI investments. Recently, NATO adopted its AI-driven military system, boosting confidence in Palantir. However, Palantir stock is expensive at 80.5 times sales, compared to Nvidia at 18.8 times sales with faster growth rates.

SoundHound AI and Palantir have exciting potential, but Nvidia remains a wise core holding for AI sector investors. Investing in both SoundHound and Palantir could diversify your portfolio, but Nvidia’s relatively cheap valuation and market dominance make it an attractive choice. SoundHound AI and Palantir are riskier options with high valuations compared to Nvidia.



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