Fortunes will be made by investors who can identify tomorrow’s winners in artificial intelligence (AI) today. The following two businesses are well situated to capture a larger share of a generative AI industry that will generate over $1.3 trillion in annual revenue by 2032, according to Bloomberg Intelligence.
Consider buying their shares today, and you could profit alongside these rising AI stars as they fulfill their tremendous growth potential.
No. 1: Palantir Technologies
The benefits of big data can seem small unless you have the tools to analyze key information quickly and effectively. Palantir Technologies‘ (NYSE: PLTR) prized machine-learning solutions help its customers derive valuable insights from their data in real time.
This analytics all-star is a valued partner of the U.S. military and its allies. Palantir is helping the U.S. Army build a data platform that will aggregate real-time operational information from across the Defense Department.
Meanwhile, as Russia furthers its attacks on Ukraine, Palantir is assisting the Ukrainian government with its efforts to safeguard its schools.
Businesses are also turning to Palantir for their data-science demands. Companies are flocking to Palantir’s hands-on “boot camps” to sample its new Artificial Intelligence Platform (AIP). These events give prospective clients a chance to see how Palantir’s AI tool can serve their particular needs.
The 660 boot camps it held in the first quarter contributed to a 42% year-over-year surge in commercial customers — and a 27% jump in the segment’s revenue to $299 million.
Moreover, the company’s defense business remains a cash cow. Government revenue climbed by 16% to $335 million.
All told, Palantir expects to generate nearly $2.7 billion of revenue and as much as $1 billion in free cash flow in 2024. That would represent robust growth of roughly 20% and 37%, respectively, from 2023.
Looking further ahead, management sees a long-term market opportunity of roughly $120 billion. Suffice it to say that this AI leader has many years of solid growth still ahead.
No. 2: SoundHound AI
Conversational AI is cutting-edge technology that enables machines to understand and respond when humans speak. SoundHound AI (NASDAQ: SOUN) offers some of the best voice AI available at a time when businesses are racing to adopt this innovative tech.
SoundHound’s platform provides real-time dynamic interaction. Essentially, this means its AI processes natural language as quickly as you speak.
Restaurant chains like White Castle use SoundHound’s voice AI tech in their automated drive-thru menu boards. Others, such as Jersey Mike’s, partnered with SoundHound to build state-of-the-art voice AI ordering systems that can accurately take multiple phone orders at the same time.
The conversational-intelligence leader is also making inroads into the automotive industry. In March, international automaker Stellantis made SoundHound’s voice assistant available in its vehicles in 13 languages across 18 countries.
The tech integrates with OpenAI’s ChatGPT and other leading generative AI models. It enables hands-free access to vehicle controls, navigation services, texting, weather updates, and a wide variety of other real-time information sources. In all, more than 25 car brands that collectively account for about a quarter of the vehicles sold globally are using SoundHound’s voice AI.
These customer wins are fueling SoundHound’s growth. The software developer’s revenue surged by 80% year over year to $11.6 million in the first quarter. The company is not yet profitable, but it’s just scratching the surface of its massive expansion potential. SoundHound pegs its total addressable market at a staggering $140 billion.
Should you invest $1,000 in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Millionaire was originally published by The Motley Fool
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