Artificial intelligence (AI) stocks have emerged as standout performers on the stock market in recent years, driven by the rapidly increasing adoption of AI technologies across various industries. Current estimates project that the global AI market could experience an annual growth rate of 31% through 2033, potentially generating nearly $3.5 trillion in revenue by the end of that period. As a result, leading AI stocks continue to present attractive investment opportunities.
Analysts are optimistic about the prospects of two companies in particular: Nvidia and SoundHound AI.
Nvidia has positioned itself as a major beneficiary of the AI boom, primarily due to robust demand for its chips that facilitate AI workloads in data centers. The company currently dominates the AI chip market, commanding an impressive 81% share. Analysts predict that Nvidia’s stock could see a median 12-month price target of $250, a potential increase of 37% from its current levels. Among the 74 analysts covering this stock, a remarkable 91% rate it as a “buy.”
Investments in AI data centers are expected to surge, with the top four U.S. hyperscalers projected to spend about $700 billion by 2026. Given that around 60% of this spending is directed toward chips and computing hardware, Nvidia stands to gain significantly. The company recently reported a 57% increase in earnings per share for the fiscal year 2026, with expectations of further growth in fiscal 2027, bolstered by a robust order book and the upcoming release of its Vera Rubin AI processors.
In contrast, SoundHound AI, known for its voice AI solutions, is also experiencing rapid growth. The company is preparing to release its fourth-quarter results, and its revenue guidance of $165 million to $180 million signifies a possible doubling from the previous year’s figure of $85 million. Despite this growth, SoundHound’s stock has faced pressures, losing 55% in value over the past six months. However, with a current trading valuation of 20 times sales, industry analysts argue the stock’s significant growth prospects justify the valuation.
The broader voice AI market is expected to grow at an annual rate of 24%, potentially reaching $41 billion in revenue by 2030. SoundHound has reported a substantial revenue backlog of $1.2 billion, positioning it well to exceed market expectations. Analysts remain bullish on SoundHound’s future, setting a median price target of $15.50, suggesting an upside of about 108%.
Overall, the enthusiasm surrounding Nvidia and SoundHound reflects broader confidence in the AI sector’s growth potential. As these companies continue to innovate and expand their market share, investors are advised to consider the long-term opportunities that AI stocks offer.
