The rise of artificial intelligence (AI) technology offers the promise of wealth-building returns for investors who hold the right stocks. Estimates suggest that the productivity gains driven by AI could add trillions of dollars to the world economy over the long term.
After a great run over the last few years, the market’s leading AI stocks have pulled back somewhat this year. Investors who remain focused on the long-term market trends could take this correction as an opportunity to set themselves up for greater profits down the road. Here are two stocks trading well off their highs that are worth buying now.
SoundHound AI (NASDAQ: SOUN) is a leader in voice assistant technology, and it’s experiencing robust revenue growth. However, after the stock soared in 2024, it is down 49% year to date. Much of that slide took place after an SEC filing revealed that AI chip leader Nvidia had sold its stake in the small company. However, a closer look at the situation indicates that the sell-off was an overreaction that has set up a great buying opportunity.
SoundHound and Nvidia have been working together on AI solutions for vehicles. Their partnership was featured at CES earlier this year, and SoundHound will be presenting at Nvidia’s upcoming GTC 2025, where it is expected to show demos of its voice assistant technology using generative AI with the Nvidia DRIVE AGX system.
SoundHound’s top line nearly doubled in 2024, which partially reflects the additional revenue that came from its acquisition of Amelia. This acquisition is helping SoundHound expand its addressable market beyond vehicles and restaurants and into the retail, banking, and healthcare sectors. In Q4, SoundHound also expanded into energy after making a deal with one of the largest electric utilities in the U.S.
Its future is looking bright. Management indicated during the Q4 earnings call that the company has a strong pipeline of new opportunities, and it continues to focus on adding new capabilities to its products to increase their value for customers. The company raised its 2025 revenue…
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