Fortunes will be made by investors who can identify tomorrow’s winners in artificial intelligence (AI) today. The following two companies are well positioned to capture a larger share of a generative AI industry that will generate more than $1.3 trillion in annual revenue by 2032, according to Bloomberg Intelligence.
Consider buying their shares today, and you can benefit from these rising AI stars as they realize their enormous growth potential.
No. 1: Palantir Technologies
The benefits of big data can seem small unless you have the tools to analyze important information quickly and effectively. Palantir Technologies‘ (NYSE:PLTR) Esteemed machine learning solutions allow customers to gain valuable insights from their data in real-time.
This analytics all-star is a valued partner of the US military and its allies. Palantir is helping the US military build a data platform that collects real-time operational information from across the Department of Defense.
As Russia continues its attacks on Ukraine, Palantir is helping the Ukrainian government in its efforts to protect its schools.
Companies are also turning to Palantir for their data science needs. Companies are flocking to Palantir’s practical ‘boot camps’ to test the new Artificial Intelligence Platform (AIP). These events give potential customers the chance to see how Palantir’s AI tool can meet their specific needs.
The 660 boot camps it held in the first quarter contributed to a 42% year-over-year increase in the number of commercial customers – and a 27% increase in segment revenue to $299 million.
Moreover, the company’s defense activities remain a cash cow. Government revenues rose 16% to $335 million.
All told, Palantir expects to generate nearly $2.7 billion in revenue and as much as $1 billion in free cash flow by 2024. That would mean robust growth of around 20% and 37% respectively from 2023.
Looking further ahead, management sees a long-term market opportunity of approximately $120 billion. Suffice to say, this AI leader still has many years of solid growth ahead of it.
No. 2: SoundHound AI
Conversational AI is advanced technology that allows machines to understand and respond when humans speak. SoundHound AI (NASDAQ: SOUND) offers some of the best voice AI available at a time when companies are racing to adopt this innovative technology.
SoundHound’s platform offers real-time dynamic interaction. Essentially, this means that the AI ​​processes natural language as quickly as you speak it.
Restaurant chains like White Castle use SoundHound’s voice AI technology in their automated drive-thru menu boards. Others, like Jersey Mike’s, partnered with SoundHound to build state-of-the-art voice AI ordering systems that can accurately take multiple phone orders simultaneously.
The leader in conversational intelligence is also entering the automotive industry. In March, international car manufacturer Stellantis has made SoundHound’s voice assistant available in its vehicles in 13 languages ​​in 18 countries.
The technology integrates with OpenAI’s ChatGPT and other leading generative AI models. It enables hands-free access to vehicle controls, navigation services, text messages, weather updates and a wide range of other real-time information sources. In total, more than 25 car brands, which together account for approximately a quarter of vehicles sold worldwide, use SoundHound’s voice AI.
These customer wins drive SoundHound’s growth. The software developer’s revenue rose 80% year over year to $11.6 million in the first quarter. The company is not yet profitable, but is only at the beginning of its enormous expansion potential. SoundHound estimates its total addressable market at a staggering $140 billion.
Should you invest $1,000 in SoundHound AI now?
Consider the following before purchasing shares in SoundHound AI:
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds 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 Originally published by The Motley Fool
