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The Rise of AI Stocks and Their Lucrative Partnerships

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As the AI revolution continues to captivate Wall Streetโ€™s attention, two lesser-known yet promising pure-play AI stocks have emerged, offering potential high rewards with minimal risk. Compounded by recent partnerships with industry giants, these companies are poised for exponential growth. Letโ€™s delve into the most impactful AI collaborations:

BigBear.ai (BBAI) & Palantir (PLTR)

Venturing into decision intelligence solutions for national security, digital identity, supply chains, logistics, and more, BigBear.ai and Palantir joined forces on February 28th to create a formidable partnership. The collaboration stands out for BigBear.ai due to two key reasons:

1.)ย ย ย  With a modest market cap of $600 million, BigBear.ai stands to benefit greatly from the $54 billion market cap of Palantir, propelling its growth trajectory.

2.)ย ย ย  Being a front-runner in the niche space, Palantirโ€™s endorsement of BigBear.aiโ€™s products not only validates their quality but also hints at a potential acquisition in the future.

A Shift Towards Profitability

Nvidia and Super Micro Computer (SMCI) exemplify the immense demand within the AI industry. Amidst this, BigBear.ai achieved its first profitable quarter as a publicly traded company recently.

Zacks Investment Research
Image Source: Zacks Investment Research

Positive Projections

According to Zacks Consensus Estimates, a robust 64.21% growth in EPS is anticipated for 2023.

Zacks Investment Research
Image Source: Zacks Investment Research

Moreover, BigBear.ai is on an upward trajectory in terms of EPS performance, surpassing analystsโ€™ expectations by a significant margin last quarter.

Noteworthy Accumulation Trends

On February 27, BigBear.aiโ€™s stock surged by 38% on trading volume ten times higher than usual. This substantial momentum and volume spike suggest extensive accumulation, with the stock forming a bullish high-tight flag pattern, hinting at further potential.

Zacks Investment Research
Image Source: Zacks Investment Research

SoundHound AI (SOUN) & Nvidia (NVDA)

SoundHound Overview

SoundHound, a technology company specializing in audio and voice recognition, is known for its SoundHound app, allowing users to identify songs with ease. Beyond music, the company offers voice-enabled AI solutions for virtual assistants and smart devices.

Nvidiaโ€™s Strategic Investment in SOUN

Traditionally supplying essential tools for the AI industry, Nvidia recently diversified its portfolio by investing nearly $4 million in SOUN. This move signals Nvidiaโ€™s interest in AI-centric investments and underscores its status as a major player in the field. As Nvidia boasts the third-largest market cap in the U.S., the companyโ€™s substantial cash reserves could potentially translate into increased support for its investment in SoundHound.

Zacks Investment Research
Image Source: Zacks Investment Research

Consistent EPS Performance

Despite being a recent entrant in the market, SoundHound has repeatedly surpassed Wall Streetโ€™s EPS Estimates, exceeding expectations in six out of its first eight quarters.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Uncovers the โ€œTop Stock for Doublingโ€

From a myriad of stocks, five seasoned Zacks analysts have each picked a standout projected to surge over 100% in the months ahead. Among these selections, Director of Research Sheraz Mian singles out one with the most explosive growth potential.

This selection, although lesser-known, showcases tremendous potential for exponential growth.

Exploring a Hidden Gem in the Stock Market: A Sleeping Giant Awakens

Unleashing a Stock Market Powerhouse

This under-the-radar company has witnessed an astounding 65% surge in value over the past year, creating seismic waves in the financial realm. The growth trajectory of this hidden gem is akin to a slumbering giant awakening from its deep slumber to dominate the market with unyielding strength.

Coveted by Retail Investors

With a robust surge in demand fueling its ascent and 2022 earnings estimates soaring to new heights, this company has piqued the interest of retail investors looking to ride the wave of success. The allure of potential gains when investing in this untapped powerhouse has captured the attention of many, beckoning them to seize this golden opportunity.

Challenging the Titans

Standing tall among recent market champions such as the Boston Beer Company, which skyrocketed by a remarkable 143.0% in just over 9 months, and NVIDIA, boasting an impressive 175.9% surge in a single year, this company is positioning itself to rival or even surpass these established giants. The underdog narrative of this rising star adds an intriguing layer of competitiveness to the already dynamic market landscape.

Embracing Growth and Innovation

With a commitment to growth and innovation, this company has allocated a substantial $1.5 billion for repurchasing shares, signaling its confidence in its own potential. The strategic move to reinvest in itself reflects a forward-thinking approach that resonates with investors seeking long-term value and stability in an ever-evolving market.

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