The AI Revolution: Invest in the Future of Technology
The rise of artificial intelligence (AI) in 2024 has reshaped our world in unprecedented ways. Virtual assistants can now tackle complex customer service issues much like humans, while AI-powered chips process vast amounts of data faster than ever. These advancements have piqued Wall Street’s interest, contributing to the S&P 500‘s (SNPINDEX: ^GSPC) impressive bull market since October 2022.
The economic impact of AI holds transformative potential. According to PwC, AI is expected to add $15.7 trillion to the global economy by 2030. This goes beyond just chatbots and automation; AI is fundamentally changing how companies operate. For example, fast-food restaurants now use voice AI to manage drive-thru orders, while data centers are increasingly reliant on advanced chips to support their AI operations.
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Many investors have already seen gains from AI’s rapid growth, especially through major players like Nvidia (NASDAQ: NVDA). The next wave of AI advantages may emerge from companies currently on the rise. As we look toward 2025, two firms are particularly well-positioned in the AI value chain, presenting new opportunities for investors eager to benefit from this technological shift.
Voice AI: Enhancing Customer Interaction
SoundHound AI (NASDAQ: SOUN) has quietly built an AI enterprise that is changing how businesses communicate with customers. In November 2024, the company announced quarterly revenue of $25.1 million, showing an impressive 89% year-over-year growth as businesses increasingly adopt voice AI solutions.
SoundHound AI’s intriguing shift from a focus on automotive technology to a diverse AI powerhouse illustrates its adaptability. Currently, the company serves seven of the top 20 global quick-service restaurant chains, using AI to manage everything from drive-thru orders to phone reservations. Their recent forays into financial services, healthcare, and insurance highlight the widespread allure of their technology.
Major automotive brands have also embraced this trend. Stellantis has incorporated SoundHound AI’s technology into its luxury lines in Europe, and partnerships with innovative vehicle manufacturers in the Middle East and India showcase a global thirst for this technology.
With the voice AI market expected to expand by nearly 30% annually through 2030, SoundHound AI’s lead and verified technology create a convincing investment opportunity for those looking to enter the future of human-machine interaction.
Emerging in the AI Chip Market
Advanced Micro Devices (AMD) (NASDAQ: AMD) has become a key contender in the AI chip sector, rivaling Nvidia while offering more competitive prices. The company recently reported data center revenue of $3.5 billion for its latest quarter, indicating a remarkable 122% increase from the previous year.
AMD’s AI graphics processing units (GPUs) segment surged from nearly zero to over $1.5 billion in revenue in just one year, thanks in part to its strategic partnership with Taiwan Semiconductor Manufacturing and its innovative chiplet manufacturing methods. This combination allows AMD to develop products quickly and competitively.
The potential market for AI accelerators is staggering, with industry experts estimating it will reach $500 billion by 2028. Although Nvidia currently leads this field, many customers are searching for alternatives to avoid depending on a single supplier. AMD’s competitive pricing, established technology, and solid reputation position it favorably to gain a significant share of this growing market.
Investment Insights
The combination of voice AI technology with advancements in semiconductors offers two paths for investors to benefit from the AI surge. SoundHound AI provides direct access to the burgeoning voice AI market, while AMD opens the door to the crucial infrastructure that fuels the AI boom. With its competitive pricing and technological capabilities, AMD is challenging the traditional leaders in AI chip manufacturing.
As we look forward to 2025, these companies are more than just potential growth stories; they are actively transforming how businesses function and interact with customers. For those interested in tapping into the next phase of AI development, investing in SoundHound AI and AMD presents distinctive opportunities to engage in this technological evolution during its early days. Their strong market positions, established technologies, and expansive target markets create an enticing formula for potential significant returns as the AI landscape continues to expand.
Don’t Miss Your Chance at Lucrative Opportunities
Ever had the feeling that you missed out on buying into the most successful stocks? If so, this information could be crucial for you.
Occasionally, our expert team issues a “Double Down” stock recommendation for companies they believe are poised for growth. If you’re concerned you’ve already missed your opportunity, now could be the best time to invest before it’s too late. The numbers reveal substantial past successes:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $362,166!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $48,344!*
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Currently, we are issuing “Double Down” alerts for three exceptional companies that might not present another opportunity like this soon.
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*Stock Advisor returns as of December 23, 2024
George Budwell has positions in Nvidia, SoundHound AI, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
