NVIDIA and SoundHound AI have been performing well in the stock market this year, with significant gains attributed to different factors. NVIDIA’s success is due to strong demand for its GPUs and processors for AI servers, leading to a 90% increase in earnings in 2024. On the other hand, SoundHound AI saw a surge following the revelation of NVIDIA’s stake in the company, resulting in a 347% increase in February.
SoundHound AI has been experiencing healthy growth, particularly in AI voice recognition technology across various industries. However, a weaker-than-expected earnings report in March led to a decline in the stock price. Despite a 158% increase in 2024, the stock has dropped more than 38% since mid-March. On the other hand, NVIDIA dominates the data center GPU market and is expected to continue growing faster than SoundHound due to its technological advantage.
SoundHound AI’s recent financial results showed a significant increase in revenue and a narrowing of adjusted net loss. The company raised its revenue guidance for 2024, suggesting accelerated growth this year and a goal to surpass $100 million in revenue by 2025. SoundHound’s partnerships with NVIDIA and automaker Stellantis indicate promising future revenue streams in various markets.
In comparison, NVIDIA reported a 126% increase in revenue in fiscal 2024, along with a 288% rise in adjusted earnings per share. The company’s dominance in the AI chip market and expectations for continued growth make it a strong investment option. Although SoundHound AI faces competition from tech giants, its potential for growth in the voice recognition AI market remains significant.
NVIDIA’s higher valuation is justified by its faster growth and dominant position in the AI chip market, making it a safer investment option compared to SoundHound AI. The company’s strong financial performance and expected growth projections indicate promising returns for investors. Ultimately, NVIDIA appears to be the best AI stock to buy, offering potential for significant returns in the future.
Investors considering NVIDIA should evaluate the company’s performance and growth prospects before making a decision. While SoundHound AI has shown potential, NVIDIA’s established presence in the AI market and superior financial performance make it a more promising investment opportunity.
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https://finance.yahoo.com/news/better-artificial-intelligence-stock-nvidia-124100328.html