In 2024, both NVIDIA and SoundHound AI stocks have seen significant growth. NVIDIA’s success can be attributed to strong demand for its GPUs and processors for AI servers, leading to a 90% earnings increase. On the other hand, SoundHound AI experienced a surge in stock value after it was revealed that NVIDIA has a stake in the company, resulting in a 347% rise in February.
Despite SoundHound AI’s impressive growth in various industries, weaker-than-expected earnings in the fourth quarter of 2023 led to a decline in stock value in March. While the stock is up 158% in 2024, it has decreased by 38% since mid-March. However, with positive first-quarter results and promising revenue projections, SoundHound AI is optimistic about its future growth with partnerships with major companies like NVIDIA and Stellantis.
NVIDIA, with its dominance in the data center GPU market and strong position in the AI chip market, offers investors a solid opportunity to capitalize on the growing demand for AI infrastructure. The company’s revenue and earnings have been impressive, far surpassing SoundHound AI’s performance. NVIDIA is expected to continue growing faster than SoundHound AI, making it a more secure investment option in the AI sector.
The verdict suggests that NVIDIA’s higher price-sales ratio is justified by its rapid growth and strong foothold in the AI chip market, making it a more appealing investment compared to SoundHound AI. Despite its higher valuation, NVIDIA is considered the safer and more promising AI investment choice due to its strong performance and market position.
Overall, NVIDIA emerges as the preferred AI stocks buy, offering investors a promising opportunity for growth in the AI sector. With its technological advantage and expected continued growth, NVIDIA stands out as a top contender for investors looking to capitalize on the rising demand for AI technology.
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https://www.fool.com/investing/2024/05/25/better-ai-stock-nvidia-vs-soundhound-ai/