The excitement surrounding artificial intelligence (AI) played a major role in this. Nasdaq Composite43% return last year. In fact, investor enthusiasm for AI has increased until 2024 — S&P 500 To record levels.
While each member of the “Magnificent Seven” is contributing to the development of AI, several companies in the group also have a more specific interest in voice recognition software. Let’s break down the megacap tech’s various moves into speech-powered AI assistants, and assess one stock in particular that could be set for liftoff.
50 billion reasons to pay attention to voice recognition technology
Whether you realize it or not, you probably interact with voice-based assistants every day.
apple acquired AI-assistant Siri in 2010 and has since integrated the technology into its ecosystem of hardware devices. Most recently, Cupertino bought music recognition app Shazam for $400 million.
both of them the alphabet And Amazon Voice recognition applications have also shown keen interest, as smart home appliances from every company take advantage of the technology. Moreover Microsoft A few years ago it acquired conversational AI tool Nuance for $20 billion — the third-largest acquisition in the software giant’s history.
But recently, semiconductor manufacturers Nvidia revealed that he made a small contribution to the voice recognition software developer. Sound Hound AI (NASDAQ:SOUN). After the news of Nvidia’s investment, SoundHound AI stock soared – the stock gained 347% in the month of February.
I find this deal with Nvidia particularly exciting because earlier in January, I predicted that SoundHound AI could be a stock to keep an eye on in 2024. My thesis rests primarily on two ideas: Voice-based software tools may become increasingly popular as use cases. AI continues to evolve, as voice controls can make AI tools easier to use. Additionally, market appetite for acquisitions may increase this year.
Since Soundhound AI’s trailing 12 month revenue is just $46 million., The company is still very small. But with a backlog of subscriptions and bookings totaling $661 million, it’s clear that demand for voice-powered AI is growing — and it’s not all coming from big tech.
Considering that industry research projects the market for voice recognition technology to reach $50 billion by the end of the decade, it seems like this is SoundHound AI’s early innings. While the stock currently has some momentum pushing it higher, this little-known AI company could emerge as a big winner in the long run.
Should you invest $1,000 in SoundHound AI now?
Before buying stock in SoundHound AI, consider this:
gave Motley Fool Stock Advisor The analysis team only indicated what they believed. 10 Best Stocks For investors to buy now… and SoundHound AI was not one of them. 10 stocks that made the cut could generate monster returns in the coming years.
Stock Advisor Provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks every month. gave Stock Advisor The service has more than tripled the return of the S&P 500 since 2002*.
See 10 stocks
*Stock Advisor returns on February 26, 2024
Suzanne Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, is a member of the board of directors of The Motley Fool, an Amazon subsidiary. Adam Spatiko has positions at Alphabet, Amazon, Apple, Microsoft and Nvidia. The Motley Fool has positions and recommends Alphabet, Amazon, Apple, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a Disclosure Policy.
Apple, Microsoft, Amazon, Alphabet, and Nvidia have all invested in voice recognition software. Here’s 1 artificial intelligence (AI) stock that could go parabolic. Originally published by The Motley Fool.