Artificial intelligence (AI) technology has made remarkable progress in recent years, yet the businesses driving this innovation have only begun to tap into its vast potential. Industry analysts at Precedence Research predict that the AI market will grow at an annual rate of nearly 20% until 2034. With this rapid growth on the horizon, here are three promising AI stocks to consider purchasing while they remain undervalued.
1. Arm Holdings
Arm Holdings is often overlooked in discussions about tech companies poised to benefit from AI. However, its role in the future of artificial intelligence is significant. Arm designs chips and licenses these designs to other chip manufacturers. Its energy-efficient designs are particularly advantageous as AI systems consume substantial power. For instance, Amazon’s Arm-based Graviton processor uses 60% less electricity than comparable chips.
2. SoundHound AI
SoundHound AI specializes in voice-based AI interfaces, offering technology far more advanced than early attempts. Its Houndify platform converts speech into meaningful actions and understanding, setting it apart in the voice-driven segment of the AI market. Several automakers and companies like Mastercard have adopted SoundHound’s technology for in-car assistance and automated voice-ordering solutions.
3. BigBear.ai
BigBear.ai focuses on AI-powered decision-making software for businesses rather than government institutions. While it may not yet be profitable, its potential in the private sector is vast. Precedence Research forecasts that the decision-making segment of the AI industry will grow at an average annual rate of 16% until 2034. Analysts currently project BigBear.ai’s stock price to nearly double, presenting a significant opportunity for investors.
— new from The Motley Fool