The excitement surrounding artificial intelligence (AI) played a big role. Nasdaq CompositeLast year’s return was 43%. In fact, investor enthusiasm for AI continues into his 2024 year. S&P500 Record your level.
While each member of the “Magnificent Seven” plays a role in AI development, several companies in the group also share a more specific interest in speech recognition software. Let’s break down the various moves the mega-cap tech has made when it comes to voice recognition AI assistants, and assess one stock in particular with upside potential.
50 Billion Reasons to Focus on Voice Recognition Technology
Whether you realize it or not, you probably interact with a voice-based assistant almost every day.
apple acquired the AI assistant Siri in 2010 and has since integrated the technology across its ecosystem of hardware devices. Most recently, Cupertino acquired music recognition app Shazam for $400 million.
both alphabet and Amazon They are also showing a lot of interest in voice recognition applications, as their smart home appliances utilize this technology. moreover, microsoft acquired conversational AI tool Nuance for $20 billion a few years ago, making it the third-largest acquisition in the software giant’s history.
However, recently semiconductor manufacturers Nvidia Announced that it has invested a small amount of stock in a voice recognition software development company. Soundhound AI (NASDAQ: SOUN). SoundHound AI stock soared on the news of Nvidia’s investment, with the stock soaring 347% in February.
I’m particularly pleased with this agreement with Nvidia. Because I predicted in early January that SoundHound AI could make him a stock to watch in 2024. My thesis hinges primarily on two of his ideas. Voice-based software tools are likely to become an increasingly popular use case. AI continues to evolve as voice control makes AI tools easier to use. Moreover, the market’s appetite for acquisitions may increase this year.
SoundHound AI has just $46 million in revenue in the last 12 months., The company is still quite small. But with a cumulative subscription and reservation backlog of $661 million, it’s clear that the demand for voice-based AI is growing, and it’s not all coming from big tech. Not.
It’s early days for SoundHound AI, as the market for voice recognition technology is expected to reach $50 billion by the end of 2010, according to industry research. There’s momentum pushing the stock higher right now, but this little-known AI company could be a big winner over the long term.
Should you invest $1,000 in SoundHound AI right now?
Before buying SoundHound AI stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks Things investors can buy right now…and SoundHound AI wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
stock advisor provides investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks each month.of stock advisor Since 2002, the service has more than tripled S&P 500 returns*.
See 10 stocks
*Stock Advisor will return as of February 26, 2024
Alphabet executive Suzanne Frye is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Adam Spatacco has held positions at Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.
Apple, Microsoft, Amazon, Alphabet, and Nvidia are all investing in speech recognition software. Here’s one artificial intelligence (AI) stock that could go parabolic.Originally published by The Motley Fool
