Voice-Recognition Software: The Next Big AI Investment Opportunity
The Nasdaq Composite saw a whopping 43% return last year, largely thanks to the excitement surrounding artificial intelligence (AI). This trend has spilled over into 2024 and is driving the S&P 500 to record levels as well. While many tech giants are involved in AI development, a specific interest in voice-recognition software has emerged among some of these companies. In this article, we will explore the investments made by Apple, Microsoft, Amazon, Alphabet, and Nvidia in this field and analyze one AI stock that has the potential for significant growth.
The Growing Importance of Voice-Recognition Technology
You may not realize it, but you likely interact with voice-based assistants almost every day. Apple acquired AI-assistant Siri in 2010 and has since integrated the technology across its hardware ecosystem. Alphabet and Amazon have also shown a keen interest in voice-recognition applications, leveraging this technology in their smart home appliances. Microsoft made a significant move by acquiring conversational AI tool Nuance for $20 billion. But the latest development comes from Nvidia, which recently disclosed a small stake in voice-recognition software developer SoundHound AI. This investment caused SoundHound AI’s stock to soar by 347% in February alone.
The Potential of SoundHound AI
In January, there were already indications that SoundHound AI could be an exciting stock to watch in 2024. Voice-based software tools have the potential to become increasingly popular as AI use cases continue to evolve. Voice controls can make AI tools more user-friendly, which is a significant advantage. Additionally, with the market’s appetite for acquisitions expected to rise, SoundHound AI is well-positioned for success.
The Impressive Market Potential
While SoundHound AI’s trailing-12-month revenue stands at only $46 million, its cumulative subscriptions and bookings backlog amount to $661 million. This indicates a rising demand for voice-powered AI, not just from big tech companies but also from other industries. Industry research forecasts the voice-recognition technology market to reach a staggering $50 billion by the end of the decade. Given these projections, it appears to be only the beginning for SoundHound AI. Although the stock currently has significant momentum, this relatively unknown AI company could be a major winner in the long run.
Final Thoughts and Recommendations
The Motley Fool’s Stock Advisor analyst team, known for their ability to identify promising stocks, did not include SoundHound AI among their top 10 recommendations. However, they believe that the 10 stocks they chose could generate substantial returns in the coming years. For investors interested in capitalizing on the potential of AI, it is worth considering stock picks provided by experts who have a proven track record of success. Business Today is dedicated to bringing you the latest news and analysis on exciting investment opportunities like this.