2 AI Stocks to Buy in December and Hold for the Long Haul
Artificial intelligence (AI) is revolutionizing industries and poised for exponential growth. If you’re looking to capitalize on this trend, investing in AI-powered companies could be a smart move.
This article highlights two promising AI stocks to consider adding to your portfolio today: SoundHound AI and Advanced Micro Devices (AMD).
SoundHound AI: The Voice of the Future
SoundHound AI (NASDAQ: SOUN) is a leader in voice AI technology, powering voice assistants and conversational interfaces for businesses across various sectors.
Why it’s a promising investment:
- Explosive Growth: SoundHound’s revenue has been skyrocketing. In Q3 2024, it jumped 89% year-over-year, driven by strong demand for its voice AI solutions.
- Expanding Market Reach: SoundHound is going beyond its traditional focus on automotive and restaurant industries, targeting new markets like retail, healthcare, and banking.
- Strategic Partnerships: The company boasts impressive partnerships with tech giants like Nvidia, Samsung, Oracle, and ServiceNow, validating its technology and market potential.
While SoundHound isn’t yet profitable, management expects to achieve positive adjusted EBITDA by the end of 2025. This signals significant growth potential and could be a catalyst for its share price.
Advanced Micro Devices: Powering the AI Infrastructure
AMD is a leading supplier of processors for a wide range of applications, including data centers, gaming, and consoles.
Why it’s a compelling investment:
- Dominant Position in AI Chip Market: AMD’s data center GPU (graphics processing unit) business is experiencing explosive growth, fueled by the increasing demand for AI training and inference.
- Strong Performance: Data center revenue jumped 122% year-over-year in Q3 2024, reaching $3.5 billion.
- Market Opportunity: The AI accelerator market is projected to reach $500 billion by 2028, presenting AMD with massive growth potential.
AMD has already surpassed Intel in the data center market share, showcasing its strength in the rapidly evolving AI landscape.
The Takeaway
SoundHound AI and AMD are two exciting AI stocks with powerful traction in their own right. As AI continues to shape the future, these companies are well-positioned to capture significant market share and deliver substantial returns for investors.
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