Nvidia has undoubtedly been the hottest artificial intelligence (AI) stock to own over the past year and a half. Since the start of 2023, shares of the chipmaker have soared an incredible 500%. Many stocks don’t generate this type of return over a period of time decade or even more, and Nvidia managed to do it in just 16 months. Given these kinds of gains, it’s not unreasonable to expect many Wall Street analysts to believe the stock is nearing a peak. The analyst consensus price target suggests that Nvidia stock could only rise another 13% from its current level.
AI investors You may want to consider other options, which might have more room for improvement. Three stocks that analysts are much more bullish on include AI SoundHound (NASDAQ:SON), Baidu (NASDAQ:BIDU)And UiPath (NYSE:PATH). Here’s a look at the upside potential of these stocks and whether they’re worth adding to your portfolio today.
1. SoundHound AI: 50% increase
The analyst consensus price target for SoundHound AI is just under $7, which would mean SoundHound stock could rise about 50% if you think it could reach that value over the next year. next year.
SoundHound gained notoriety this year after investors learned that Nvidia had invested in the voice AI company. Its AI voice platform can help integrate AI into vehicles, drive-thrus, and other ways to create a conversational experience between the user and AI. There is great potential in many industries for this type of technology to make the AI experience easier for customers.
The biggest problem, however, is that there has been a lot of hype around SoundHound, but its results are still quite modest; the company has a lot to prove, given how much competition there is. Fast food chain Wendy‘s, for example, has already begun rolling out an AI-powered drive-thru experience through the company’s own FreshAI platform, which uses generative AI.
For SoundHound to be a good buy, it needs to prove that its technology is the real deal and can be better than the competition. Over the last three months of 2023, it generated an impressive 80% growth in revenue, with revenue totaling $17.1 million. However, the company posted a net loss of $18 million and burned through its cash, and it will likely need much of that cash to invest in its operations.
SoundHound AI could rebound 50%, but if it does, it will likely be due to speculative reasons; the company’s fundamentals aren’t yet strong enough to make it a slam-dunk buy. For most investors, it’s probably a little too early to invest in SoundHound AI.
2. Baidu: 60% increase
One stock that has even more upside potential, according to analysts, is Chinese technology company Baidu; Wall Street estimates it could rise about 60% to near $172. The company is often compared to AlphabetIt’s Google because it has a popular search engine platform and cloud business. It is always looking to invest in new technologies, AI not being…
