Billionaires Are Buying These 2 Artificial Intelligence (AI) Stocks and Shaking Their Fists

It seems that all investors today are talking about Nvidia (NASDAQ:NVDA). Over the past five years, the value of stocks has increased by 3,400%. In the last 12 months alone, the stock’s price has tripled.

This sudden rise has everything to do with artificial intelligence (AI). Nvidia’s chips are widely recognized as the best on the market for this technology. There’s a good chance that the future of AI lies in the company’s products.

But it’s not the only AI company attracting huge interest. Billionaire investors are pouring huge amounts of money into other AI companies. The two companies below look particularly promising.

Even Nvidia’s CEO Loves This Emerging AI Title

Jensen Huang, CEO of Nvidia, has most of his $100 billion fortune tied up in the company’s stock. But he has invested money in several other AI companies. That’s because Nvidia itself has invested money in small AI startups under his leadership.

One of these companies is AI SoundHound (NASDAQ:SON)a $1.6 billion company with enormous potential.

Investors became aware of Nvidia’s investment in SoundHound through a Disclosure 13F which Nvidia filed earlier this year. It was a relatively small investment – ​​just a few million dollars – but that didn’t stop shares from tripling in value following the announcement.

SoundHound’s stock price has pulled back slightly since then, and there’s plenty of reason to like the investment thesis from here. This is especially true given that another billionaire, value investor Seth Klarman, recently revealed that he owns 1.1 million shares in SoundHound.

The company focuses on the hearing aspect of AI. Joe Tenebruso, Fool contributor explains it: “Conversational AI is a cutting-edge technology that allows machines to understand and respond when humans speak. SoundHound offers some of the best voice AI available at a time when businesses are rushing to adopt this innovative technology.

This is a competitive space, with Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) And Amazon develop their own voice AI systems. But SoundHound doesn’t tie customers to these closed ecosystems, which customers like Hyundai, Oracleand White Castle apparently likes it.

Trading at 23 times sales, SoundHound isn’t cheap from a conventional standpoint. But with analysts expecting a 53% increase in sales this year, this premium valuation could prove to be a bargain in the years to come.

And the next AI stock targeted by billionaire investors has arguably generated even more interest.

SOUN Total Return Levels Chart

Will Alphabet become an AI powerhouse?

A recent Motley Fool analysis of 16 high-profile billionaire investors found that Alphabet, Google’s parent company, was one of the most popular picks, regardless of industry.

The long-term viability of Google’s search business, the main source of revenue and profits, could be at risk given the potential of AI. Why Google something and manually search for the answer when AI can get you the answer directly in much less time?

Currently, the ability of AI to…

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