20.04.2024 17:05:00

Missed Out on SoundHound AI? Buy Nvidia Instead

SoundHound AI (NASDAQ: SOUN) has been one of the hottest stocks on the market in the past six months, rising close to 128% during this period. But if you're one of those who missed this AI stock's outstanding rally and are thinking of buying it right now, it would be a better idea to look elsewhere.That's because SoundHound stock has pulled back substantially of late thanks to concerns that its growth may not be strong enough to support its rich valuation. Shares of the company, which provides voice AI solutions, are down nearly 55% in the past month. Despite this sharp pullback, SoundHound AI stock is trading at 22 times sales. That's substantially higher than the U.S. technology sector's price-to-sales (P/S) ratio of 7.2.Of course, SoundHound is projecting robust revenue growth in 2024 and beyond, and also claims to have a solid revenue pipeline. But SoundHound is a small company and there is a good chance of it running into stiff competition from well-heeled rivals. That's why investors looking to buy an AI stock right now might want to consider buying an established name such as Nvidia (NASDAQ: NVDA). Let's look at the reasons why.Continue readingWeiter zum vollständigen Artikel bei MotleyFool