Nvidia It has undoubtedly been the most owned artificial intelligence (AI) stock over the past year and a half. Since the start of 2023, the chipmaker's shares have risen a staggering 500%. Not many stocks generate these types of returns over a period of time a contract Or even longer, and Nvidia was able to do this in just 16 months. Given these types of gains, it is not unreasonable to expect that many Wall Street analysts believe the price may be nearing the peak. Analysts' consensus price target suggests Nvidia stock may be up only 13% from where it is today.
Artificial Intelligence Investors You may want to consider other options, which may have more room to rise higher. Three stocks that analysts are most bullish on include: SoundHound AI (NASDAQ:SON), Baidu (NASDAQ: BIDU)And UiPath (NYSE: Track). Here's a look at how much these stocks could rally and whether they're worth adding to your portfolio today.
1. SoundHound AI: 50% increase
The consensus price target among analysts for SoundHound AI is just under $7, which means SoundHound stock could rise by about 50% if you think it can reach that value over the next year or so.
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, driving routes, and other ways to help create a conversational experience between the user and the AI. There is a lot of potential in many industries for this type of technology to facilitate the AI experience for customers.
But the biggest problem is that there has been a lot of hype around SoundHound, but its results are still fairly mediocre; The company has a lot to prove, given the amount of competition that might be out there. fast food chain WendyFor example, it has already begun deploying its AI-powered drive-thru ordering experience through the company's FreshAI platform, which uses generative AI.
For a SoundHound purchase to be great, it must prove that its technology is the real deal and that it can be better than the competition. And in the last three months of 2023, it achieved a staggering 80% revenue growth, with total income reaching $17.1 million. However, the company reported a net loss of $18 million, was burning through cash, and will likely need much of that money to invest in its operations.
SoundHound AI could rise 50%, but if it does, it will likely be for speculative reasons; The company's fundamentals aren't strong enough yet to make this buy a bargain. For most investors, it's probably too early to invest in SoundHound AI.
2. Baidu: 60% up
The stock with more upside, according to analysts, is Chinese technology company Baidu; Wall Street thinks it could rise about 60% to nearly $172. The company is often compared to the alphabetGoogle, as it has a popular search engine platform and cloud business. It is always looking to invest in new technologies, with artificial intelligence being no exception.
The reason investors aren't overly optimistic about the stock (it's down 11% this year) is because there are concerns that it may have close ties to the Chinese government, which could impact not only growth opportunities but could also lead to problems. For stocks on the road. In the past, investors have been concerned about the possibility of Chinese stocks being delisted from US exchanges, and the US government looking to ban TikTok due to Chinese government influence may exacerbate those concerns.
In addition, Baidu's growth rate has been somewhat weak. In 2023, the company's revenue grew 9% to just under $19 billion. Ideally, AI investors will want to see a growth rate faster than this to be convinced that the company is truly benefiting from the significant growth opportunities in AI. However, there is hope that with chatbot Ernie reaching 200 million users, Baidu may have a potential growth catalyst there, which could help accelerate the company's growth rate.
Given Baidu's low valuation – it is trading at 10 times its price Expected future profits -I can see a path for the stock to reach analyst price targets, as it is a great way to invest in the Chinese technology market, and Chinese stocks in general have been undervalued for a while. However, the stock comes with some high risks and may not be suitable for all types of investors.
3. UiPath: 40% increase
UiPath has an automation platform that helps businesses create processes that can save time and money. It can remember the steps users take and automate them. Unfortunately, despite the potential value it can add to companies, UiPath stock has been a disappointing investment so far this year, down 20% year to date.
The company posted some encouraging results, posting sales of $405.3 million for the quarter ended January 31, which grew at a rate of 31% year over year. Another positive for the company is that it also reported fourth-quarter earnings totaling $33.9 million, which represents a significant improvement over the same period a year earlier when UiPath posted a net loss of $27.7 million.
Analysts believe UiPath shares could reach $27, up 40% from where they are now. This does not seem like an unrealistic proposition, given its high growth rate, automation opportunities, and the company's profitability as well. With a price-to-earnings growth ratio of less than 1, the stock could be a buy for long-term investors.
Should you invest $1,000 in SoundHound AI now?
Before you buy shares in SoundHound AI, consider the following:
the Motley Fool stock advisor The analyst team has just defined what they think it is Top 10 stocks Let investors buy it now… and SoundHound AI wasn't one of them. The 10 stocks that were discounted could deliver huge returns in the coming years.
Think when Nvidia I prepared this list on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $544,015!*
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Susan Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. David Jagielski He has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Baidu, Nvidia, and UiPath. The Motley Fool has Disclosure policy.
3 AI stocks with bigger upside than Nvidia stock, according to Wall Street Originally published by The Motley Fool