2 Spectacular Artificial Intelligence (AI) Stocks Up 63% and 75% in 2024 to Buy in 2025

As the artificial intelligence (AI) revolution continues to gain momentum, investors are on the lookout for companies that can capitalize on this growing market. Two AI stocks that have caught the attention of investors in 2024 are SoundHound AI (SOUN) and NVIDIA Corporation (NVDA). Both stocks have experienced significant growth, with SOUN up 63% and NVDA up 75% year-to-date. As we look ahead to 2025, these AI stocks present compelling investment opportunities.



SoundHound AI (SOUN)

SoundHound AI is a leading developer of conversational AI technology, specializing in voice recognition and natural language processing. The company's AI applications are used in various industries, including quick-service restaurants, hospitality, and automotive. SoundHound AI's Chat AI software allows automotive brands to install voice assistants in their vehicles, enabling drivers to access various information and services.

SoundHound AI's revenue growth has been impressive, with the company expecting to bring in between $82 million and $85 million in 2024, representing an 82% increase over 2023 at the midpoint of the range. In 2025, SoundHound AI expects to generate between $155 million and $175 million in revenue, which would be a whopping 97% jump from 2024 at the midpoint of the range.



However, SoundHound AI's high valuation may limit further upside in the stock price. With a P/S ratio of 109, the stock is significantly more expensive than NVIDIA, which has a P/S ratio of 30. Investors should be cautious when considering an investment in SoundHound AI, as its valuation could be a barrier to further upside in the New Year.

NVIDIA Corporation (NVDA)

NVIDIA Corporation is a leading provider of graphics and compute and networking solutions, with a strong presence in the AI market. The company's Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service, and solutions for gaming platforms. NVIDIA's Compute & Networking segment comprises data center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet.

NVIDIA's AI technologies are widely used in various industries, including gaming, professional visualization, data center, and automotive. The company's products are used by original equipment manufacturers, original device manufacturers, system integrators, and other ecosystem participants.

NVIDIA's revenue growth has been steady, with a revenue growth rate of 1.224. The company's operating cash flow has also been strong, with an expected amount of $33.73 billion in 2024. NVIDIA's forward P/E ratio is expected to decrease slightly to 29.90 in 2025, indicating that the stock may be more attractively valued in the coming year.



NVIDIA's acquisition of Run:ai, a software company specializing in workload management and orchestration, further strengthens its position in the AI market. The acquisition allows NVIDIA to expand its product offerings and market presence while enhancing its skilled workforce.

In conclusion, both SoundHound AI and NVIDIA Corporation present compelling investment opportunities in the AI space. While SoundHound AI's high valuation may limit further upside, NVIDIA's strong financial performance and attractive valuation metrics make it an attractive choice for investors looking to capitalize on the growing AI market in 2025. As always, investors should conduct their own research and consider their risk tolerance when making investment decisions.