These 3 AI Stocks Quadrupled in 2024: Which One Will Continue to Rise?

In 2024, the artificial intelligence (AI) revolution continued to gain momentum, with several AI stocks delivering impressive returns. Three AI stocks, in particular, more than quadrupled in value, capturing investors' attention and driving the AI stock rally. As we look ahead to 2025, the question on many investors' minds is: which of these AI stocks will continue to rise? Let's examine the three AI stocks that quadrupled in 2024 and explore the prospects for each in the coming year.

1. Palantir Technologies (PLTR)
Palantir Technologies, a software company specializing in AI-powered data analytics, saw its stock price soar by 340% in 2024. The company's AI platform, which helps organizations make data-driven decisions, attracted significant interest from both government agencies and commercial clients. Additionally, Palantir's inclusion in the S&P 500 and Nasdaq-100 indexes contributed to its stock price appreciation. However, some analysts have expressed concerns about the company's valuation, with a forward price-to-earnings ratio of around 143. As a result, Wall Street's consensus 12-month price target for Palantir is around 35% lower than its current share price.
2. MicroStrategy (MSTR)
MicroStrategy, a software company that provides AI-powered data analytics and business intelligence tools, witnessed its stock price surge by 359% in 2024. The company's Bitcoin strategy, which involves using Bitcoin as its primary treasury reserve asset, gained significant attention and investment in 2024. While MicroStrategy's AI software business is also strong, the company's Bitcoin holdings have been the primary driver of its stock price performance. With a forward price-to-earnings ratio of around 10, MicroStrategy's stock appears relatively undervalued compared to its peers. Analysts have a more bullish outlook on the company, with an average 12-month price target reflecting an upside potential of around 42%.
3. Soundhound AI (SOUN)
Soundhound AI, a voice AI software developer, experienced an incredible 836% increase in its stock price in 2024. The company's voice AI technology, which enables real-time, hands-free voice interaction with various devices, has gained significant traction in industries such as restaurants and automotive. Soundhound AI's record revenue growth in Q3 2024, coupled with its successful diversification of its customer base, contributed to its stock price appreciation. However, Wall Street analysts have a more bearish outlook on the company, with an average 12-month price target 11.5% below its current share price.
As we look ahead to 2025, the AI revolution is expected to continue to drive growth and innovation in the tech sector. Among the three AI stocks that quadrupled in 2024, MicroStrategy appears to be the most likely to maintain its growth momentum. The company's strong AI software business, combined with its undervalued stock price and analysts' bullish outlook, positions it well for continued success in the AI space. However, investors should remain vigilant and monitor the performance of all three companies, as the AI landscape is constantly evolving, and new opportunities may emerge.

In conclusion, the AI revolution has driven impressive returns for several AI stocks in 2024, with three stocks more than quadrupling in value. As we look ahead to 2025, investors should carefully consider the prospects for each of these AI stocks and monitor the evolving AI landscape to identify new opportunities. While MicroStrategy appears to be the most likely to maintain its growth momentum, investors should remain vigilant and adapt to the rapidly changing AI market.