Let's face it, the stock market has been on a tear lately. Even with all the talk of a potential recession, the S&P 500 and Dow Jones Industrial Average keep hitting record highs. And everyone knows AI is the rocket fuel propelling this rally. But what if you missed out on buying Nvidia (NVDA) – the undisputed AI king – when it was still cheap?
Don't worry! You haven't missed the AI gravy train. In fact, you may be in luck because I've uncovered a hidden gem, a tiny AI stock with 10X potential that most investors haven't even heard of. And the best part? It's about to start paying dividends!
Meet SoundHound AI – The Next Big Thing in Voice Recognition
SoundHound AI (SOUN) is a revolutionary company that's changing the way we interact with technology. They've developed an advanced voice-recognition AI platform that's already being used by major brands like White Castle, Jersey Mikes, Stellantis, and Honda. Think about it – how much easier is it to order your burger with your voice than to fumble with a touchscreen? SoundHound is making that vision a reality.
And the potential for growth is HUGE. As our friends at The Motley Fool pointed out in their recent article about SOUN, “Areas like voice-enabled smart TVs, home devices, carryout ordering, and retail are virtually untapped.” That's right, SoundHound's technology is perfectly positioned to capitalize on massive new markets, making it a true outlier with the potential to become a household name.
From Financial Woes to Explosive Growth – Why Timing is Everything
I know what you're thinking – “But David, isn't SoundHound a risky investment? They were nearly bankrupt just a few months ago!”
And you'd be right, they were in a tight spot. But thanks to savvy management, SoundHound has completely turned their financial fortunes around. Their latest earnings report showed a massive increase in cash reserves with zero debt.
The Motley Fool was cautiously optimistic about the company, noting, “The increase in share count is a tough pill for the existing shareholders, but the dilution should drastically slow now that the company is on solid footing.” And I agree. By taking decisive action, SoundHound has bought themselves the time and resources they need to fully capitalize on their technology.
An Undervalued AI Powerhouse Set to Take Off
SoundHound is currently trading for around 26 times projected sales. At first glance, that may seem expensive for an unprofitable company. But as The Motley Fool pointed out, “SoundHound hit $13.5 million in sales in Q2 on 54% year-over-year growth. It expects revenue to leap from $80 million in 2024 to $150 million next year. This brings the price-to-sales ratio to a more palatable 12.5.”
Let me break that down for you. SoundHound is expected to nearly double its revenue in the next year, which puts its valuation in line with far more established, slower-growing AI companies. That kind of explosive growth typically leads to massive stock price appreciation, potentially giving you a 10X return on your investment.
And to sweeten the deal even further, SoundHound recently announced it will be initiating a quarterly dividend program later this year. That means you'll be getting paid while you wait for the stock to skyrocket!
Don't Miss Out: Join Our Exclusive Webinar
I've laid out the case for why SoundHound could be the next big winner in the AI race. Now it's up to you to decide if you want to be part of the story.
To learn more about SoundHound and other exciting, under-the-radar AI stocks with 10X potential, join me for an exclusive webinar on Tuesday, where I'll be sharing my top picks and actionable insights. Space is limited, so reserve your spot today!
And be sure to check your inbox tomorrow when we tackle a contrarian take on the future of income with an AI powered ETF that pays you dividends every single month.
