So check this out, guys. We’re talking about artificial intelligence, okay? Now, AI has been around for a while, but let me tell you, it’s really taken off in 2023. We got these cool new applications like ChatGPT, Bard, and Claude 2 that are blowing people’s minds. And the thing is, AI is not just a fad. It’s already a big part of our everyday lives.
So, if you’re an investor who wants to stay ahead of the game, you gotta look into AI stocks, my friends. Two companies that I think have a bright future are SoundHound AI and UiPath. Let me break it down for you.
Now, SoundHound is all about AI-powered audio technology. They got these amazing voice and speech solutions that are getting a lot of attention. And you know what? They’re killing it in two major markets: the automotive industry and the restaurant industry.
Think about it, in cars, you can use voice recognition to enhance safety and make the user experience awesome. And in restaurants, voice commands can make things more efficient, from taking reservations to ordering food. It’s pretty cool stuff.
But here’s what sets SoundHound apart from the competition. They offer highly customizable voice services, unlike some other AI solutions. And get this, their technology doesn’t just convert speech to text, it extracts meaning directly from speech. That means it’s faster and more accurate. That’s some next-level stuff right there.
Now, SoundHound AI isn’t making profits yet, but they’re making moves. Their revenue in the second quarter jumped 42% from last year, and their loss per share improved. They’re investing big in research and development, which is gonna pay off down the line, mark my words.
Yeah, they might be sacrificing short-term profits for long-term growth, but that’s how high-growth stocks operate. Management is even expecting a solid year-over-year revenue jump of almost 50% for fiscal 2023. That’s pretty damn impressive.
Now, it’s not all sunshine and rainbows for SoundHound AI. They’ve got some challenges ahead, like their growth rate not matching up to their bookings backlog. And there’s also the risk of having too many eggs in one basket, with just three customers making up most of their revenue. But hey, the fundamentals are strong, and their expertise in voice recognition is gonna take them places.
Alright, let’s talk about UiPath. These guys are big players in robotic process automation (RPA). Basically, they help businesses automate all those repetitive, boring tasks that nobody wants to do. And you know what? They’re really good at it.
According to Gartner, UiPath has a massive share of the global RPA market, which has grown like crazy. And get this, the RPA market is projected to keep growing at an insane rate for years to come.
Now, UiPath has been using AI and machine learning to build their bots for a while. But recently, they’ve upped their game by incorporating generative AI and specialized AI technologies. This makes their offerings faster and more powerful, opening up new possibilities. And they’re even working with big names like OpenAI, Amazon, and Alphabet. That’s some serious firepower.
Now, UiPath isn’t turning a profit just yet, but they’re on the right track. Their operating margins are improving, and they’re generating positive free cash flow. They’ve got a ton of clients, with a bunch of high-value ones, and their order pipeline is looking strong. These guys mean business.
With access to tons of client data and the ability to integrate AI capabilities from the big players, UiPath is in a sweet spot to grab even more of the RPA market. These guys are gonna keep on growing, mark my words.
Now, before we wrap this up, let me make it clear that Suzanne Frey, an executive at Alphabet, and John Mackey, former CEO of Whole Foods Market and an Amazon subsidiary, they’re both on The Motley Fool’s board of directors. Just so you know, I’m not pulling this info out of thin air. The Motley Fool is into these stocks. So do your research, and remember, I’m just here to give you some insights. Peace out!