2 AI Stocks That Could Help You Make a Fortune

With every disruptive technology that comes along, there will be winners and losers. Such is the case with the artificial intelligence (AI) market. The strong demand that some of these companies are seeing right now suggests that a lot of wealth will be created through AI adoption.

Here are two AI stocks that have the potential to be on the winning side of the AI ​​revolution. Investors should buy and hold them for the potential for huge returns.

1. Soundhound AI

One promising small cap AI stock worth investing in is Soundhound AI (SOUND -2.90%). Many companies in the restaurant industry, and increasingly in the automotive industry, are using conversational AI technology.

Taking orders at restaurants and giving instructions to your car while driving are two areas that will clearly benefit from AI technology. Just look at Soundhound’s second-quarter results. Revenue was up 54% compared to the same quarter a year ago, and the cumulative backlog of subscriptions and reservations nearly doubled to $723 million.

Most of Soundhound’s growth is being driven by restaurants, but it’s still gaining traction in the automotive industry. Several European brands, including Alfa Romeo and Peugeot, are starting production with Soundhound Chat AI. The company also announced that a U.S. electric vehicle maker will soon start production with Soundhound’s voice assistant technology across its entire fleet.

Soundhound isn’t resting on its laurels. It’s still looking for new markets. To that end, the company recently acquired enterprise software company Amelia, which will expand its growth potential into other industries, such as retail and financial services. Amelia will contribute more than $45 million in recurring software revenue, and management also expects the acquisition to positively impact the company’s profitability in 2025.

Soundhound has yet to turn a profit, but given the company’s strategy of generating revenue from royalties and product subscriptions, the company should be very profitable in the future. By the time it starts reporting a profit, the stock could be trading much higher than it is now.

2. HubSpot

Another AI growth stock worth buying is HubSpot (FISTS -1.52%). It sells a subscription-based platform that’s powered by AI and brings together all of a company’s data in one place. This allows teams to more efficiently mine and act on leads. The company has consistently grown revenue by more than 20% in recent years, but it’s still a relatively small company in a large and growing market.

HubSpot ended the second quarter with 228,000 customers and $2.4 billion in revenue. It’s a small company in an $80 billion growth market, which speaks to its long-term potential to deliver massive shareholder gains.

Now is a good time to buy the stock after it fell from recent highs. Investors are worried about a slowdown in growth amid a tough macro environment. Analysts expect full-year revenue to rise 18% year-over-year, slower than the previous pace.

Still, HubSpot will continue to grow at a rapid pace over the long term. It has a key advantage in using a freemium pricing model to make it easy for small businesses to get started. Over the long term, management’s strategy is to encourage businesses to upgrade to premium services, and revenue growth to date suggests a strong opportunity.

In fact, HubSpot’s annual revenue is growing at a rate similar to that of the industry leader. Sale in the early years of growth. Salesforce shares returned 5,600% to shareholders.

HubSpot’s current price-to-sales ratio is 10.5, which is also similar to Salesforce’s stock 20 years ago. HubSpot should provide investors with returns that are comparable to its future revenue growth rate, indicating market-beating returns.