Yahoo Finance3 AI Stocks That Have More Upside Than Nvidia, According to Wall Street

Nvidia has undoubtedly been the hottest artificial intelligence (AI) stock to own over the past year and a half. Since the start of 2023, shares of the chipmaker have soared an incredible 500%. Many stocks don't generate those types of returns over a decade or even longer, and Nvidia has managed to do that in just 16 months. Given those types of gains, it's not unreasonable to expect that many Wall Street analysts believe it may be approaching a peak. The consensus analyst price target suggests that Nvidia's stock may only rise another 13% from where it is today.
AI investors may want to consider other options, which may have more room to rise higher. Three stocks that analysts are much more bullish about include SoundHound AI (NASDAQ: SOUN), Baidu (NASDAQ: BIDU), and UiPath (NYSE: PATH). Here's a look at how much upside these stocks may have and whether they are worth adding to your portfolio today.
1. SoundHound AI: 50% upside
The analyst consensus price target for SoundHound AI is a little less than $7, which would mean that SoundHound's stock could rise by around 50% if you believe it could hit that value within the next year or so.
SoundHound gained notoriety this year after investors learned that Nvidia invested in the voice AI company. Its AI voice platform can help incorporate AI into vehicles, drive-thrus, and other ways to help create a conversational experience between the user and AI. There's a lot of potential in many industries for this type of technology to facilitate the AI experience for customers.
The biggest problem, however, is that there's been a lot of hype around SoundHound, but its results are still fairly modest; the company has a lot to prove, given how much competition there may be out there. Fast-food restaurant chain Wendy's, for example, has already begun to deploy an AI-powered drive-thru ordering experience through the company's own FreshAI platform, which uses generative AI.
For SoundHound to be a great buy, it needs to prove that its technology is the real deal and that it can be better than the competition. In the last three months of 2023, it generated an impressive 80% revenue growth, with its top line totaling $17.1 million. However, the business posted a net loss of $18 million, and it has been burning through cash, and it will likely need a lot of that cash to invest in its operations.
SoundHound AI could rally by 50%, but if it does, it'll likely be due to speculative reasons; the company's fundamentals aren't strong enough just yet to make this a slam-dunk buy. For most investors, it's probably a bit too early to invest in SoundHound AI.