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There are tons of artificial intelligence (AI) stocks out there. If a tech company isn't making AI software, or the hardware those tools require, it probably uses AI solutions from other tech experts.
The stocks I'm about to show you are no fly by-night AI wannabes, though. SoundHound AI (NASDAQ: SOUN) and Duolingo (NASDAQ: DUOL) are building homemade AI systems into their core operations. Read on to see why I expect these companies to be leaders in their chosen fields for the foreseeable future -- and then some.
SoundHound AI builds AI-powered tools that turn human language into machine-friendly commands -- and vice versa. The technology is based on about 20 years of machine learning research, originally used for song identification but now expanded to many business-friendly situations. For example, you may have encountered SoundHound AI's Houndify system in a voice-driven phone menu or at a local drive-through ordering window.
If that sounds like a pretty useful technology addressing some very large markets in the long run, I'd say you're on the right track.
This company stands near the very beginning of a very long growth story. Yes, SoundHound AI has been around since the digital stone age (before smartphones were a thing) but it shifted into revenue-generating growth mode just three years ago.
And it's off to a tremendous start. SoundHound AI's revenue growth is accelerating, including a 101% year-over-year jump in February's fourth-quarter report:
At the same time, the backlog of untapped contracts and subscriptions rose from $661 million at the end of 2023 to $1.2 billion one year later. In other words, the company is signing tons of new deals even as it starts to convert some of the backlog into reportable revenues.
It's been about a week since I suggested waiting until SoundHound AI trades below $7 per share before shoveling cash into your position, while also admitting that I recently bought a few shares at a higher price. April 2025 may not be the best time ever to buy SoundHound AI stock, but you should at least put this name on your watchlist. This little company has a lot of untapped potential to explore, and the growth story could take decades to play out. The exact starting price may not matter a whole lot for a growth stock of this magnitude.
You might not think of Duolingo as an AI stock, but I can assure you that it is.
Its language-learning system was always based on human research, pairing a fun and approachable app with legit theory of education and linguistics. The scope has broadened to include music and math courses as well, and the company could eventually address any topic people usually learn through repetition.