This Artificial Intelligence (AI) Stock Could Be the Biggest Gainer of 2024 (Hint: It's Not Nvidia)

Nvidia's Dominance in AI - Nvidia has seen a 2,600% stock increase over the past five years and is heading for a 148% gain this year [2] - The company dominates the AI chip market with an 80% share and offers a wide range of AI products and services [2] - Nvidia's revenue and profit have been growing in triple digits quarter after quarter, with margins exceeding 70% [3] - The company focuses on innovation, promising to update its chips annually, which supports continued strong performance [3] SoundHound AI's Growth and Market Position - SoundHound AI specializes in AI-driven conversational voice assistants, using proprietary speech-to-meaning technology [5] - The company holds 155 granted patents and 115 pending, protecting its technology [6] - SoundHound operates in markets like automotive, restaurants, and customer service, with plans to expand into financial services and healthcare, targeting a $140 billion total addressable market [6] - Recent acquisition of Amelia has expanded SoundHound's reach in healthcare and other markets, increasing its addressable markets and adding 200 marquee customers [7] SoundHound's Financial and Operational Metrics - SoundHound's quarterly revenue increased by 54% to $13.5 million, with cumulative subscriptions and booking backlog doubling year over year to $723 million [9] - The company has an annual run rate of 5 billion queries, indicating strong customer interest [9] - SoundHound has a strong cash position of over $200 million and has made progress in paying down debt, supporting its growth strategy [10] - R&D spending increased by 34% year over year, and marketing spending advanced by 11%, reflecting the company's focus on growth and market leadership [8] Stock Performance Comparison - SoundHound's stock is heading for a 121% increase this year, lagging behind Nvidia but showing strong momentum [11] - If Nvidia's shares stagnate or decline, and SoundHound gains more momentum through contract wins or positive news, SoundHound could outperform Nvidia [11] - Both companies are likely to deliver strong performances this year, but SoundHound has the potential to be the biggest winner in 2024 [12]