2 Small-Cap Stocks With Far More Upside Than Any "Magnificent Seven" Stock, According to Wall Street

Core Insights - The "Magnificent Seven" stocks, including Amazon and Nvidia, have shown significant returns, with Nvidia leading at 2,830% over five years, while Wall Street has tempered return expectations for the near term due to higher valuations [1] - Alphabet, Google's parent company, is identified as having the best near-term upside potential among the Magnificent Seven, with a projected 22% increase based on analysts' price targets [1] - Small-cap stocks, particularly in innovative sectors like voice recognition and electric aircraft, are highlighted as having higher return potential [1] Company Summaries SoundHound AI - SoundHound AI is a leader in AI-powered voice technology, experiencing rapid revenue growth, with an average Wall Street price target of $7.79, indicating a 44% upside from the current price of $5.39 [3] - The company reported $13 million in revenue last quarter, with year-over-year growth exceeding 50%, and a projected addressable market for voice AI exceeding $140 billion [3][4] - Recent upgrades to SoundHound Chat AI by automotive brands have led to a 90% year-over-year increase in queries, reaching 5 billion in Q2 [4] - Management anticipates revenue exceeding $150 million in 2025, an 83% increase from expected 2024 revenue, with the stock having risen 212% over the last year [5] Archer Aviation - Archer Aviation is positioned to benefit from the urban air mobility market, projected to reach $29 billion by 2030 and over $1 trillion by 2040 [6] - The average Wall Street price target for Archer is $9.06, suggesting a 196% upside from the current share price of $3.01 [6] - Archer has partnerships with Southwest Airlines and United for air taxi networks and a manufacturing deal with Stellantis, which will fund nearly $400 million for the production of 650 aircraft annually [6][7] - With a $6 billion order book and $360 million in cash, Archer is well-capitalized to fund operations until final FAA certifications are received [7] - The FAA has finalized the airworthiness of Archer's Midnight aircraft, indicating progress towards commercial service [7]