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3 Artificial Intelligence (AI) Stocks That Could Go on a Multidecade Run
APLDApplied Digital (APLD) The Motley Fool·2025-01-24 12:30

Group 1: AI Market Overview - The AI revolution, initiated by ChatGPT in late 2022, has led to significant returns for early investors in companies like Nvidia, Microsoft, and Broadcom [1] - McKinsey & Co. estimates that generative AI could generate up to 4.4trillioninannualvalueacross63usecases,withpotentialtodoublewhenconsideringbroadersoftwareintegration[2]−ThefocusisshiftingfrominitialAIstockstoanewgenerationofinnovatorsinsoftwareandrobotics[3]Group2:CompanyHighlights−SoundHoundAIisaleadingplayerinthevoiceAImarket,withtechnologysupportingvoiceexperiencesin25languagesandabacklogexceeding4.4 trillion in annual value across 63 use cases, with potential to double when considering broader software integration [2] - The focus is shifting from initial AI stocks to a new generation of innovators in software and robotics [3] Group 2: Company Highlights - SoundHound AI is a leading player in the voice AI market, with technology supporting voice experiences in 25 languages and a backlog exceeding 1 billion [5] - SoundHound's revenue doubled year-over-year to 25.1millioninQ32024,withprojectedgrowthexceeding9025.1 million in Q3 2024, with projected growth exceeding 90% [6] - Serve Robotics, spun off from Uber, has achieved a 99.94% reliability rate in deliveries and has raised 167 million in 2024 to scale its operations [7][8] - Serve Robotics aims to target delivery costs of 1pertripinamarketprojectedtoreach1 per trip in a market projected to reach 450 billion by 2030 [9] - Applied Digital is addressing the increasing power demands of AI, having secured up to 600 megawatts of power capacity in North Dakota [10][11] - Applied Digital raised 450millionthroughconvertiblenotesand450 million through convertible notes and 160 million from investors, positioning itself to benefit from the projected 125% surge in data center power consumption by 2030 [11] Group 3: Future Outlook - The next wave of AI development will likely be driven by specialized companies like SoundHound, Serve Robotics, and Applied Digital, each addressing unique market needs [12] - These companies are well-positioned with proven technology, strong partnerships, and access to large addressable markets, presenting investment opportunities beyond established tech giants [12]