Super Micro Computer vs. SoundHound AI: What's the Better Artificial Intelligence Stock to Buy Today?

Core Viewpoint - Super Micro Computer (Supermicro) and SoundHound AI are two intriguing players in the AI sector, facing challenges but also possessing significant upside potential [1]. Super Micro Computer (Supermicro) - Supermicro provides essential AI infrastructure, data servers, and hardware for businesses to enhance their AI investments [2]. - The company has seen a stock price increase of over 40% this year, but its low valuation indicates ongoing investor skepticism following a public fallout with its auditor last year [2]. - Over the past 12 months, Supermicro generated $21.6 billion in sales and $1.2 billion in profits, maintaining consistent earnings growth despite lean margins [7]. - The stock trades at just 13 times its expected future earnings, suggesting it could be undervalued given analysts' growth expectations [8]. - The current stock price is still below its 52-week high of $101.40, indicating potential for further price appreciation [9]. SoundHound AI - SoundHound AI is positioned to capitalize on the growing demand for voice AI capabilities across various industries [10]. - In the most recent quarter, revenue increased by 151% year over year to $29.1 million, aided by acquisitions that diversified its customer base [11]. - Despite remaining unprofitable, the adjusted per-share loss decreased to $0.06 from $0.07 in the prior year [11]. - SoundHound's market cap is approximately $4 billion, significantly smaller than Supermicro's $26 billion, which may allow for greater valuation growth as it scales operations [12]. - The company anticipates generating between $157 million to $177 million in sales this year, a substantial increase from $84.7 million last year [13]. Investment Comparison - Supermicro is favored for its consistent profitability and low valuation, despite thin margins, indicating a more stable operational outlook [14]. - SoundHound AI presents intriguing growth potential but remains unproven and riskier, with recent acquisitions complicating its financial picture [15].