2 AI Growth Stocks That Could Soar for the Next 3 Years

Core Insights - The AI industry is experiencing rapid growth, with significant investments expected to reach nearly $7 trillion by 2030 for data centers to meet computing power demands [1] - AI is projected to create $40 trillion in operational efficiencies for businesses, presenting substantial investment opportunities [2] Company Summaries SoundHound AI - SoundHound AI is positioned to benefit from the AI transformation in device interaction, with its stock rising 244% over the past year [4] - The company has developed a proprietary multilingual AI model called Polaris, leveraging 20 years of customer interaction data [5] - In Q2, SoundHound's revenue tripled year-over-year, with over 1 billion queries processed monthly [6] - The company aims to capture a $140 billion addressable market for voice AI technology and is expanding into various industries beyond restaurants [7] - Although not yet profitable, SoundHound's stock trades at a price-to-sales multiple of 45, indicating high growth potential linked to revenue increases [8] IREN Limited - IREN Limited is transitioning from Bitcoin mining to providing data centers for AI cloud services, capitalizing on the growing demand in this sector [10] - The company generated over $1 billion in annualized revenue from Bitcoin mining and is investing profits into AI compute services [11] - IREN's fiscal 2025 revenue reached $501 million, a 168% increase year-over-year, with a profit of $87 million [12] - Securing preferred partner status with Nvidia enhances IREN's capabilities in AI cloud offerings, with plans to deploy over 60,000 Nvidia chips [13] - Analysts project IREN's revenue could reach $1.5 billion by fiscal 2028, with EBITDA exceeding $1.2 billion, and the current price-to-sales multiple of 15 is seen as conservative for its growth potential [14][15]