Scorching Hot: 3 Nasdaq AI Stocks to Buy Now

Economic Overview - The US economy shows a promising growth trajectory, with personal spending in February exceeding economist predictions and consumer sentiment at its highest in months [1] - Federal Reserve Chair Jerome Powell expresses optimism about the economy's ability to handle potential challenges, allowing policymakers to make informed decisions [1] - The AI industry is projected to grow significantly, with a market size expected to reach $1.3 trillion by 2032 [1] SoundHound AI (SOUN) - SoundHound AI, a voice and speech recognition company, experienced a market cap increase from $520 million in 2023 to $1.82 billion in 2024, a rise of 247.81% [2] - The company reported revenue of $45.9 million, reflecting a substantial year-over-year growth of 47.36% [2] - SoundHound's gross profit margin stands at 75.35%, significantly higher than the sector median of 48.66% [2] - A recent partnership with Nvidia for on-chip voice AI enhances SoundHound's product maturity and reliability [2] Microsoft (MSFT) - Microsoft has achieved a market cap of $3.09 trillion, marking it as the largest technology company globally [3] - The company's valuation has increased by over 50% year-over-year in 2024 [3] - In Q4 2023, Microsoft reported revenue of $62.02 billion, a 17.6% increase year-over-year, with net income rising 33% to $21.9 billion [4] - Microsoft is focusing on AI competition through collaborations with industry leaders like Nvidia, which is expected to enhance its valuation [4] Cadence Design Systems (CDNS) - Cadence Design Systems is a leading electronic design automation provider, contributing 12% of the industry's total revenue [5] - The company reported revenues of $4.09 billion for the financial year of 2023, with net income growing by 22.64% [5] - Diluted EPS rose by 23.62% to $3.82, and the company reported a levered free cash flow margin of 27.27% [5] - Cadence's software is sought after by major companies like Apple and Meta for chip design solutions [6]