In 2025, many AI stocks, which had soared in value previously, faced significant drops. If you’re looking to buy AI stocks at lower prices, Nvidia and SoundHound AI stand out as top choices. Nvidia, which is a major supplier of graphics processing units (GPUs) vital for AI development, remains a strong investment despite recent price declines. Sales are expected to grow impressively, making it a solid option for long-term growth. On the other hand, SoundHound, a smaller player focused on AI services related to sound, shows high growth potential, with sales expected to skyrocket. While it faces challenges from larger companies, it offers a compelling speculative investment for those seeking maximum upside.
Last year, the buzz around artificial intelligence (AI) stocks was undeniable, with many companies enjoying soaring valuations. However, the landscape has shifted in the early months of 2025, as several top performers have seen their stock prices tumble. If you are keen on investing in AI stocks at more affordable prices, now is an opportune time to consider two standout companies.
Leading the pack is Nvidia (NASDAQ: NVDA), a name synonymous with the AI revolution. Nvidia specializes in producing graphics processing units (GPUs) that are essential for developing and running AI systems. Even though Nvidia’s stock price dipped nearly 20% since the start of the year, it still holds significant Market power with a dominance of around 90% in the data center GPU Market. The company’s ongoing growth is impressive, with projected sales increases of 57% this year and an additional 24% next year. For investors looking long-term, Nvidia remains a solid choice, offering a balance between established performance and potential for future growth.
On the flip side, smaller AI player SoundHound AI (NASDAQ: SOUN) presents an attractive investment for those seeking higher returns. Unlike Nvidia, SoundHound is more focused on creating AI sound services rather than producing hardware. With a business model that includes applications in customer service and automotive technology, SoundHound’s growth prospects are on the rise, with sales expected to jump over 166% next quarter. While the company faces competition from larger tech firms that are also investing in audio AI, its current Market cap of just $3.5 billion offers ample room for expansion.
Investing in both Nvidia and SoundHound can provide a balanced approach to tapping into the AI sector. Nvidia offers stability and long-term growth potential, while SoundHound provides the excitement of a high-risk, high-reward opportunity. Whether you’re looking to solidify your current investments or venture into AI for the first time, these two stocks could be the right fit for your portfolio.
Tags: AI Stocks, Nvidia, SoundHound AI, Investment Opportunities, Market Trends
FAQ about AI Stocks to Buy Before the Next Stock Market Swing
1. What are the two AI stocks to consider buying?
The two AI stocks to watch are NVIDIA and Alphabet. Both companies are leaders in artificial intelligence and show strong growth potential.
2. Why is investing in AI stocks a good idea now?
AI is becoming more important in many industries. Investing in AI stocks, like NVIDIA and Alphabet, can lead to potential gains as technology continues to evolve and expand.
3. What makes NVIDIA a strong choice for AI investments?
NVIDIA is known for its powerful graphics processing units (GPUs) that are essential for AI development. Their technology is used in gaming, data centers, and self-driving cars, making them a key player in the AI Market.
4. How does Alphabet fit into the AI picture?
Alphabet, the parent company of Google, invests heavily in AI research and development. Their use of AI in search engines, advertising, and cloud services positions them well for future growth.
5. Should I be worried about Market swings when investing in these stocks?
Market swings can happen, but both NVIDIA and Alphabet have solid business models and growth strategies. If you’re looking for long-term investments, these stocks may be worth considering despite short-term fluctuations.