Forget SoundHound AI: 2 Artificial Intelligence (AI) Stocks to Buy Now and Hold for the Long Term
Since artificial intelligence's (AI) burst in popularity early last year, investors have been captivated by the potential for AI stocks to go parabolic. Take SoundHound AI for example. Since reports emerged in mid-February that Nvidia (NASDAQ: NVDA) owned a stake in the company, its stock has exploded higher, soaring as much as 295% in the weeks that followed.
However, investors should be careful, as following the herd can be costly. SoundHound AI has fallen out of favor with at least one formerly bullish analyst and has been the target of a short report that raises several valid concerns. Furthermore, SoundHound AI sells for 18 times next year's sales and, despite its impressive growth, has yet to generate a profit.
That's not to say this investment won't end up being a winner, but given the risky nature of this company, I would suggest investors forget SoundHound AI stock and look at these two AI leaders instead.
Source Fool.com
