AI technology is rapidly reshaping industries, and it’s poised to continue its explosive growth. If you’re looking for stocks that could lead to massive returns in the next 20 years, AI stocks are where the smart money is heading. The global AI market is expected to surge from $184 billion in 2024 to $826 billion by 2030. That’s an incredible opportunity for long-term investors. In this post, we’ll explore two AI stocks that could deliver massive gains over the next two decades.
Why AI Stocks Are a Long-Term Investment Opportunity
Over the past 20 years, certain sectors have produced market-moving growth stocks. E-commerce, streaming, and electric vehicles have all redefined markets and created monumental wealth for early investors. The next big wave? Artificial Intelligence (AI).
AI isn’t just a trend; it’s a technological revolution. As AI continues to enhance sectors like healthcare, finance, retail, and more, companies leveraging AI technology stand to gain enormous market share. Two such companies that are well-positioned to capitalize on this growth are SoundHound AI and Advanced Micro Devices (AMD).
1. SoundHound AI (NASDAQ: SOUN) – The Voice of the Future
SoundHound AI is an emerging leader in the AI-powered voice assistant market. With a growing demand for customer service automation, smart ordering, and other applications across industries, SoundHound is poised for significant growth.
What Makes SoundHound AI a Strong Investment?
-
Explosive Revenue Growth: SoundHound’s revenue has skyrocketed by 89% year-over-year in Q3, with a strong foundation already laid in sectors like automotive and restaurants. The company’s third-quarter revenue reached $67 million, which represents just the beginning of its growth potential.
-
Diversification into New Markets: Initially focused on automotive and hospitality, SoundHound is expanding into healthcare, banking, retail, and more. This expansion will broaden its market reach and help the company scale its operations, improving margins along the way.
-
Strategic Partnerships: SoundHound is collaborating with top-tier tech companies like Nvidia, Samsung, and Oracle. These partnerships validate the company’s technology and open doors to new opportunities across industries.
-
Path to Profitability: While SoundHound is not yet profitable, this is common for tech companies in the growth phase. With a focus on achieving positive EBITDA by the end of 2025, SoundHound is on track to deliver substantial returns as it moves toward profitability.
2. Advanced Micro Devices (NASDAQ: AMD) – Dominating the AI Chip Market
Advanced Micro Devices (AMD) has been on a tear in recent years, tripling its stock price over the past five years. The company’s success comes from its leadership in producing central processing units (CPUs) and graphics processing units (GPUs). As AI technology continues to expand, AMD’s data center business—especially its GPUs—will be critical for powering the AI revolution.
Why AMD Is a Must-Have AI Stock
-
Explosive Data Center Growth: AMD’s data center revenue jumped a staggering 122% in Q3 to $3.5 billion, driven by strong demand for its Instinct family of GPUs. These chips are essential for training AI models, making them indispensable in the AI ecosystem.
-
Massive Market Potential: AMD’s market for AI accelerators in data centers is forecasted to grow from $45 billion in 2023 to $500 billion by 2028. As AI adoption increases, AMD is in the perfect position to capitalize on the growing demand for chips that power AI workloads.
-
Gaining Market Share: AMD is rapidly gaining market share from its competitors like Intel in the CPU space. The rise of AI, which requires powerful GPUs, has shifted the advantage to companies like AMD, which specialise in building GPUs designed for AI workloads.
-
Attractive Valuation: Despite AMD’s success, its stock is currently 33% off its recent high, presenting an attractive buying opportunity. As the demand for AI chips soars, AMD is well-positioned for substantial growth, and now may be the perfect time to invest before the stock price moves higher.
Why Now Is the Perfect Time to Buy AI Stocks
With the AI industry poised to experience rapid growth, buying stocks like SoundHound AI and Advanced Micro Devices now could position you for massive long-term returns. If you’re looking for companies that are primed to benefit from the AI revolution over the next two decades, these two stocks should be at the top of your list.
Key Considerations for Investing in AI Stocks
Before jumping in, here are a few things to consider when investing in these AI stocks:
-
Volatility: The tech sector, especially AI stocks, can be volatile. Be prepared for some ups and downs, especially with companies like SoundHound, which is still in the early stages of scaling.
-
Growth Potential: Both SoundHound and AMD are investing heavily in innovation, and their long-term growth potential is substantial. However, there are no guarantees in the stock market, so be sure to do your own research.
-
Market Timing: While it may be tempting to wait for the perfect entry point, the AI sector is moving fast. Investing now, while stocks are still relatively affordable, gives you the potential for significant returns over the long term.
Conclusion: The AI Stocks to Buy and Hold for the Next 20 Years
In a rapidly evolving technological landscape, SoundHound AI and Advanced Micro Devices stand out as top contenders for long-term growth. These companies are at the forefront of the AI revolution, and their respective products are critical for the future of AI technology. Whether it’s powering AI voice assistants or providing the chips that drive AI models, both stocks have the potential to deliver massive returns over the next two decades.
If you’re looking for AI stocks to buy and hold, these two companies should be on your radar. Their innovations, market leadership, and potential for growth make them prime candidates for investors seeking to capitalise on the AI boom.
Photo credit:
