3 Millionaire Artificial Intelligence (AI) Stocks

Nvidia has turned a $10,000 investment into $2.5 million over the past 10 years. This massive gain was largely driven by the rapid expansion of the artificial intelligence (AI) market, which led many companies to step up their purchases of enterprise data center graphics processing units (GPUs) to process complex applications of machine learning and AI.

Nvidia still has room to run, but it might be hard for the $2.9 trillion company to replicate those million dollar gains. Investors looking for higher earnings should look more closely at smaller AI companies that have higher growth potential.

These three small-cap AI stocks have a chance to generate millions in earnings over the next decade: SoundHound AI (SOUND 1.04%), Serve Robotics (SERV 5.65%)and Evolv Technologies (Hebrews -0.24%).

Image source: Getty Images.

Voice recognition game: SoundHound AI

SoundHound AI develops audio and speech recognition tools. Its eponymous app identifies songs by listening to a short clip or a few buzzed bars, and its Houndify developer platform is used to create custom voice recognition tools that don’t feed data to a tech giant like Alphabetto Google.

Automakers love it Hyundaismart TV manufacturers love it Visionand fast-food chains like Church’s Chicken already use Houndify to create voice recognition tools. Nvidia, which has a small stake in SoundHound, is also integrating Houndify services into its Drive platform for connected vehicles.

SoundHound went public through a merger with a special purpose acquisition company (SPAC) in 2022 and later expanded by acquiring restaurant technology companies SYNQ3 and Allset. It acquired enterprise AI software company Amelia and partnered with AI chatbot maker Perplexity to bolster its own large language models (LLM).

SoundHound’s revenue grew by 47% in both 2022 and 2023. Analysts expect its revenue to grow at a compound annual growth rate (CAGR) of 82% from 2023 to 2025 as it continues to gain new customers and grow their ecosystem. It’s still deeply unprofitable, and its stock isn’t cheap at 10 times next year’s sales, but it could evolve into a much bigger company in the next few years as the AI-powered voice recognition market takes off. expand.

The Automated Delivery Game: Serve Robotics

Serve Robotics makes autonomous sidewalk delivery robots powered by artificial intelligence. It was originally a unit of Postmates, which was bought by Uber in 2020. Uber later spun it off as a standalone company and went public in a reverse merger in April. Nvidia also acquired a 10% stake in the company earlier this year.

Serve’s main customer is still Uber Eats, and only 44 of its 100 active robots made daily deliveries in the LA area in the first half of 2024. But in 2025, it plans to ramp up production and deploy up to 2,000 robots in the US. for Uber.

Serve’s long-term business model is still untested, barely generating revenue and oozing red ink. Its stock also looks pretty expensive at 23 times next year’s sales.

But analysts expect its revenue to grow from $1.6 million this year to $60 million in 2025. It also could still have a lot more room to run if the company successfully expands its business, it attracts more customers and gradually replaces delivery drivers.

The AI-Based Security Game: Evolv Technologies

Evolv aims to replace traditional metal detectors with AI-powered screening systems that can scan people up to 10 times faster. Its systems can also monitor two people at once, and they don’t have to empty their pockets, remove their luggage, or even slow down.

Evolv went public through a reverse merger in 2021 and initially gained a lot of attention because it was backed by Bill Gates. It now serves more than 800 major clients — including schools, hospitals and major sports teams — and assesses more than 1 million people daily. It has more than 4,000 express units worldwide and detects more than 500 weapons every day. Store and analyze all this data with your own cloud-based service.

Evolv’s systems are much more expensive than metal detectors, but the growing threat of mass shootings could make them necessary security tools. Evolv is not yet profitable, but its revenue grew by 395% in 2021, 133% in 2022, and 46% in 2023. From 2023 to 2026, analysts expect its revenue to grow at a CAGR of 28%. Its stock still looks reasonably valued at 5x next year’s sales and could rise much higher as it replaces old metal detectors around the world.