2 AI stocks that could help you make a fortune

With every disruptive technology that emerges, there will be winners and losers. This is the case in the artificial intelligence (AI) market. The strong demand that some of these companies are seeing right now suggests that a lot of wealth will be created from AI adoption.

Here are two AI stocks with the potential to be on the winning side of the AI ​​revolution, and investors may want to buy and hold for potential monster returns.

1. Soundhound AI

One promising small-cap AI to bet on is Soundhound AI (SOUND -2.90%). Many companies in restaurants and, increasingly, the automotive industry are using conversational voice AI technology.

Taking orders at restaurants and giving orders to a car while driving are two areas that will clearly benefit from AI technology. All we have to do is look at Soundhound’s Q2 results. Revenue rose 54% from the year-ago quarter, with subscriptions and accrued bookings nearly doubling to $723 million.

Most of Soundhound’s growth is driven by restaurants, but it continues to gain traction in the automotive industry. Several European brands, including Alfa Romeo and Peugeot, are starting production with Soundhound Chat AI. The company also announced that a US electric vehicle manufacturer will soon begin production with Soundhound voice assistance technology across its entire fleet.

Soundhound isn’t resting on its laurels. It continues to look for new markets. On that note, the company recently acquired enterprise software company Amelia, which will expand its growth potential to other industries such as retail and financial services. Amelia will contribute more than $45 million in recurring software revenue, and management also expects the acquisition to benefit the company’s profitability in 2025.

Soundhound has yet to turn a profit, but given the company’s strategy of generating revenue from product royalties and subscriptions, the business should be very profitable going forward. By the time it reports a profit, the stock could trade significantly higher than it is now.

2. HubSpot

Another AI growth stock to buy is HubSpot (HUBS -1.52%). It sells a subscription-based, AI-powered platform that brings together all of a company’s data in one place. This makes teams get insights and act on leads much more efficiently. The company has consistently grown its revenue by more than 20% in recent years, but it’s still a relatively small company in a large and growing market.

HubSpot ended the second quarter with 228,000 customers, bringing its final revenue to $2.4 billion. It’s a small company in a growing $80 billion market, which shows its long-term potential to deliver massive returns to shareholders.

Now is a good time to buy the stock after it has fallen from recent highs. Investors are concerned about slowing growth in a difficult macroeconomic environment. Analysts expect full-year revenue to rise 18% year-over-year, which is in line with the previous pace.

However, HubSpot will continue to grow at high rates over the long term. It has a key advantage in using a freemium pricing model to allow small businesses to easily start using the product. In the long term, management’s strategy is to encourage companies to shift to premium services, and its year-to-date revenue growth points to a big opportunity.

In fact, HubSpot’s annual revenue is growing on a similar trajectory to that of the industry leader Salesforce in her early years of growth. Salesforce stock continued to deliver a 5,600% return for shareholders.

HubSpot’s price-to-sales ratio is currently 10.5, which is also a similar valuation to Salesforce’s stock 20 years ago. HubSpot should provide returns to investors on par with its future revenue growth rate, which indicates market returns.