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Sustained, long-term earnings per share growth is the ultimate driver for growth stocks. The best way to profit and benefit from earnings growth is to search for a new technology at the beginning of its mega-trend. Innovation and industry disruption lead to earnings growth and sustained investment. Throughout history, major technological shifts like the railroad, automobile, and internet have led to the biggest winning stocks. For these reasons, investors should focus on the blossoming artificial intelligence (AI) revolution.
AI Growth Projections
According to data from Statista, the worldwide AI market size is $184 billion. With AI-related companies like Nvidia ((NVDA - Free Report) ) up some 2,778% over the past five years, investors may feel like they missed the move in AI. However, the data contradicts this line of thinking. History teaches us that major technological shifts play out over years, not months (the internet revolution is still playing out, for example). Analysts agree. Over the next six years, the global AI market is set to grow from $184 billion to $826 billion.
Image Source: Zacks Investment Research
Obscure AI Stocks Set to Soar
Because building a large language model (LLM) like ChatGPT is so capital intensive, mainly large-cap cash-rich stocks like Microsoft ((MSFT - Free Report) ) and Alphabet ((GOOGL - Free Report) ) have benefitted thus far. However, recently, a few smaller, more obscure AI names have appeared on my radar. Because these stocks are unknown and have a very small market cap, their potential is much higher than that of the well-known names.
Below are my top 3 obscure AI names to watch:
CXApp
CXApp ((CXAI) ) is an AI-powered software company that empowers businesses to manage their workplaces more effectively. The CXApp allows employees to book office space, communicate with colleagues, manage events, and organize the office culture.
CXAI Inks Deal with Google Cloud
Last night, CXAI announced a strategic partnership with Google Cloud to move towards an “AI-native SaaS model.” The news is important for two reasons:
1. Google is a leader in the cloud space.
2. CXAI has a float of just 7.9 million shares.
Though the stock is up more than 100% today, a landmark deal coupled with a tiny float is a recipe for a longer-term move.
AudioEye
AudioEye ((AEYE - Free Report) ) is an AI player that has found its niche, helping companies serve people with disabilities. AEYE’s AI technology makes websites reachable to people with disabilities, including those with vision impairments or other challenges.
Nvidia Deal
AEYE recently inked a deal with AI leader Nvidia for its LiDAR technology for autonomous vehicles. Unlike most small AI names, AEYE has performed well over the past year and is up a robust 363%. Furthermore, AEYE is already profitable and the stock is finding buyers off the 10-week moving average – a bullish sign.
Image Source: TradingView
SoundHound AI
Speaking of Nvidia, SoundHound AI ((SOUN - Free Report) ) garnered attention after Nvidia disclosed a stake in the company. SoundHound leverages AI to help devices understand and respond to both music and voice commands.
SoundHound’s Strategic Partnership with Perplexity
SoundHound recently inked a deal with LLM leader Perplexity. Perplexity is one of the fastest-growing LLMs and already has a valuation of more than $3 billion (Perplexity launched in 2022). SOUN’s strategic partnerships are already bearing fruit. Zacks Consensus Estimates suggest revenue will grow at a scorching 70% or more clip into 2025.
Image Source: Zacks Investment Research
Bottom Line
The AI revolution is still in the early innings. Three obscure, AI-related companies have multi-bag potential in the coming years.
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CXAI Surges 100% (3 Obscure AI Stocks to Watch)
Sustained, long-term earnings per share growth is the ultimate driver for growth stocks. The best way to profit and benefit from earnings growth is to search for a new technology at the beginning of its mega-trend. Innovation and industry disruption lead to earnings growth and sustained investment. Throughout history, major technological shifts like the railroad, automobile, and internet have led to the biggest winning stocks. For these reasons, investors should focus on the blossoming artificial intelligence (AI) revolution.
AI Growth Projections
According to data from Statista, the worldwide AI market size is $184 billion. With AI-related companies like Nvidia ((NVDA - Free Report) ) up some 2,778% over the past five years, investors may feel like they missed the move in AI. However, the data contradicts this line of thinking. History teaches us that major technological shifts play out over years, not months (the internet revolution is still playing out, for example). Analysts agree. Over the next six years, the global AI market is set to grow from $184 billion to $826 billion.
Image Source: Zacks Investment Research
Obscure AI Stocks Set to Soar
Because building a large language model (LLM) like ChatGPT is so capital intensive, mainly large-cap cash-rich stocks like Microsoft ((MSFT - Free Report) ) and Alphabet ((GOOGL - Free Report) ) have benefitted thus far. However, recently, a few smaller, more obscure AI names have appeared on my radar. Because these stocks are unknown and have a very small market cap, their potential is much higher than that of the well-known names.
Below are my top 3 obscure AI names to watch:
CXApp
CXApp ((CXAI) ) is an AI-powered software company that empowers businesses to manage their workplaces more effectively. The CXApp allows employees to book office space, communicate with colleagues, manage events, and organize the office culture.
CXAI Inks Deal with Google Cloud
Last night, CXAI announced a strategic partnership with Google Cloud to move towards an “AI-native SaaS model.” The news is important for two reasons:
1. Google is a leader in the cloud space.
2. CXAI has a float of just 7.9 million shares.
Though the stock is up more than 100% today, a landmark deal coupled with a tiny float is a recipe for a longer-term move.
AudioEye
AudioEye ((AEYE - Free Report) ) is an AI player that has found its niche, helping companies serve people with disabilities. AEYE’s AI technology makes websites reachable to people with disabilities, including those with vision impairments or other challenges.
Nvidia Deal
AEYE recently inked a deal with AI leader Nvidia for its LiDAR technology for autonomous vehicles. Unlike most small AI names, AEYE has performed well over the past year and is up a robust 363%. Furthermore, AEYE is already profitable and the stock is finding buyers off the 10-week moving average – a bullish sign.
Image Source: TradingView
SoundHound AI
Speaking of Nvidia, SoundHound AI ((SOUN - Free Report) ) garnered attention after Nvidia disclosed a stake in the company. SoundHound leverages AI to help devices understand and respond to both music and voice commands.
SoundHound’s Strategic Partnership with Perplexity
SoundHound recently inked a deal with LLM leader Perplexity. Perplexity is one of the fastest-growing LLMs and already has a valuation of more than $3 billion (Perplexity launched in 2022). SOUN’s strategic partnerships are already bearing fruit. Zacks Consensus Estimates suggest revenue will grow at a scorching 70% or more clip into 2025.
Image Source: Zacks Investment Research
Bottom Line
The AI revolution is still in the early innings. Three obscure, AI-related companies have multi-bag potential in the coming years.