The rise of artificial intelligence (AI) in 2024 has reshaped our world in ways previously confined to science fiction. Virtual assistants now handle complex customer service queries with human-like understanding, while AI-powered chips process vast amounts of data at unprecedented speeds. These technological breakthroughs have caught Wall Street's attention, driving the S&P 500's (^GSPC -1.11%) remarkable bull run since October 2022.
The economic impact of this AI revolution promises to be transformative. PwC projects AI will add $15.7 trillion to the global economy by 2030. This isn't just about chatbots and automation anymore. AI fundamentally transforms how businesses operate, from restaurants using voice AI to handle drive-thru orders to data centers requiring increasingly sophisticated chips to power their AI operations.
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Many investors have already profited from AI's meteoric rise through industry giants like Nvidia (NVDA -2.09%). However, the next wave of AI growth may come from companies that are only now beginning to flex their technological muscle. As we approach 2025, two companies stand out for their unique positions in the AI value chain, offering investors fresh opportunities to capitalize on this technological revolution.
Voice AI: The future of customer interaction
SoundHound AI (SOUN -1.16%) has quietly built an AI empire that's revolutionizing how businesses interact with customers. In November 2024, the company reported quarterly revenue of $25.1 million, representing an 89% year-over-year increase as more businesses adopt voice AI solutions.
What makes SoundHound AI particularly intriguing is its rapid transformation from an automotive-focused company to a diversified AI powerhouse. The company now serves seven of the top 20 global quick-service restaurant chains, with its AI handling everything from drive-thru orders to phone reservations. Its expansion into financial services, healthcare, and insurance demonstrates the universal appeal of its technology platform.
Major automotive manufacturers aren't being left behind. Stellantis has integrated SoundHound AI's technology across its luxury brands in Europe, while partnerships with next-generation vehicle manufacturers in the Middle East and India showcase global demand.
With the AI voice generators market projected to grow at nearly 30% annually through 2030, SoundHound AI's first-mover advantage and proven technology make it a compelling play for investors seeking exposure to the future of human-machine interaction.
Challenging the AI chip throne
Advanced Micro Devices (AMD) (AMD 0.10%) has emerged as the dark horse in the AI chip race, offering performance that rivals Nvidia to a degree at more attractive price points. The numbers tell the story: AMD's data center revenue soared to $3.5 billion in its latest quarter, marking a staggering 122% year-over-year leap.
The company's AI graphics processing units (GPUs) business has exploded from virtually nothing a year ago to over $1.5 billion in the most recent quarter. This growth stems in part from AMD's strategic partnership with Taiwan Semiconductor Manufacturing and its innovative chiplet manufacturing approach -- a combination that allows for rapid product development and competitive pricing.
The potential market opportunity is mind-boggling. Industry analysts project the AI accelerator market will reach $500 billion by 2028. While Nvidia currently dominates this space, customers and developers are actively seeking alternatives to prevent overreliance on a single supplier. AMD's competitive pricing, proven technology, and established reputation make it perfectly positioned to capture a significant share of this expanding market.
The investment case
The convergence of voice AI technology and semiconductor innovation represents two distinct paths to profit from the AI revolution. SoundHound AI offers pure-play exposure to the rapidly growing voice AI market, with its technology already proving transformative across multiple industries. Meanwhile, AMD provides investors access to the critical infrastructure powering the AI boom, with its competitive pricing strategy and technological capabilities challenging the status quo in AI chip manufacturing.
As we enter 2025, these companies represent more than just potential growth stories -- they're actively reshaping how businesses operate and interact with customers. For investors seeking to capitalize on the next wave of AI innovation, SoundHound AI and AMD offer compelling opportunities to participate in this technological revolution while it's still in its early stages. Their unique market positions, proven technology, and massive addressable markets create a powerful combination that could deliver substantial returns as the AI revolution continues to unfold.
