2 Artificial Intelligence (AI) Stocks That Could Double by 2024

If you’re looking for big profits from AI, these two stocks could provide the answer.

Right now, many of the biggest winners in artificial intelligence are the most valuable companies in the world.

However, if you’re looking for stocks that could double this year, mega-cap names like Nvidia And Microsoft, who have already made big gains with AI, are not the best candidates. Adding more than $2 trillion or even $3 trillion in market cap in one year would be extremely difficult for even the best companies.

Instead, investors should look for smaller AI companies with high growth potential. Here are two.

1. SoundHound AI

For small capitalization AI stocks SoundHound AI (SOUND -7.31%) is a great place to start.

The company was an early adopter of artificial intelligence technologies and specializes in voice recognition and music and audio identification. SoundHound competes with Shazam, the popular song identification app, but its main business is licensing its technology for voice recognition systems in cars, restaurants, smart devices and other industries and products.

The company calls itself a leader in AI and has been in the spotlight since Nvidia revealed its stake in the company earlier this year. Many investors view this stance as an implicit endorsement of SoundHound’s technology.

SoundHound is still small, but it is growing quickly. The company reported fourth-quarter revenue of $17.1 million, up 80% year over year. It is also unprofitable, but is quickly moving towards the breakeven point. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter fell to $3.7 million from $18.8 million a year ago.

The company continues to sign up new customers, such as Stellantis, and a pilot is being tested with Peugeot, Opel and Vauxhall. In the restaurant industry, Jersey Mike’s have been added, Krispy Kremeand White Castle, among others.

SoundHound shares had already doubled earlier this year, but have since fallen more than 50% from their peak. But even from current levels, SoundHound looks like a good candidate to double again, as management expects revenue to rise another 50% this year, while adjusted EBITDA turns positive in 2025.

2. Roku

Roku (ROKU -3.05%) may not be considered an artificial intelligence stock, but the leading streaming distribution platform is embracing the new technology. Its position as a hub for digital advertising, entertainment recommendations, and digital devices obviously makes it a good candidate for AI.

Earlier this year, Roku announced a new set of AI-powered features called Smart Picture for its Roku-branded TVs that will adjust the picture based on the backlight, color, and other content on the screen.

Roku also uses AI and machine learning to improve ad targeting, so viewers see more relevant ads and maximize reach. Advertisers can better control the number of ads they show to their target audiences, giving them more control over their spend and budget. Similar to how streaming services find that Netflix use AI for recommendations, Roku also uses it to help users find shows to watch, and the interface viewers interact with is largely powered by machine learning.

Like SoundHound, Roku seems like a good candidate to double down this year. The stock tumbled after its fourth-quarter earnings report as expectations were slightly weaker than expected. The company also cited challenges in its core media and entertainment vertical, as some of its streaming partners continue to struggle to turn a profit.

However, demand for digital advertising is rebounding after a lull in 2022 and 2023, and Roku’s audience continues to grow rapidly. With the added benefit of AI technologies, the company’s margins should also rise, lifting the stock out of its current doldrums.

Roku shares are trading at almost half of where they were in November 2023. A return to that previous level by the end of this year is certainly within reach for streaming stocks.

Jeremy Bowman has positions in Netflix and Roku. The Motley Fool holds positions in and recommends Microsoft, Netflix, Nvidia, and Roku. The Motley Fool recommends Stellantis and recommends the following options: long January 2026 $395 calls at Microsoft and short January 2026 $405 calls at Microsoft. The Motley Fool has a disclosure policy.