The two undervalued stocks to buy for 2024

Artificial intelligence is one of the fastest-growing sectors in the world right now.

The AI boom has rocked the stock market to its core, and AI stocks are among the hottest stocks on the market. Since AI stocks are in hot demand, investors are having difficulty identifying the diamonds in the rough.

• AI stocks have captured the attention of investors and catapulted to the top of the stock market in the past year.
• UiPath is a major player in the robotics process automation sector and is having its best year yet on the stock market.
• SoundHound AI develops AI-powered products and services. The entertainment industry is a billion-dollar industry, which could directly impact the price action of the stock.

It’s pretty obvious that AI is the next big thing, and any serious investor ought to possess one or two stocks in that industry. Joel Lim, a financial analyst at Trading.biz, has identified two undervalued AI stocks that he believes could yield massive returns. Here’s why you should buy UiPath and SoundHound AI.

UiPath

Innovators are sure winners in the stock market, another reason why UiPath is an underrated gem that investors should not miss out on.

Although Robotics Process Automation (RPA) is a nascent industry, many companies are finding success by combining it with AI. The combination of these two technologies has catapulted the sector to greater heights, and it is now one of the most exciting sub-industries within the Artificial Intelligence landscape.

This success is imminent in the growth and development of some leading RPA companies, such as UiPath. In the last quarter of 2023, UiPath recorded an annual recurring revenue (ARR) of $1.46 billion, a 22% increase from what it had generated just the previous year.

This figure is not only a testament to the company’s growth and demand for its products, but it is also indicative of the efficiency of its business model. UiPath runs a subscription-based model that is recording massive success in the market.

Joel Lim notes, “UiPath is an innovator in a fast-growing sector. This is its biggest strength and will ensure that it wins big in the market.”

SoundHound AI

SoundHound AI is one of the companies innovating within the intersection of AI and entertainment. Thanks to this, the company has quickly gained a diverse clientele from hospitals to data centres and even automobiles. Mercedes-Benz, Netflix, and Mastercard are examples of the calibre of companies with which SoundHound AI works.

Its massive growth over the last few months indicates how profitable the stock is. SoundHound AI has recorded a 200% gain in the previous six months, which could increase significantly due to the current AI stock boom. Furthermore, several leading AI companies, such as Nvidia, are also interested in SoundHound AI. The AI giant owns over 1.7 million shares in SoundHound, another indication that the stock is an underrated gem waiting to explode in the stock market.

Joel Lim notes, “AI penny stocks are in demand now, and there is no greater value and potential than SoundHound AI.”